Homeowners insurance costs about $900 to $2,600 on average, according to the National Association of Insurance Commissioners (NAIC). Insurers use many factors to price your homeownership policy, including the type and location of the home, your claims history and the type and amount of coverage you buy.
Finding low-cost homeowners insurance can make homeownership more affordable, and knowing the averages and what causes them to rise before you buy a policy can help you set expectations for what you should pay. Here’s a look at the average cost of home insurance sliced a couple of different ways.
Average home insurance rates by state
Where you live can heavily impact how much you pay for homeowners insurance. Each state has its own set of natural disaster risks, crime rates and property values, so naturally your location plays a big role in how much you pay for home insurance.
For example, someone who lives in Florida, where hurricanes can cause substantial destruction to homes, will probably pay more for homeowners insurance than someone in Wyoming, where natural disasters occur less often.
The state with the lowest average homeowners insurance premium is Oregon at $893, according to the NAIC, while Florida has the highest average at $2,677.
This table shows the five states with the highest average homeowners insurance premium.
| State | Average annual premium |
|---|---|
| Florida | $2,677 |
| Louisiana | $2,603 |
| Texas | $2,397 |
| Oklahoma | $2,268 |
| Colorado | $2,079 |
This table shows the five states with the lowest average homeowners insurance premium, according to the NAIC.
| State | Average annual premium |
|---|---|
| Oregon | $893 |
| Utah | $937 |
| Nevada | $948 |
| Wisconsin | $957 |
| Ohio | $995 |
See the average annual premium for each state
| State | Average annual premium |
|---|---|
| Alabama | $1,748 |
| Alaska | $1,129 |
| Arizona | $1,018 |
| Arkansas | $1,740 |
| California | $1,492 |
| Colorado | $2,079 |
| Connecticut | $1,814 |
| Delaware | $1,103 |
| Florida | $2,677 |
| Georgia | $1,655 |
| Hawaii | $1,431 |
| Idaho | $1,002 |
| Illinois | $1,343 |
| Indiana | $1,191 |
| Iowa | $1,268 |
| Kansas | $1,583 |
| Kentucky | $1,359 |
| Louisiana | $2,603 |
| Maine | $1,077 |
| Maryland | $1,392 |
| Massachusetts | $1,871 |
| Michigan | $1,056 |
| Minnesota | $1,774 |
| Mississippi | $1,907 |
| Missouri | $1,668 |
| Montana | $1,639 |
| Nebraska | $1,869 |
| Nevada | $948 |
| New Hampshire | $1,188 |
| New Jersey | $1,417 |
| New Mexico | $1,322 |
| New York | $1,628 |
| North Carolina | $1,621 |
| North Dakota | $1,325 |
| Ohio | $995 |
| Oklahoma | $2,268 |
| Oregon | $893 |
| Pennsylvania | $1,120 |
| Rhode Island | $2,074 |
| South Carolina | $1,571 |
| South Dakota | $1,756 |
| Tennessee | $1,492 |
| Texas | $2,397 |
| Utah | $937 |
| Vermont | $1,109 |
| Virginia | $1,332 |
| Washington | $1,151 |
| Washington, D.C. | $1,384 |
| West Virginia | $1,113 |
| Wisconsin | $957 |
| Wyoming | $1,596 |
Premiums included are for “all-risks” coverage on buildings, which covers a broad set of risks, except losses specifically excluded in the policy (e.g., flood). It is the most common type of homeowners insurance.
Average home insurance rates by coverage amount
Insurance companies price policies based on their expected payout if you file a claim. The higher your coverage limits are, the more expensive your homeowners insurance premium will typically be.
More than half of all insured homes have coverage between $150,000 and $400,000, according to the NAIC.
This chart shows the average home insurance cost based on homes with different coverage limits.
| Coverage amount | Annual premium |
|---|---|
| $149,999 and under | $955 |
| $150,000 to $199,999 | $1,130 |
| $200,000 to $224,999 | $1,196 |
| $225,000 to $249,999 | $1,238 |
| $250,000 to $274,999 | $1,279 |
| $275,000 to $299,999 | $1,306 |
| $300,000 to $324,999 | $1,359 |
| $325,000 to $349,999 | $1,403 |
| $350,000 to $399,999 | $1,473 |
| $400,000 to $449,999 | $1,581 |
| $450,000 to $599,999 | $1,865 |
| $600,000 to $699,999 | $2,094 |
| $700,000 to $999,999 | $2,730 |
| $1 million and over | $3,971 |
| Total average | $1,569 |
Premiums included are for “all-risks” coverage on buildings, which covers a broad set of risks, except losses specifically excluded in the policy (e.g., flood). It is the most common type of homeowners insurance.
