Idaho Home Insurance Costs Lowest in Nation

By | February 21, 2010

Idaho homeowner insurance is the least costly in the nation, averaging $422 per year, according to a nationwide survey. This compares to an average $822 countrywide. The Gem State also had among the lowest average rates for renters insurance, at $150 annually compared with a $182 annual premium nationwide, the report indicated.

The 2007 data, the most recent available, was recently released by the National Association of Insurance Commissioners in its “2007 Homeowners Insurance Report.” The report provides data on market distribution and average cost by policy form and amount of insurance.

Nationwide and state-specific premium and exposure information for non-commercial dwelling fire insurance and for homeowners insurance package policies, was included. The report also contains descriptions of the data and a discussion about the way certain economic, demographic and natural phenomena impact the price of homeowners insurance.

Since the late 1980s, catastrophes have been occurring with greater frequency and severity, and, in the past decade, have become a bigger factor in the pricing of home insurance, according to the survey. Of the 10 most costly insured property U.S. catastrophes through 2008, eight were hurricanes. That includes Hurricane Katrina in 2005, according to the Insurance Services Office (ISO) statistics. ISO’s Property Claims services (PCS) unit provides catastrophe loss information to insurance and other industries.

Flooding, earthquake and wildfire are more common concerns in the West.

According to the report, Florida and Texas had the highest homeowner insurance rates. The report indicated Florida’s average annual premium was $1,534, and Texas’ average annual premium was $1.448. However, Florida’s data excludes policies written by Citizen’s Property Insurance Corp., the state’s insurer of last resort, and therefore is not directly comparable to those of other states, NAIC noted. Data was collected from insurance statistical agents for all states except Texas and California, both of which directly supply data to the NAIC.

Of the western states, California’s average annual homeowners premium was the highest at $925, followed by Alaska’s $861, making its annual premium the second-highest in the West.

For renters insurance, California’s average premium of $231 ranked it the highest of the western states, followed by Hawaii, which had an average annual premium rate of $209. Nationwide, North Dakota had the lowest average premium for renters insurance, at $112.

To view the report, visit www.naic.org.

Western States Average Homeowners Insurance Premium

Dwelling Fire and Homeowners Owner-Occupied (1-4 family units)

State 2007 HO-3 Average Premium
Alaska $861
Arizona $634
California $925
Colorado $826
Hawaii $850
Idaho $422
Montana $700
Nevada $695
New Mexico $667
Oregon $496
Utah $505
Washington $506
Wyoming $656
Countrywide $822

Source: National Association of Insurance Commissioners


Western States Average Renters Insurance Premium

Dwelling Fire and Homeowners Tenets

State 2007 HO-4 Average Premium
Alaska $175
Arizona $200
California $231
Colorado $172
Hawaii $209
Idaho $150
Montana $155
Nevada $201
New Mexico $185
Oregon $161
Utah $138
Washington $170
Wyoming $149
Countrywide $182

Source: National Association of Insurance Commissioners


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