How much is homeowners insurance in the U.S.?
The national average cost of homeowners insurance is $146 per month, or $1,754 a year, according to a 2023 Policygenius analysis of home insurance premiums in every U.S. state and ZIP code. But keep in mind that this is just an estimate of how much you should expect home insurance to cost. Your actual homeowners insurance rates will depend on several factors, such as your state, city, or ZIP code; how much dwelling coverage you need to completely rebuild your home after a disaster; your home's size, age, and other characteristics; and personal factors like your credit score and claims history.
For this analysis, our licensed insurance experts at Policygenius looked at sample quotes for a 40-year-old homeowner with $300,000 in dwelling coverage, $300,000 in liability coverage, and a $1,000 deductible.
Why you can trust our rates
As an online insurance marketplace, Policygenius works closely with homeowners all over the U.S. to help them find a home insurance policy that suits their needs — without bias or favor toward any one company. 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. You can view our full methodology below.
How much does homeowners insurance cost in your state?
Your homeowners insurance rate can vary by hundreds, even thousands of dollars depending on your state and whether or not your home is susceptible to severe storms or natural disasters where you live. Depending on where you live, you can expect to pay anywhere from around $300 a year to over $4,000 a year — a $3,700 difference. To see the typical cost of home insurance cost where you live, hover over your state on the map below.
Average home insurance costs have increased significantly in each state in 2023, but homeowners in states with a relatively low risk of natural disasters — such as Vermont and New Hampshire — likely haven't seen the same level of sticker shock as more high-risk coastal states.
Here is the average cost of home insurance per month and annually in each state, along with the percentage difference from the national average homeowners insurance cost of $1,754 per year.
State | Average annual cost | Average monthly cost | Difference from national average (%) |
|---|---|---|---|
$1,355 | $113 | -23% | |
$1,940 | $162 | 11% | |
$2,838 | $237 | 62% | |
$1,667 | $139 | -5% | |
$1,383 | $115 | -21% | |
$2,322 | $194 | 32% | |
$1,329 | $111 | -24% | |
$918 | $77 | -48% | |
$2,288 | $191 | 30% | |
$1,950 | $163 | 11% | |
$486 | $41 | -72% | |
$1,686 | $141 | -4% | |
$1,258 | $105 | -28% | |
$1,720 | $143 | -2% | |
$1,668 | $139 | -5% | |
$2,981 | $248 | 70% | |
$2,565 | $214 | 46% | |
$2,452 | $204 | 40% | |
$1,275 | $106 | -27% | |
$1,539 | $128 | -12% | |
$1,020 | $85 | -42% | |
$1,422 | $119 | -19% | |
$1,829 | $152 | 4% | |
$2,579 | $215 | 47% | |
$2,624 | $219 | 50% | |
$2,140 | $178 | 22% | |
$1,545 | $129 | -12% | |
$1,884 | $157 | 7% | |
$3,510 | $293 | 100% | |
$953 | $79 | -46% | |
$886 | $74 | -49% | |
$1,681 | $140 | -4% | |
$1,191 | $99 | -32% | |
$1,114 | $93 | -36% | |
$1,236 | $103 | -30% | |
$4,161 | $347 | 137% | |
$869 | $72 | -50% | |
$1,101 | $92 | -37% | |
$1,303 | $109 | -26% | |
$1,653 | $138 | -6% | |
$311 | $26 | -82% | |
$2,095 | $175 | 19% | |
$2,919 | $243 | 66% | |
$894 | $75 | -49% | |
$1,277 | $106 | -27% | |
$865 | $72 | -51% | |
$1,159 | $97 | -34% | |
$1,150 | $96 | -34% | |
$1,426 | $119 | -19% | |
$1,547 | $129 | -12% |
Based on a policy with $300,000 in dwelling coverage
Learn more >> How to calculate homeowners insurance costs
What are the cheapest & most expensive states for home insurance?
