Find the Cheapest Homeowners Insurance Quotes in Your Area
We found the average cost of homeowners insurance to be $1,083 nationwide. Homeowners insurance rates have continued to rise steadily throughout the United States, up almost 50% in the last 10 years alone. If you're in the market for a policy, we did some digging to show what parts of the country are the most and least expensive. Read more below, or enter your zip code in one of the boxes above to find the cost of homeowners insurance in your area.
Average Cost of Homeowners Insurance
We reviewed homeowners insurance premiums in every state on both a monthly and annual basis. Below, we’ve also included how each state stacks up against the national average annual premium of $1,083. A positive number in the "% Change vs. Avg" column represents a state that's more expensive than average, while a negative value represents a cheaper than average state. Homeowners premiums in different states vary widely, and depending on where you live, the average cost of home insurance may range from approximately $600 to $2000 per year.
|Rank||State||Monthly Homeowners Insurance||Annual Homeowners Insurance||% Change vs Average|
Find the Cheapest Homeowners Insurance Quotes in Your Area
States With the Highest Average Homeowners Insurance Costs
Predictably, the priciest states in which to insure your home are the states most susceptible to large scale natural disasters. Florida and Texas, our clear number one and two most expensive states for homeowners insurance with rates 90% and 80% above the nation's mean, respectively, are highly susceptible to a slew of natural disasters such as tornadoes, tropical storms and more. Louisiana, Oklahoma and Mississippi—also no strangers to natural disasters—rounded out our top five. Overall, we found that the average resident of our top five states would pay 67% more than the typical U.S. resident does for homeowners insurance annually. The graph below shows the five most expensive states for home insurance:
States With the Cheapest Average Homeowners Insurance Rates
Compared to the most expensive states for homeowners insurance, the five cheapest states aren't nearly as susceptible to damaging natural phenomena. Four of the top five most lowest cost states for homeowners insurance are located in the western half of the U.S. (with three being in the Northwest corner). Wisconsin, in the Midwest, rounds out our top five.
Here are the 5 states with the most affordable average homeowners insurance rates:
What's the Biggest Cause of Homeowners Insurance Losses?
The Insurance Services Office (ISO) found that 97% of homeowners insurance losses are due to property damage. The balance of non-property damage losses comes from liability cases like personal injury. Delving deeper into the numbers, we can look at what usually causes the property damage that occurs The ISO lists the following perils as the most frequent causes of homeowners insurance losses, with wind and hail damage leading the way at 33.1% of all homeowners insurance losses.
Property damage as a percent of total homeowners insurance losses...
- Wind and hail (33.1%)
- Water damage and freezing (29.5%)
- Fire and lightning (26.8%)
- Other property damage, including vandalism and malicious mischief (5.7%)
- Theft (1.9%)
Liability damages as a percent of total homeowners insurance losses...
- Bodily injury and property damage (2.7%)
- Medical payments and other (0.02%)
- Credit card and other (less than 0.1%)
Included in the property damage claims are perils like theft, the fifth ranking category for total homeowners insurance claim losses but fourth, ahead of fire and lightning, for claim frequency. Among claims filed with insurers for theft or damage to contents of the home—as opposed to dwelling damage—jewelry is typically the number one most claimed item based on number of claims. Our chart below shows you the other nine most claimed household items on an annual basis by percentage:
Largest Homeowners Insurance Companies
As you should for all your major insurance decisions, we recommend you get multiple homeowners insurance quotes from reputable insurers. Until you compare quotes specific to your house, it's difficult to tell who will offer you the best rate on homeowners insurance premiums. That being said, we've listed the top 10 homeowners insurance companies by the amount of premiums written and the companies' consumer complaint ratios in hopes of aiding your search. Consumer complaint ratios are compared to a national median of 1.0, with higher numbers indicating an above-median number of complaints when adjusted for market share, so the higher the number, the worse an insurer's service.
|Insurance Company||Premiums Written ($ thousands)||% of Market||Consumer Complaint Ratio|
|State Farm Group||$17,556,871||18.6%||0.34|
|USAA Insurance Group||$5,703,741||6.1%||0.45|
|Farmers Insurance Group||$5,617,990||6.0%||0.53|
|American Family Insurance Group||$3,045,589||3.2%||0.76|
|Erie Insurance Group||$1,596,490||1.7%||0.44|
What Does Homeowners Insurance Cover?
