Average Cost of Homeowners Insurance in 2024


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Updated: July 1, 2024

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While home insurance costs an average of $2,614 per year, these rates can change depending on your home, location, coverage levels and more. By understanding how rates can change, you can make informed decisions about your policy — from choosing your coverage level to deciding on a deductible.

MoneyGeek conducted a comprehensive study providing average rates on home insurance coverage to take the guesswork out of finding the right coverage for you.

Table of Contents

Key Takeaways

According to MoneyGeek’s study, the average home insurance cost in the United States is $2,614 annually or $218 monthly.

The home’s location, value and level of insurance coverage purchased are the most significant factors determining your annual home insurance cost.

Making your home more secure, updating the appliances and raising your deductible are a few ways to save on the cost of home insurance.

Compare Home Insurance Rates

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What Is The Average Cost of Home Insurance?

House with the average cost of home insurance at $2,614 per year

Home insurance rates average $2,614 per year for a policy with $250,000 in dwelling coverage, $125,000 in personal property coverage and $125,000 in personal liability coverage. However, changing your coverage level or provider or living in a hazard-prone state can change the average.

Take a look at how rates can change by dwelling coverage and which provider offers the cheapest policies below.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
State FarmAnnual Premium$1,895
FarmersAnnual Premium$2,135
AllstateAnnual Premium$2,399
NationwideAnnual Premium$2,432
TravelersAnnual Premium$5,717

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Rates updated:

Oct 11, 2024

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Average Cost of Home Insurance by Dwelling Coverage

Home insurance costs depend highly on your dwelling coverage, which pays to rebuild or replace your home in case of structural damage due to a covered event. The average cost of a typical home insurance policy with $250,000 in dwelling coverage in 2023 is $2,614 per year or $218 per month. However, if you bump your limits to $500,000, the average cost is $4,373 per year — a difference of $1,759 for double the coverage.

$100K Dwelling / $50K Personal Property / $100K LiabilityAverage Annual Premium$1,518
$250K Dwelling / $125K Personal Property / $200K LiabilityAverage Annual Premium$2,614
$500K Dwelling / $250K Personal Property / $300K LiabilityAverage Annual Premium$4,373
$750K Dwelling / $375K Personal Property / $500K LiabilityAverage Annual Premium$6,139
$1MM Dwelling / $500K Personal Property / $1MM LiabilityAverage Annual Premium$7,947

Choosing the right dwelling coverage is essential for you as a homeowner. While going for the lowest coverage to save on premiums might be tempting, this choice can be risky. If disaster were to strike, insufficient coverage could leave you grappling with hefty out-of-pocket expenses to repair or rebuild your home. It's a delicate balance: underinsuring might cost you dearly when you least expect it while overinsuring means paying more than you should. By insuring your home adequately, you're not just protecting your property but also securing your financial future.

Average Cost of Home Insurance by Deductible

A home insurance deductible is the amount you will pay toward a covered claim. For example, if you have a home deductible of $1,000 and a covered claim of $10,000, you're responsible for $1,000, and the insurer will pay the remaining $9,000.

Review the table below to see examples of how your premiums will increase as your deductible decreases based on your desired coverage level.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
$500Annual Premium$2,821
$1000Annual Premium$2,614
$1500Annual Premium$2,479
$2000Annual Premium$2,334

Generally, the average cost of home insurance also changes based on your deductible — the higher the deductible, the less you will pay in annual premiums. A higher deductible means the insurance company pays less per claim, and it discourages insureds from filing lower-value claims. These factors add up to premium savings for the homeowner.

However, be sure you can afford to pay the deductible amount at any time in case you have to file a claim. It’s nice to save on premiums with a $2,500 deductible, but not if you aren’t able to pay the first $2,500 if your home is damaged.

Average Cost of Home Insurance by Company

Average home insurance rates can vary by company, too, as insurers weigh factors differently. For instance, MoneyGeek found that the cheapest major home insurance company, State Farm, charges an average of $158 monthly. In contrast, the most expensive, Travelers, charges a monthly average of $476 — a difference of $318 a month. By comparing home insurance quotes before purchasing a policy, you can save hundreds per year.

