Forbes Magazine editors research and report Top Ten lists of states for various categories throughout the year. Some of these lists include wealthiest counties in the United States, Best Cities to Get Ahead, America's Fastest Growing Cities, Best States for Business, Best Cities for Singles, etc. Normally it is an honor for your state or city to make it to the list and it's a newsworthy event of interest to people making the decision to relocate to the area since the superlatives can have an impact on the local real estate market.
Just recently, Forbes Magazine online issued a new top ten list of which no state would wish to be a member: The 10 Most Expensive States for Homeowner's Insurance. When you purchase a home, your lender will require you to purchase homeowner's insurance to protect your (and their) investment. Homeowner's insurance premiums typically protect your home from fire, floods, other Acts of God (such as lightning), theft, and provide liability insurance should somebody slip and fall or otherwise get injured on or in your property. Homeowner's Insurance is very important!
Many factors can affect the Homeowner's Insurance rates in a particular state, but nothing plays a greater role than the weather. If Category 3 or above hurricanes have a tendency to pass through your state and wreak severe damage, you can bet that your insurance rates will be sky high. Thus, it is no surprise Texas, Louisiana, Mississipi and Florida are on the list of the states with the highest premiums.
According to Forbes, Texas ranked as the state with most expensive insurance premiums, thanks to wind, rain, hail, tornados and hurricanes. "Just about every type of peril is available here," says Texas Department of Insurance spokesman Ben Gonzalez. However, don't let that discourage you from moving to Texas. Read Jason Crouch's post, "High Property Taxes, Heat, and Tornadoes, TOO? Why would I want to move to Austin, Texas?"
Texans pay an average $1,372 in premiums, with Louisianans shelling out $1,144, and Mississipians and Floridians paying $939 and $929 a year.
This is one Top Ten list I'm happy to report that the Commonwealth of Virginia did not make! Homeowner's Insurance is an additional necessary cost when purchasing and owning a home. In some cases, expensive insurance or sometimes the inability to obtain homeowner's insurance at all can be a barrier to purchasing a home.
While Virginia is not on the list, neighboring Washington, D.C. did make the list ranking #4 with an average annual premium of $963. Here the concern is not the weather, but as Forbes reports:
"Urban areas tend to have higher insurance rates than their country cousins because property values and
costs associated with rebuilding are usually higher. Washington is nothing but city, and labor and business
costs for repair add to pricing. Throw into the mix insurers' perception that the District is at risk for terrorism,
and it's easy to understand the $963 per year."
View the entire Forbes List of the Most Expensive States to Insure a Home.
Contact Brian Block, REALTOR/Attorney: Licensed in Virginia & Washington D.C. (703) 626-0715. If you are interested in purchasing or selling a property in Northern Virginia including Arlington County, Alexandria City, Annandale, Burke, D.C., Fairfax County, Falls Church City, Lorton, McLean, Springfield, Vienna, Washington D.C., contact Brian today.
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