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How much does homeowners insurance cost?

On average, homeowners pay around $104 a month for home insurance, but rates vary depending on things like your ZIP code and the type of home you have.

Pat Howard 1600Kara McGinley

By

Pat Howard

Pat Howard

Property and Casualty Insurance Expert

Pat Howard is a senior editor at Policygenius specializing in property and casualty insurance. His work has been featured on Property Casualty 360, Fatherly, MarketWatch, and more.

&

Kara McGinley

Kara McGinley

Property and Casualty Insurance Expert

Kara McGinley is an insurance editor at Policygenius, specializing in home, auto, and renters insurance. She's been writing about insurance since 2019, and her work and insights have been referenced in Kiplinger and WRAL.com.

Expert reviewed

Expert reviewed

This article has been reviewed by a licensed Policygenius expert to ensure that sources, statistics, and claims meet our standard for accurate and unbiased advice.

Learn more about our editorial review process.

by

Fabio Faschi, PLCS, SBCS, CLCS

Fabio Faschi, PLCS, SBCS, CLCS

Operations Lead, Property & Casualty

Fabio Faschi is a former property and casualty team lead at Policygenius in New York City. He's worked in the insurance and real estate industry for more than six years as an independent agent and broker representing more than 40 carriers in property and casualty products, and previously worked in real estate settlements and title insurance negotiating insurance requirements with banks, realtors, and new home buyers. Fabio's expertise on home & auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, The Simple Dollar, SFGATE, Bankrate, and Lifehacker.

Updated September 15, 2021|3 min read

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The average cost of homeowners insurance in the U.S. is $1,249 per year, according to the National Association of Insurance Commissioners (NAIC). [1]  

But homeowners insurance rates vary widely depending on several factors, especially location. If you live in a major city or a more densely populated area, that usually means higher rates, because home values are probably higher (and so are risks like theft). 

Avg. annual premium:

Average annual premium:

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Select your state to see the average homeowners insurance rate

Areas that are more prone to natural disasters also generally have higher home insurance rates than places that don’t. Your premium is also dependent on the age of your home and how much it would cost to rebuild it, as well as the limits you set in your policy.

Key Takeaways

  • Homeowners insurance costs around $1,250 a year on average

  • Factors like your coverage limits, credit history, and home’s location impact how much you pay

  • Discounts can help you save on home insurance, and you can earn savings for everything from going paperless to bundling your home and auto insurance

Average homeowners insurance cost by state

Homeowners insurance rates by state map [png updated 5/4/21]
StateAverage annual cost
Alabama$1,409
Alaska$984
Arizona$843
Arkansas$1,419
California$1,073
Colorado$1,616
Connecticut$1,494
Delaware$873
District of Columbia$1,264
Florida$1,960
Georgia$1,313
Hawaii$1,140
Idaho$772
Illinois$1,103
Indiana$1,030
Iowa$987
Kansas$1,617
Kentucky$1,152
Louisiana$1,987
Maine$905
Maryland$1,071
Massachusetts$1,543
Michigan$981
Minnesota$1,400
Mississippi$1,578
Missouri$1,383
Montana$1,237
Nebraska$1,569
Nevada$776
New Hampshire$984
New Jersey$1,209
New Mexico$1,075
New York$1,321
North Carolina$1,103
North Dakota$1,293
Ohio$874
Oklahoma$1,944
Oregon$706
Pennsylvania$943
Rhode Island$1,630
South Carolina$1,284
South Dakota$1,280
Tennessee$1,232
Texas$1,955
Utah$730
Vermont$935
Virginia$1,026
Washington$881
West Virginia$970
Wisconsin$814
Wyoming$1,187

Check out our state-by-state homeowners insurance guide to learn about home insurance in your state.

The most expensive states for homeowners insurance

Extreme weather is a common theme in states with high homeowners insurance premiums. Louisiana, Texas, Rhode Island, and Florida are coastal states and are more susceptible to strong storms, and Oklahoma is right in the middle of Tornado Alley.

  1. Louisiana: $1,987

  2. Florida: $1,960

  3. Texas: $1,955

  4. Oklahoma: $1,944

  5. Rhode Island: $1,630

The cheapest states for homeowners insurance

On the flip side, you may find that home insurance is more affordable if you live in a state that experiences milder weather.

Because you’re at less risk for weather damage, your premiums are going to be cheaper. And while we don’t advise moving somewhere strictly based on how low homeowners insurance premiums run, it’s helpful to understand why policies are cheaper in certain states and more expensive in others. The following states aren’t as prone to catastrophic tornadoes, tropical storms, or other disasters.

  1. Oregon: $706

  2. Utah: $730

  3. Idaho: $772

  4. Nevada: $776

  5. Wisconsin: $814

Average homeowners insurance rates by company

Rates also vary from company to company. Some insurance companies simply charge more for home insurance than others, especially if they offer top tier coverage or accept higher levels of risk.

Of the homeowners insurance companies offered by Policygenius, Plymouth Rock offers customers the lowest rates, while MetLife has the highest rates.

