Average Cost of Home Insurance

A homeowners insurance policy costs an average of $2,614 per year for $250,000 in dwelling coverage, $125,000 in personal property coverage, and $125,000 in liability protection. Your actual rate may vary based on your location, insurer, and the amount of coverage you choose. The table below show how home insurance rates change by provider and dwelling coverage level.

The average cost of a homeowners insurance policy is $2,614 per year for $250,000 in dwelling coverage, $125,000 in personal property coverage and $125,000 in liability protection. Your actual rate may vary based on your location, insurer and the amount of coverage you choose. The table below shows how home insurance rates change by provider and dwelling coverage level.

Your dwelling coverage limit has one of the biggest impacts on your home insurance premium. This coverage pays to rebuild your home if it’s damaged by a covered event — and higher limits mean higher costs. The average annual cost for a policy with $250,000 in dwelling coverage is $2,614, or about $218 per month. Increasing that coverage to $500,000 raises the average cost to $4,373 per year — a difference of $1,759 for double the structural protection.

Dwelling coverage protects the biggest investment most people ever make — their home. Too little coverage saves money upfront but can cost thousands if you need to rebuild after a fire or storm. Too much coverage wastes money on protection you don't need. The goal is to insure your home for its full rebuild cost, so you’re financially protected without overpaying.

Your home insurance deductible is the amount you agree to pay out of pocket before your insurer covers the rest of a claim. In general, the higher your deductible, the lower your annual premium.

For example, if you have a $1,000 deductible and file a covered $10,000 claim, you’ll pay $1,000 and your insurer pays the remaining $9,000. The table below shows how premiums change based on deductible level.

Home insurance rates vary widely by insurer, even for the same level of coverage. State Farm, the cheapest major provider, charges an average of $1,895 per year. Meanwhile, Travelers averages $5,717 annually, a difference of about $3,820 per year. Use the table below to see how rates can change by provider and coverage.

When choosing an insurer, consider more than just price. The best homeowners insurance providers also offer strong customer service and a smooth claims process — so it pays to shop around.

Where you live has a major impact on your homeowners insurance rate. Insurers use your location to assess risk, factoring in regional hazards like wildfires, hurricanes, crime rates and local rebuilding costs. The sections below show how average premiums vary by state, city and ZIP code.

State-level risk plays a big role in what you pay for home insurance. Regions prone to natural disasters, high crime or expensive construction tend to see much higher premiums. For example, the average annual cost in Florida is $5,055, while in Delaware it's just $761 — a difference of $4,294 per year.

Review the table to see how rates vary by dwelling coverage.

Home insurance costs can vary significantly from one city to another, even within the same state. Local risk factors (like severe weather, crime rates and population density) all influence how much you'll pay. For example, a hurricane-prone coastal city may see much higher premiums than an inland city with milder conditions.

Check the table below to see how average rates change by city and state.

Your ZIP code can significantly impact your home insurance rate, even within the same city or state. Localized factors (like crime rates, fire protection access and historical claims) all play a role. In Ohio, for example, ZIP code 43135 averages $3,100 per year, while 43604 comes in at $2,709 — a [$391] difference.

Use the table below to view average premiums by ZIP code in your state.

Your credit score may significantly affect your home insurance premium — in most states. Insurers often see higher credit scores as a sign of financial reliability and lower risk, which can lead to lower rates. For example, homeowners with excellent credit may pay around $5,000 less per year than those with poor credit. However, some states (including California, Hawaii and Massachusetts) don't allow insurers to factor credit scores into your rate.

If you live in a state where credit is a factor, use the table below to see how premiums vary based on your credit score and dwelling coverage.

The age of your home plays a key role in your insurance premium. A house built in 2023 with $250,000 in dwelling coverage averages $1,319 per year, while the same policy for a home built in 2000 costs about $2,614.

Older homes often have outdated electrical, plumbing or roofing systems, increasing the risk of damage and potential claims. In contrast, newer homes are built to modern safety codes and tend to have safer, more efficient systems. That lowers the likelihood of costly claims, which often results in lower premiums for newly built homes.

Explore the table below to see how rates can change depending on when your home was built and your desired dwelling coverage.

Your home's roof and construction materials can significantly affect your insurance premium. Metal and slate roofs typically cost less to insure because they resist weather damage better than standard shingles. Older roofs or those in poor condition raise your rates since they're more likely to need repairs after storms.

Construction type matters too. Homes built with fire-resistant materials like brick or stone typically cost less to insure than wood-frame homes, which are more susceptible to fire. Insurers use these factors to assess overall risk and potential repair costs. Check the table below to see how premiums vary based on roof type, construction type and coverage level.

Understanding what drives home insurance costs can help you make smarter coverage choices. In this section, we break down the key factors that affect premiums and highlight which states tend to be the cheapest or most expensive for homeowners insurance.

Home insurance premiums vary based on how risky your home is to insure. Insurers consider factors like location, home age, roof condition and claims history when setting rates. Insurance companies charge more when they think you're likely to file expensive claims. That's why knowing what drives your rate helps you find better deals and avoid overpaying.

Some states consistently offer lower home insurance rates due to factors like fewer natural disasters, lower crime and favorable construction costs. For example, the cheapest annual premium in Hawaii is just $432 — more than $2,100 below the national average of $2,614.

Check the table below to see the 10 most affordable states for homeowners insurance based on $250,000 in dwelling coverage.

Homeowners in some states face much higher insurance costs due to frequent natural disasters, higher crime rates and elevated rebuilding expenses. Florida tops the list, with the most expensive annual premium of $7,257 — more than $4,600 above the national average.

Use the map or review the table below to explore the states with the most expensive rates for homeowners insurance, based on policies with $250,000 in dwelling coverage.

Use the calculator below to estimate your annual premium based on key factors like location, dwelling coverage and deductible. It’s a quick way to see how your choices can impact what you pay.

On this page, we explained how the average cost of homeowners insurance (currently around $2,614 per year) can differ widely based on factors like location, coverage limits and home characteristics. Knowing what affects your rate helps you make smarter choices when selecting coverage and setting a deductible.

MoneyGeek's in-depth analysis of home insurance rates gives you the data you need to compare options confidently and avoid overpaying for the protection your home deserves.

Many factors impact the cost of home insurance. Most are specific to the home, while some are based on your personal information and claims history. Here are answers to the most common questions about the cost of home insurance.

MoneyGeek evaluated homeowners insurance carriers using insights and premiums from Quadrant Information Services' official databases.

Homeowner Profile

For our analysis, we created a sample homeowner with:

• Good credit score (769 to 792)
• Home built in 2000
• Wood-frame construction
• Composite shingle roof

Homeowners Insurance Coverage Details

Unless specified otherwise, we used these coverage limits for comparison quotes:

• $250K dwelling coverage
• $125K personal property coverage
• $200K personal liability coverage
• $1,000 deductible

We also gathered data for higher-value policies to identify the best companies for expensive homes, increasing limits to:

• $1M dwelling coverage
• $500K personal property coverage
• $1M liability coverage