Bismarck, the capital of North Dakota, has home insurance costs that are slightly below the national average. The average cost for home insurance in Bismarck is $1,365 per year, compared to the national average of $1,428. While Bismarck is less prone to flooding than Fargo, it faces its own challenges with severe winter weather, high winds, and hailstorms, all of which impact insurance premiums.
Local Factors Impacting Home Insurance Costs in Bismarck
Severe Winter Weather: Like much of North Dakota, Bismarck experiences extreme cold, heavy snow, and freezing conditions, which can lead to higher insurance rates.
Hailstorms and Wind: Bismarck is prone to high winds and hail, which can cause significant damage to roofs, siding, and windows.
Low Crime Rate: Bismarck has a relatively low property crime rate, which helps keep insurance premiums lower than in larger cities like Fargo.
Home Insurance Rates by Home Age in Bismarck
The age of a home is a key factor in determining home insurance costs. Older homes tend to have higher insurance premiums due to outdated building materials and systems that may require costly repairs.
Home Age
Average Annual Premium
0-10 years
$1,280
11-25 years
$1,340
26-50 years
$1,450
51+ years
$1,570
Home Insurance Rates by Credit Tier in Bismarck
Credit scores play a significant role in determining home insurance premiums. Below is a breakdown of how credit tiers affect home insurance costs in Bismarck:
Excellent Credit (750+): $1,275 per year
Good Credit (700-749): $1,350 per year
Fair Credit (650-699): $1,475 per year
Poor Credit (Below 650): $1,620 per year
Cheapest Home Insurance Providers in Bismarck
Despite Bismarck’s higher risk of hailstorms, several insurance providers offer competitive rates. Here are the most affordable home insurance providers in the city:
Provider
Average Annual Premium
State Farm
$1,310
Farmers
$1,340
Allstate
$1,355
Liberty Mutual
$1,375
Home Insurance Rates by Deductible Amount in Bismarck
Opting for a higher deductible can reduce your home insurance premium, but it increases your out-of-pocket costs when filing a claim. Here’s how deductible amounts affect home insurance premiums in Bismarck:
$500 deductible: $1,485 per year
$1,000 deductible: $1,365 per year
$2,500 deductible: $1,245 per year
Types of Homeowners Insurance in Bismarck
HO-3: The standard homeowners insurance policy covering the home structure, personal property, and liability.
HO-5: A premium policy that offers broader coverage for both personal belongings and the home.
HO-6: Condo insurance for condo owners, covering the unit’s interior and personal property.
Additional Coverage Options
Hail Damage Insurance: Bismarck’s frequent hailstorms make this coverage essential to protect your roof, siding, and windows from damage.
Winter Storm Insurance: Protects homes from damage caused by heavy snow, ice, and freezing temperatures, particularly useful in Bismarck’s extreme winters.
Water Backup Insurance: Covers damage from water backups due to plumbing or sewer system failures, useful for older homes in Bismarck.
Frequently Asked Questions (FAQs) about Home Insurance in Bismarck
Is hail insurance necessary in Bismarck? Yes, Bismarck’s frequent hailstorms make hail insurance a valuable addition to standard homeowners coverage.
Does winter weather impact home insurance costs in Bismarck? Yes, severe winter weather can lead to higher premiums due to the increased risk of property damage from snow, ice, and freezing temperatures.
Comparison of Home Insurance in Fargo vs. Bismarck
Fargo: $1,325 average annual premium
Bismarck: $1,365 average annual premium
Fargo’s higher flood risk from the Red River leads to a slight increase in premiums compared to Bismarck, where the primary concerns are hailstorms and severe winter weather. Both cities face harsh winters, but Bismarck’s exposure to high winds and hailstorms makes certain types of coverage more essential.