Home Insurance in Nevada

WRITTEN BY: Amelia Ciffone

UPDATED: MAY 24, 2022 | 2 MIN READ

Despite slightly lower income and education levels compared to the national average, Nevada is one of the cheapest states in which to purchase a homeowners insurance policy. This is largely due to the stable climate and the lack of natural disasters which could damage your home. Wildfires and earthquakes are the biggest concern, but they aren’t as frequent or as destructive as they are in neighboring states like California. 

  • Fun fact – Keep your water bottle handy, because Nevada is the driest state in the continental US, receiving fewer than 10 inches of rainfall each year on average.

Average Rates in Nevada

If you’re trying to save money on homeowners insurance in Nevada, you won’t be facing an uphill battle. Out of all 50 states, Nevada is #48 on the most expensive list. Although the average American homeowner is paying $1,211 for their homeowners insurance, annual premiums for Nevada homeowners are around $755. Wisconsin is one of the states where homeowners are paying more than Nevada, whereas residents of Idaho are getting a slightly better deal on their annual premiums. 

If you’re looking for renters insurance, Nevada residents are doing pretty well there too as far as overall costs are concerned. Although the national average for an annual renters insurance premium is $180, people who live in Nevada can expect to pay slightly less at an average of $178 annually.

Nevada Legal Insurance Requirements

The funny thing about homeowners insurance is that – contrary to the way things like auto insurance work – it’s not legally required according to state and local laws. But the fact is that the vast majority of homeowners are only able to afford their home because they get a mortgage or a home loan from a bank. Since the home is still technically the property of the bank until you pay off your mortgage, the bank can make demands on you and require you to purchase homeowners insurance. They can also require you to purchase additional coverage – with regard to earthquakes, floods, wildfires, and more – if they think that your home is in a high-risk area and want to protect their investment. So it’s best to cooperate with them and purchase the coverage you need in order to stay on good terms with your lender. 

Common Risk Factors in Nevada

The Arid and consistently dry weather means that there aren’t actually very many natural perils which Nevada homeowners need to worry about. But wildfires may still be a concern, depending on what part of the state you live in. As a homeowner, you have the option of either purchasing a separate fire damage insurance policy to protect against destructive wildfires, or a FAIR policy if you are in a high-risk area and cannot otherwise get coverage. Earthquakes may also be a concern considering its close proximity to fault lines in California. Earthquake insurance is fairly easy to acquire, although it isn’t necessarily cheap. 

Even more unfortunate still, there’s some homeowners who are living in such high risk areas that conventional insurance companies will refuse them coverage. There’s a government-sponsored program called the FAIR program designed to take care of this problem. While it does give certain homeowners a last resort, it isn’t a cheap one. Furthermore, this coverage is usually Limited to named perils, structural damage, limited personal property coverage, actual cash value replacement, and doesn’t always cover liability. So make sure you do your due diligence and try as hard as you can to get a standard form of insurance coverage before you visit the Nevada Division of Insurance

Insurance Demographics/Statistics in Nevada

We’ve pretty much covered the major factors that influence how affordable or expensive you can expect your annual homeowners premium to be. But there are a few other factors that, although less influential, can also make an impact of their own:

  • Home Prices: The average cost of a home in Nevada is $316,275. That’s around $55,ooo more than what most people are paying for their homes in other parts of the country. What does this mean for you? Well, since most homeowners insurance companies want you to insure your home for at least 80% of its replacement cost value, this means that you will have to purchase slightly more coverage and pay a higher premium.
  • Crime Rates: In Nevada, the most recent statistical data shows that there were 24.38 incidents of property crime per 1,000 residents. This means, statistically, you have a 1 in 41 chance of becoming a victim of property crime in Nevada. Nationally, the odds are 1 in 43. So Nevada homeowners are at a slight disadvantage that might make their insurance premiums more expensive.
  • Income: One thing that may also be working against Nevada homeowners is the fact that Nevada residents make less on average than the typical American. Workers in Nevada are typically bringing in around $63,276 per year, which is over $2,400 less than the national average. Making less money means that you might struggle more to pay your homeowners insurance premiums on time whenever they’re due. Homeowners insurance companies don’t like this, and often raise their prices in order to offset the financial risk that you might pay late or not pay it all.
  • Education: Another unfortunate statistic is that Nevada homeowners are a little less educated than the national average. Whereas 32% of the US population has a higher education, Kansas homeowners are sitting at only 24%. And people with college degrees usually get better rates on their homeowners insurance.

Where To Purchase Home Insurance in Nevada

We here at Agile Rates have a lot of experience in the home insurance industry. And we can tell you that there are two main mistakes homeowners make that cost them thousands of dollars over the course of their lifetime: they don’t shop around for better rates on an annual basis, and they don’t comparison-shop online.

Here at Agile Rates, however, we can help. We have connections with dozens of home insurance providers in your area who are ready to please new customers like you with a better deal on annual premiums. We’ve done all the hard leg work for you so that you can compare quotes quickly and easily among the most reliable and legitimate homeowners insurance companies in your zip code. We can help you find a better deal today, in a matter of minutes!