- The average homeowners insurance premium in the United States is $1,411 annually.
- Florida has the highest average premiums at $2,437 and Oregon has the lowest average at $793.
- Home insurance costs are steadily rising as the frequency and intensity of natural disasters increase.
Unlike with physical objects like a refrigerator or a car, it can be difficult to pinpoint the cost of homeowners insurance. Apart from asking all your friends, family, and neighbors what they pay in premiums, it's hard to know if the quote you've received is outrageous or a steal.
Fortunately, there's a lot of data available to help you set realistic expectations for your homeowners insurance cost. This article will examine the average cost of home insurance premiums, the factors that affect your specific policy, and how you can save.
Average Cost of Homeowners Insurance in 2025
The average annual premium of an HO-3 homeowners insurance policy, the most common type of home insurance, in the United States is $1,411, according to the most recent data from the Insurance Information Institute in 2021.
However, each home's insurance costs vary widely based on various factors, including your home's location, value, and the type of home.
Average Homeowners Insurance Cost by State
Where you live will also impact the cost of homeowners insurance. If you live in an area with high real estate values, it would cost more to replace your home if it were destroyed. So, the National Association of Insurance Commissioners (NAIC) says that average premiums tend to be higher in densely populated areas.
Second, your potential exposure to catastrophe plays a significant role in what you pay for homeowner's insurance. If you live in an area prone to floods, earthquakes, or tornadoes, you can expect to pay more than someone living in an area with less risk of experiencing a natural disaster.
Here's the average annual homeowners insurance premium by state, according to 2021 data from the Insurance Information Institute.
| State | Average Annual Premium |
| Alabama | $1,610 |
| Alaska | $1,067 |
| Arizona | $917 |
| Arkansas | $1,611 |
| California | $1,403 |
| Colorado | $1,802 |
| Connecticut | $1,651 |
| Delaware | $988 |
| District of Columbia | $1,272 |
| Florida | $2,437 |
| Georgia | $1,466 |
| Hawaii | $1,299 |
| Idaho | $884 |
| Illinois | $1,223 |
| Indiana | $1,058 |
| Iowa | $1,043 |
| Kansas | $1,491 |
| Kentucky | $1,232 |
| Louisiana | $2,259 |
| Maine | $996 |
| Maryland | $1,238 |
| Massachusetts | $1,712 |
| Michigan | $993 |
| Minnesota | $1,607 |
| Mississippi | $1,766 |
| Missouri | $1,340 |
| Montana | $1,471 |
| Nebraska | $1,684 |
| Nevada | $863 |
| New Hampshire | $1,090 |
| New Jersey | $1,309 |
| New Mexico | $1,229 |
| New York | $1,455 |
| North Carolina | $1,192 |
| North Dakota | $1,256 |
| Ohio | $920 |
| Oklahoma | $2,155 |
| Oregon | $793 |
| Pennsylvania | $1,014 |
| Rhode Island | $1,900 |
| South Carolina | $1,432 |
| South Dakota | $1,270 |
| Tennessee | $1,368 |
| Texas | $2,146 |
| Utah | $831 |
| Vermont | $1,025 |
| Virginia | $1,199 |
| Washington | $1,001 |
| West Virginia | $1,016 |
| Wisconsin | $780 |
| Wyoming | $1,432 |
*The above table uses data from the Insurance Information Institute.
Most expensive states for homeowners insurance
Here are the states where annual homeowners insurance premiums are least affordable, on average, according to the Insurance Information Institute.
| State | Average Annual Premium |
| Florida | $2,437 |
| Louisiana | $2,259 |
| Oklahoma | $2,155 |
| Texas | $2,146 |
| Rhode Island | $1,900 |
| Colorado | $1,802 |
| Mississippi | $1,766 |
| Massachusetts | $1,712 |
| Nebraska | $1,684 |
| Connecticut | $1,651 |
*The above table uses data from the Insurance Information Institute
Cheapest states for homeowners insurance
Here are the states where annual homeowners insurance premiums are most affordable, on average, according to the Insurance Information Institute.