The states with the cheapest average cost of homeowners insurance in 2023 are South Dakota, Hawaii, Vermont, Oregon, and New Jersey. All of these states have average home insurance premiums of under $1,000 a year for a home with $300,000 in dwelling coverage.
The most affordable states for homeowners insurance
1. South Dakota: $311 per year
2. Hawaii: $486 per year
3. Vermont: $865 per year
4. Oregon: $869 per year
5. New Jersey: $886 per year
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 most of these states have in common? They're all located in or around Tornado Alley — a region of the country that sees frequent twisters and hailstorms throughout the year.
The most expensive states for homeowners insurance
1. Oklahoma: $4,161 per year
2. Nebraska: $3,510 per year
3. Kansas: $2,981 per year
4. Texas: $2,919 per year
5. Arkansas: $2,838 per year
Learn more >> Cheap homeowners insurance companies for 2023
How much does home insurance cost in your city?
To find the average homeowners insurance cost by city, we analyzed premiums from over a dozen carriers in 67 of the largest metropolitan areas in the U.S. To ensure we were providing homeowners with meaningful insights, we calculated each city's average annual and monthly rate, and broke down how these costs compare to the overall average in the state where the city is based.
Miami had the most expensive rate at $3,572 per year, while Portland's average rate of $801 per year was the cheapest of the cities we analyzed.
City | Average annual cost | Average monthly cost | Difference from state average (%) |
|---|---|---|---|
$1,025 | $85 | -8% | |
$1,488 | $124 | -11% | |
$2,049 | $171 | 5% | |
$2,158 | $180 | -26% | |
$1,826 | $152 | 19% | |
$1,467 | $122 | 15% | |
$1,605 | $134 | 4% | |
$2,130 | $178 | 24% | |
$1,240 | $103 | 0% | |
$1,239 | $103 | 0% | |
$2,984 | $249 | 29% | |
$1,266 | $106 | 2% | |
$2,466 | $206 | -16% | |
$3,284 | $274 | 13% | |
O | $3,021 | $252 | 30% |
$2,327 | $194 | 64% | |
$1,749 | $146 | 13% | |
$1,909 | $159 | -17% | |
$3,258 | $272 | 12% | |
$1,479 | $123 | 11% | |
$1,183 | $99 | -1% | |
$2,936 | $245 | 1% | |
$1,831 | $153 | 10% | |
$1,884 | $157 | -18% | |
$1,029 | $86 | 16% | |
$2,567 | $214 | -14% | |
$2,864 | $239 | 23% | |
$1,249 | $104 | 5% | |
$1,566 | $131 | 13% | |
$2,086 | $174 | -19% | |
$2,197 | $183 | 5% | |
$3,572 | $298 | 56% | |
$1,235 | $103 | 7% | |
$2,010 | $168 | 10% | |
$2,502 | $209 | 9% | |
$2,023 | $169 | -3% | |
$1,032 | $86 | 16% | |
$2,805 | $234 | 14% | |
NY | $1,511 | $126 | 36% |
$1,945 | $162 | -15% | |
$3,375 | $281 | 16% | |
$2,405 | $200 | -19% | |
$2,315 | $193 | 1% | |
$1,654 | $138 | 50% | |
$1,781 | $148 | 7% | |
$1,138 | $95 | 3% | |
$801 | $67 | -8% | |
$1,760 | $147 | 14% | |
$1,257 | $105 | -2% | |
$1,237 | $103 | -11% | |
$899 | $75 | 1% | |
$2,365 | $197 | -19% | |
$1,333 | $111 | -4% | |
$1,244 | $104 | -10% | |
$1,258 | $105 | -9% | |
$1,434 | $120 | -15% | |
$1,887 | $157 | -3% | |
$1,643 | $137 | -1% | |
$1,130 | $94 | -3% | |
$1,176 | $98 | 1% | |
$2,475 | $206 | -4% | |
$2,389 | $199 | -7% | |
$1,888 | $157 | -17% | |
$2,266 | $189 | -1% | |
$1,621 | $135 | -3% | |
$3,735 | $311 | -10% | |
$1,947 | $162 | 52% |
Based on a policy with $300,000 in dwelling coverage
Average homeowners insurance cost by company
Home insurance rates can vary significantly from company to company — even for the same home or coverage amounts. That's because every company has its own way of evaluating risk and determining home insurance premiums.
