Average homeowners insurance cost (updated for 2022 inflation)

How much is homeowners insurance?

The average cost of homeowners insurance in the U.S. is $158 a month or $1,899 per year, according to our analysis of 2022 home insurance rates from across the country. 

But home insurance costs are on the rise.

Our Home Insurance Pricing Report released in July 2022 found that home insurance costs are increasing nationwide, partially due to inflation, increased construction and labor costs, and a surge in natural disasters. 

From May 2021 to May 2022, 90% of homeowners saw their home insurance costs go up — with the average increase costing an extra $134 per year.

Keep in mind that how much you pay for home insurance will vary widely based on where you live, how old your home is, how much it’d cost to rebuild it, and your claims history.

Continue reading to learn how different factors can impact how much your home  insurance costs.

Methodology & 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.

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.

States with the biggest home insurance cost increases

According to our Home Insurance Pricing Report, home insurance is rising faster than inflation in many states throughout the U.S. Arkansas, Washington, and Colorado all saw over a 17% increase in home insurance costs from May 2021 to May 2022. [1]  

Here are the top five states that saw the biggest percentage increase in home insurance rates from May 2021 to May 2022.

Average rates in top 10 cities most at risk of climate change

Florida, Texas, and Louisiana are just some of the states most vulnerable to climate change. And homeowners throughout these states are feeling the effects — not only in the increase in severe weather, but in the cost of home insurance.

Whether being battered by hurricanes, tornadoes, or excruciating heat, many cities that made our top 10 list of the Worst Cities for Climate Change are seeing home insurance rates as much as 89% higher than their state average.

City	Average monthly cost	Average annual cost	Percentage difference from state average
Houston, TX	$262	$3,143	2%
Miami, FL	$417	$5,003	89%
Tampa, FL	$217	$2,606	-1%
Jacksonville, FL	$157	$1,884	-29%
Orlando, FL	$224	$2,683	2%
New Orleans, LA	$332	$3,983	47%
Los Angeles, CA	$168	$2,021	29%
Memphis, TN	$266	$3,191	26%
Riverside, CA	$138	$1,654	6%
Virginia Beach, VA	$204	$2,445	61%

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Average cost of home insurance by state

With home insurance costs on the rise for many homeowners across the country, here is what you can expect to pay in your state. Below are the average annual costs of home insurance by state for a home with a dwelling coverage limit of $300,000.

Hop tip: Click on each state name in the table below to find out more about the cost of home insurance where you live.

State	Average monthly cost	Average annual cost	Percentage difference from national average
Alabama	$172	$2,063	9%
Alaska	$120	$1,446	-24%
Arizona	$158	$1,897	0%
Arkansas	$283	$3,391	79%
California	$130	$1,565	-18%
Colorado	$208	$2,496	31%
Connecticut	$131	$1,571	-17%
Delaware	$82	$980	-48%
District of Columbia	$96	$1,154	-39%
Florida	$220	$2,643	39%
Georgia	$166	$1,988	5%
Hawaii	$40	$486	-74%
Idaho	$114	$1,363	-28%
Illinois	$171	$2,053	8%
Indiana	$170	$2,045	8%
Iowa	$153	$1,830	-4%
Kansas	$263	$3,159	66%
Kentucky	$225	$2,705	42%
Louisiana	$227	$2,719	43%
Maine	$92	$1,103	-42%
Maryland	$144	$1,733	-9%
Massachusetts	$115	$1,382	-27%
Michigan	$143	$1,712	-10%
Minnesota	$164	$1,966	4%
Mississippi	$243	$2,919	54%
Missouri	$240	$2,876	51%
Montana	$231	$2,778	46%
Nebraska	$381	$4,567	140%
Nevada	$103	$1,239	-35%
New Hampshire	$81	$974	-49%
New Jersey	$77	$926	-51%
New Mexico	$149	$1,792	-6%
New York	$99	$1,186	-38%
North Carolina	$140	$1,678	-12%
North Dakota	$159	$1,908	0%
Ohio	$132	$1,586	-16%
Oklahoma	$361	$4,331	128%
Oregon	$79	$943	-50%
Pennsylvania	$109	$1,303	-31%
Rhode Island	$122	$1,470	-23%
South Carolina	$149	$1,793	-6%
South Dakota	$202	$2,426	28%
Tennessee	$211	$2,526	33%
Texas	$257	$3,080	62%
Utah	$79	$949	-50%
Vermont	$87	$1,046	-45%
Virginia	$126	$1,516	-20%
Washington	$107	$1,280	-33%
West Virginia	$125	$1,499	-21%
Wisconsin	$101	$1,211	-36%
Wyoming	$133	$1,599	-16%

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Average home insurance cost by city

Now let’s take a closer look at the average cost of home insurance in different cities across the U.S., as well as the percentage difference from the national average — $1,899 per year.

