How much is homeowners insurance?
Homeowners insurance costs an average of $1,899 per year, or around $158 a month, for a policy with $300,000 in dwelling coverage, according to Policygenius' analysis of home insurance rates in every U.S. state and ZIP code.
But keep in mind that this is just the national average and that your own home insurance rates could vary significantly based on where you live, how much coverage you need, and individual factors like your credit and claims history.
Average homeowners insurance cost by state
The average price for homeowners insurance can differ by hundreds, even thousands of dollars depending on where you live. Hover over your state on the map below to see the average annual cost of home insurance for a home with $300,000 in dwelling coverage.
While home insurance prices are going up virtually everywhere, homeowners in areas of the country with a low risk of natural disasters — like Vermont and New Hampshire — likely haven't felt as much of an impact. Depending on where you live, you can expect to pay anywhere from $500 a year to over $4,000 a year — a $3,500 difference.
Below is the average cost of home insurance per month and annually by state, and how it compares to the national average.
State | Average monthly cost | Average annual cost | Difference from national average (%) |
|---|---|---|---|
$165 | $1,982 | 4% | |
$117 | $1,398 | -26% | |
$147 | $1,762 | -7% | |
$244 | $2,924 | 54% | |
$120 | $1,436 | -24% | |
$206 | $2,472 | 30% | |
$113 | $1,359 | -28% | |
$77 | $928 | -51% | |
$96 | $1,154 | -39% | |
$204 | $2,442 | 29% | |
$163 | $1,956 | 3% | |
$41 | $486 | -74% | |
$113 | $1,352 | -29% | |
$148 | $1,775 | -7% | |
$143 | $1,719 | -9% | |
$143 | $1,714 | -10% | |
$258 | $3,094 | 63% | |
$219 | $2,622 | 38% | |
$209 | $2,507 | 32% | |
$90 | $1,076 | -43% | |
$131 | $1,575 | -17% | |
$107 | $1,285 | -32% | |
$129 | $1,550 | -18% | |
$161 | $1,937 | 2% | |
$221 | $2,655 | 40% | |
$219 | $2,627 | 38% | |
$184 | $2,213 | 17% | |
$312 | $3,741 | 97% | |
$101 | $1,209 | -36% | |
$81 | $967 | -49% | |
$75 | $904 | -52% | |
$141 | $1,686 | -11% | |
$95 | $1,139 | -40% | |
$132 | $1,580 | -17% | |
$158 | $1,890 | 0% | |
$108 | $1,297 | -32% | |
$353 | $4,230 | 123% | |
$75 | $905 | -52% | |
$97 | $1,162 | -39% | |
$113 | $1,358 | -28% | |
$141 | $1,696 | -11% | |
$202 | $2,418 | 27% | |
$187 | $2,242 | 18% | |
$252 | $3,027 | 59% | |
$77 | $923 | -51% | |
$75 | $900 | -53% | |
$111 | $1,329 | -30% | |
$101 | $1,216 | -36% | |
$122 | $1,464 | -23% | |
$98 | $1,177 | -38% | |
$133 | $1,599 | -16% |
Why you can trust our rates
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
Our rates were determined by analyzing home insurance rates provided by Quadrant Information Services for over 120 insurance carriers from across the country in March 2022. You can view our full methodology below.
Top 5 cheapest states for home insurance
The states with the cheapest typical home insurance costs in 2023 are Hawaii, Vermont, New Jersey, Oregon, and Utah. All of these states have average home insurance prices of under $1,000 a year for a home with $300,000 in dwelling coverage. However, the typical cost of homeowners insurance in Oregon is going up due to a brutal wildfire season.
Here are the most affordable states for homeowners insurance.
Top 5 most expensive states for home insurance
On the flip side, the states with the most expensive average home insurance costs in 2023 are Oklahoma, Nebraska, Kansas, Texas, and Arkansas. One thing all of these states have in common? They're all located in Tornado Alley — a region of the country that sees frequent tornadoes and hailstorms throughout much of the year.
Here are the most expensive states for homeowners insurance.
Average homeowners insurance cost by city
The table below provides a look into the average cost of home insurance per month and annually in different cities across the U.S. and how each compares to its respective state's average.
Cities that face a high risk of tornadoes or hurricanes — such as Kansas City, Houston, and Miami — see higher typical home insurance costs than cities located in more mild climates.