Use the table below to see how rates can change by provider and coverage.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
State FarmAnnual Premium$1,895
FarmersAnnual Premium$2,135
AllstateAnnual Premium$2,399
NationwideAnnual Premium$2,432
TravelersAnnual Premium$5,717

When selecting an insurer, remember it's not just about the price. The best homeowners insurance providers often balance cost and excellent service. While going for the cheapest option might be tempting, shopping around can lead to significant savings without sacrificing quality service.

Average Cost of Home Insurance by Location

Where you live is a significant factor in your home insurance rates. Insurers consider your location because regions prone to natural disasters, higher crime rates or elevated construction costs can pose greater financial risks to the company. For instance, in Florida, the average cost of home insurance is $5,055 per year, while in Delaware, it’s $761 — a whopping difference of $4,294 every year.

Use the map below to find out the average cost of home insurance in your state, or see the table below to see how rates can change by dwelling coverage.

Data filtered by:Results filtered by:
Coverages:
Coverages:$250K Dwelling / $125K Personal Property / $200K Liability
AlabamaAnnual Premium$3,639
AlaskaAnnual Premium$1,202
ArizonaAnnual Premium$1,649
ArkansasAnnual Premium$3,411
CaliforniaAnnual Premium$747
ColoradoAnnual Premium$3,049
ConnecticutAnnual Premium$1,745
DelawareAnnual Premium$761
FloridaAnnual Premium$5,055
GeorgiaAnnual Premium$1,714
HawaiiAnnual Premium$353
IdahoAnnual Premium$1,184
IllinoisAnnual Premium$1,805
IndianaAnnual Premium$2,056
IowaAnnual Premium$1,425
KansasAnnual Premium$2,986
KentuckyAnnual Premium$1,679
LouisianaAnnual Premium$2,576
MaineAnnual Premium$1,062
MarylandAnnual Premium$1,528
MassachusettsAnnual Premium$1,502
MichiganAnnual Premium$1,341
MinnesotaAnnual Premium$1,610
MississippiAnnual Premium$5,221
MissouriAnnual Premium$2,045
MontanaAnnual Premium$3,762
NebraskaAnnual Premium$4,530
NevadaAnnual Premium$831
New HampshireAnnual Premium$798
New JerseyAnnual Premium$847
New MexicoAnnual Premium$1,497
New YorkAnnual Premium$988
North CarolinaAnnual Premium$2,148
North DakotaAnnual Premium$1,733
OhioAnnual Premium$1,579
OklahomaAnnual Premium$4,552
OregonAnnual Premium$843
PennsylvaniaAnnual Premium$1,372
Rhode IslandAnnual Premium$1,288
South CarolinaAnnual Premium$2,263
South DakotaAnnual Premium$2,020
TennesseeAnnual Premium$2,452
TexasAnnual Premium$2,814
UtahAnnual Premium$733
VermontAnnual Premium$998
VirginiaAnnual Premium$1,666
WashingtonAnnual Premium$838
West VirginiaAnnual Premium$1,338
WisconsinAnnual Premium$878
WyomingAnnual Premium$1,465

Top 10 Most Affordable States in the Country

Your location can significantly influence your home insurance rates, with some areas benefiting from lower premiums because of reduced crime, fewer natural disasters and a robust local community. Take, for instance, ZIP code 96819 in Hawaii, where homeowners pay an average of $420 per year — about $2,194 less than the national average.

Explore the 10 most affordable home insurance ZIP codes for policies with $250,000 in dwelling coverage using the table below.

HawaiiAnnual Premium$432
DelawareAnnual Premium$911
UtahAnnual Premium$913
WashingtonAnnual Premium$983
CaliforniaAnnual Premium$1,000
OregonAnnual Premium$1,002
New HampshireAnnual Premium$1,021
NevadaAnnual Premium$1,055
WisconsinAnnual Premium$1,096
New JerseyAnnual Premium$1,111

Top 10 Most Expensive States in the Country

Certain areas experience higher home insurance premiums because of regular severe weather occurrences, increasing crime and dense populations. For instance, Florida tops the list, with premiums exceeding the national average by $4,643 annually.

The following table provides a detailed look at the 10 states with the highest insurance costs for $250,000 in dwelling coverage.

