How Much Does Homeowners Insurance Cost?

The average yearly premium for homeowners insurance in the United States is $1,311. But your coverage cost may be higher or lower. 

Factors like your location, home age, and desired coverage level can raise (or lower) your premiums. The insurance company you choose matters too. 

Key Information About the Cost of Homeowners Insurance 

Average yearly premium	$1,311
Most expensive states*	Florida, Oklahoma, Louisiana, Texas, Rhode Island
Least expensive states*	Oregon, Wisconsin, Utah, Idaho, Nevada
Impact of catastrophe	Disasters like hurricanes, tornadoes, and earthquakes significantly impact insurance costs. Climate change worsens these risks.
Other cost factors	Where you live, the age of your home, your preferred coverage level, and your credit history can all impact your price.

Average Cost of Homeowners Insurance by Dwelling Coverage

Your dwelling coverage, or how much the insurance company will cover your home’s structure after a covered event, is critical. This figure sets the coverage for your belongings, other structures on your property, and more. 

For the table below, we’ve used HO-3 policies — the most common type of homeowner coverage sold in the United States. The yearly premium is a national average. 

Coverage level	Average yearly premium
$125–$149,900	$944
$150,000–$174,999	$990
$175,000–$199,999	$1,031
$200,000–$299,999	$1,132
$300,000–$399,999	$1,290
$400,000–$499,999	$1,502
$500,000 and up	$2,181

How Much Does Homeowners Insurance Cost in Your State?

Insurance costs can vary dramatically from state to state. Your chosen home may have higher (or lower) crime rates, risk of natural disasters, and building costs. Your state could have tighter regulations too, which drive up your overall costs. 

The most expensive states for homeowners insurance include the following:[1]

• Florida 
• Oklahoma
• Louisiana 
• Texas
• Rhode Island

The least expensive states for homeowners insurance include the following:[1]

• Oregon
• Wisconsin
• Utah
• Idaho
• Nevada

The following table includes yearly premium rates for all 50 states. Every number here represents an overall average of the cost of a common homeowners policy. Remember that your cost could be higher or lower than the figures cited here. 

State	Average Yearly Premium	Affordability ranking
Alabama	$1,501	10
Alaska	$989	37
Arizona	$866	45
Arkansas	$1,498	11
California	$1,241	23
Colorado	$1,667	7
Connecticut	$1,582	9
Delaware	$907	43
Florida	$2,165	1
Georgia	$1,403	14
Hawaii	$1,245	22
Idaho	$810	47
Illinois	$1,144	30
Indiana	$1,021	34
Iowa	$998	36
Kansas	$1,478	13
Kentucky	$1,174	27
Louisiana	$2,038	3
Maine	$956	41
Maryland	$1,169	28
Massachusetts	$1,167	7
Michigan	$1,002	35
Minnesota	$1,481	12
Mississippi	$1,674	6
Missouri	$1,301	19
Montana	$1,347	16
Nebraska	$1,586	8
New Hampshire	$1,048	33
New Jersey	$1,277	21
New Mexico	$1,151	29
New York	$1,356	15
North Carolina	$1,119	31
North Dakota	$1,230	24
Ohio	$871	44
Oklahoma	$2,040	2
Oregon	$735	50
Pennsylvania	$967	40
Rhode Island	$1,788	5
South Carolina	$1,327	17
South Dakota	$1,222	26
Tennessee	$1,296	20
Texas	$2,000	4
Utah	$764	48
Vermont	$984	38
Virginia	$1,107	32
Washington	$937	42
West Virginia	$974	39
Wisconsin	$762	49
Wyoming	$1,308	18

Factors That Impact the Cost of Homeowners Insurance 

Why do you pay a different price for homeowners insurance than someone living in another city, state, or home? Several factors play a role. These are just a few of them: 

Location 

Yearly insurance premiums range from a low of $735 in Oregon to $2,165 in Florida.[1] States face different weather-related and topography-related hazards that can raise (or lower) your insurance rates.

Within your state, your community could also face specific risks. A higher crime rate could raise your risk, as could a distant location far from emergency services such as fire departments.

Climate Changes 

Americans have always dealt with weather-related risks, but climate change is increasing homeowner hazards. In 2022 alone, damages attributed to extreme weather totaled more than $165 million.[3] 

Some states face higher risks than others. In California alone, wildfires in 2017 and 2018 attributed to climate change eliminated 25 years of profits for insurance companies in the state.[3] Some are responding by leaving the states altogether, raising the rates for those who stay. 

Dwelling Coverage 

Homeowners have choices regarding their insurance. You can opt for a lower level of coverage that reduces your premiums, but you’ll have a bigger bill if an event happens. If you choose a higher amount of coverage, your premium will be higher. 

Know that the dwelling coverage you choose will influence your other coverage. Many insurance companies use your dwelling coverage as a baseline. Lower dwelling coverage can mean less coverage for things like your possessions and outbuildings too. 