City | Average monthly cost | Average annual cost | Difference from state average (%) |
|---|---|---|---|
$85 | $1,025 | -14% | |
$124 | $1,488 | -17% | |
$171 | $2,051 | 3% | |
$183 | $2,196 | -29% | |
$171 | $2,052 | 18% | |
$130 | $1,562 | 13% | |
$134 | $1,605 | -4% | |
$203 | $2,432 | 18% | |
$128 | $1,534 | -3% | |
$127 | $1,526 | -4% | |
$259 | $3,104 | 24% | |
$127 | $1,523 | -4% | |
$229 | $2,742 | -11% | |
$296 | $3,554 | 16% | |
$259 | $3,104 | 24% | |
$315 | $3,779 | 120% | |
$146 | $1,749 | 4% | |
$191 | $2,288 | -13% | |
$306 | $3,673 | 18% | |
$140 | $1,682 | 10% | |
$106 | $1,272 | 3% | |
$262 | $3,149 | 2% | |
$179 | $2,146 | 5% | |
$157 | $1,884 | -28% | |
$86 | $1,029 | 11% | |
$267 | $3,209 | 12% | |
$239 | $2,864 | 15% | |
$114 | $1,370 | 11% | |
$168 | $2,021 | 29% | |
$201 | $2,406 | -14% | |
$266 | $3,191 | 26% | |
$417 | $5,003 | 89% | |
$109 | $1,302 | 8% | |
$179 | $2,142 | 9% | |
$209 | $2,502 | -5% | |
$194 | $2,326 | -8% | |
$93 | $1,115 | 13% | |
$332 | $3,983 | 38% | |
$152 | $1,819 | 49% | |
$162 | $1,945 | -26% | |
$281 | $3,375 | 9% | |
$200 | $2,405 | -24% | |
$224 | $2,683 | 2% | |
$166 | $1,992 | 53% | |
$180 | $2,162 | 13% | |
$103 | $1,241 | -5% | |
$72 | $858 | -10% | |
$147 | $1,760 | 4% | |
$122 | $1,469 | -3% | |
$117 | $1,401 | -10% | |
$79 | $945 | 0% | |
$197 | $2,362 | 51% | |
$111 | $1,333 | -15% | |
$128 | $1,533 | -2% | |
$105 | $1,258 | -20% | |
$120 | $1,434 | -20% | |
$184 | $2,210 | 11% | |
$163 | $1,950 | 3% | |
$100 | $1,195 | -7% | |
$101 | $1,210 | -5% | |
$239 | $2,870 | 0% | |
$239 | $2,871 | 0% | |
$157 | $1,888 | -28% | |
$217 | $2,606 | -1% | |
$136 | $1,632 | -14% | |
$311 | $3,735 | -15% | |
$204 | $2,445 | 62% |
Average homeowners insurance cost by company
Home insurance costs vary from company to company, as every company has its own particular way of calculating rates and evaluating risk. Based on our analysis of the cheapest home insurance companies, we found that the price of homeowners insurance with Erie is the lowest, followed by Auto-Owners and USAA.
Top 10 most affordable home insurance companies
Learn more >> Cheap homeowners insurance companies for 2023
How is homeowners insurance calculated?
Every insurance carrier has its own way of analyzing risk and calculating home insurance rates. But broadly speaking, premiums are based on the claim likelihood and severity of a given property.
Here are just some of the different factors that impact home insurance rates:
Location
Home location is one of the biggest factors that insurance companies consider when calculating home insurance premiums. Homes in areas at risk of tornadoes, wildfires, hurricanes, or frequent break-ins will likely see high homeowners insurance rates due to the higher probability of damage and claims.
Home age
Older homes are often constructed with outdated materials that are more expensive to replace. Additionally, many have outdated plumbing, electrical, and home systems that increase the probability of accidental fires or water damage.
Given the increased risk of damage and claims, you'll generally have to pay more for home insurance as your home increases in age. On average, it's roughly $800 cheaper to insure a new home compared to one that's 30 years old.
Average homeowners insurance cost by home age
Age of home | Average monthly cost | Average annual cost | Difference from national average (%) |
|---|---|---|---|
New | $93 | $1,110 | -42% |
10 years old | $137 | $1,645 | -13% |
20 years old | $157 | $1,879 | -1% |
30 years old | $161 | $1,933 | 2% |
100 years old | $163 | $1,956 | 3% |
Learn more >> Best home insurance for older homes
Dwelling coverage amount
A home's dwelling coverage limit is based on its replacement cost, or the cost to rebuild the structure from the ground up. Simply put, more dwelling coverage means higher home insurance premiums.
Average homeowners insurance cost by dwelling coverage limit
Dwelling coverage level | Average monthly cost | Average annual cost |
|---|---|---|
$100,000 | $79 | $946 |
$200,000 | $120 | $1,442 |
$300,000 | $158 | $1,899 |
$400,000 | $207 | $2,481 |
$500,000 | $256 | $3,066 |
Deductible
A home insurance deductible is the amount you’re required to pay out of pocket on each claim before your insurance kicks in to cover the remainder of the costs.
Opting for a higher deductible — like $2,000 instead of $500 — will lower your homeowners insurance rates, but it also means you'll have to contribute more of your own money to each claim.
Here’s the average annual home insurance rate by deductible level from five different companies.
