As homeowners insurance rates rise nationally, Delaware residents may be relieved to learn they still enjoy some of the lowest average rates in the country. The Diamond State’s average homeowners insurance rate of $101 per month ($1,212 per year) is the fifth cheapest in the U.S.

The rate you pay for your homeowners insurance will vary by ZIP code, how much coverage you buy, which company you choose, and more.

Increased incidents of severe weather have made profitability harder for insurers, raising rates. But Delaware has no shortage of cheap insurance options — including Cumberland Mutual, State Farm, and Nationwide.1

Here’s what you should know about finding home insurance in Delaware.

Best home insurance companies in Delaware

Several affordable homeowners insurance companies offer policies in Delaware. The best company for you will depend on your and your family’s needs. When choosing an insurer, it’s important to consider your home’s age, location, and value.

The following sections lay out some of the best homeowners insurance policies in Delaware.

Best for cheap rates: Cumberland Insurance Group

Cumberland Mutual’s average home insurance rate is $43 cheaper than Delaware’s already low state average rate. And Cumberland policyholders can earn discounts when they purchase multiple policies, install alarms on their property, or go an extended period without reporting a loss.

Delaware is no stranger to floods, and homeowners considering Cumberland should be aware that the company doesn’t offer flood insurance. But it does have additional coverage for sump pump overflow and sewer backup.

Best insurer for financial stability: State Farm

Best insurer for water damage: Nationwide

Best insurer for high-value homes: Encompass

Cheapest home insurance in Delaware

Delaware homeowners pay some of the most affordable rates in the country. The Diamond State features several insurers that offer average rates below the national average of $211 per month. Encompass’s average cost of home insurance is $93 per month, making it the cheapest option in Delaware.

Here’s the full list of cheap homeowners insurance companies in Delaware.

Cost of homeowners insurance in Delaware

Delaware residents pay an average of $103 per month for homeowners insurance. This rate applies to policies with a coverage limit of $300,000 and a $500 deductible. Your rates will vary based on the amount of coverage you purchase and the deductible you set. Generally, choosing a higher deductible will result in lower monthly premiums.

Other factors can affect your home insurance rates as well, including the age of your home, the construction materials used, your personal claims history, the location of your home, and more.

Cost of homeowners insurance by dwelling coverage amount

The amount of dwelling coverage you purchase affects your premiums. Purchasing higher coverage levels will result in higher premiums. If you own a high-value home or live in an area with the potential for severe damage, you should consider a higher dwelling coverage amount.

The table below shows the average annual premiums in Delaware based on coverage limits.

Cost of homeowners insurance by deductible

Your deductible is the amount you pay out of pocket before your insurance kicks in and covers damages to your home and personal property. For example, if your deductible is $500, you’ll pay $500 worth of repairs before your insurance coverage handles the rest.

Policyholders get to choose their deductible — and a higher deductible will generally lead to lower monthly premiums. This may lead you to consider a high deductible to lower your monthly premiums, but make sure you don’t choose a deductible so high you can’t afford to pay it should you need to file a claim.

The table below shows how different deductible amounts affect your average annual premium for $300,000 in dwelling coverage in Delaware.

How to get cheap homeowners insurance in Delaware

Homeowners insurance premiums can put a dent in your budget, even in states like Delaware, where rates are below the national average. Here are some steps you can take to lower home insurance costs:

• Comparison shop. Home insurance rates vary significantly from company to company. Comparing home insurance quotes from at least three to five different companies is a great way to find the coverage that best fits your budget.

• Bundle home and auto insurance. Most insurance companies offer discounts to policyholders who purchase both a home insurance policy (or renters policy) and a car insurance policy from them. You may even save as much as $1,000 per year, depending on your insurer and what you bundle.

• Perform home repairs. Insurance companies consider your home’s condition when determining your rates. A leaky roof, shaky foundation, or other signs of deterioration can increase the likelihood of a future claim. Fortunately, you can earn discounts by fixing these problems or adding new features that lower the risk of a claim, like an advanced fire alarm system.

• Purchase the right amount of insurance. Eight different types of homeowners insurance are available. These are known as policy forms, and they cover different sources of damage in different ways. Newer homes or homes built of certain materials may not need as much coverage. Review each coverage type carefully because choosing the right coverage can help you find the best rate.

How much homeowners insurance do you need in Delaware?

When you take out a mortgage on your home, your lender will require you to purchase a home insurance policy to protect its investment. As you shop for home insurance, it’s important to understand exactly what your policy covers.

Evaluate your home’s value and your personal financial situation when deciding how much insurance to buy, including:

• Property value: Figure out how much it’ll cost to rebuild your home in the event of a severe loss. Doing your own research regarding local repair costs can give you a better idea. Once you have a clear sense of your home’s value and how much it’ll take to fix it, you can choose coverage limits with confidence.

• Personal belongings: Your homeowners insurance doesn’t just cover structural damage to your home — it also covers what’s inside your home. Taking careful inventory of your personal items, like furniture and electronics, can help you decide how much insurance you need.

• Location: Risk levels depend on where your home is located. For example, a home located on a river has a greater risk of flood damage. Additional insurance products to cover water damage may be necessary in that situation. Certain areas may also have a higher likelihood of theft.

As a property owner, you must also purchase liability coverage, which protects you financially in the event of a lawsuit if you or a family member injures a visitor to your property.

What are some of the biggest risks when owning a home in Delaware?

Delaware doesn’t experience as much severe weather as states like California and Florida. Still, people in the First State should be prepared for any of the following risks:

Delaware homeowners insurance FAQs