1. Where You Live Has a Big Impact on Homeowner Insurance Costs
Where you live is one of the biggest factors that determine how much you’ll pay for home insurance. On average, Louisiana homeowners paid almost three times as much for their premiums in 2017 ($1,967) as homeowners in Oregon ($659), according to the NAIC. Natural disasters are a primary reason for that startling difference: When hurricanes hit coastal states like Louisiana and Florida, insurers sometimes have to pay for billions of dollars in damages, so they raise home insurance premiums.
Local factors within each state also affect homeowner insurance costs, including your city and your zip code. Home prices are generally higher in cities than in rural areas, so home insurance tends to cost more too. Your cost could be lower if your neighborhood is near a permanently staffed fire department, or higher if you live in a high-crime area where insurance claims are more common.2