Average Cost of Homeowners Insurance (2025)
The average cost of home insurance in the United States is $2,151 per year, or $179 per month.
Find Cheap Homeowners Insurance Quotes in Your Area
How much is homeowners insurance?
The average cost of homeowners insurance is between $1,450 per year and $5,287 per year, depending on how much coverage you need.
Companies consider your location, the age and building materials of your home, your credit score, your insurance history and other factors when they calculate homeowners insurance rates.
How ValuePenguin calculated these rates
Average price of home insurance by state
A policy in Hawaii, the least expensive state for home insurance, costs $601 per year. Coverage in the most expensive state, Oklahoma, costs $4,799 per year. That's nearly
eight times as much.
Find Cheap Homeowners Insurance Quotes in Your Area
Average cost of homeowners insurance by state
$200,000 dwelling coverage
State | Annual rate | Monthly rate |
|---|---|---|
| Alabama | $1,831 | $153 |
| Alaska | $1,011 | $84 |
| Arizona | $1,403 | $117 |
| Arkansas | $2,197 | $183 |
| California | $1,201 | $100 |
$350,000 dwelling coverage
State | Annual rate | Monthly rate |
|---|---|---|
| Alabama | $2,717 | $226 |
| Alaska | $1,374 | $115 |
| Arizona | $1,993 | $166 |
| Arkansas | $3,235 | $270 |
| California | $1,624 | $135 |
$500,000 dwelling coverage
State | Annual rate | Monthly rate |
|---|---|---|
| Alabama | $3,630 | $303 |
| Alaska | $1,768 | $147 |
| Arizona | $2,634 | $219 |
| Arkansas | $4,169 | $347 |
| California | $2,048 | $171 |
$1 million dwelling coverage
State | Annual rate | Monthly rate |
|---|---|---|
| Alabama | $6,915 | $576 |
| Alaska | $3,036 | $253 |
| Arizona | $4,749 | $396 |
| Arkansas | $7,247 | $604 |
| California | $3,699 | $308 |
Rates can vary by state because of factors like severe weather, crime and other risks. Your rates will likely differ from the state average.
Which states have the highest home insurance rates?
Oklahoma has the highest home insurance rates in the U.S.
Oklahoma's severe weather, including tornadoes and hail, pushes its prices much higher than the national average. If you live in a state where natural disasters happen often, you'll typically pay more for home insurance.
Nebraska, Kansas, Texas and Florida round out the top five most expensive states for home insurance. If you live in one of these states, you'll spend 58% more per year on home insurance than homeowners in other states, on average.
Most expensive states for home insurance
Rates are for a home insurance policy with $350,000 of dwelling coverage.
Compare RatesWhat state has the cheapest home insurance rates?
Hawaii, Vermont, Maine, New Hampshire and Delaware have the cheapest home insurance rates.
These states tend to have fewer natural disasters, lower costs to rebuild a home or both. The average cost of insurance for a typical home in these states is $920 per year. That's half the average price nationwide.
- Hawaii: $601 per year, or $50 per month
- Vermont: $929 per year, or $77 per month
- Maine: $977 per year, or $81 per month
- New Hampshire: $1,002 per year, or $84 per month
- Delaware: $1,091 per year, or $91 per month
Rates are for a home insurance policy with $350,000 of dwelling coverage.
Compare RatesHomeowners insurance price by city
Corpus Christi, Texas, is the most expensive major city for homeowners insurance, at $5,842 per year.
Oklahoma City, Miami, Houston and Wichita, Kan., round out the five cities with the highest home insurance rates, among the 100 largest cities in the U.S. These cities all have a high risk of severe weather damage from hurricanes or tornadoes.
Average price of homeowners insurance by city
City | Annual rate |
|---|---|
| New York City, NY | $1,986 |
| Los Angeles, CA | $1,957 |
| Chicago, IL | $2,496 |
| Houston, TX | $4,661 |
| Phoenix, AZ | $2,276 |
Rates include $350,000 of dwelling coverage.
Average home insurance cost by company
Average home insurance rates can differ by $1,408 per year depending on your company.
State Farm usually has the cheapest home insurance rates. Quotes from State Farm are generally 25% to 38% cheaper than average, depending on where you live. Cincinnati, AAA and Heritage also offer affordable rates.
Cost of homeowners insurance by dwelling coverage
$200,000
$350,000
$500,000
$1 million
Company | Annual rate | |
|---|---|---|
| State Farm | $1,084 |
| Cincinnati | $1,084 |
| AAA | $1,092 |
| Erie | $1,246 |
| Heritage | $1,314 |
ValuePenguin only included companies with data available in five or more states.
