The State of Home Insurance in 2022
Home insurance is in the middle of a major change: one that could leave potentially millions of Americans underinsured. Premiums are up as much as 34% in some states. And a sudden rise in both home prices and materials costs has created a situation where many people’s policies may no longer fully cover their home.
The changing price of home insurance
Up, down or exactly the same, depending on where you live, your home insurance premium may have changed significantly since 2021. Nationwide, home insurance premiums are up 2%. Some states, however, have seen prices change by more than 30%.
States in the midwest and south pay the most for home insurance. At nearly $3,800 a year, Oklahoma pays the most for home insurance. Followed closely by Texas, Nebraska and Kansas. Hawaii has the cheapest home insurance by far, the average price in the Aloha state is just over $400.
increase
Idaho had the largest increase in home insurance premiums at 34%.
decrease
Kentucky experienced the largest decrease in home insurance premiums at -25%.
| State | 2021 Rates | 2022 Rates | % change |
|---|---|---|---|
| Alabama | $2,100 | $2,051 | -2% |
| Alaska | $1,140 | $1,175 | 3% |
| Arizona | $1,453 | $1,397 | -4% |
| Arkansas | $2,402 | $2,447 | 2% |
| California | $1,018 | $934 | -8% |
| Colorado | $2,532 | $2,832 | 12% |
| Connecticut | $1,579 | $1,729 | 9% |
| Delaware | $882 | $907 | 3% |
| Florida | $2,595 | $2,414 | -7% |
| Georgia | $1,855 | $1,875 | 1% |
| Hawaii | $466 | $412 | -12% |
| Idaho | $1,060 | $1,418 | 34% |
| Illinois | $1,596 | $1,708 | 7% |
| Indiana | $1,587 | $1,672 | 5% |
| Iowa | $1,779 | $1,909 | 7% |
| Kansas | $2,947 | $3,417 | 16% |
| Kentucky | $3,212 | $2,415 | -25% |
| Louisiana | $2,505 | $2,390 | -5% |
| Maine | $1,110 | $1,027 | -7% |
| Maryland | $1,140 | $1,171 | 3% |
| Massachusetts | $1,281 | $1,159 | -10% |
| Michigan | $1,710 | $1,547 | -10% |
| Minnesota | $2,087 | $2,008 | -4% |
| Mississippi | $3,417 | $2,912 | -15% |
| Missouri | $2,251 | $2,714 | 21% |
| Montana | $2,245 | $1,976 | -12% |
| Nebraska | $3,241 | $3,552 | 10% |
| Nevada | $915 | $995 | 9% |
| New Hampshire | $839 | $911 | 9% |
| New Jersey | $963 | $947 | -2% |
| New Mexico | $1,839 | $2,071 | 13% |
| New York | $1,114 | $1,142 | 3% |
| North Carolina | $1,869 | $1,803 | -4% |
| North Dakota | $1,870 | $1,822 | -3% |
| Ohio | $1,211 | $1,224 | 1% |
| Oklahoma | $3,645 | $3,735 | 2% |
| Oregon | $1,023 | $1,105 | 8% |
| Pennsylvania | $1,042 | $1,041 | 0% |
| Rhode Island | $1,503 | $1,236 | -18% |
| South Carolina | $2,048 | $2,493 | 22% |
| South Dakota | $2,312 | $2,377 | 3% |
| Tennessee | $1,868 | $2,079 | 11% |
| Texas | $3,431 | $3,626 | 6% |
| Utah | $896 | $926 | 3% |
| Vermont | $874 | $963 | 10% |
| Virginia | $1,136 | $1,268 | 12% |
| Washington | $920 | $924 | 0% |
| West Virginia | $1,503 | $1,483 | -1% |
| Wisconsin | $1,240 | $1,304 | 5% |
| Wyoming | $1,502 | $1,638 | 9% |
Saving money by shopping around
Shopping around is critical when it comes to home insurance. Our team of analysts found that the price of the exact same home insurance plan can vary by as much as $2,000 depending on the insurance carrier. That’s because different insurance companies use a wide variety of factors when pricing insurance.
Home Insurance Nationwide Average $1,766
Click on the map below to see how your state compares
Average price includes all insurance plans available in the state.
Click on the map below to see how your state compares
Average price includes all insurance plans available in the state.
Most common type of home insurance claims
Home insurance protects people against both property damage and liability claims but property damage claims are more common by far. Only 3% of homeowners claims are liability claims, the other 97% are for property damage. Wind and hail are the most common type of property damage claim, followed by water damage and fire and lightning.
Wind and hail
% of claims
34%
Average cost
$10,900
Water Damage
% of claims
29%
Average cost
$11,000
Fire and lightning
% of claims
25%
Average cost
$78,000
Other property damage
% of claims
7%
Average cost
$6,400
Liability
% of claims
3%
Average cost
$22,400
Theft
% of claims
1%
Average cost
$4,300
Average home insurance cost by carrier
When it comes to home insurance, there are about a dozen major carriers nationwide. Our team of analysts found that Chubb Limited, USAA and Amica are the cheapest at around $1,600 on average. However, every insurance plan depends heavily on where you live. For example, Allstate is the cheapest provider in Alabama but the most expensive carrier in Maine.
