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Variations In Home Insurance Policies By State
2010-09-21
Whether you own an independent house, condominium or apartment, it is important that you purchase some kind of home insurance. While it is quite easy to find home insurance quotes, the cost of the home insurance policy can vary from state to state.
The average cost of home insurance policy will depend on where you live. The cost can be extremely high in some states and really low in others. When it comes to home insurance quotes, the most expensive states are Florida, Louisiana, Oklahoma and Texas. On the other side of the spectrum are Delaware, Idaho, Ohio and Oregon; the average home insurance quotes in these states are among the lowest in the whole of the United States. This is because these states do not have any high claims activity for the insurance companies, and hence, the insurance rates are low. The premium for an average home insurance policy can be as high as $1,300 in Texas and as low as $457 in Idaho. In general, the southern states pay higher premiums for home insurance policies.
Weather can be a factor in determining home insurance rates. If you live in a state that is prone to natural disasters leading to damaged property, the insurance rates can be high. For example, since Florida, Louisiana and Mississippi are prone to hurricanes, the average home insurance premium is on the higher side.
Your home insurance policy may have a separate deductible for certain kinds of damage if the place that you live in is prone to disasters. For example, if you live near the East Coast, you may have a separate storm deductible. On the other hand, if you live in an area prone to earthquakes or a place that experiences a lot of hail storms, there would be separate deductibles for these.
While weather can play a part in deciding the insurance premiums, that is not always the only deciding factor. For example, even though Idaho and Minnesota have similar weather conditions, the average cost of home insurance is much lower in Idaho. One reason for this is the average home value, which is lower in Idaho when compared to Minnesota.
When it comes to purchasing home insurance, it is important that you do your homework before making the purchase. No matter which state you live in, before purchasing home insurance, learn about the regulating authority responsible for insurance rates in the state. This will give you an idea of the average cost for home insurance in that state. Some states even offer credits in partnership with home insurance companies. You can also check home insurance quotes online and then select one that is cheap and beneficial.