Your home is a valuable asset, and with home prices reaching record highs in 2024, it’s more important than ever to safeguard it. Homeowners insurance protects your property from unforeseen events like fire, theft, and vandalism. It’s important to note that separate policies are needed for flood and earthquake damage.

According to, the average annual cost of homeowners insurance is $2,601 for a $300,000 dwelling with standard liability coverage and a $1,000 deductible. The cost varies depending on location. States like Oklahoma, Kansas, Nebraska, Florida, and Colorado are more expensive due to their susceptibility to natural disasters. Conversely, Hawaii, New Hampshire, Vermont, Oregon, and Delaware have lower premiums because they face fewer natural disasters (although standard policies in Hawaii exclude hurricane damage).

Even if you haven’t filed a claim, your homeowners insurance premium may have increased this year. This can be attributed to the growing frequency of natural disasters and rising repair costs.

Home Insurance Cost

Several factors influence your home insurance premium, including:

Location: Where your home is located significantly impacts the cost. Areas prone to disasters will have higher premiums.

Construction materials: Homes built with concrete are generally cheaper to insure than those with wood frames because they’re more resistant to fire and strong winds.

Age of your home: Older homes with outdated electrical and plumbing systems pose a higher risk and come with higher premiums. Newer homes with modern materials typically have lower premiums.
Crime rates: Insurance companies consider crime rates in your area to assess the likelihood of theft or vandalism claims.

Distance to emergency services: Homes closer to fire hydrants and fire stations generally have lower premiums due to easier access for emergency responders.

Saving on Homeowners Insurance

Here are a few suggestions that may help reduce your homeowners insurance cost:

Shop around: Get quotes from multiple reputable insurance companies to help you get the best deal. Make sure you’re comparing similar coverage limits and deductibles.

Raise your deductible: A higher deductible lowers your premium. Keep enough savings in your emergency fund to cover a claim.

Bundle your policies: Many insurance companies offer discounts if you bundle your homeowners insurance with other policies like auto or life insurance.

Install security systems: Upgrading your home security system or installing additional safety features like reinforced locks can help qualify you for discounts.

Maintain good credit: Insurance companies use a credit-based insurance score similar to your FICO score, but they also consider your history of filing claims. Those with good credit and a clean claims history typically pay less for coverage. Building good credit takes time, but it can save you money on insurance in the long run.

Protecting Your Investment

Homeowners insurance is an essential part of protecting your investment. Understanding the factors that affect your premium and taking steps to reduce costs can help adequately cover your home without breaking the bank.

This is intended for informational purposes only. You should not assume that any discussion or information contained in this document serves as the receipt of, or as a substitute for, personalized investment advice from Savant. Please consult your investment professional regarding your unique situation.

Author Jonathon D. Merickel Portfolio Advisor

Jonathon has been involved in the financial services industry since 2002. He earned a bachelor of science degree from Syracuse University and an MBA from Le Moyne College.

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