In January 2016 the Department of Urban Housing and Urban Development announced $ 48 million in federal grants to help the Isle de Jean Charles community, Louisiana. Today these people are taken into account America’s first “climate refugees” and research suggests that they are far from the last.
Two years later, experts expected in a study published in the Journal of the Association of Environmental and Resource Economists Every twelfth American will move from the south towards California, the mountain west, or the northwest over the next 45 years due to climate change. For these future residents, moving is just an alternative, replacing the challenges ahead with a greater possibility of security. However, the pressures of one region do not negate the challenges of another.
Whether you’re moving because of climate change, a career opportunity, retirement, or a “fresh start,” moving involves a variety of adjustments. Before you head out, there are several financial details worth investigating and one often forgotten factor is the wide range of coast-to-coast homeowner insurance costs.
How much do homeowner insurance costs vary by state?
According to PolicygeniusNational Average Annual Homeowner Insurance Premium is $ 1,211;; However, depending on where you live, this number can fluctuate by hundreds of dollars.
One of the main reasons for such significant gaps in insurance premiums from state to state is simple geography. In short, the most expensive states in the country in terms of homeowner insurance are also extremely vulnerable to natural disasters.
Tornado Alleyrefers, for example, to a region in the heart of America with a “disproportionately high frequency of tornadoes”. This region includes parts of Texas, Oklahoma, and Kansas, three of the five most expensive states in the country as measured by homeowner insurance.
On the flip side, areas like the west are much less at risk from natural disasters, and insurance costs reflect that reality. In fact, the top four states in the country for the cheapest homeowner insurance policies are all located in the west of the country, including Oregon, Utah, Idaho, and Nevada.
Check out the table below to see how insurance costs in your state compare to the rest of the country.
|Regions||States included||Prices vs. National Average ($ 1,211)||Region in detail|
|Northeast||Maine, Massachusetts, Rhode Island, Connecticut, New Hampshire, Vermont, New York, Pennsylvania, New Jersey, Delaware, Maryland||Average||The Northeast is a bit of a mixed bag when it comes to homeowner insurance rates. The guidelines in these states range from about $ 300 more or less than the national average, with Maine at the bottom ($ 882) and Rhode Island at the top ($ 1,551).|
|South east||West Virginia, Virginia, Kentucky, Tennessee, North Carolina, South Carolina, Georgia, Alabama, Mississippi, Arkansas, Louisiana, Florida||Above average||The vast majority of the southeast is in above average area, and the further south you travel the higher the prices. Most of the states in this region have rates between $ 1,000 and $ 1,500, but some cross the $ 1,500 mark, like Louisiana (America’s most expensive state for homeowner insurance) and Florida, both of which have average rates of over 1,900 US dollars.|
|Middle West||Ohio, Indiana, Michigan, Illinois, Missouri, Wisconsin, Minnesota, Iowa, Kansas, Nebraska, South Dakota, North Dakota||Average||With the exception of a few particularly fortunate states like Wisconsin ($ 779) and Ohio ($ 862), most of the Midwest has relatively average homeowner insurance rates. However, Kansas and Nebraska live on Tornado Alley, and their rates reflect the risks involved ($ 1,584 and $ 1,481, respectively).|
|southwest||Texas, Oklahoma, New Mexico, Arizona||Above average||The Southwest is home to two of the most expensive states in the country by homeowner insurance. Texas ranks second with rates around $ 1,893, and Oklahoma is just behind at $ 1,885. Meanwhile, Arizona and New Mexico are a little happier with below-average rates of $ 825 and $ 1,017, respectively.|
|west||Colorado, Wyoming, Montana, Idaho, Washington, Oregon, Utah, Nevada, California, Alaska, Hawaii||Below average||The west has the cheapest homeowner insurance rates in the country, with most states being less than $ 1,000. In fact, Colorado is the only state in this region with an above-average homeowner insurance rate of $ 1,495. Oregon, on the other hand, is the cheapest in America at just $ 677.|
What other factors affect the cost of homeowner insurance?
Each state certainly has its own homeowner insurance cost, but your unique premium is based on a variety of factors.
The kind of home you own
First of all, Your homeowner’s insurance premium will depend on the size, age, and condition of your unique home. A certified appraiser can give you an estimate Replacement costsThis explains the likely cost of rebuilding your home from scratch – or replacing stolen items. A larger home will likely produce a higher replacement value, but older homes will do the same as repairs in older properties are often more expensive.