As you can see, cities located in areas that are at high risk for natural disasters — like tornado-prone Kansas City, flood-prone Houston, and hurricane-prone Miami — see higher rates than cities located in more mild climates.

City	Average monthly cost	Average annual cost	Percentage difference from state average
Albany	$85	$1,025	-14%
Atlanta	$171	$2,051	3%
Austin	$183	$2,196	-29%
Boston	$130	$1,562	13%
Charlotte	$134	$1,605	-4%
Chicago	$203	$2,432	18%
Colorado Springs	$259	$3,104	24%
Columbus	$127	$1,523	-4%
Dallas	$297	$3,559	16%
Denver	$259	$3,104	24%
Houston	$262	$3,143	2%
Indianapolis	$179	$2,146	5%
Kansas City	$267	$3,209	12%
Las Vegas	$114	$1,370	11%
Los Angeles	$168	$2,021	29%
Memphis	$266	$3,191	26%
Miami	$417	$5,003	89%
Milwaukee	$109	$1,302	8%
Nashville	$194	$2,326	-8%
New York City	$147	$1,769	49%
Orlando	$224	$2,683	2%
Philadelphia	$166	$1,992	53%
Pittsburgh	$103	$1,241	-5%
Sacramento	$117	$1,401	-10%
San Antonio	$197	$2,365	51%
San Diego	$111	$1,333	-15%
San Francisco	$128	$1,533	-2%
Savannah	$184	$2,210	11%
Seattle	$100	$1,195	-7%
St. Louis	$239	$2,871	0%
Tampa	$217	$2,606	-1%

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Cheapest and most expensive states for homeowners insurance

Where your home is located is one of the biggest factors in how much your home insurance will cost. All five of the most expensive states are located in Tornado Alley, and they’re also at high risk for other extreme weather. 

Arkansas — the third most expensive state for home insurance on our list — saw an 18.5%  increase in home insurance rates from 2021 to 2022, according to our Home Insurance Pricing Report.

Below are the most expensive and cheapest states for homeowners insurance.

Some of the reasons states like Hawaii are seemingly so cheap for home insurance is because wind damage is excluded from coverage. That means homeowners in Hawaii have to buy separate windstorm insurance, which is an additional cost for residents in the Aloha State.

Cheapest ZIP code for home insurance in each state

Home insurance costs don’t just depend on what state or city you live in — rates are calculated all the way down to your house’s ZIP code. If you live in a neighborhood that experiences frequent home break-ins or wildfires, you’ll likely see higher home insurance costs.

Here’s the cheapest ZIP code for home insurance in each state. 

Average homeowners insurance cost by company

How much your home insurance costs will also differ by company — even for the same basic coverage amounts. That’s because each company prices risk in its own way. And some companies offer special perks or coverage add-ons in their base policy that others don’t, leading to higher base rates.

Based on our analysis of 2022 premiums for the home insurance companies we've reviewed, State Auto is the cheapest home insurance company, followed by Plymouth Rock and AIG.

On the other end of the spectrum, Amica is the most expensive homeowners insurance company, followed by Travelers and Country Financial.

Company	Average monthly premium	Average annual premium
AAA	$152	$1,818
Acuity	$172	$2,058
AIG	$92	$1,107
Allstate	$133	$1,596
American Family	$124	$1,491
Amica	$324	$3,882
ASI Progressive	$218	$2,618
Auto-Owners Insurance	$107	$1,283
Chubb	$160	$1,922
Country Financial	$228	$2,730
Erie	$112	$1,346
Farmers	$156	$1,874
Mercury	$159	$1,910
Narragansett Bay	$130	$1,558
Nationwide	$163	$1,955
Plymouth Rock	$85	$1,022
State Auto	$84	$1,008
State Farm	$170	$2,039
The Hartford	$208	$2,495
Tower Hill	$99	$1,189
Travelers	$303	$3,638
USAA	$119	$1,432

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Keep in mind that how much home insurance costs can also vary greatly within the same company based on the city or even ZIP code you live in depending on the area's crime rate, claims history, and wildfire risk — among other factors.

