Homeowners Insurance in Delaware

Located in the Mid-Atlantic section of the U.S., the tiny state of Delaware has a mixed bag of nasty weather, including intense winter storms with ice, heavy snow, and whipping winds. The state also sees its share of hurricanes, which cause high winds, flying debris, and property damage. In the summer, Delaware can have thunderstorms, which cause lightning strikes and hail, which can damage the house. Since 1953, Delaware has seen 21 federally declared disasters, and its disaster rate per 1 million people is 20.11.

Cold winters mean frozen and burst pipes, which cause water damage. Homes in Delaware are also subject to fires, vandalism, roof leaks, structural damage, and accidental injury on the property.

Like other states, Delaware does not have a legal state coverage requirement. However, if you need to finance the purchase of your house, your lender will require that you purchase insurance and keep it active until the loan is paid off. Insurance experts recommend coverage for every homeowner because you never know when disaster will strike.

The national average of homeowners insurance in the U.S. is $2,728 per year, but rates vary widely from year to year and by state. For $300,000 of dwelling coverage in Delaware, you will pay an average of $966-$1,384, which is far less than the national average.

Coverage depends significantly on where you live and the typical weather conditions. In Delaware, the following types of homeowners insurance are available:

Some parts of Delaware are on the coast, meaning homes could experience floods. Flood insurance is special coverage, and flood damage is not covered under regular home insurance.

FEMA (Federal Emergency Management Agency) manages the National Flood Insurance Program (NFIP) through a network of 50 providers across the U.S.

Since most homeowners insurance does not cover floods, this supplemental coverage can repair damage and replace items after a flood. Depending on the options you choose, it can cover the building and/or your personal belongings. This program is available to homeowners, renters, and businesses. Learn more about the program on FEMA's website.

The increase in severe weather events across the country has devastated the homeowners insurance market. In some areas of the country, rates have increased by 34% to cover the rise in the number of claims. From 2018 to 2023, Delaware saw a 17.5% increase. Some states are losing insurance providers because of high claims and losses, making it difficult for homeowners to find insurance.

Although fairly tame, Delaware does have its share of hailstorms, hurricanes, and winter weather that harm structures. In 2023, Delaware had five tornadoes and seven wildfires, causing damage to 79 acres of land. From 1980 to 2024, Delaware has seen 35 billion-dollar natural disasters, resulting in claims and increased insurance rates.

Many factors play into homeowners insurance rates. The most crucial is location. Where you live indicates the likelihood of a natural disaster and potential claims. Other things that can impact your homeowner premiums include:

Every dollar matters when it comes to insurance rates. Some ways to save on your homeowners insurance include:

• Hurricane Shutters: Any homeowner in a state prone to hurricanes should consider installing special shutters to protect against damage. Installing safety features like these can drastically reduce your rates.
• New Roof: With long, harsh winters and heavy, wet snow, installing a new, sturdy roof could also save you on claims and lower your rates.
• Fireproofing: Consider installing a sprinkler system, smoke alarms on every floor, and fire extinguishers. Your agent may give you a break on premiums if you do things to prevent fire damage.

Other ways to save are to keep your credit score high, bundle insurance, avoid costly upgrades and claims, and increase your deductible.

Home insurance protects your Delaware home and property against specific perils. If something happens to your home, the insurance company will pay to fix or rebuild it. Homeowners insurance only covers qualifying perils (listed in your policy). It also covers liability, medical payments, personal belongings, and loss of use.

You can apply for a policy online using a provider's website, calling an 800 number, or visiting a local agent and speaking to them about coverage. Once you choose your limits, you must pay the first year in advance. After that, you can pay monthly through your mortgage escrow or once a year with a single payment.

Most insurers offer some types of discounts. The most common, which could save you money, are:

• Senior, Vet & Military: Most carriers offer a discount for military personnel, veterans, and seniors.
• Claims-Free Discounts: If you go a long time without any claims, you can ask for a discount.
• Bundled Insurance: If you bundle multiple policies with the same carrier, they usually take some off your bill.
• Payment Method/Paperless: You can get a discount if you go paperless to help the environment or allow the provider to withdraw premiums from your bank account automatically.
• Home Safety/Security: Installing safety features can sometimes earn you an additional discount.
• New Home or Green Discount: If your home is brand new, you can shave money off your premiums, or you could also get money off if you install environmentally friendly appliances/systems in your house.

Common Rates Offer by Homeowners Insurance Firms

New construction homes are cheaper to insure. If you build a new house, your insurance premiums could be as much as 40% lower than those of older homes. The average homeowners insurance rate for new homes in Delaware is $918/year or $77/month. Of course, your actual rate will depend on many factors, including your credit score, bundled policies, and other profile details.

