A neighborhood’s crime rate can greatly impact how much a policyholder will spend to insure their home there.
“This is the insurance industry’s way of accounting for the elevated likelihood of claims being filed in these neighborhoods,” according to a report by the home services platform Porch.
“While a high-crime area might offer lower property prices, the associated insurance premiums can quickly increase,” Porch said in the report. “Living in a low-crime area might come with higher upfront costs, but it often translates to more affordable insurance rates, saving you money in the long run and providing peace of mind.”
Data compiled by Policygenius shows the average cost of homeowners insurance in the U.S. is $1,754 per year, or $146 a month. The exact amount depends on the policyholder’s zip code.
Other factors impacting homeowners insurance include susceptibility to extreme weather damage, the estimated rebuild cost, age and characteristics of the home, the policyholder’s credit score, home's claims history and the policy deductible amount.
In 2024, U.S. homeowners pay 17.4% more for new insurance policies as factors like crime, severe weather, reinsurance costs and inflation impact the market.
The average homeowner who bought their policy in 2021 paid nearly 69% more three years later at their 2024 renewal, or an extra $865 annually. As of November, rate growth showed signs of tapering, with the average increase for new policies dropping from 10.7% in the first half of the year to 6.6% in the second half, indicating early signs of stabilization.
The slideshow above illustrates the safest cities in the U.S. as selected by Moneygeek.
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