Average homeowners insurance cost by deductible amount
Company | $500 deductible | $1,000 deductible | $2,000 deductible |
|---|---|---|---|
Allstate | $1,776 | $1,596 | $1,104 |
ASI Progressive | $2,750 | $2,618 | $1,365 |
Auto-owners | $1,171 | $1,283 | $1,010 |
Erie | $1,446 | $1,346 | $1,259 |
State Farm | $2,327 | $2,039 | $1,551 |
Claims history
Claims history is another important factor insurance carriers take into account when calculating home insurance rates. If you've filed more than one claim in the past five years, you'll generally pay higher home insurance rates since insurers view you to be at greater risk of filing another one.
Average homeowners insurance cost by claims history
Number of claims | Average monthly cost | Average annual cost | Difference from national average (%) |
|---|---|---|---|
0 claims | $161 | $1,933 | 2% |
1 claim | $175 | $2,101 | 11% |
3 claims | $243 | $2,916 | 54% |
5 claims | $367 | $4,407 | 132% |
Learn more >> Does home insurance go up after a claim?
8 ways to lower homeowners insurance costs
Homeowners insurance rates are going up everywhere due to higher rebuild costs, more severe natural disasters, and other things beyond our control.
But there are also several actions you can take to reduce your rates and ensure you're not paying more than you should be for homeowners insurance. To save on home insurance, consider the following:
Compare home insurance quotes. It's a good idea to compare home insurance rates from multiple companies at least once each year to ensure you aren't missing out on a better deal elsewhere. In fact, Policygenius saves customers an average of $455 per year when they re-shop their homeowners insurance.
Bundle home & auto insurance policies. One of the most foolproof ways to lower insurance costs is to bundle home and auto insurance — or to purchase both policies through the same company. Policygenius saves customers an average of $1,250 per year compared to what they were paying for home and auto insurance prior to bundling with us.
Install home protective devices or features. When you take steps to make your home safer, such as by installing a home security system or certain wind mitigation features, you may be able to shave a significant amount off of your insurance bill.
Improve your credit score. Making a conscious effort to pay down your credit card debt, make payments on time, and avoid opening up new accounts will help your overall financial health — and give you lower home insurance rates to boot.
Increase your deductible. As we mentioned earlier, opting for a higher deductible can help you pay lower premiums each month. Just make sure you have enough in savings to cover the higher out-of-pocket costs.
Choose accurate coverage amounts. Just 44% of U.S. homeowners reviewed their home insurance policy from January 2022 to January 2023 to see how much coverage they had, according to the Policygenius Home Insurance & Inflation Shopping Survey. While the overriding concern here is homeowners not updating their policies to reflect higher rebuild costs, many also may be missing out on the opportunity to get rid of coverage they don't absolutely need and lower their rates.
Think twice before filing a small claim. Since your claims history directly impacts the cost of your home insurance, avoid filing a claim for smaller incidents that wouldn’t cost you too much to just pay yourself out of pocket.
Reconsider liability risks. Trampolines, tree houses, and other “attractive nuisances” are a liability risk and having one on your property can result in higher premiums. If your kid moved off to college and you don't have any use for these structures anymore, consider removing them and you may just see lower rates.
Learn more >> Home insurance discounts & savings
How real customers lowered their home insurance bill in 2022
With the increase in insurance rates nationwide over the last year, we ran a survey in February 2023 to see what homeowners did last year to offset these high costs and lower their insurance bill.
According to the Policygenius Home Insurance & Inflation Shopping Survey, 51% of homeowners lowered their home insurance costs last year by switching companies for a cheaper option, followed by 33% who bundled their home and auto insurance policies to get a cheaper rate.
What does homeowners insurance cover?
Homeowners insurance provides you with financial protection in case of expensive property damage or lawsuits. Here's a breakdown of each of the six coverages in every standard policy.
Dwelling: Helps cover the cost to repair or rebuild your home in case it's damaged by a covered event, like a windstorm or fire.
Other structures: Pays for damage to structures on your property that aren't attached to your home, like a detached garage, shed, or fence.
Personal property: Covers damage or theft of your personal belongings, including clothes, kitchen appliances, electronics, and more.
Loss of use: Also known as additional living expenses, this helps pay for things like hotel stays, restaurant bills, and transportation costs if you're unable to live in your home because of covered damage.
Personal liability: Covers medical and legal expenses if you're found legally responsible for another person's injury or damage to someone's property.
Medical payments coverage: Pays for medical expenses if someone is injured on your property — regardless of who’s at fault.
Learn more >> What does home insurance cover?
Methodology
Policygenius' home insurance rate analysis is based on sample quotes from Quadrant Information Services from over 120 insurance companies in every state and ZIP code in the United States. Our sample quotes were based on a 40-year-old homeowner with no claims history, good credit, a $1,000 deductible, and the following coverage limits for the home:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