Top 10 Insurance Firms in Delaware and Average New Home Savings

Upgrades to your house can increase its value, add space, and make it more of a home. However, they can also increase or decrease your home insurance. Some renovations might do both, causing no change in your annual premiums.

Home Renovations That Increase Your Rates

Some home renovations that increase your rates include:

• Swimming Pool: There is nothing like a pool to add summer fun and enjoyment, but putting in a pool can increase your home insurance rates. It is seen as an "attractive nuisance".
• Building an Extension: Extending your home can add more space for a home office or a growing family. The extra room will also cost more to rebuild, increasing your annual rates.
• Adding a Fireplace: A fireplace can add a cozy ambiance to your home on a cold winter's night. However, it drastically increases the risk of fire, and your insurance rates will rise.

Home Renovations That Decrease Your Rates

Some home renovations that decrease your rates include:

• Sump Pump: A sump pump can help remove excess water from your basement and avoid flood damage. If you install one plus water alarms, your carrier could give you a break on your premiums.
• Upgrade Plumbing/Wiring: Replacing outdated wiring and plumbing, which could pose a fire or water damage risk, could lower your insurance rates.
• Replace Roof: Replacing your roof with a much stronger, more wind-resistant one could save you big money, especially if you live in an area with hurricanes.

Replacing your siding with expensive, more durable materials will increase your rates because of the higher replacement costs, but it may also decrease them due to the lowered risk factor.

If regular wear and tear damage occurs, your insurance company will not pay for those repairs. Typically, they do not pay to replace flooring, kitchens, baths, or other things that need to be updated because of style. You must pay for those yourself. Insurers only pay for damage due to a covered event.

Before starting any renovation, speak with your agent to determine how it will impact your coverage and rates. After the update, you will need to upgrade your policy.

Renters insurance is for people who rent rather than own homes. The owner may have a homeowners insurance policy, but it does not cover the renter's belongings. Anyone who rents an apartment or house should have renters insurance. It covers the renter's personal belongings, liability coverage, loss of use, and medical payments. It does not cover vehicles, dwelling coverage, valuables outside of the policy's limits, or a home-based business.

Renters insurance comes in two flavors: actual cash value and replacement value. Actual cash value factors in depreciation and may not pay enough to fully replace your belongings.

A few things factor into renters insurance rates. The most impactful is location. Your rates will be higher if you live in a high-crime area with a lot of vandalism and theft. Your coverage limits will also factor in; the more coverage, the higher your rates. The number of units in your building also affects rates; the more units, the lower the rates.

The average cost for renters insurance in Delaware is $129/year, much lower than the national average.

Condo insurance is for people who own condos and live in communities with other owners. Although it is similar to homeowners insurance, it is different in that the condo association has a "master policy" that covers the dwellings. If a building burns down, the master policy will pay to rebuild it back to its original condition. Since many owners have long since upgraded kitchens, baths, flooring, and appliances, they need their own HO-6 policy to upgrade the interior to its current state. Condo insurance is considered "walls-in", meaning it covers everything inside the condo, not outside or on common grounds.

Unlike renters insurance, condo insurance does include dwelling coverage (inside only). Also, the liability portion works only if the person is injured inside the condo, not outside.

Condo insurance covers the dwelling (walls-in), personal property, personal liability, personal injury, loss of use, and loss assessment. It applies to damage from fire, theft, vandalism, and storms. Some of the items that are covered are:

• Furniture
• Appliances
• Wiring/Plumbing
• Walls (interior)
• Flooring
• Counters and Cabinets
• Light Fixtures
• Personal Possessions

Condo insurance rates vary widely, but the average homeowner in Delaware pays about $407/year. Some residents in Cumberland pay far less, $180/year.

Like with homeowners insurance, you will want to find ways to save. Some tips to save on your condo insurance rates are:

• Increase Your Deductible
• Bundle Your Coverages
• Install Security of Safety Equipment
• Opt-In for Paperless or Auto Payments
• Ask for Discounts
• Skip Small Claims and Fix it Yourself
• Get Rid of Risks
• Keep Your Credit Score High

Across the country, homeowners insurers have incurred huge losses. In Delaware, losses have tripled since 2013, and insurance providers have become less profitable. However, the state of the homeowners insurance market in Delaware is far less dire than in other parts of the country. The state still has plenty of providers to remain competitive.

Delaware's profits have decreased due to losses caused by fire, hurricanes, hailstorms, and winter damage. The trend will likely continue unless the weather patterns change.

Insurance carriers are regulated and monitored by state agencies, not federal ones. In Delaware, this agency is the Department of Insurance, located at 841 Silver Lake Blvd., Rodney Building, Dover, DE 19904. This department is responsible for ensuring that providers act professionally and ethically. If they see violations, they can roll out punishments.