Home Insurance is 7 Times More Expensive in Midwestern States

PR Newswire

TAMPA, Fla., Nov. 3, 2022 /PRNewswire/ -- A recent Clearsurance.com national home insurance study revealed that the policyholder's state makes one of the most significant differences in premiums. The inland states tend to have higher rates than those on both coasts.

Clearsurance.com's home insurance study revealed that a policyholder's state greatly affects premiums.

Kansas's average rates for a $200,000 home are higher than any other state. The following comprise the top 10 list of states with the most expensive annual home insurance premiums for a $200,000 house:

Kansas – $2615
Oklahoma – $2,321
Nebraska – $2,198
Colorado – $2,157
Texas – $1,892
Tennessee – $1,880
Arkansas – $1,823
Montana – $1,766
Missouri – $1,755
Louisiana – $1,736

The least expensive states for home insurance are Hawaii ($327), Vermont ($428), and New Hampshire ($607).

Several states on the list of most expensive home insurance are in the midwest. One contributing factor is that some of the most significant risks on the southeastern coast are flood damage from hurricanes and tropical storms. On the west coast, earthquakes pose a significant risk of causing home damage.

Standard home insurance covers neither of those events. Flood and earthquake insurance are separate policies for homeowners in at-risk regions. One of the risks of living in the midwest is damage from tornados, and standard home insurance policies cover that kind of damage. The increased risk contributes to higher home insurance rates.

Clearsurance.com provides the following tips for getting the best rates on home insurance.

Bundle your home insurance with an auto insurance policy.
Raise your home insurance deductible.
Consider changing your level of coverage.
Install home safety features in your house.
If you've been claim-free, shop for a good deal.

When comparing insurance providers and their average rates across the U.S., Clearsurance.com discovered that Nationwide offered the best average rates for a $200,000 house while State Farm had the lowest rates for a $400,000 home.

Melanie Musson, a nationally recognized home insurance expert with Clearsurance.com, explains, "Home insurance rates are very competitive between providers. An individual's risk profile, including where they live, has a greater effect on the price. Comparing rates between several companies is the best way to find an insurer with the most affordable premiums."

Read the entire state-by-state insurance provider analysis here: The Cheapest (and Best) Homeowners Insurance Companies in 2022 with Customer Ratings.

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