| State | Average Annual Premium |
| Oregon | $793 |
| Utah | $831 |
| Nevada | $863 |
| Idaho | $884 |
| Arizona | $917 |
| Ohio | $920 |
| Delaware | $988 |
| Michigan | $993 |
| Maine | $996 |
| Washington | $1,001 |
*The above table uses data from the Insurance Information Institute
Average Home Insurance Cost by Home Value
Here's how much homeowners insurance costs for a standard all-perils homeowners insurance policy for a single-family residence on average by home value in the United States, according to the most recent release of the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):
| Estimated Home Value | Average Premiums for an HO-3 Policy (annual) |
| $49,999 and under | N/A |
| $50,000 to $74,999 | $765 |
| $75,000 to $99,999 | $855 |
| $100,000 to $124,999 | $926 |
| $125,000 to $149,999 | $984 |
| $150,000 to $174,999 | $1,035 |
| $175,000 to $199,999 | $1,080 |
| $200,000 to $299,999 | $1,181 |
| $300,000 to $399,999 | $1,336 |
| $400,000 to $499,999 | $1,541 |
| $500,000 and above | $2,224 |
*The above table uses data from the NAIC Homeowners Report of 2021, the most recent data available.
Average Home Insurance by Type of Insurance
Let's look at the national average premium based on type of homeowners insurance.
| Type of Policy | Average Premiums (annual) |
| HO-1 | $1,739 |
| HO-2 | $1,234 |
| HO-3 | $1,411 |
| HO-4 | $170 |
| HO-5 | $1,538 |
| HO-6 | $531 |
| HO-8 | $1,229 |
*The above table uses data from the NAIC Homeowners Report of 2021, the most recent data available.
Factors That Affect Homeowners Insurance Rates
Home Location and Risk Factors
Certain areas of the country are considered high risk, which means there’s a much higher chance of damage or loss. This is why location has one of the biggest impacts on home insurance premiums. Typically, you'll pay more in premiums if you live somewhere where natural disasters frequently occur in, such as hurricanes, wildfires, earthquakes, tornadoes, or floods.
The same goes for living in an area with high crime rates or your home is far from a fire department. Home insurance companies charge you more when you live in these high-risk areas because there’s more chance you’ll submit a claim.
Property Value and Replacement Cost
Your home's value and location are two of the most significant variables that affect homeowners insurance prices. However, a few other factors can drive your premiums up or down. For instance, your purchase price does not determine your home's insurance requirements.
Instead, insurance companies run calculations based on square footage, types of interior upgrades, and other factors that determine the replacement cost should you suffer a total loss.
The difference between your purchase price and replacement cost (insurance value) may vary more widely for beachfront properties and other high-value land areas. Your mortgage lender will require a replacement cost estimate or use the estimate from your appraisal.
Age and Condition of the Home
Older homes often require more work to rebuild to modern safety standards, so they can cost more to insure than newer homes. Additionally, if your roof is relatively new and in good condition, you'll typically pay less than a homeowner with a roof that's old or built with lower-quality materials.
Generally, newer, well-maintained homes will cost less to insure. These homes are considered to be a lower risk for expensive repairs and claims, so you’re likely to be charged a lower premium.
Coverage Limits and Deductibles
In most cases, premiums go down as deductibles increase. A deductible is the amount you’ll pay out of pocket in the event you need to file a claim. In other words, a higher deductible means your insurance company faces less of a risk because you’re agreeing to cover more of the damage or loss.
Coverage limits refer to the maximum amount your insurance will pay for a covered claim. Home insurance policies have special coverage limits where the insurance company specifies how much they’ll pay by category. Most homeowners insurance will include coverage limits for the dwelling, personal property, liability, and living expenses in the event you cannot live in your home due to damage.
Claims History and Credit Score
You can expect to pay more if you've made several claims in the past or live in an area with a high claims rate. FICO developed what’s called a credit-based insurance score that uses your credit history to determine the likelihood you’ll file a claim.
Insurers will also use your credit score to determine the probability that you’ll miss a bill payment. Some states, including California, Hawaii, Maryland, Michigan, and Massachusetts, ban or limit the use of credit scores in determining rates.
How to Calculate Homeowners Insurance Costs
How much you pay for a home insurance premium can vary greatly depending on a variety of factors, including the location of your home, the coverage you choose, and more.
What Goes into a Home Insurance Quote?