Factors that affect the cost of home insurance
Pricing home insurance is a complex calculation that uses several factors. While every insurance company uses its own formula, these are some common factors that help decide your homeowners insurance rate.
Location
Where your home is located is a large factor in determining insurance rates. While no state laws require homeowners to purchase homeowners insurance, each state has different regulations that insurers must follow.
For example, in California, if the materials used to rebuild or repair a home do not match the undamaged materials, then the insurer may have to replace some of the undamaged materials to create a reasonably uniform appearance.
The home’s location within the state can also impact rates. Some areas are more prone to fires, while others may be at a higher risk of theft or vandalism. Property values and the cost of construction — which can vary within counties and cities — tell your insurer how much it would cost to repair or rebuild your home.
Insurers also consider the home’s proximity to a fire station. The closer you are, the quicker the fire department can respond if there’s a fire.
Building materials
The materials your home is made from — brick, wood, steel, concrete — can impact homeowners insurance rates as well because they indicate how sturdy the home is and how expensive it would be to replace those materials.
For example, brick homes are more fire resistant, but they can sustain more damage if there’s an earthquake. Wood siding may insulate the home better than vinyl siding, but it’s also more expensive and more likely to rot.
Safety features
Safety features on your home can also reduce your premium. Smoke detectors, security systems, and sprinklers are a few examples that can reduce risk and lower rates.
Age of home
Newer homes often have lower homeowners insurance rates than older homes because the materials haven’t had time to deteriorate. Older homes may also have fallen behind on building codes, which can increase costs when making repairs or rebuilding after a claim.
For example, if your home’s electrical subpanel was installed in the 1960s, it could have a faulty breaker or aluminum wiring, which can present a fire hazard.
Roof construction
Your roof is charged with protecting you and your belongings from harsh winters, hail storms, rain, heavy wind and extreme heat, so an insurer gives it special attention when deciding whether to insure your home and how much to charge for it.
Certain roof materials are more likely to sustain fire or hail damage, which can lead to costly repairs and put the rest of the home at risk of other types of claims.
In some cases, an insurance company may drop coverage or increase your premium if the roof is too old. When this happens, you’ll need to replace the roof or purchase another insurance policy.
Prior claims
Your personal claims history is one factor insurers consider, and the house’s claims history is another.
Insurers believe that if you’ve filed a claim in the past, you’re more likely to file claims in the future. But they also believe that about the house. That means that if the last owner filed a claim before you even started house shopping, it could be a factor in your premium cost.
Coverage amounts
Insurance companies price policies based on the type of insurance you buy and their respective limits — more insurance means more scenarios when an insurer may have to pay out a claim. Make sure to buy enough coverage to meet your needs while keeping your premium affordable.
Be sure the insurer has an accurate estimate of the cost to rebuild your home and replace your belongings to avoid overpaying for homeowners insurance. Your agent can provide an estimate for rebuilding your home but the replacement cost for your belongings is a depends on what you own.
Deductibles
Your deductible is the amount you pay before the insurance company covers a claim. A higher deductible reduces the likelihood of filing a claim and the amount an insurance company will have to pay when you do file one.
While you can save money with a higher deductible, make sure that you can come up with the full amount quickly if you need to file a claim.
Pool, trampoline and other features
While the cost of homeowners insurance may not keep you from buying the only trampoline in your neighborhood or living out your poolside dreams, it’s wise to do a little research before you dive in.
Additional structures on your property can raise your homeowners insurance rates, especially those that come with a risk of injury. These new outdoor features are often referred to as an “attractive nuisance” because they may attract children and expose them to harm.
Pets
Insurers view certain animals as riskier, and may therefore charge their owners a higher insurance rate. Certain dog breeds like pit bulls, Rottweilers and German Shepherds may be categorized as dangerous, meaning the insurer would exclude them from coverage or raise your premium.
If you’re a pet owner — or want to be one day — ask for insurers’ lists of excluded pets before you buy a policy.
