The Worst States for Homeowners Insurance in 2022 – Bankrate.com

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At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict , this post may contain references to products from our partners. Here’s an explanation of . Our content is backed by Coverage.com, LLC, a licensed entity (NPN: 19966249). For more information, please see our .
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Over the last few months, the cost of living has increased sharply across the U.S. Consumers are paying sky-high prices at the gas pump and the grocery store, and overall housing costs in many U.S. cities are continuing to rise with no end in sight.
If you’re looking to buy a house in the near future, getting an affordable mortgage could also become more difficult. As the Federal Reserve attempts to battle inflation, mortgage rates are expected to increase  faster than initially expected. As prices for homes in desirable areas continue to set records, homebuyers could face an even tougher market.
When mortgage rates go up, it means that many potential home buyers get priced out of the market. Even a mortgage rate increase of just 2% can equate to a significantly higher monthly payment. Coupled with the fact that home prices are already through the roof, it has made home buying much more expensive and less attainable for many Americans.
In addition, it’s important to consider other costs associated with homeownership, like home insurance. The cost of homeowners insurance depends largely on the state you live in, which contributes to the cost of living in various locations.

Most prospective home buyers know that the U.S. housing market is booming. Even though real estate experts claim the seller’s market is expected to continue, there is still an opportunity to purchase residential properties. Here are a few recent statistics on the current housing market:
Housing costs are impacted by location, which can also determine the cost of your home insurance. If you purchase a house in a state with a high risk of natural disasters or severe weather, you will likely pay a much higher rate for coverage.
For example, houses that are located in Tornado Alley often have the most expensive home insurance costs because property can get damaged in a tornado or windstorm. Similarly, homeowners in Florida pay higher-than-average rates due to the risk of hurricanes. It’s worth noting that the homeowners insurance market in Florida is currently in crisis, mainly due to fraud.
On the other hand, if you buy a house in a state with a low risk of severe weather, like Oregon or Utah, you can expect to pay a much lower rate.
However, home insurance rates aren’t only determined by your location. Other factors like the age of your home, credit score (in most states), claim history and insurance company also impact the cost.

Before you purchase a house, it’s a good idea to look into the cost of home insurance in the state. To simplify the process, we did some research to figure out which state’s households were paying the most for their homeowners insurance for the worst value.
To create the rankings, we looked at factors like the average cost of home insurance in each state, incurred losses per state, median income spent on homeowners insurance per state and new residential constructions per state. In the table below, you can see which states are the worst for homeowners insurance:

The top five worst states for home insurance usually have the most expensive rates. This is largely due to factors like the risk of extreme weather, the amount of incurred losses in that state as well as how much new residential housing is available. Here’s a closer look at the five worst states for homeowners insurance:
If you live in one of the top five best states for home insurance, you probably get the luxury of paying a much lower average rate. In addition, these states tend to have lower severe weather risks, and fewer insured losses overall. Here are the top five states for home insurance, and why they made our list:

If you are wondering how much homeowners insurance costs, it largely depends on your state. In states with a high risk of severe weather, for example, the cost of home insurance can be extremely high, even if you buy coverage from one of the best home insurance companies.
One thing home insurance does not depend on is the market value of your home. So, even in a hot housing market, it’s still possible to get cheap homeowners insurance if the cost to rebuild your home stays relatively low. Fortunately, there are a variety of ways to save money on home insurance, no matter where you live. Here are a few suggestions for getting cheap home insurance.

To determine the worst states for homeowners insurance, Bankrate examined the following data sets and scored each state in these categories, then averaged their scores to determine their final ranking on our list:
Bankrate.com is an independent, advertising-supported publisher and comparison service. Bankrate is compensated in exchange for featured placement of sponsored products and services, or your clicking on links posted on this website. This compensation may impact how, where and in what order products appear. Bankrate.com does not include all companies or all available products.
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