Several factors are taken into consideration when an insurance company calculates a home insurance quote. These factors include the following:
- Location
- Your home’s value
- Safety features
- Condition of your home
- Age of your home
- Building materials used to build your home
- Your deductible
Tools to Estimate Your Home Insurance Premium
There are a multitude of online tools and resources available to help you estimate your home insurance premium. To use these tools, you will typically be asked to provide basic information about yourself and your home, including its location, size, and the type of coverage you’re interested in.
Here are some examples of resources you can use to estimate your home insurance premium:
- Insurance brokers. If you’re looking for more personalized service, an insurance broker can help you estimate costs by gathering quotes from multiple insurers on your behalf and explaining your options in depth.
- Insurance companies. Many insurance providers have online quote tools on their websites that will let you get an estimated premium in a matter of minutes.
- Online comparison platforms. Websites like Policygenius, Insurify, and Zebra are similar to using an insurance broker and allow you to compare quotes from multiple insurance companies to find the best deal.
Understanding Coverage Types and Their Impact on Costs
The type of coverage you choose plays a significant role in determining how much you’ll pay for homeowners insurance. There are various coverage options available, and each comes with its own cost implications.
Here’s a list of coverage types and how they impact costs:
- Dwelling coverage. This is primary coverage for your home that protects the structure itself from risks like fire, wind damage, or vandalism. The more the replacement cost of your home, the more expensive this coverage will be.
- Personal property coverage. This covers your belongings, such as furniture, electronics, jewelry, and clothing, against damage or theft. The more valuables you have and the more expensive your valuables are, the higher your premium costs will be.
- Liability coverage. This protects you if someone is injured on your property or if you cause damage to someone else’s property. The amount of liability coverage you need can affect your overall premium.
Home Insurance Cost by Coverage Type
By making sure you understand what influences your home insurance costs and taking the time to compare the coverage types available, you can make an informed decision to find the best policy and protection for you and your home.
Cost of Basic vs. Comprehensive Coverage
Basic coverage typically includes protection against risks like fire, theft, and vandalism. It's usually the more affordable option, but it might not cover all potential damages or scenarios.
Alternatively, comprehensive coverage offers a broader range of protection. It includes things like accidental damage or non-weather-related incidents. While comprehensive coverage is more expensive, it provides you with greater peace of mind by covering a wider range of risks.
How Much Liability Insurance Do You Need?
Liability coverage is an essential part of any homeowners insurance policy. It protects you in the event that someone is injured on your property or you accidentally cause damage to someone else's property.
The amount of liability insurance you need depends on factors like the value of your assets and the level of risk in your area. The minimum liability coverage amount is $100,000, but experts often recommend getting $300,000 to $500,000. You can also purchase excess liability coverage or an umbrella policy.
Additional Coverages: Flood, Earthquake, and More
While standard homeowners insurance covers common risks, there are certain events, such as floods and earthquakes, that are typically not covered. If you live in an area prone to these types of natural disasters, you may need to purchase additional coverage.
- Flood insurance. Most home insurance policies don’t cover water damage from floods. Flood insurance is usually purchased separately and may even be required if you live in a flood-prone area.
- Earthquake insurance. Similar to flood coverage, earthquake insurance is typically not included with a standard policy. If you live in a seismic zone, this type of additional coverage can provide financial protection for damages from earthquakes.
- Additional coverage. There are plenty of other optional coverages you can add, such as protection for jewelry, high-value items, or businesses that operate out of your home.
How to Lower Your Homeowners Insurance Premium
The Impact of Home Security Systems on Insurance Rates
If you're looking for ways to reduce your homeowners insurance premiums, think about ways you could improve the safety of your home. Adding any of the following safety features to your home could qualify you for a homeowners insurance discount:
- Smoke detectors
- Deadbolt locks
- Fire extinguishers
- Storm shutters
- Security system
- Sprinkler system
- New or reinforced roof
Discounts for Bundling Home and Auto Insurance
You may also save on homeowners insurance by bundling your home and auto insurance policies together. Insurance providers know that your home and vehicles are some of your most valuable assets. By giving them more business (like a bigger bundled policy), they are willing to give you a multi-policy discount.
According to Progressive, new customers save an average of over 20% by bundling home and auto insurance. Plus, insurers that let you bundle home and auto insurance may also let you consolidate to one deductible for both policies. Not only does this streamline payments, but it can make your policy easier to manage.