For example, while Company A may offer the cheapest rates for homeowners with low credit scores or homes that are riskier to insure, Company B may offer better discounts or more competitive rates for less risky properties. To get an idea of what company offers the best coverage at the cheapest rate for your situation, you'll want to compare home insurance quotes from multiple providers.
Looking at the average annual cost of home insurance for the largest home insurance companies in the U.S. by market share, we found that Erie has the least expensive rate at $1,284 per year, while Country Financial's average annual premium of $2,646 is the most expensive.
Company | Average annual cost | Average monthly cost | Difference from national average (%) |
|---|---|---|---|
$1,284 | $107 | -27% | |
$1,339 | $112 | -24% | |
$1,373 | $114 | -22% | |
$1,406 | $117 | -20% | |
$1,479 | $123 | -16% | |
$1,487 | $124 | -15% | |
$1,568 | $131 | -11% | |
$1,633 | $136 | -7% | |
$1,650 | $137 | -6% | |
$1,692 | $141 | -4% | |
$1,706 | $142 | -3% | |
$1,756 | $146 | 0% | |
$1,835 | $153 | 5% | |
$1,845 | $154 | 5% | |
$1,879 | $157 | 7% | |
$1,887 | $157 | 8% | |
$1,966 | $164 | 12% | |
$2,493 | $208 | 42% | |
$2,646 | $220 | 51% |
Based on a policy with $300,000 in dwelling coverage
Learn more >> Best home insurance companies in 2023
Average home insurance cost by dwelling coverage amount
The cost of homeowners insurance is largely based on how much dwelling coverage is in your policy. Dwelling coverage refers to the portion of home insurance that pays to rebuild your house from the ground up should it be completely destroyed by a covered peril, like a tornado or wildfire.
The amount of dwelling coverage in your policy should be equal to your home's replacement cost, which is based factors like your home's square footage, local construction costs, building materials and architectural style, and other features like built-in appliances, cabinetry, and flooring. Typically, if your house is larger or more customized compared to other homes, you'll likely need more dwelling coverage and will have to pay higher premiums.
Scroll down to find the average cost of homeowners insurance for different levels of dwelling coverage. Because costs can vary significantly at each dwelling level, we broke out our analysis into low end, middle, and high end averages based on the quartile range (one through four) that the sample policies fell into.
How much is homeowners insurance on a $200,000 house?
A house with $200,000 in dwelling coverage has an average home insurance rate of $1,298 per year. But on average, homeowners can expect to pay anywhere from $601 to $2,935 per year for this level of coverage depending on their location and circumstances.
$200,000 dwelling | Yearly cost | Per month cost |
|---|---|---|
Average of low end rates | $601 | $50 |
Average of middle rates | $1,140 | $95 |
Average of high end rates | $2,935 | $245 |
Overall national average | $1,298 | $108 |
Based on a policy with $200,000 in dwelling coverage. Dwelling coverage reflects the cost of rebuilding a home, not its market value
How much is homeowners insurance on a $300,000 house?
A house with $300,000 in dwelling coverage has an average home insurance rate of $1,754 per year. On average, homeowners could pay anywhere from $802 to $3,987 per year for this level of coverage depending on their location and circumstances.
$300,000 dwelling | Yearly cost | Per month cost |
|---|---|---|
Average of low end rates | $802 | $67 |
Average of middle rates | $1,539 | $128 |
Average of high end rates | $3,987 | $332 |
Overall national average | $1,754 | $146 |
Based on a policy with $300,000 in dwelling coverage. Dwelling coverage reflects the cost of rebuilding a home, not its market value
How much is homeowners insurance on a $400,000 house?