FloridaAnnual Premium$7,257
MississippiAnnual Premium$7,023
OklahomaAnnual Premium$5,439
NebraskaAnnual Premium$5,437
MontanaAnnual Premium$5,177
AlabamaAnnual Premium$4,767
ArkansasAnnual Premium$4,679
KansasAnnual Premium$4,234
ColoradoAnnual Premium$4,087
TexasAnnual Premium$3,989

Average Cost of Home Insurance by City

Home insurance rates often fluctuate based on the city you reside in. As with state-level risk factors, each city presents its unique set of hazards, from weather patterns to crime rates. For instance, a city prone to hurricanes might have higher premiums than one with milder weather, even if they’re in the same state. Similarly, cities with bustling urban centers might have elevated rates due to increased risks of theft or vandalism.

Explore the table below to see how rates can change in your city and state.

Data filtered by:Results filtered by:
State:
State:Alabama
Coverages:
Coverages:$250K Dwelling / $125K Personal Property / $200K Liability
BirminghamAnnual Premium$3,975
HuntsvilleAnnual Premium$3,817
MobileAnnual Premium$7,108
MontgomeryAnnual Premium$3,655

Average Cost of Home Insurance by Zip Code

Aside from your state and city, your ZIP code and its unique challenges also affect the average cost of homeowners insurance. Take Ohio, for instance: ZIP code 44135 averages $1,853 yearly, while ZIP code 43604 is priced at $2,517, marking a $664 difference in the same state.

Dive into the following table to see average home insurance rates by ZIP code, tailored for your state, with specified coverage limits and a $1,000 deductible.

Data filtered by:Results filtered by:
State:
State:Alabama
35211Average Annual Premium$4,457Difference From State Avg-$2,333
35235Average Annual Premium$6,039Difference From State Avg-$752
35803Average Annual Premium$5,978Difference From State Avg-$812
35811Average Annual Premium$6,131Difference From State Avg-$660
35986Average Annual Premium$7,651Difference From State Avg$861
36104Average Annual Premium$5,943Difference From State Avg-$848
36116Average Annual Premium$6,103Difference From State Avg-$688
36521Average Annual Premium$11,879Difference From State Avg$5,088
36618Average Annual Premium$12,589Difference From State Avg$5,798
36695Average Annual Premium$12,752Difference From State Avg$5,962
36870Average Annual Premium$3,759Difference From State Avg-$3,032

Average Cost of Home Insurance by Credit Score

Your credit score can significantly influence the average cost of your home insurance. For instance, having a good credit score could save you an average of $4,437 per year. Insurers often view a higher credit score as an indicator of financial responsibility, suggesting fewer claims in the future. Conversely, a lower score might lead to elevated premiums. However, the government prohibits states from using credit scores to determine rates in states like California, Hawaii and Massachusetts.

If you live in a state where insurers use credit scores to determine your rates, use the table below to see the average cost of home insurance based on your credit score and desired dwelling coverage.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
ExcellentAverage Annual Premium$1,790
GoodAverage Annual Premium$2,614
FairAverage Annual Premium$3,754
Below FairAverage Annual Premium$4,911
PoorAverage Annual Premium$7,051

Average Cost of Home Insurance by Home’s Age

The age of your home directly impacts your home insurance costs — case in point, $250,000 in dwelling coverage for a house built in 2023 costs $1,319 per year, while the same policy for a home built in 2000 costs an average of $2,614 annually. Older homes might have outdated electrical, plumbing or heating systems, posing higher risks for issues or damages. Additionally, previous years' materials and construction methods might not meet today's safety standards. Consequently, insuring an older home can be costlier, as insurers anticipate potential claims stemming from age-related wear and tear or outdated infrastructure.

On the flip side, newer homes often benefit from modern construction techniques, safer materials and up-to-date systems. These homes are typically more energy-efficient and built to current safety codes, leading to fewer insurance claims. As a result, homeowners insurance for new homes typically comes with lower insurance premiums, as insurers perceive their homes as less risky.

Home insurance is $2,164 annually for a 2000 home versus $1,319 for a 2023 home

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

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
2000Annual Premium$2,614
2023Annual Premium$1,319

Average Cost of Home Insurance by Roof and Construction Type

Your home's roof and construction type hold significant sway over your insurance premiums. A robust, well-maintained roof, especially made of durable materials like metal or slate, can offer better protection against elements like rain or hail, leading to potential discounts. Conversely, roofs needing repair or made of less resilient materials might elevate rates.