How Raising Your Deductible Can Reduce Costs
Raising your deductible could reduce your premiums. This is because a higher deductible means that you’re agreeing to pay more out of pocket for covered damage or losses, which means your insurance company is taking on less risk. So, in turn, your insurer will usually offer you a lower monthly premium.
But make sure that you don't set a deductible that's higher than you'd be able to pay without going into debt. Also, know that if you have a mortgage on your home, your lender may require that your deductible stay below a certain limit.
Homeowners Insurance Cost Comparison
Comparing Home Insurance Rates by Provider
Costs may vary by state and even city, and most homeowners insurance companies are regional. So, the cheapest homeowners insurance company in California probably isn't the cheapest option in Vermont or Maine. This said, based on nationwide averages from Zebra, the cheapest homeowners insurance companies are:
- Auto-Owners Homeowners Insurance: $1,302 annually
- Nationwide Homeowners Insurance: $1,350 annually
- Erie homeowners insurance: $1,390 annually
- Chubb homeowners insurance: $1,503 annually
- State Farm homeowners insurance: $1,531 annually
- USAA homeowners insurance: $1,535 annually (only available to active-duty military members, veterans, and immediate family members)
How to Shop for the Best Insurance Policy
Premiums can vary widely by insurance company. So, one of the best ways to save on homeowners insurance is to shop around before choosing an insurance provider. You can do this yourself or enlist the help of an insurance broker.
It’s recommended that you get at least three to five quotes before settling on a home insurer. To save time, you could also use an online homeowners insurance shopping tool like Policygenius to compare dozens of insurance companies at once.
The Future of Home Insurance Rates
With evolving economic conditions, climate change, and new technology, the future of homeowner insurance rates may look different than it does today.
Trends in Homeowners Insurance Pricing
As the frequency and intensity of natural disasters like wildfires, hurricanes, and flooding continue to increase, insurance companies are likely to raise premiums to account for higher risks. Homes in areas prone to natural disasters may see more significant rate increases, as insurers attempt to offset the potential costs of frequent claims.
Additionally, rising inflation and increased construction costs can drive up insurance premiums, as rebuilding a home or replacing belongings becomes more expensive. It’s likely that homeowners will face higher premiums as insurers factor in these cost increases.
On the other hand, improvements in technology and smart home devices makes it easier than ever before for homeowners to protect their property. Insurance companies offer discounts to homeowners who install smart security systems, smoke detectors, and water sensors that help reduce the risk of damage.
By staying informed about the trends that impact homeowners insurance pricing and taking proactive steps to adjust your policy, you can better navigate potential rate increases while still maintaining adequate coverage for your home.
How Policyholders Can Prepare for Rate Increases
Although it can be difficult to predict exactly how home insurance rates will change, there are steps homeowners can take to prepare for potential increases.
- Shop around. Insurance premiums vary from company to company, so it’s often worth your time to compare quotes from multiple insurers in order to find the best deal.
- Compare rates regularly. Reviewing your policy at least once a year can help ensure you’re not paying for unnecessary coverage or missing out on protection you need.
- Improve home safety. Adding safety upgrades to your home, such as installing a security system, smoke detectors, or water leak sensors, can help reduce your premiums.
- Increase your deductible. Make sure you can afford the higher out-of-pocket costs if you need to file a claim, but this strategy could help offset higher premium rates in the future.
- Consider bundling home and auto insurance. Many insurance providers offer discounts if you bundle your home insurance with other types of coverage, such as auto insurance.
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FAQs
What is the average cost of homeowners insurance?
The national average cost of homeowners insurance was $2,584 in 2024 for $300,000 in dwelling coverage. Rates vary depending on factors, such as home location, home value, and coverage levels.
What factors affect how much homeowners insurance costs?
The main factors that affect home insurance costs include location, the condition and age of your home, coverage limits, and your deductible. Your credit score and claims history may also influence costs.
Where is homeowners insurance cheapest?
Oregon has the lowest average homeowners insurance, costing an average of $793.
Is home insurance more expensive in certain states?
Yes, home insurance is more expensive in states that are prone to natural disasters, such as Florida and California. Insurance costs in these states tend to be higher because of the likelihood of hurricanes, wildfires, earthquakes, and floods.
How often should I compare home insurance rates?
You should compare home insurance rates at least once a year and whenever you make a major change to your home.
