Average Homeowners Insurance Costs by ZIP Code 2024

The average home insurance premium is $1,678 annually for a dwelling limit of $350,000. However, this price can vary widely by your ZIP code.

60% of homebuyers consider a home’s neighborhood when deciding where to live. Any savvy buyer knows that location plays a large part in the sale price of a property. However, some homebuyers fail to realize that a home’s location will also largely impact the cost of their home insurance as well.

In over two decades of insurance experience, I have seen significant differences in home insurance premiums by location, down to ZIP code. In many cases, a home’s location can affect the cost of home insurance more than the individual characteristics of the home itself. Keep reading to learn more about the average home insurance costs by ZIP code.

Average Home Insurance Rates By ZIP Code

Home insurance rates will differ by ZIP code, namely because different areas come with varying levels of risk. For example, living in a coastal area prone to hurricanes will most likely result in a higher premium than a quiet, suburban neighborhood.

Here are some examples of different ZIP codes and their corresponding average home insurance premiums.

Most Expensive And Cheapest ZIP Codes For Homeowners Insurance

While average state-level home insurance premiums can be helpful, ZIP codes offer a more granular picture. Interestingly, you might find two neighboring ZIP codes with vastly different rates. This can be attributed to factors such as crime rate, proximity to fire stations and hydrants, and the cost of replacing your home in certain areas.

To use Rhode Island as an example, Cranston and Providence are cities that border each other. However, Cranston ZIP code 02905 has an average home insurance premium of $1,800 per year, while Providence ZIP code 02914 has an average home insurance premium of $2,330.

Cheapest ZIP Codes For Home Insurance

The least expensive ZIP code for home insurance is 96818 in Honolulu, Hawaii where the average price is $479 annually. Hawaii tends to have lower home insurance prices in general due to mild weather, strict building codes, and exclusions to some of the higher risks to which these homes are prone, such as tsunamis, volcanic eruptions, and earthquakes.

Here are the top 10 cheapest ZIP codes for home insurance.

Most Expensive ZIP Codes For Home Insurance

Conversely, the most expensive ZIP code for home insurance is 33012 in Hialeah, Florida with an average annual home insurance premium of $5,931. Since Florida is coastal and prone to hurricanes, the cost of insuring homes there is higher. But Florida is not the only state with high home insurance premiums as seen in the table below.

Average Home Insurance Rates For High-Value Homes By ZIP Code

Homeowners who own property with a replacement cost greater than $750,000 are considered to have high-value homes. The average home insurance rate for a high-value home is $9,640 per year. However, the price can be higher depending on the ZIP code in which the home is located.

How Do ZIP Codes Impact Home Insurance Rates?

ZIP codes allow home insurance companies to be more granular in determining the various risk factors in a specific area when calculating home insurance premiums. Here are some of the factors that make ZIP codes a key determinant of insurance costs:

• Climate and Weather- ZIP codes in areas that are prone to hurricanes, earthquakes, wildfires, tornadoes, or floods will generally have higher premiums. Coastal regions, for example, might face higher rates due to hurricane risks.
• Geographic Location– Certain geographical locations, such as those near fault lines or in fire-prone areas, can significantly impact insurance costs.
• Crime Rates- Areas with higher rates of burglary, theft, and vandalism tend to have higher insurance premiums.
• Building Materials- The cost of building materials in your area can influence your insurance premium. Areas with expensive building materials, like certain types of wood or stone, may require higher coverage amounts and, consequently, higher premiums.
• Labor Costs- The cost of labor for repairs and reconstruction can also impact insurance rates. Areas with higher labor costs may have higher insurance premiums.
• Severity of Claims- The severity of claims, such as large-scale disasters or frequent smaller claims, can also impact rates.

Other Factors That Impact Your Home Insurance Rate

In addition to ZIP code, several other factors can influence your home insurance premium.

Property-Related Factors

• Home Value– More valuable homes typically require higher coverage limits and, consequently, higher premiums.
• Home Age and Condition– Older homes may need more extensive repairs or replacements, leading to higher premiums.
• Home Construction Materials- Homes built with fire-resistant materials, such as brick or stone, may qualify for discounts.
• Home Security Systems- Security systems, such as alarms and surveillance cameras, can reduce the risk of theft and vandalism, leading to lower premiums.
• Roof Condition- A well-maintained roof can lower your premium, while a damaged or aging roof may increase it.

Personal Factors

• Credit Score- In certain states, a good credit score can often lead to lower premiums, as insurers believe it indicates financial responsibility.
• Claims History- According to ISO, 79% of insured homes had a claim filed within a five-year period. The more claims a homeowner files, the higher your insurance premium will be.
• Deductible- A higher deductible can lower your premium, but it also means you’ll pay more out-of-pocket in case of a claim. The Insurance Information Institute estimates homeowners can save as much as 25% by increasing their deductible from $500 to $1000.

Coverage Options

• Level of Coverage- The amount of coverage you choose will impact your premium. Higher coverage limits generally lead to higher premiums.
• Additional Coverages- Adding optional coverages, such as flood insurance or earthquake coverage, will increase your premium.

Average Home Insurance Cost By Coverage Level

A home’s coverage level is based on the cost to rebuild your home after a loss, and as one can expect, construction costs play a part in calculating the replacement cost. Due to supply chain issues and material shortages, construction costs have increased by 38.7% since 2020. As a result, home insurance premiums have also been impacted.

Average Homeowners Insurance Rates By State

Each state has its own risk factors and insurance regulations, as well as different construction costs. This is why the cost to insure a home will vary according to where it’s located. Here is the average annual home insurance premium broken down by state.