$200,000
Company | Annual rate | |
|---|---|---|
|
| State Farm | $1,084 |
|
| Cincinnati | $1,084 |
|
| AAA | $1,092 |
|
| Erie | $1,246 |
|
| Heritage | $1,314 |
ValuePenguin only included companies with data available in five or more states.
$350,000
Company | Annual rate | |
|---|---|---|
|
| State Farm | $1,514 |
|
| Cincinnati | $1,646 |
|
| AAA | $1,735 |
|
| Heritage | $1,784 |
|
| Erie | $1,979 |
ValuePenguin only included companies with data available in five or more states.
$500,000
Company | Annual rate | |
|---|---|---|
|
| State Farm | $1,976 |
|
| Cincinnati | $2,295 |
|
| Heritage | $2,316 |
|
| AAA | $2,424 |
|
| Allstate | $2,615 |
ValuePenguin only included companies with data available in five or more states.
$1 million
Company | Annual rate | |
|---|---|---|
|
| State Farm | $3,295 |
| Westfield | $3,751 |
|
| Heritage | $4,007 |
|
| Cincinnati | $4,202 |
| Pure | $4,421 |
ValuePenguin only included companies with data available in five or more states.
Find Cheap Home Insurance Quotes in Your Area
Average homeowners insurance rates by dwelling coverage amount
The amount of dwelling coverage you have plays a big role in how much you pay for home insurance.
A policy with $200,000 of dwelling coverage costs an average of $1,450 per year, while $1 million in coverage costs around $5,287 per year.
Average home insurance prices by coverage amount
Annual rate | |
|---|---|
| $200,000 | $1,450 |
| $350,000 | $2,151 |
| $500,000 | $2,891 |
| $1 million | $5,287 |
How do companies calculate home insurance rates?
Home insurance companies look at factors such as your home's building materials, where you live and your home's age when calculating your rate. You can control some of these factors, like how much coverage you get. But you can’t control others, like the age of your home.
Factors you can control that affect your home insurance estimate
The amount of coverage you want plays a major role in what you pay for home insurance. Typically, the more coverage you want, the more you'll pay.
Insurance companies try to set your dwelling coverage limit as the cost of rebuilding your home, so you don't have much control over your coverage limit.
But, there are two different levels of dwelling coverage to choose from: actual cash value and replacement cost.
- Actual cash value coverage pays for repairs based on the current condition of your home. So you may not get enough money to fully fix or rebuild your home after a disaster. Many insurance companies offer this coverage at a lower rate.
- Replacement cost coverage pays for the full cost to replace or rebuild your home, even as your home ages and needs more upkeep. For that reason, replacement cost is generally a better choice. However, it's typically much more expensive than actual cash value coverage.
Your personal property and liability coverage also affect your home insurance rates.
- Standard liability coverage generally starts at $100,000.
- Your personal property coverage limit is usually 20% to 50% of your dwelling coverage limit.
Raising either of these coverages will cost you more.
Your deductible is the amount you must pay toward fixing or rebuilding your home when you use your insurance. Choosing a higher deductible means lowering your potential payout, which makes your rates cheaper.
Renovations that make your home safer or more resistant to damage could lower your rates. This can include replacing an old roof or installing a security system.
On the other hand, increasing the square footage of your home could make your rates go up.
Many insurance companies view a good credit score as a sign of financial stability. In some states, companies may reward a good credit score with lower rates. In others, they may not be allowed to use credit scores to determine rates, but good credit scores can benefit you in other ways.
While improving your credit score takes time, it might help you get more affordable rates.
Other factors that affect home insurance rates
Older homes are more likely to have wear and tear that increases both your risk and rates. Some homes may also not be built up to current standards, raising the risk of injuries and home insurance claims.
Certain materials are more vulnerable to fire, rotting and other dangers. For instance, homes with metal or tile roofs will likely have lower insurance rates than homes with asphalt roofs.
Also, some materials cost more to replace than others, such as a marble countertop compared to a laminate countertop.
If you live in an area with high crime rates or stormy weather, or you’re far from a fire department, you may pay more for home insurance. That's because your home and belongings are more likely to be damaged, which makes you more expensive to insure.
Liability insurance covers any injuries your pets may cause. If you have a particularly "aggressive" breed as a pet, your insurance company may increase your rates.