Keep in mind The replacement cost for your home is up Not the same as its market value. The replacement cost is based on construction and labor costs and the price of the building materials required.
The amount of coverage you’re looking for
Your premium will also change depending on the coverage you want and the deductible you have selected. For example, some homeowners prefer $ 300,000 liability insurance, while others feel that $ 100,000 will be enough. In the same way, Standard deductibles can be $ 500 or up to $ 2,000and whatever you choose will affect your monthly payment.
Homeowner insurance costs also fluctuate based on your personal information. Details such as your credit history can play an important role in the price you have quoted for coverage. Even so, you may still be eligible for discounts. So ask your insurance agent what types of offers may apply to you and your home.
Another factor that can affect your homeowner’s insurance premium is the provider you choose. Insurance companies consider a variety of factors and use different formulas and processes to determine reasonable costs for coverage. Therefore, it is important that you do your research and compare offers from different providers before making your selection.
How do you research homeowner insurance costs in your state?
Check out independent resources such as to help determine homeowner insurance costs in your state Policy genius and The young Alfred.
After answering a few simple questions about your home and finances, Policy genius offers you a list of personalized offers from top insurance companies. The process only takes a few minutes, so you can find the best deal quickly! If you want to compare information on other types of insurance – including life insurance, auto insurance, and even pet insurance – Policy genius is an excellent place to get started!
The young Alfred offers a similar service, but the application process is a bit more thorough and the results are a bit narrower. Once you’ve submitted your answers, The young Alfred compiles the information and delivers a list of selected results to your inbox in a few hours. It may take a little longer than Policy genius to get your offers, however The young Alfred works with more than 40 top insurance agencies. So don’t worry about missing out on a great deal!
What factors can make high homeowner insurance costs worth it?
Louisiana citizens are not the only ones affected by climate change. After Hurricane Maria more than 150,000 Puerto Ricans moved to the United States. When the temperatures rise in Central America Honduran farmers had to move to new regions such as Mexico and Texas. To top it off, research suggests these trends will only intensify in the coming decades as natural disasters continue to rock the country and the world.
Climate change has just given us a taste of the world, and the high rates insurance companies are charging residents to live in these regions show they are preparing for the worst. Even so, millions of Americans will remain in their southern states, and this begs the question: What’s keeping them close?
There’s a reason places like Hawaii are ideal vacation spots. It’s that sweet, sweet sunshine.
My husband and I live in Oregon and each winter we plan to flee south when the weather is warmer. Southern states like Florida and Texas are among the warmest in the countrywith average temperatures of 65 ° or higher. Unsurprisingly, both states have impressive numbers in the tourism industry as well. In 2018 Florida brought in $ 112 billion in tourism revenue, and Texas took the lead, generating approximately $ 164 billion in revenue.
There is no denying that homeowner insurance rates are high in the south, but these states offer some economic benefits as well.
In Louisiana, for example, homeowner insurance costs are more expensive than any other state, But property taxes are among the lowest in the nation at just 2.06%. Similarly, residents of Texas and Florida may pay $ 600 more than the national average for homeowner insurance, but they also don’t pay income taxes.
And while the average insurance rate in Oklahoma is one of the highest in the nation, the total tax burden in the state – including real estate, income, sales, and excise taxes – is one of the best at just 6.94% of a resident’s personal income.
Low cost of living
Southern states can offer more than attractive tax breaks. The cost of living in the south is generally much cheaper than in the rest of the country. Indeed after the Missouri Economic Research and Information Center (MERIC), The three states with the lowest cost of living index are Mississippi, Oklahoma, and Arkansas.
The cost of living in a state affects a wide variety of expenses, from transportation to housing, and these numbers vary wildly from state to state. For example, in Washington the median list price per square foot is $ 242; in Oklahoma, you pay less than half the cost at just $ 106 per square foot. Despite these numbers Oklahoma may pay twice as much for homeowner insurance (average price $ 1,885) than Washington (average price $ 854)..
It’s easy to see why experts believe climate change will spur so many steps north in the future. It also makes sense why states that are more likely to have natural disasters charge higher insurance premiums from homeowners. However, for a homeowner, money is not everything, and the struggles of one state can seem beneficial to another.
Before looking at affordable insurance plans in a neighboring state, you should research other financial factors such as tax burdens and the cost of living. Your house may have advantages of its own!
Regardless of where you live, homeowner insurers vary in practice and cost. Use free, independent resources like Policy genius and The young Alfred to compare offers from top providers and make sure you are getting the best prices.