A national home insurance study conducted by insurance marketplace Clearsurance has found that a policyholder’s state makes all the difference when it comes to pricing.
The report found that some of the top US states in terms of home insurance prices are located in the Midwest. Among those US Midwest states, Kansas takes the top spot for the priciest state, with an average rate of $2,615 for a $200,000 home.
Clearsurance’s full list of the top 10 most expensive states for insuring a $200,000 home and their average rates goes:
- Kansas – $2,615
- 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
By comparison, the top three least expensive US states to insure a $200,000 home are Hawaii ($327), Vermont ($428), and New Hampshire ($607). It was noted that homeowners in Kansas pay as much as seven times more for home insurance than Hawaii homeowners.
According to Clearsurance, the Midwest states have some of the priciest home insurance rates in America due to several factors. One such factor is the region’s exposure to tornadoes. While standard home insurance policies cover damage caused by tornadoes, the increased risk leads to higher home insurance rates.
Severe weather events and the risk of catastrophes are also responsible for driving up rates in other parts of the country, the report noted. In the southeastern coast, flood damage from hurricanes and tropical storms is responsible for costly claims, in turn leading to higher rates. While on the west coast, the threat of earthquakes has kept rates high in certain parts. Unfortunately, standard homeowners insurance does not typically cover flood or earthquake damage.
In terms of individual insurance companies and which offers the best rates, Clearsurance found that Nationwide offered the best average rates across the US for a $200,000 house, while State Farm had the lowest rates for a $400,000 house.
"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,” said Clearsurance insurance expert Melanie Musson.