Report: Honolulu Ranks No. 1 in Nation for Cheap Home Insurance

Honolulu coastline. Public domain image.

A new report released by Insurance.com reveals that Honolulu, HI, is the least expensive location in the nation for average home insurance rates. According to the report, homeowners in the capital city of Hawai‘i are paying almost 73 percent less than the national average.

The top five most expensive locations for home insurance (and average annual premium) according to Insurance.com are:

1. Conch Key, Florida: $11,702
2. Venice, Louisiana: $11,151
3. Pascagoula, Mississippi: $7,850
4. Gulf Shores, Alabama: $7,850
5. Galveston, Texas: $7,105

The top five least expensive locations for home insurance (and average annual premium) are:

1. Honolulu, Hawai‘i: $333
2. Basking Ridge, New Jersey: $485
3. Boise, Idaho: $498
4. Winooski/Burlington, Vermont: $545
5. Beaverton, Oregon: $532

Rankings for the most expensive ZIP codes were determined by identifying the location with the highest average rate for home insurance in each state and then listing them in descending order. For the least expensive, locations, rankings were determined by identifying the ZIP code with the least expensive average rate for home insurance and then listing them in ascending order. The company’s analysis showed a national average rate of $1,228 for $200,000 dwelling coverage with a $1,000 deductible and $100,000 in liability.

According to Insurance.com, home insurance companies consider many factors when setting rates, including the home’s value, location, susceptibility to environmental hazards, crime and the owner’s credit history. Rates can vary greatly between states, and even between neighborhoods according to assessments. In general, homes that are in areas prone to hailstorms, hurricanes and tornadoes are more likely to cost more, according to Insurance.com.

Insurance.com, an independent online consumer guide for insurance, offers an average home insurance rate tool. Visitors can enter a ZIP code and find out the average premium according to their location, as well as the highest and lowest rates offered among six insurance companies.