The Cost of Home Insurance - Quicken Loans Zing Blog

What’s going on with home insurance premiums is that they’re going down. Nationally, the average 12-month premium at the end of the third quarter of 2013 dropped to about $848, according to the HomeInsurance.com Rate Report. That was down about 6% from the end of the first quarter. Average annual premiums have fallen every month since March.

The decrease in home insurance premiums looks even better when you compare it with one respected measure of home prices. The Standard & Poor’s/Case-Shiller home price index, which measures home prices in 20 key U.S. markets, increased 12.8% in August 2013 compared with the same month a year ago. So while homeowners might be paying more for homes, they’re at least paying less, overall, to insure them.

While the cause of the decrease in home insurance premiums is difficult to tie down, one possible reason is that consumers have become smarter about purchasing their policies. “It may be an indication that more consumers are taking advantage of discounts,” said Jana Bell, Vice President of HomeInsurance.com. “Homeowners who purchase home and car insurance from the same provider can save up to 20% on premiums.”

While the average premium dropped nationally, the numbers didn’t fall in every state. Rates went up in 13 states, though the hikes were less than $5 in four of them.

States with the greatest price increases

Price increase over  previous quarter

West Virginia

+$90.88/year

Delaware

$68.77

Oklahoma

$31.78

Alabama

$24.20

New Jersey

$21.81

By contrast, rates fell in 27 states.

States with the greatest price decreases

Price decrease over previous quarter

Louisiana

-$51.08/year

Arkansas

-$48.40

Washington

-$33.80

Mississippi

-$31.03

Tennessee

-$28.70

 

Oklahoma homeowners paid the highest annual average premiums – nearly $1,535, while Oregon homeowners paid the lowest average annual amount for coverage – less than $485.

Most consumer experts recommend shopping your home insurance coverage at least once a year. How do rates stack up to a year ago? In September 2012, homeowners paid nearly $918 on average for home insurance, about 7.6% more than they paid in September 2013.

Have any questions? Let us know in the comments below!

This article was contributed by Arthur Murray, HomeInsurance.com Editor. HomeInsurance.com, LLC is an insurance marketplace offering homeowners in 44 states comparative rates on home and auto insurance. The HomeInsurance.com Rate Report generates average premiums based on policies sold over the past 12 months with HomeInsurance.com carrier partners including Safeco Insurance, The Hartford, MetLife, Travelers, Liberty Mutual, Progressive, ASI and Foremost. They may not be typical for all customers.

 

 

Related Posts

Leave a Reply

Your email address will not be published. Required fields are marked *