As inflation grips the country, the price of everything has been going up and home insurance is no exception.
According to QuoteWizard [1], an online insurance marketplace and subsidiary of LendingTree [2], rates have increased at least 34% in some areas of the country as revealed in their new State of Home Insurance Report [3].
In order to compile the report, QuoteWizard analyzed homeowners insurance rates from every major carrier in every state.
On a national level, the average cost of homeowners insurance is $1,766, up just 2% from the prior year, but many states have seen more dramatic increases.
"Prices have changed wildly in the last year. Depending on where you live you could be paying a lot more or a lot less. We've seen everything from a 25% decrease in Kentucky to a 34% increase in Idaho," said Nick VinZant, Sr. Research Analyst with QuoteWizard.
The most expensive state to insure the average home was found to be Oklahoma, where annual premiums topped $3,735; Hawaii was found to be the cheapest state where premiums averaged $412.
Idaho had the largest increase in home insurance premiums at 34% while Kentucky experienced the largest decrease in home insurance premiums at -25%
Another national statistic: insurance prices decreased in 16 states but increased in 30.
QuoteWizard's report also highlights a growing problem facing many homeowners. Home prices and material costs have risen so quickly, many people's insurance plans may no longer fully cover them.
"It now costs around $40,000 more to build the same home and if you haven't updated your coverage that extra cost is gonna come out of your pocket," said VinZant.
Only 3% of homeowners claims are liability claims, the other 97% are for property damage claims. The most common types of home insurance claims are: wind and hail (35% of claims, average cost $10,900); water damage (29% of claims, average cost $11,000); fire and lightning (25% of claims, average cost $78,000); other types of property damage (7% of claims, average cost $6,400); liability (3% of claims, average cost $22,400); and theft (1% of claims, average cost $4,300).
Click here [3] to view the report in its entirety.