Your claims history often shows how likely you are to file a claim in the future. The more claims you make, the higher your rates. Reducing the number of claims you file by only filing for expensive repairs could help you keep your rates lower.
Swimming pools and trampolines can make your home insurance rates go up. That's because guests visiting your home are more likely to hurt themselves by slipping on a wet pool deck or falling off a trampoline.
These injuries could result in lawsuits, so insurance companies tend to charge more to protect themselves against the added risk.
How can you lower the cost of your homeowners insurance?
There are four main ways to lower your insurance costs: shop around for quotes, qualify for discounts, raise your deductible and update your home.
- Shop around for coverage: Get quotes from multiple insurance companies and compare them side by side. This makes it easy to see which company offers the cheapest rate.
- Get discounts: Start by asking about the homeowners insurance discounts your current insurer offers. But see which ones other companies offer, too. You may be able to get multipolicy discounts, loyalty discounts or home safety discounts, depending on your insurer.
- Raise your deductible: You'll pay more when you file a claim if you do this, but it also may lower your rates. However, only raise your deductible to an amount you can pay after an emergency.
You should only raise your deductible to an amount you can easily afford to pay after an emergency. If you can't afford an unexpected $5,000 expense, you should keep your deductible below that amount.
Home renovations could save you more
Certain home renovations can lower your insurance rates or get you a discount.
For example, replacing an old roof or outdated electrical system can help make your home safer and make it less likely that you'll file a claim for a leak or electrical fire in the future.
However, not all renovations result in a lower home insurance rate.
If you remodel your kitchen with marble countertops and high-end cabinetry, your home insurance rates will probably go up. That's because these materials cost more to replace than more basic versions.
What does homeowners insurance cover?
Basic homeowners insurance protects your home itself, the property it's on, any unattached buildings such as sheds and garages, as well as your personal belongings. It also provides liability protection and pays for temporary housing if something happens to your home.
Dwelling coverage
- Roofing
- Walls
- Floors
- Foundation
- Built-in appliances
- Garages
- Sheds and other structures
Personal property coverage
- Furniture
- Clothing
- Electronics
- Jewelry
Liability coverage
Liability coverage pays for property damage or injury to others that you accidentally cause. This can include:
- Legal expenses if your dog bites a guest
- Legal expenses if your tree falls and damages your neighbor's roof
- Repairs to your neighbor's window if you break it while playing ball
Loss of use
Loss of use coverage pays your expenses if your home becomes unsafe and you have to temporarily move out. This can include:
- The cost of living in a hotel or motel
- Meals out while living in temporary housing without a kitchen
- A credit check fee for renting out a temporary home
- Transportation reimbursement for increased miles needed to travel to your workplace
Frequently asked questions
How much is home insurance?
The average price people pay for home insurance in the United States is $2,151 per year, or $179 per month. Rates can vary by $350 per month, depending on which state you live in.
How is homeowners insurance calculated?
Homeowners insurance companies calculate rates using a number of different factors. Some of the most important are your home's location and building materials, your claims history and the amount of coverage you buy.
How much is homeowners insurance on a $500,000 house?
A $500,000 home costs an average of $2,891 per year to insure. State Farm has the cheapest rates for $500,000 homes, at around $1,976 per year.
Is home insurance cheaper if you pay up front?
It can be, but it depends on the insurance company. Some companies offer discounts if you pay the full yearly premium up front instead of making monthly payments. Ask your insurance agent if your home insurance company offers this kind of discount.
What should I do if my insurance company didn't renew my home insurance?
Talk with your insurance agent to find out why the company didn't renew your policy. Your agent can explain the insurance company's decision in detail. Once you know why your policy wasn't renewed, start looking for coverage with different companies. Get quotes from several insurers, and choose the policy that fits your needs and your budget.
Methodology
ValuePenguin collected home insurance rates for every residential ZIP code in the United States, from the largest homeowners insurance companies in every state.
Quotes are for a 45-year-old married man with no history of home insurance claims and a good credit score. Rates include the following coverage limits:
- Dwelling coverage: $350,000
- Personal liability coverage: $100,000
- Medical payments: $5,000
- Deductible: $1,000
ValuePenguin's analysis used insurance rate data from Quadrant Information Services. These rates were publicly sourced from insurer filings and should be used for comparative purposes only. Your own quotes will likely be different.
Editorial Note: The content of this article is based on the author's opinions and recommendations alone. It has not been previewed, commissioned or otherwise endorsed by any of our network partners.
