Buy Alexandria Real Estate: Not on This Top Ten List: Most Expensive States for Homeowner's Insurance

Alexandria Virginia Real Estate Blog

Not on This Top Ten List: Most Expensive States for Homeowner's Insurance

Top Ten ListsForbes 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!

Hurricanes can increase your insurance premiumsMany 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.

CLICK HERE TO START SEARCHING FOR HOMES IN VIRGINIA OR D.C.

 

buttonbuttonbuttonbutton

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.

 

Thank you for reading my blog post.  If you like what you’ve read, then please:

Follow, Connect, Watch, Subscribe

Follow Brian Block on TwitterBecome a Fan of Block Real Estate Group on FacebookConnect with Brian on LinkedInWatch Brian's Videos on YouTubeSubscribe to Brian's Blog

If you plan to purchase or sell a home in the Northern Virginia or D.C. area,
you can visit my main Northern Virginia & D.C. real estate website at www.VirginiaRealEstateNews.net.

START YOUR NORTHERN VIRGINIA HOME SEARCH TODAY!

Comment balloon 14 commentsBrian Block • August 15 2008 06:12AM

Comments

The statement by the Texas insurance spokesman cracked me up. 

"Just about every type of peril is available here," says Texas Department of Insurance spokesman Ben Gonzalez.

Mr. Gonzalez appears to be offering a menu of local attractions. 

Posted by Lenn Harley, Real Estate Broker - Virginia & Maryland (Lenn Harley, Homefinders.com, MD & VA Homes and Real Estate) over 9 years ago

I think they should "Sub Categorize" the High Insurance States with the Insurance Companys that PAY claims when incurred.  I hear some are pretty good and others virtually wiggle out with every excuse.

Posted by David W. Bolick (Network Real Estate, Inc.) over 9 years ago

LENN:  I found that quote pretty funny myself.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

DAVID:  That's true.  My parents used to own a home restoration business in South Florida and dealt with the insurance companies all the time especially after hurricanes a few years back.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

Interesting list, Brian.  I can tell you, though, that while the Louisiana average may be $1141, it's much higher in southeast Louisiana.  Typical quotes for new home owners here are running in the $3000 and up range!

Posted by Lisa Heindel, New Orleans Real Estate Broker (Crescent City Living LLC) over 9 years ago

Brian - Thanks for mentioning my post!  I also thought the quote was funny - why exactly is he a "spokesman" at all?  Lisa's comment about the premiums in SE Louisiana made me a little queasy.  However, I just paid a crazy-high electric bill, as you know, so who am I to talk?

Posted by Jason Crouch, Broker - Austin Texas Real Estate (512-796-7653) (Austin Texas Homes, LLC) over 9 years ago

1Great Post, I thought Florida would be number one, how surprised was I to find it at number 6.

Posted by Kathy Hyatt ~Plantation, Davie, Sunrise REALTOR, Broward Realtor Selling Plantation,Davie & Sunrise (RE/MAX Preferred) over 9 years ago

Thanks for the update.  It is certainly a list not to be on and usually we like to be on lists.

Posted by Gene Allen, Realty Consultant for Cary Real Estate (Fathom Realty) over 9 years ago

LISA:  Wow, that's some insurance bill!  I'm certain they increased the premiums greatly after Katrina.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

JASON:  Sure thing.  The quote was a bit funny.  High insurance premiums and electric bills.  Oh my!

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

KATHY:  Thanks.  I expected Florida to be a bit higher up on the list as well. 

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

GENE:  It is a good thing that Virginia is not on this list.

Posted by Brian Block, Northern Virginia & D.C. Real Estate (RE/MAX Allegiance, Managing Broker/Branch Vice President) over 9 years ago

Good to know this is not a list VA is on.  We are on one of the best places to live list though. WooHoo!

Posted by Nannette Turner, Online Marketing Home Ownership Advocate Specialis (Keller Williams Lynchburg) over 9 years ago

Brian - I'm not sure I agree with the numbers.  Most SFHs in S.Florida tend to be in the thousands for insurance, because we have 3 types of coverage.  

Posted by Tchaka Owen (Galleria International Realty) over 9 years ago

Participate