That's why it's so important to compare rates from a few different companies to ensure you're finding the best deal for you.

→ Learn more about the cheapest home insurance companies

Average home insurance cost by dwelling coverage amount

How much your home insurance will cost is largely determined by your policy’s dwelling coverage limit — the part of your policy that pays to repair or rebuild the structure of your house when it’s damaged. Your dwelling coverage limit should be equal to your home's replacement cost — or how much it costs to rebuild from the ground up.

In general, the more dwelling coverage you have, the higher your premiums will be.

Here is the average annual cost for a standard homeowners insurance policy by dwelling coverage limit, according to our analysis of 2022 rate data.

What coverage is included in a home insurance rate?

A standard homeowners insurance policy is made up of six different types of coverage. Dwelling coverage is the coverage component that impacts the cost of your home insurance the most, and is based on your home's replacement cost value.

How much is homeowners insurance by deductible amount?

Your deductible is the amount you’re required to pay out of pocket when you file a property damage claim before your insurance company will kick in to pay the rest. You choose your deductible amount when you purchase your policy, and most insurers give you the option of setting it from $500 to $2,000. 

How much your deductible costs is directly correlated to the cost of your homeowners insurance premiums. The higher you set your deductible, the cheaper your home insurance will be. 

Here’s a look at how much annual home insurance rates differ depending on your deductible with major insurance carriers, according to our analysis of 2022 rate data.

Other factors that affect the cost of home insurance

While where you live is one of the biggest factors home insurance companies take into consideration when nailing down your the cost of your home insurance, some lesser-known variables like your credit score and even your profession could influence how much you pay.

Here are just some of the different factors insurers look at when determining your home insurance premiums: 

Factors related to your home

Factors related to the homeowner

Factors related to coverage and policy specifics

How high-risk factors affect home insurance costs

Homeowners insurance companies consider many factors when calculating your homeowners insurance rates, and one of them is how at risk you are for filing a claim. 

Some reasons you may be considered a high-risk candidate for coverage may be related to you — like if you have a history of filing claims or a poor credit score — or to your home — like if you live in an area that experiences frequent wildfires or tornadoes.

Other reasons could be because you’re considered high risk for filing a liability claim, like if you own an aggressive dog or have a pool or trampoline on your property. 

High-risk homes tend to be more expensive to insure due to the increased risk of filing a claim. 

Here’s a look at a few common circumstances that may result in more expensive rates, and how much each factor increases home insurance costs on average.

High-risk factor	Average annual cost	Difference from national average
Aggressive dog	$1,986	5%
Pool	$2,002	5%
Poor credit	$3,645	92%
Filed 1 claim	$2,101	11%
Filed 3 claims	$2,916	54%
Filed 5 claims	$4,407	132%
30-year-old home	$1,933	2%
75-year-old home	$1,931	2%
100-year-old home or older	$1,956	3%
20-year-old roof	$1,913	.74%

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→ Learn more about the best homeowners insurance for older homes

How to save on homeowners insurance

Along with bundling your insurance policies, not filing many claims, and ditching high-risk items like trampolines, you can also lower your homeowners insurance premiums through some of the following techniques.

Additional ways to save on home insurance

Here are a few additional ways you can lower the cost of home insurance.

• 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.

• Raise 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.

• Re-think your coverage limits and add-ons. Only one in 10 homeowners review or update their homeowners insurance policy every five years, according to a study by the National Association Insurance Commissioners. [2] But we recommend reviewing your coverage annually. Did you ditch your high-tech home office? Pass down your prized heirloom jewelry to your grandchildren? Then you might not need as high of coverage limits. Taking some of these extra coverage add-ons off of your policy can help lower your home insurance bill.

• Bundle your home and auto policies together. Some insurance companies offer a discount of up to 35% for bundling your home and auto policies together.

• 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.

• Ditch your kid’s trampoline or treehouse. These “attractive nuisances” put you at greater risk of filing a claim, in turn raising your premiums.

• Re-shop your policy each year. Policygenius’ team of insurance experts can help you do this. They’ll look at your policy, compare your coverage limits and rates with the best insurers on the market, and help you figure out if you can get a better deal elsewhere. If you can, they’ll even do all of the paperwork to switch insurers and help you buy a new policy. Talk about a win-win.

→ Learn more about how to save on homeowners insurance