Find Cheap Homeowners Insurance Quotes in Your Area
In the U.S. as a whole, the average cost of homeowners insurance is $1,083 per year — but we also found that each state has its own market rates.
The cost of insuring a home has continued to rise steadily throughout the country: home insurance rates are up almost 50% in the last 10 years alone. To help you understand the market, we did some digging to discover which states are the most and least expensive.
Use the links to read through our findings below, or enter your zip code in the tool up top to compare live homeowners insurance quotes in your area.
Most expensive states for homeowners insurance
Because the cost of homeowners insurance is generally more affected by state regulations rather than by federal law, it makes sense to explore rates on a state-by-state basis. To do this, we collected hundreds of homeowners insurance quotes in every state and calculated the average premium for each one. The following table shows our findings, from the most expensive to the most affordable states for home insurance.
|Cost Rank||State||Monthly Homeowners Insurance||Annual Homeowners Insurance||vs. U.S. Average|
According to our findings, homeowners premiums vary widely in different states. Depending on where you live, the average cost of home insurance can fall anywhere between $600 to $2,000 per year.
Find the Cheapest Homeowners Insurance Quotes in Your Area
Which states pay the most for home insurance coverage...
States that face the highest home insurance costs are the ones where natural disasters occur most frequently. Florida and Texas led the pack, with hurricanes and tornadoes pushing average premiums in those states 80% to 90% above the national mean.
Louisiana, Oklahoma and Mississippi — also no strangers to natural disasters — rounded out the top five costliest states for home insurance. Our data showed homeowners in these five states spending 67% more per year on insurance premiums than the typical U.S. resident.
...and which states pay the least?
With the exception of Wisconsin, the five most affordable states in terms of home insurance are all found in the West. Three of them lie in the Pacific Northwest, where hurricanes and other disasters are far less likely to strike.
In each of these states, our estimates showed that the average cost of covering a typical home would be less than $700 a year. Compared to the rest of the nation, this would mean a savings of at least $32 each month.
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 and liability claims as a percentage of total homeowners insurance losses
- Wind and hail (33.1% of total losses)
- Water damage and freezing (29.5%)
- Fire and lightning (26.8%)
- Other property damage, including vandalism and malicious mischief (5.7%)
- Liability for bodily injury and property damage to others (2.7%)
- Theft (1.9%)
- Medical payments (0.2%)
- Credit card and other (less than 0.1%)
When we look at what possessions are most frequently mentioned in homeowner claims, jewelry tops the list. Electronics and apparel are also common subjects of claims that involve damage or theft.
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, most consist of four standard coverages.
Dwelling coverage provides financial compensation if the structure of your home is damaged by a covered event. This can include:
- built-in appliances
Dwelling coverage usually extends to other structures like garages or sheds, so you'll be protected if a major catastrophe affects your whole property. We recommend that shoppers purchase policies with limits high enough to cover the full cost of rebuilding the structure if it were completely destroyed — a coverage known as replacement cost value.
Personal property coverage protects the contents of your home from any damage caused by a covered peril. A standard HO-3 will likely include coverage for:
However, any policy comes with sub-limits on your coverage in individual high-value categories, such as jewelry and firearms. If you have a lot of money invested in collectibles, you may need to review your homeowners policy to determine whether you need additional insurance.
Liability coverage deals with your legal liability for property damage or bodily injury to others. 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. It also covers unintentional damage or destruction of other people's property, such as breaking your neighbor's window while playing ball.
Loss of use coverage covers the expenses of living away from your home when it's made uninhabitable by a covered peril. 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?
Besides the location of your home, the amount of dwelling coverage you purchase is the biggest factor in determining home insurance rates. While this number is closely related to the value of your home, you still have to make some choices about exactly how much coverage to buy.
In most cases, we recommend purchasing enough dwelling coverage to cover the replacement cost of your home, which is the cost of rebuilding it from the ground up. While replacement cost coverage is more expensive than actual cash value coverage, it guarantees that your insurance payout won't be lowered by the depreciation of your home as it ages.
To show you how coverage limits impact homeowners insurance rates, we requested quotes with dwelling coverage limits of $250,000, $500,000 and $750,000 from major insurers across several zip codes. We repeated this process for the same house in three different states.
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.
Besides considering the amount of coverage you need, insurers look at many smaller variables in pricing a policy. These are either adjustable factors you can control or fixed factors that are inherent and unchangeable.
Adjustable factors that affect home insurance rates
- Your coverage limits for personal property and liability aren't as impactful as your dwelling coverage limit, but increasing these coverages will cost you more in premiums. Standard liability coverage generally starts at $100,000.
- Your deductible is the amount of money you must pay out of pocket before your policy begins paying out your claim. Choosing a higher deductible means lowering your potential benefit, which makes your policy less valuable and therefore cheaper.
- Home insurance discounts offer a variety of ways to 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 that affect home insurance rates
- The age of your home plays a part in the costs of insuring it. Older homes are more likely to have structural wear and tear that increases risk and thus your premiums.
- Your claims history and the claims history of previous residents will be a focus for insurers. The first indicates how likely you are to file a claim, while the second can reveal chronic issues caused by the property itself. More claims in either of these areas means higher rates.
- The materials used to build your home determine its risk for fire, termites, rotting and other dangers. Wooden frame housing is more vulnerable to these than brick construction — and thus more expensive to insure.
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. We found that brick framing led to the cheapest home insurance rates, while wood framing or logs led to the most expensive.
Below, we've included a table that outlines how you can expect your house's framing type to impact your homeowners insurance rate. These figures reflect a blended average across three states and only show the relative relationship among building types. 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
The effect of location on home insurance rates goes down to the zip code level. Homes in even neighboring zip codes often face different levels of risk, and insurers set their prices accordingly. For example, homes located closer to the coastline or a river is at a higher risk for flooding, while homes that are far away from fire stations and fire hydrants are considered a bigger fire risk.
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 researched the most and least expensive zip codes for average home insurance costs in the 10 most populous states in the country. 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%|