Most of the major carriers have gotten cheaper in the last year. The average price for Travelers insurance dropped by more than 20%, followed by 18% for Chubb and 10% for Farmers. Nationwide and American Family experienced the largest average price increase at around 8%. Prices for Allstate and USAA changed little between 2021 and 2022. QuoteWizard was not able to make a year-to-year comparison for Amica, Country Financial, Progressive and State Farm.
Click on the graph below to see how top companies compare
2021 and 2022 average prices for companies listed as N/A
Inflation and home insurance
Inflation and the rising price of homes has put many homeowners in a concerning situation. Millions of Americans might now be underinsured.
On average, it now costs around $36,000 dollars more to rebuild your home than it did just a few years ago. Add to that the increased cost of replacing the items in your home and your existing policy may no longer fully cover the cost of rebuilding your home after a total loss. Many homeowners may now need to recalculate the amount of coverage they have for their home.
Home prices also affect the cost of home insurance. Simply put, the more expensive your home, the more expensive your home insurance. Our team of analysts found that home prices have increased 32% since 2020. Utah, Arizona and Idaho have experienced the sharpest increases, with prices in these states going up nearly 60%.
The last two years have been a tumultuous time in nearly every aspect of life. This is also true for homeowners insurance. There’s no way to tell exactly how many of the nation’s 85 million homeowners are currently underinsured. In light of recent changes, however, it wouldn’t hurt to check your policy and make sure your home is fully covered.
Home Price Nationwide Average $342,417
Click on the map below to see how your state compares
The Future of Home Insurance
From higher costs to changing coverage needs to climate change, homeowners insurance is facing a series of changes in 2022. First and foremost is the drastic change in home prices.
Inflation and Cost
The surge in both home prices and materials costs means that many homeowners either need to increase their coverage limits or are paying higher premiums. Nationwide, the average price of homeowners insurance is up 2%, but in states where home prices have increased the most, it’s up significantly more. Home prices have risen 57% in Idaho since 2020. The average homeowners policy, meanwhile, is up 34% in Idaho in the last year. Home insurance rates will continue to rise along with prices.
Work from Home
What homeowners need to get covered is also changing. Millions of Americans are now working from home. However, homeowners insurance policies are not generally designed to cover either working from home or home based businesses. Most insurance plans cover around $2,500 worth of damage to business equipment but if you need more than that, consider adding rider or extra endorsement.
Climate Change
Climate change and the rise in natural disasters are also having an impact on homeowners insurance – because most insurance policies do not cover specific types of disasters. Our team of analysts found that over the last 20 years, there has been a 163% increase in major natural disasters and a 445% increase in severe storms. There has also been an 83% increase in billion-dollar floods over the last 20 years, but floods, earthquakes and mudslides are not covered by homeowners insurance.
The rise in natural disasters is particularly concerning for homeowners because most insurance policies do not cover specific types of disasters. There has been an 83% increase in billion dollar floods over the last 20 years but floods, earthquakes and mudslides are not covered by homeowners insurance. Homeowners will need to purchase specific policies to guard against these types of disasters.
Methodology and resources
To calculate how much the average cost of home insurance changed in each state, QuoteWizard collected homeowners insurance quotes for a standard HO-3 homeowners insurance policy from some of the largest home insurers including Allstate, State Farm, Travelers, and Nationwide.
Our analysis used home insurance quotes from every zip code in all 50 states for a sample owner-occupied house built in 2000 with $275,000 of dwelling coverage. Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.
The following coverage options were used in each location:
$275,000 dwelling coverage
Coverage of your home
$27,500 other structures
The other structures on your property, like a garage
$137,500 personal property
Your belongings
$55,000 loss of use coverage
Extra living expenses if you temporarily cannot remain in your home
$100,000 liability
Legal and settlement costs if you are sued and found liable
$5,000 medical payments
Medical expenses if a guest is injured on your property
$1,000 deductible
Deductible is the amount you pay in the event of a claim
Claim prevalence and average claim cost information is sourced from the Insurance Information Institute.
The average cost of insurance for each major cost for each carrier was determined by analyzing the average price paid in each ZIP code a selected carrier is available. Prices for carriers marked N/A were not available for a direct year-to-year comparison.
Home prices were compared using Zillow pricing information between March 2020 and March 2022.
Deciding between insurance carriers can be a difficult process. QuoteWizard has resources available that can help you find out if what you're paying is inline with state averages, the factors insurance companies use to determine prices and how to decide just how much coverage you need.
Using this report
QuoteWizard is the nation’s leading insurance marketplace for people looking to quickly compare and save on a wide variety of insurance options. Feel free to share or reference the data contained within this report, with attribution to this webpage or “QuoteWizard by LendingTree”