When you're purchasing homeowners insurance, it's important to know what you're paying for. Though no two policies are alike, homeowners insurance generally has four standard coverage features.
Dwelling coverage: This provides financial protection if the structure of your home is damaged by a covered event. This includes your roof, walls, floors and anything else that can be categorized as part of the home's structure, such as the foundation. Homeowners insurance coverage generally extends to other structures too, like a shed or garage, ensuring you'll be protected in a major catastrophe affecting many parts of your property. We recommend that shoppers purchase a policy with limits that are sufficient to cover their home's replacement cost, the cost of rebuilding the structure if it were completely destroyed.
Personal property coverage: Homeowners insurance covers not just your home itself but also your personal belongings. No matter where you keep your belongings—ranging from furniture to your television—homeowners insurance will cover the damage to your goods caused by a covered peril. You should calculate the value of all their belongings so that you can purchase appropriate personal property limits, protecting you in case all your possessions are lost.
Liability coverage: Liability coverage protects you from exposure to legal liability of property damage or bodily injury. For example, if your dog bites a guest and you are sued to cover medical expenses, your homeowners insurance will cover the cost of your legal exposure up to policy limits. Unintentional damage or destruction of other people's property is also covered, such as if you break your neighbor's window playing baseball.
Loss of use coverage: Also called additional living expenses coverage, this feature covers you for the expenses associated with living outside of your home if it is rendered uninhabitable by a covered peril, up to your policy limits. However, not all expenses will be covered: You'll only be reimbursed for those expenses above and beyond your normal expenses. For instance, the cost of staying in a hotel while your house undergoes repairs—an unusual expense—will be covered.
What Factors Impact Your Home Insurance Rates?
A variety of factors besides location will affect your home insurance rate but none is more influential than the amount of dwelling coverage you purchase. Dwelling coverage is the foundation of a home insurance policy and we recommend purchasing enough to cover the replacement cost of your home, defined as the cost of rebuilding it and any attached structures, such as a garage. The more dwelling coverage you purchase, the more expensive your homeowners insurance rates will be, all else equal.
To give you a better idea of the impact of coverage on homeowners insurance rates, we studied coverage amounts of $250,000, $500,000 and $750,000 for a home in several zip codes and tracked how changing coverage limits affected the quoted rate from a national insurer. We repeated this process for the same house in three different states. The chart below displays the blended mean cost of home insurance based on the house's cost, and can give you an idea of how much rates can increase depending on the coverage limits you elect for. Rates are averaged across the different locations and serve an illustrative purpose only. Your actual quote will vary due to a mix of factors including your home location, features and more.
Our analysis shows that homeowners insurance rates indeed increase relative to the coverage limits selected for your home, though not linearly. For our sample home, we found that the insurance for a $500,000 house was 64% more expensive than a $250,000 house whereas, the insurance for the $750,000 house was only 35% pricier than a $500,000 house. So at higher coverage levels, each additional dollar of coverage is cheaper. This comes out to paying approximately $40 per month for each $100,000 of coverage for a home valued at a replacement cost of $250,000 and about $30 per month for each $100,000 of coverage for a $750,000 home.
Although coverage limits are the most influential component affecting your home insurance premium, a variety of other factors—some fixed and some adjustable—will affect your home insurance rates.
Adjustable factors affecting your home insurance rates...
- Your personal liability coverage limit: Though not as influential on your rates as dwelling coverage limits, the more personal liability coverage you choose the higher your annual premium. Coverage limits in a standard homeowners insurance policy generally start at $100,000.
- Your personal belongings coverage limit: Also called home contents coverage, homeowners insurance includes coverage for your personal property up to set limits. If you have the option to adjust your personal property coverage limit, electing for more coverage will raise your premium.