Insurance companyAverage annual premiumAverage monthly premium
Plymouth Rock$1,165$97.08
Hippo$1,499$124.92
Travelers$1,554$129.50
Stillwater$1,589$132.47
ASI$1,623$135.25
Safeco$1,683$140.25
Progressive$1,706$142.17
Nationwide$1,736$144.67
Tower Hill$1,787$148.92
State Auto$1,803$150.25
Velocity$1,850$154.17
Mercury$1,925$160.42
Encompass$2,420$201.67
MetLife$2,467$205.59

Average annual premium courtesy of Policygenius quote data, and based on real quotes offered to real customers as of August, 2020

→ Learn more about the cheapest home insurance companies 

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Average homeowners insurance premium by coverage amount

Your homeowners insurance rate is largely determined by the dwelling coverage limit in your policy. Dwelling coverage is the part of your policy that reimburses you for covered damage to the structure of the home, and should be equal to the amount it would cost to fully rebuild your home after a disaster. 

The more dwelling coverage you have, the higher your premiums will be. Below is the average annual premium for a standard homeowners insurance policy by dwelling coverage range, according to the NAIC.

Insurance rangeAverage annual premiumAverage monthly premium
$49,999 and Under$645$53.75
$50,000 to $74,999$748$62.33
$75,000 to $99,000$826$68.83
$100,000 to $124,999$888$74
$125,000 to $149,999$937$78.08
$150,000 to $174,999$981$81.75
$175,000 to $199,999$1,018$84.83
$200,000 to $299,999$1,114$92.83
$300,000 to $399,000$1,272$106
$400,000 to $499,000$1,482$123.50
$500,000 and Above$2,148$104

What are the other coverage types?

A standard home insurance policy includes six different types of coverage (including dwelling coverage). Other structures coverage covers detached structures on your property; personal property coverage covers the stuff inside your house; loss of use coverage pays for a hotel if your home is damaged; personal liability coverage covers your legal expenses if someone is injured on your property and sues you; and medical payments coverage pays for their medical expenses.

What factors determine the cost of homeowners insurance?

Your homeowners insurance company will consider lots of different factors when determining your rates. Some of these are things you have control over, like whether your roof is in good condition, and some are simply beyond your control, like whether or not your area has frequent tornadoes.

Factors that influence your home insurance rates

  • Location: Location is one of the biggest homeowners insurance premium cost factors. Weather, population density, proximity to fire-prone forested areas or car accident-prone intersections and roads, and proximity to a fire station are all taken into account when determining rates.

  • Insurance claim history: If you’ve filed home claims in the past few years or live in an area with a high number of home insurance claims, you’ll have higher premiums.

  • Credit history: Most states allow insurance companies to check your credit history. A higher credit score means lower rates, and vice versa

  • Age of your home: That Victorian house you just bought in a historic neighborhood may be charming, but chances are it has older wiring and plumbing, which means higher rates. Homes with aluminum wiring typically can’t get normal coverage unless proper safety modifications are made by a licensed electrician. Companies may suggest completely rewiring to minimize risk.

  • Attractive nuisances: Insurers consider additions like a pool, tree house, or trampoline to be “attractive nuisances,” meaning they might tempt people onto your property, raising the risk that someone will be injured (and raising your rates). 

  • How much coverage you have: When buying homeowners insurance, the insurance company will set your dwelling coverage amount, but you also have the option of customizing the policy to suit your needs. That could mean upgrading your personal property coverage to cover your valuable art or collectibles, but you’ll pay higher rates for more coverage.

  • Your deductible: This is the amount you pay out of pocket for every claim that you file. A standard policy deductible is typically anywhere from $500 to $2,000, but some companies may offer even higher deductible options. The general rule of thumb in insurance is lower deductible-higher premiums; higher deductible-lower premiums.

  • Your discounts: Homeowners insurance companies offer numerous discounts and bundles that can decrease your premiums. A few common ways to save are with home and auto insurance bundling discounts; loyalty discounts if you’re with the same company for a set number of years; and discounts for infrequent or zero claims.

What does that mean for you?

There are a lot of factors that go into your homeowners insurance rates — some are within your control, like how high you set your limits and deductible, but some are harder to change, like where you live and the age of your home.

How to save on homeowners insurance

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 by installing the below features:

  • Smoke detectors

  • Security alarms

  • Sprinkler system

  • Deadbolts on doors

  • Fire extinguishers

  • Wind protection

If you’re looking to lower your home insurance rates, you should consider shopping around. Policygenius agents will 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.

→ Learn more about how to save on homeowners insurance

Frequently Asked Questions

How do I estimate the replacement cost of my home?

Different insurance companies will give different estimates for the replacement cost of your home. They’ll look at factors like your house’s square footage, local construction costs, your roof, and even the style of the house. A licensed Policygenius agent can help you make sure you get adequate replacement cost coverage and that the estimate from your home insurance company is enough to make sure you’re fully protected.

How much is home insurance per month?

The average monthly home insurance rate is around $104 a month. But remember, averages aren’t necessarily representative of what you’ll pay for home insurance, because rates are based on such individualized factors. You could pay much more (or less) for home insurance than a homeowner down the street from you, simply because of the size and condition of your house, or your insurance history.

Does bundling home insurance save you money?

Yes, bundling your home insurance with your auto or motorcycle insurance (which means buying both policies from the same company) is one of the best ways to save money on insurance. Companies will reward you with savings for keeping all of your policies with them — and this can also make bill-paying and claims-filing simpler.

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