Credit History 

Insurance companies can check your credit before offering a policy. A poor score, caused by things like unpaid bills, could raise your risks in most states. 

A few states, including Maryland and Hawaii, don’t allow insurance companies to use consumer credit data when setting rates for homeowners.[4] But if you live in a state that doesn’t prohibit the practice, you could face penalties for prior financial decisions. 

Claims History 

Have you used your policy recently? When setting your rates, your insurance company might investigate how often you’ve dipped into your coverage previously. 

Sometimes, claims history uncovers risks your insurance company didn’t know about. Several theft-related claims could indicate your neighborhood isn’t safe. Or several fires could mean your home doesn’t offer enough ventilation. 

But multiple claims could also mean that you’re leaning on your policy more than the company expected. They may raise your rates to ensure they don’t lose money on your coverage. 

Deductible 

A deductible is a cost-sharing arrangement between a policyholder and an insurance company. After a covered claim, the adjuster subtracts (or deducts) your agreed-upon amount from any payout. 

The higher the deductible, the greater your risk. The company might reward you by lowering your premiums accordingly. 

Additional Factors 

Other known issues that could impact the cost of your insurance include the following:[2]

• Building structures: Newer buildings with climate-specific improvements (such as roofs made to withstand hail damage) could cost less to cover, as they’re more resistant to damage. 
• Regulatory environment: Some states have rules that make selling products more expensive. 
• Included items: Homes with multi-car garages, wooden decks, and wood-burning fireplaces are more expensive to insure than those without them. 

Average Homeowners Insurance Rates by Company 

Your insurance company plays a big role in how much you pay for coverage. If you’re willing to shop and compare prices, you could find an affordable partner. 

This table compares insurance premiums for a HO-3 policy wood-based home in Boulder, Colorado. The dwelling replacement cost in this scenario is $500,000, with a content replacement cost of $350,000. As you’ll see, the prices vary dramatically. 

Company	Yearly Premium
Allstate	$2,727
American Family Insurance	$5,665
Amica Mutual	$6,085
Farmers Insurance Exchange	$5,373
Hartford Accident and Indemnity Company	$3,905
Lemonade Insurance Company	$2,948
Liberty Mutual Personal Insurance Company	$2,525
State Farm Fire and Casualty Company	$3,624
Travelers Personal Insurance Company	$2,699

Homeowners Insurance Trends & How They Impact Costs 

In 2010, the average premium for homeowners insurance was about $900.[6] A decade later, the average premium was more than $1,300. Why are costs rising? 

Several factors are at play. These are some of them: 

Climate Change 

A shifting climate is increasing the risk of home damage. Hurricanes, severe hail, and significant wind could ruin entire communities. And issues like fires make the problem even worse. 

States that are often impacted by climate-influenced issues face the highest premium risks. These examples make the problem clear: 

	2007 Rates	2020 Rates
California	$925	$1,241
Louisiana	$1,400	$2,038
Texas	$1,448	$2,000
Florida	$1,534	$2,165

Increased Number of Significant Claims

Researchers say that the overall number of insurance claims isn’t increasing.[7] In 2017, claim frequency stood at 6.44%. In 2021, claim frequency was 5.32%. But the number of severe issues is rising, and each one could raise risks for major insurance company losses. 

In the 1980s, billion dollar disasters were relatively uncommon.[3] Fewer than 10 caused $1 billion or more in damages. In the 2020s, it is common for more than 20 to take place. 

Some companies are responding by leaving states that are often touched by major events. Their leaving decreases competition, and it could make premiums more expensive as a result.

Market Conditions 

Economic shifts, such as inflation and higher interest rates, can increase the value of insured homes. They can also make the insured contents of a home more valuable and harder to replace. Premiums could rise as a result. 

A rise in the cost of building materials could also raise premiums. If companies must pay more for the raw materials needed to fix up a home after a covered event, they could pass these expenses on to consumers via higher premiums. 

Tips to Save Money on Your Homeowners Insurance 

No one wants to pay more for homeowners insurance than they must. Following some practical pieces of advice may help you find the right plan at an appropriate price. 

The following tips may help you save money on insurance:

• Shop around. Don’t accept a deal from the first company you talk to. Gather bids from at least three organizations to find the best price and coverage for you. 
• Raise your deductible. Accept more risk, and your company may lower your rates as a reward. Weigh the risk against potential savings, and make the best decision for your situation.
• Bundle your policies. Get coverage for your home and car from the same company, if possible. This can result in significant savings.
• Improve your home. Contact a contractor about making your residence more resistant to local hazards, such as fires or hail. Adding things like a motion-activated home security system can also help.
• Ask about discounts. Your insurance company may provide rate cuts for things like smoke detectors or burglar alarms. Some insurance providers offer loyalty discounts or savings for certain groups, such as retirees or those in the military.