What is the average cost of homeowners insurance?

Rates typically vary by region, and even by ZIP code. If you live in a state prone to severe weather or natural disasters like tornadoes, hurricanes, and hail, you could pay more for insurance than homeowners in other states. Areas with lower construction costs often enjoy more favorable homeowners insurance rates as well.

More location-based factors that can affect homeowners insurance prices include:

• Coastal properties: Homes in coastal regions are sometimes riskier to insure than inland properties due to a greater chance of natural disasters.
• Crime rates in your ZIP code: Your insurer can use this information to determine how likely you are to file a theft claim for stolen personal property.
• Homes near woods and brush: These properties are susceptible to damage from wildfires and trees falling on your house.

One of the first questions asked by an insurer is, "What kind of home do you have?" Construction materials and other home features, including size and age, can impact the cost of your policy.

For example, a concrete block home may cost less to insure than a wood frame house because it's less susceptible to fire and strong wind. Your insurer may also ask about your siding type, flooring materials, and even how you heat the home to assess the risk of insuring it.

Your roof type, construction, and shape can also be critical when it comes to the cost of your homeowners insurance. If your roof material is asphalt shingles, which are less flammable, you may pay less for homeowners insurance cost than if you had a cedar or wood-shakes roof.

Gable roofs are more common and typically the more affordable roof type to install, but they are more likely to sustain wind damage than hip roofs. Hip roofs (characterized by all sides sloping downward) often cost more to install but are more resistant to wind.

Get information about how homeowners insurance may cover your roof.

Homeowners insurance companies look at claims you previously have filed. If you've had multiple losses, you may pay a higher rate as you're considered more likely to file another claim.

Your premium often depends on your homeowners policy's coverages as well as the amount of each coverage. In some cases, you can increase your coverage limit by thousands and your rate might only be minimally impacted.

The right amount of homeowners insurance for you and your home depends on the value of your property, belongings, and other assets.

A higher homeowners insurance deductible means you pay more out of pocket for a claim but your policy's rate will be lower. A lower deductible means you pay less for a claim but pay a higher rate.

Many insurers use credit-based insurance scores to determine potential risk for claims and calculate accurate rates.