- Your choice of deductible: Your deductible is the amount of estimated damage you'll be responsible for out of pocket when you make a claim. A higher deductible means a lower premium as your insurer will be writing you a check for less money when you make a claim. The reverse is true too: a lower deductible will result in a higher annual premium.
- Home insurance discounts: Insurers offer a variety of ways to get save on home insurance rates, including discounts for bundling your auto and home insurance purchase together and for home safety features such as a central alarm system.
Fixed factors affecting your home insurance rates…
- Age of your home: Older homes are more likely to have wear and tear and could be charged a higher premium by insurers as a consequence.
- Your claims history: This applies to insurance claims you have personally made and potentially to claims made by previous inhabitants of your home. If you have a history of filing homeowners insurance claims you are likely to be viewed as a higher risk customer and thus pay higher rates. If previous inhabitants of your home have a history of filing claims—even if those claims were not made by you—your house will be viewed as a riskier proposition and be subject to a higher premium.
- Materials used to build your home: A home with a wooden frame will be considered more susceptible to fire, termites, rotting and other dangers compared to one made of brick. The less risky the construction of your home is seen by an insurer, the more likely you are to have a lower premium.
Example: How Does Your Home Framing Type Affect Your Rates?
The type of framing your house is one factor that can impact how much money you spend on home insurance. In our study, we found that framing made of brick garnered the cheapest home insurance rates, while that made of logs or wood quoted as the most expensive rates. We looked at four different framing types for a $250,000 home in a set zip code and analyzed how the rate changed for a national home insurer and repeated this process for three states: Oregon, California, and Texas. Below, we've included a table that outlines how you can expect your house's framing type to impact your homeowners insurance rate when compared to houses with other framing types. Keep in mind, the figures listed in our table are a blended average across the three states and only show the relative relationship. Your actual rate will be tailored to your home's location, size, features and more.
|Siding Type||Annual Rate||% Change vs Average|
|Masonry Veener/Brick Veener||$1,282||-5%|
Typically, we found there was a little or no price difference between brick and masonry framing versus brick and masonry veneer framing. Log or wood framing was generally the most expensive framing type in all areas, with some exceptions.
Homeowners Insurance Rates by Zip Code
Within any given state, homeowners insurance rates will vary widely depending on your location. Homes in different locations are subject to differing risks, and insurers rate those risks accordingly. For example, if your home is located closer to the coastline or a body of water and is at a higher risk for flooding, you're more likely to get an expensive home insurance quote. Or, if your home is far away from fire stations and fire hydrants, it's likely to be considered a bigger fire risk, resulting in higher prices. Even crime rates could affect your homeowners insurance rates, as home insurance policies cover theft and vandalism.
As a consequence of these and other factors, the average home insurance cost in your zip code may be significantly higher or lower than in another zip code in the same state. To give you an indication of the extent of pricing variance, we've provided the most and least expensive zip codes for average home insurance costs in the 10 most populous states in the country, based on our research. When rates were not available at the zip code level, we compared state insurance rates by county. Florida is the state with the widest gap between its most expensive and least expensive counties, with average insurance rates for the inland Leon County approximately one fourth of those in the coastal Monroe County.
|State||Least expensive zip code (City)||Average Annual Cost||Most expensive zip code (City)||Average Annual Cost||Cost increase|
|California||95838 (Sacramento)||$711||94402 (San Mateo)||$1,424||100%|
|Texas||79901 (El Paso)||$1226||77550 (Galveston)||$4,601||275%|
|Florida||Leon County||$1615||Monroe County||$6,077||276%|
|New York||14456 (Geneva)||$748||10603 (White Plains)||$2,343||213%|
|Illinois||60115 (Dekalb)||$1038||62859 (McLeansboro)||$2,622||153%|
|Pennsylvania||16503 (Erie)||$861||19125 (Philadelphia)||$1,988||131%|
|Ohio||44145 (Westlake)||$917||45640 (Jackson)||$1,813||98%|
|Georgia||Cobb County||$1117||Randolph County||$2,461||120%|
|North Carolina||28771 (Robbinsville)||$678||28472 (Whiteville)||$1,699||151%|
|Michigan||49424 (Holland)||$990||48214 (Detroit)||$3,923||296%|