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The average annual homeowners insurance premium is around $1,200, but costs vary widely from state to state and house to house.
Homeowners insurance costs around $1,200 a year on average
Factors like your insured limits, credit history, and home location impact how much you pay
Insurance companies offer discount opportunities for both weatherproofing and safeguarding your home
Selecting a homeowners insurance policy is one of the more important purchasing decisions you’ll make after finding a new home. Homeowners insurance protects your assets — the home itself, personal property within the home, and legal and medical bills if someone is injured on your property. It's also required by most mortgage companies before they’ll lend to you.
According to the National Association of Insurance Commissioners, the average annual homeowners insurance premium is $1,192. Homeowners insurance costs differ from state to state for a number of reasons. If a state has a lot of major cities and more densely populated areas, it’s more likely to have higher premiums, as home values are generally higher. States in areas with a higher incidence of natural disasters also generally have higher premiums than states that don’t match that criteria. Homeowners insurance premiums are also dependent on the age and rebuild value of your home and the insured limits in your policy.
|State||Average annual premium||State||Average annual premium|
|District of Columbia||$1,225||North Dakota||$1,239|
Extreme weather is a common theme in states with high homeowners insurance premiums. Louisiana, Texas, and Florida are coastal states and are more susceptible to strong storms, and Oklahoma and Kansas are right in the middle of Tornado Alley.
On the flip side, you can get a bargain deal on homeowners insurance if you live in a state that experiences milder weather.
While we don’t advise moving somewhere strictly based on how high homeowners insurance premiums run, it’s helpful to understand why policies are cheaper in certain states and more expensive in others. As you can see, the following states aren’t likely to experience tropical storms and aren’t as prone to catastrophic tornadoes or other disasters.
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Your homeowners insurance costs are largely determined by your home’s insured value, or the dwelling coverage limit in your policy. This is the part of your policy that reimburses you for covered damage to the structure of the home. The more dwelling coverage you have, the higher your homeowners insurance premiums will be.
Below is the average annual premium for homeowners insurance by insured value range.
|Insurance range||Average annual premium|
|$49,999 and Under||$681|
|$50,000 to $74,999||$761|
|$75,000 to $99,000||$830|
|$100,000 to $124,999||$875|
|$125,000 to $149,999||$914|
|$150,000 to $174,999||$954|
|$175,000 to $199,999||$990|
|$200,000 to $299,999||$1,081|
|$300,000 to $399,000||$1,242|
|$400,000 to $499,000||$1,466|
|$500,000 and Above||$2,164|
Homeowners insurance companies factor in different kinds of potential risks when determining home insurance rates. Some of these risks you have control over, and some are simply beyond your control.
Example of coverage limits in a standard HO-3 homeowners insurance policy
|Coverage type||Coverage limit example|
|Other structures coverage||$30,000 (10% of dwelling coverage)|
|Personal property coverage||$150,000 (50% of dwelling coverage)|
|Loss-of-use coverage||$60,000 (20% of dwelling coverage)|
|Medical payments coverage||$1,000-5,000|
Along with insurance bundles, loyalty discounts, and infrequent claims, you can also lower your homeowners insurance premiums by increasing the number of safety and security features in your residence:
Interested in reshopping into lower homeowners insurance rates? Look no further than Policygenius. We’ll look at your policy, compare your coverage and cost with other insurers, and help you determine if you can get a better deal with another company.
Policygenius’ editorial content is not written by an insurance agent. It’s intended for informational purposes and should not be considered legal or financial advice. Consult a professional to learn what financial products are right for you.
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Yes, we have to include some legalese down here. Read it larger on our legal page. Policygenius Inc. (“Policygenius”) is a licensed independent insurance broker. Policygenius does not underwrite any insurance policy described on this website. The information provided on this site has been developed by Policygenius for general informational and educational purposes. We do our best efforts to ensure that this information is up-to-date and accurate. Any insurance policy premium quotes or ranges displayed are non-binding. The final insurance policy premium for any policy is determined by the underwriting insurance company following application. Savings are estimated by comparing the highest and lowest price for a shopper in a given health class. For example: for a 30-year old non-smoker male in South Carolina with excellent health and a preferred plus health class, comparing quotes for a $500,000, 20-year term life policy, the price difference between the lowest and highest quotes is 60%. For that same shopper in New York, the price difference is 40%. Rates are subject to change and are valid as of 2/17/17.
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