Average US homeowner's insurance approaches $3K — with some states nearing $8K. How to keep your rate in check

Core Insights - The average U.S. homeowners' insurance rate is nearly $3,000 per year, with significant variations across states [1] - Rising costs of homeowners' insurance are attributed to increased replacement costs for home repairs, which jumped over 55% from 2020 to 2022 due to higher building material prices [2] - Severe weather events are becoming more frequent and damaging, leading insurers to pay more claims and invest in reinsurance and capital reserves, which increases policy costs [3] Cost Factors - Advanced risk modeling techniques are being employed by insurers to identify high-risk homes, resulting in customized pricing rather than uniform rates across regions [4] - Some private insurance companies have ceased writing new policies or have dropped existing ones due to increased operational costs, pushing homeowners towards state-backed plans that offer limited coverage at higher costs [5] State Comparisons - The three most expensive states for homeowners' insurance include Nebraska at $7,920, Oklahoma at $7,426, and Kansas at $5,303 [6] - Conversely, the three least expensive states are Hawaii at $721, Vermont at $1,159, and Delaware at $1,225 [6]