A house with $400,000 in dwelling coverage has an average home insurance premium of $2,222 per year. But on average, homeowners can expect to spend anywhere from $999 to $5,064 per year for this much dwelling protection.
$400,000 dwelling | Yearly cost | Per month cost |
|---|---|---|
Average of low end rates | $999 | $83 |
Average of middle rates | $1,947 | $162 |
Average of high end rates | $5,064 | $422 |
Overall national average | $2,222 | $185 |
Based on a policy with $400,000 in dwelling coverage. Dwelling coverage reflects the cost of rebuilding a home, not its market value
How much is homeowners insurance on a $500,000 house?
A house with $500,000 in dwelling coverage has an average home insurance premium of $2,724 per year. On average, homeowners should anticipate paying anywhere from $1,198 to $6,238 per year for this much coverage.
$500,000 dwelling | Yearly cost | Per month cost |
|---|---|---|
Average of low end rates | $1,198 | $1,198 |
Average of middle rates | $2,379 | $198 |
Average of high end rates | $6,238 | $520 |
Overall national average | $2,724 | $227 |
Based on a policy with $500,000 in dwelling coverage. Dwelling coverage reflects the cost of rebuilding a home, not its market value
Learn more >> How to estimate home insurance replacement cost
How different factors affect homeowners insurance rates
In addition to your location and how much coverage you need, most home insurance providers will also take the age of your home, your claims history, and your deductible level into consideration when estimating your premiums.
Here are just a few of the different factors that home insurance companies consider when determining your homeowners insurance rates, along with how much you can expect to pay for each given scenario.
Average homeowners insurance cost by home age
Older homes are often constructed with outdated materials that are more expensive to replace. Additionally, many have obsolete 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 ages. On average, it's roughly $800 cheaper to insure a new home compared to one that's 30 years old.
Age of home | Average annual cost | Average monthly cost |
|---|---|---|
New | $1,107 | $92 |
10 years old | $1,635 | $136 |
20 years old | $1,868 | $156 |
30 years old | $1,925 | $160 |
100 years old | $1,943 | $162 |
Based on a policy with $300,000 in dwelling coverage
Learn more >> Best home insurance for older homes
Average homeowners insurance cost by deductible level
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 cost by deductible level.
Deductible level | Average annual cost | Average monthly cost |
|---|---|---|
$500 | $1,787 | $149 |
$1,000 | $1,492 | $124 |
$2,000 | $1,446 | $121 |
Based on a policy with $300,000 in dwelling coverage
Learn more >> How to home insurance deductibles work?
Average home insurance cost by claims history
Claims history is another important factor that 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.
Here is the average annual home insurance cost for a homeowner with a clean claims history and how it compares to the average rate for a homeowner with one, three, or five claims on their record.
Number of claims | Average annual cost | Average monthly cost |
|---|---|---|
0 claims | $1,925 | $160 |
1 claim | $2,093 | $174 |
3 claims | $2,902 | $242 |
5 claims | $4,339 | $362 |
Based on a policy with $300,000 in dwelling coverage
Learn more >> What factors affect the cost of homeowners insurance?
Home insurance prices are up 21% in 2023
Last year, Policygenius found that home insurance premiums increased an average of 12% from May 2021 to May 2022 — faster than the record-breaking rate of inflation during that span, according to our 2022 Home Insurance Pricing Report. With inflation and constructions costs showing signs of flattening out and even receding in 2023, it would be reasonable to assume that home insurance prices would follow suit. Our latest findings suggest this was anything but the case.
From May 20, 2022 to May 20, 2023, 94% of policyholders faced a rate increase at renewal, compared to 90% of policyholders from the previous year. During this time, the average quoted renewal premium was 21% higher nationally compared to the average of what homeowners were previously paying — roughly 9% higher than the 12% increase we reported last year.
Altogether, home insurance premiums have increased 35% nationally over the last two years, with homeowners in Florida (68%), New Mexico (47%), Colorado (46%), Idaho (46%), and Texas (46%) facing the biggest average increases during that span.
