How Much Does Hazard Insurance Cost?
Hazard insurance will cost around $1,320 annually, varying by state. Most homeowners spend between $1,250 and $1,650.
Annual home hazard insurance premiums vary by state from as low as $380 to as high as $4,240, but many factors impact your overall costs. Depending on where you live, your home may be at risk of wildfires, powerful storms, or freezing winter weather. Hazard insurance is a component of homeowner’s insurance that covers your property against damage from these natural disasters and more. Read on for more information about the cost of hazard insurance.
Average Cost of Hazard Insurance Near You
Specific hazard insurance costs vary depending on where you live. The most common causes of loss differ in each state due to different risk levels for incidents, including wildfires, high winds, tornados, hurricanes, hail, snowfall, freezing temperatures, sewer backups, sinkholes, burglary, and vandalism.
Keep in mind that flooding and earthquake damage are typically not covered by standard homeowner’s insurance. Some insurance companies offer separate insurance policies if you need protection from either of these types of natural disasters. Flood insurance is also available through the National Flood Insurance Program.
Hawaii: $380
Oregon: $720
New York: $990
Michigan: $1,120
Rhode Island: $1,200
Florida: $1,360
Colorado: $1,660
Texas: $1,870
Nebraska: $2,820
Oklahoma: $3,520
Where is Hazard Insurance the Least Expensive?
Hawaii has one of the lowest hazard insurance prices in the U.S., while Oklahoma has one of the highest price tags. Generally, states where hazards are less likely have the least expensive insurance plans, while states in high-risk zones come with the most expensive plans.
If you live in a region that is more likely to experience hazards that can lead to structural damage of your home, anticipate spending more for coverage. This includes areas at increased risk of damage from any of the following:
Burst pipes
Earthquakes
Falling objects/avalanches
Fires
Ice and snow
Lightning
Storms
Volcanic eruptions
Wind
How Much Does Hazard Insurance Cost by Coverage Amount?
A major component of a hazard insurance policy is dwelling coverage. The amount of dwelling coverage you need is typically equal to the cost to rebuild a home, which ranges from $100 to $500 per square foot and varies depending on its size, features, and comparable home prices in your area. Dwelling coverage pays for damage to your home’s structure and attached structures like garages or carports.
The less dwelling coverage you need, the cheaper your annual hazard insurance premium will cost. Below are some common dwelling coverage limits and the national average premiums for each type.
| Dwelling Coverage Limit | Average Annual Premium |
|---|---|
| $150,000 | $900 |
| $250,000 | $1,320 |
| $350,000 | $1,730 |
| $450,000 | $2,150 |
Hazard Insurance Cost Factors
Hazard insurance makes up the bulk of the cost of a homeowner’s insurance policy. The overall cost will depend on several factors related to your home, including the following:
Home Size
The larger your home, the higher the potential cost to replace it if damage occurs. Larger homes also require a higher limit on your dwelling coverage, which increases your premiums.
Location
The risks to your home vary depending on where you live. For example, certain states may be at risk of wildfires, while others may be prone to flooding or major windstorms.
Home Age
Older homes influence hazard insurance costs in multiple ways. Companies may view aging homes as a higher risk due to their structural age, and they also may have features such as custom molding, plaster walls, and wood floors that may require specialists to replace if damaged.
Roof
The age and condition of your roof can increase the cost to insure your home, since an older roof may not withstand storms as well as a newer one. Additionally, some roofing materials are more durable and resistant to damage or less expensive to replace, which could lower your premium.
Recreational Features
Some optional features, such as pools, jacuzzi tubs, and spas, can raise your home’s repair and replacement costs. These features can also create liability risks due to the possibility of injury.
Tips to Reduce the Cost of Hazard Insurance
There are many ways to potentially reduce your hazard insurance costs, some of which will vary based on the packages offered by different insurance providers. Here are some tips to help you save money on homeowner’s insurance:
Bundle your home insurance policy with an auto insurance policy under one carrier.
Shop around with different providers to compare home insurance quotes.
Ask your insurance provider if they offer any specific discounts.
Improve your credit score.
Work with an independent agent to help you find insurance coverage.
Make updates to your home’s structure or elevate your security.
Read your homeowner’s insurance policy to determine whether you’re over-covered.
You can also increase your home insurance deductible to lower your rate, but only do so if you are comfortable with paying more money out of pocket in the event of damage to your home.
How Angi Gets Its Cost Data
Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We extensively research project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We rely on reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects.
Want to help us improve our cost data? Send us a recent project quote to costquotes@angi.com. Quotes and personal information will not be shared publicly.
Frequently Asked Questions
Hazard insurance is the part of your overall homeowner's insurance policy that covers the structure of your home and other structures on your property, as well as any personal property within those structures. When a lender requires you to get hazard insurance for your new home purchase, they’re referring to a standard homeowner’s insurance policy.
Yes, hazard insurance is typically required for a mortgage. Before a lender extends a home loan, you’re usually required to get hazard coverage to help protect the investment against natural disasters and other covered losses. You may be required to pay for your coverage through an escrow account as part of your monthly mortgage payment.
No, if you’re still paying off your mortgage, it’s unlikely that a lender will allow you to remove hazard insurance, as this provides protection against financial loss. On the other hand, you can remove hazard insurance after you’ve paid off the mortgage.
However, just because you can remove hazard insurance in favor of lowering your monthly bills doesn’t mean you should. Removing hazard insurance means your home won’t be covered if something were to happen to your home’s structure. You’d then need to pay in full for the cost of repairs, which can be astronomical without coverage.