Other insured belongings
Standard homeowners insurance offers minimal coverage for jewelry and other valuables. If you have high-value jewelry, artwork, firearms, collectibles or electronics, consider adding a scheduled property endorsement to your policy. This add-on provides specific coverage for items like these based on their appraised value or actual replacement cost.
Why do homeowners insurance rates rise?
Homeowners insurance premiums have been steadily climbing for years. Prices have risen 74% since the Great Recession, according to a study from Harvard University’s Joint Center for Housing Studies. Premiums have jumped 20% from 2020 to 2023 alone, the analysis found.
Though premiums can be expected to climb somewhat each year, sometimes the increase is more significant than you expected. While each homeowner’s situation is different, these are common reasons that your insurance premium can increase.
- You let your coverage lapse. When your policy expires and isn’t renewed or replaced with another policy, that is a red flag for insurance companies and will cause them to hike up your premium.
- Your credit score dropped. Insurers are allowed to use your credit history to determine your premium in most states, meaning if your score drops, your premium may rise.
- Building materials are more expensive. Inflation and supply chain issues can lead to higher costs for lumber, steel and other building materials. These costs increase the price to repair or rebuild a home, which means you’ll need higher coverage limits for your home.
- Labor costs have risen. As wages rise, the cost to repair or replace homes increase. Contractors pass along these extra costs to homeowners and insurance companies when bidding on jobs.
- Carriers have left the state. Fewer insurance options can lead to higher premiums from the carriers who remain in the state. States like California and Florida have seen insurers stop offering new policies or leaving the state completely.
- You made changes to your home. Adding a pool or hot tub, buying a new dog or building an addition may cause your rate to rise.
How to lower your homeowners insurance costs
Homeowners insurance rates have been on the rise nationally, but it’s not impossible to find a low-cost homeowners insurance policy. Here are some steps you can take to lower your homeowners insurance premiums.
Raise deductibles
Homeowners insurance deductibles can be a flat amount or a percentage of your covered amount, and you can typically choose from a few options when you buy the policy.
As a general rule, higher deductibles lower the average cost of homeowners insurance, but tread lightly with this option — if disaster strikes and you file a claim, you’ll need the deductible amount ready in order for your insurer to provide coverage.
Ask about discounts
Even if the insurance company inspects your home, they may not be aware of features that qualify for a discount. Examples of home features that may qualify you for discounts include impact-resistant windows, protective devices or green home certification. Other discounts that don’t involve the actual structure of your home include being claims free, a non-smoker or a senior citizen.
Discuss upgrades, safety features and affiliations with your agent to determine if you’re eligible for a discount.
Upgrade or make repairs
Outdated or unsafe conditions at your home can increase the risk of claims. Making upgrades or repairs to your home can help lower your premium. In some cases, you may become eligible for additional insurance options that can lower your premium.
Improve your credit
Many states consider your credit score when setting insurance premiums. When you boost your credit score, you may qualify for a lower rate. Paying off credit card debt, making payments on time, disputing errors and avoiding unnecessary credit inquiries are simple steps to boosting your credit score.
Shop around
Insurers weigh factors differently when pricing your policy — one insurer may quote you a much lower rate than another for the exact same coverage. It’s wise to get a handful of quotes before you buy a policy to be sure you’re getting the best deal possible, and check quotes again each time your policy renews.
Bundle policies
Insurance companies typically offer coverage at a discounted rate when you buy multiple policies with them. Bundling multiple insurance policies, for example, could help you lower your total insurance bill. If you have other policies, like renters, boat, motorcycle or life insurance, you may also qualify for a multi-policy discount.
Lee Huffman is personal finance expert who has been writing online since 2012. After spending 18 years experience in banking, insurance and investing, Lee has a knack for translating complex financial topics into everyday language so readers can make informed decisions.
His bylines appear in more than 1,300 articles for numerous online publications, like TIME, Fortune, LendingTree, NerdWallet, Forbes, USA Today, Money, Slickdeals, Business Insider and Investopedia. Lee has an MBA in eBusiness, and he earned his Bachelors in Business Management at Pepperdine University.
Annie is a writer and editor at Jerry and has more than a decade of experience writing and editing digital content. Before joining Jerry, she was an assistant assigning editor at NerdWallet, where she covered loans. Previously, she worked at USAA and newspapers in Minnesota, North Dakota, California, and Texas. She holds a bachelor’s degree in journalism from the University of Minnesota.