These states and many others with high premium increases the past few years have dealt with a combination of more expensive natural disaster losses, high inflation, turbulent market conditions, and numerous other factors that has caused home insurance to be both less affordable and accessible for homeowners.
Find out how much premiums increased in your state in the table below, or by reading our full 2023 Home Insurance Pricing Report.
Why homeowners insurance is more expensive in 2023
With homeowners insurance rates continuing to increase nationally for the foreseeable future, it's important to be aware of the various market trends and conditions that got us to this point. Here are the biggest home insurance cost factors that have both insurance providers and policyholders searching for answers.
Inflation has increased home re
Inflation throughout the country still remains higher than historical averages. [1] Add to this above-average construction costs nationwide and labor shortages, and the cost to rebuild your home is becoming more expensive.
Given the fact that inflation requires higher dwelling coverage limits to keep pace with rising costs and the significant impact these policy adjustments have on premiums, it's not surprising that 94% of homeowners in 2023 saw a higher quoted premium at renewal compared to the previous year.
Increasingly severe weather and climate change
Homeowners in high-risk states like Florida, Texas, California, and Colorado are having difficulty finding affordable insurance options, and in some cases they're unable to find any coverage period. Insurance companies have experienced record losses in recent years — particularly in places like Florida and California — due to increasingly severe weather and natural disasters. To both recoup prior years' losses and to account for anticipated losses that are expected to only worsen with climate change, insurance companies have hiked insurance rates significantly the last few years. [2]
Carriers are exiting high-risk states, limiting option for homeowners
Just this year, Allstate and State Farm stopped writing new policies in California, Farmers placed a cap on how many new policies it would write in the Golden State, and Safeco dropped around 1,000 policies in the Bay Area.
The same goes for Florida, where as many as ten companies have already gone insolvent since 2020. [3] Recently, AAA announced it would not renew home insurance policies in "higher-exposure" areas of Florida, and Farmers announced it will stop writing new policies and won't renew thousands of existing ones. [4] This is on top of Progressive, AIG, and Heritage who had already announced they were no longer writing new policies in Florida.
When there are fewer carriers left to choose from in a particular state or region, the ones remaining will often implement stricter rating criteria and increase prices to reflect both the higher demand and exposure, resulting in higher premiums for homeowners.
How to lower home 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.
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. 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 last year
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.
6 coverages included in the cost of homeowners insurance
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?
Frequently Asked Questions
How much should homeowners insurance increase each year?
Home insurance premiums were up an average of 21% from May 2022 to May 2023, after increasing an average of 12% the year before, and altogether prices are up 35% the last two years, according to a Policygenius analysis of internal policyholder data.
Homeowners insurance has increased drastically the last few years due to inflation, high construction and labor costs, and the influx of natural disaster losses due to climate change.
Here's an in-depth look at why rates are increasing and what you can do to get your premiums back down.
Learn more >> Why did my homeowners insurance rates go up?
How much is home insurance per month?
The average cost of home insurance in the U.S. is $146 per month, according to Policygenius' analysis of home insurance rates in every U.S. state and ZIP code.
What state has the highest homeowners insurance?
Oklahoma has the highest homeowners insurance premiums of all 50 states — ringing in at $4,230 per year — due in large part to the frequent tornadoes and hailstorms the state experiences throughout much of the year.
Do you pay home insurance monthly or yearly?
Most home insurance companies give you the choice of paying your home insurance monthly or yearly. The upside to paying your insurance premiums up front for the year is that many insurers will give you a discount on your rate.
Does my home insurance cost affect my mortgage payment?
If you pay your mortgage through an escrow account, then your home insurance cost will affect your mortgage payment. This is because with an escrow account, your lender deposits a portion of your monthly mortgage payment to pay for property taxes, private mortgage insurance, and homeowners insurance.
Learn more >> How homeowners insurance affects your mortgage
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.