The construction type matters as well. Homes built with fire-resistant materials, such as brick or stone, often attract lower premiums than those constructed with wood, which is more flammable. Insurers assess these factors to gauge the potential risk and repair costs they might shoulder.

Explore the table below to see how rates can change depending on your roof type, construction type and desired dwelling coverage.

Data filtered by:Results filtered by:
Coverage:
Coverage:$250K Dwelling / $125K Personal Property / $200K Liability
Construction Type:
Construction Type:Frame
CompositionAverage Annual Premium$2,614
Shake-TreatedAverage Annual Premium$2,819
TileAverage Annual Premium$2,430

Factors Affecting Home Insurance Costs

Home insurance rates change because of the inherent risks of insuring a property. Insurance companies prioritize saving money by mitigating these risks. The riskier it is to insure a home, the more the insurance policy costs. Understanding these risk factors can empower homeowners to make informed decisions about their coverage.

Factor
Description

Dwelling Coverage Limit

Dwelling coverage, which is what pays to rebuild or repair your home after a covered event, is one of the biggest factors that determine premiums. The more it costs to rebuild your home, the more you will pay in home insurance costs.

Personal Property Coverage Limit

Personal property coverage also shapes the cost of your premiums. This coverage offers protection for your belongings in the event of certain incidents. Standard home insurance policies automatically assign 70–75% of your dwelling coverage as your personal property limits, but you can increase it independently if needed.

Coverage Type

There are two types of coverage: replacement cost (RCV) and actual cash value (ACV). ACV covers the item's cost minus depreciation, while RCV pays to replace the item with a new one of similar quality and value. Getting RCV on your dwelling and personal property coverage is more expensive, but it’s worth it as it ensures you receive the full cost to replace or repair items without accounting for depreciation, providing greater financial protection in the event of a loss.

Deductible Amount

Regarding home insurance, your deductible is the amount you'll pay out-of-pocket for a claim before coverage takes effect. The higher the deductible, the lower the premium cost, but the more you have to pay out of pocket if you file a claim. Check deductible options to see if the premium savings are worth the higher deductible amount.

Frequently Asked Questions About the Cost of Home Insurance

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.

What is the average annual cost of home insurance?
What is the average monthly cost of home insurance?
How much will home insurance cost you?
What factors impact home insurance costs?

Expert Insight on Affordable Homeowners Insurance

MoneyGeek teamed up with experts to get insight on how consumers can find affordable home insurance with the right coverages. These experts offer tips and advice for purchasing home insurance on a new home or comparing quotes on your existing home.

  1. What are your top tips for saving on the cost of homeowners insurance?
  2. How does the home’s construction type impact insurance or other costs?
  3. What steps can homeowners take to lower their insurance costs?
Sandra D. Adams, CFP
Sandra D. Adams, CFPLead Financial Planner/Partner at The Center for Financial Planning, Inc.
Jenna Rodriguez
Jenna RodriguezAgency Owner with American Family Insurance
Heidi Petschauer, CIC
Heidi Petschauer, CICPresident, Petschauer Insurance
Rick Rolfs
Rick RolfsPrincipal
Marc Girardot, CFP
Marc Girardot, CFPFounder and CEO at Vertical Ascent Wealth Management
William Nunn, CFP
William Nunn, CFPManaging Member, Founder of Horizon Financial Planning LLC
Thomas Simeone
Thomas SimeoneTrial Attorney at Simeone & Miller, LLP
Richard Hall
Richard HallWealth Advisor, CFP® at Pitzl Financial
Brian Blakely
Brian BlakelyDirector of Property & Casualty at Stonebridge Insurance & Wealth Management
Josh Bitel
Josh BitelCFP® at The Center for Financial Planning
Neil Teubel, CFP
Neil Teubel, CFPWealth Manager & Director of Financial Planning at CI - BDF Private Wealth
Rose M. Price
Rose M. PricePartner, Financial Planner CFP®, AIF at VLP Financial Advisors
Joni Alt
Joni AltDirector of Financial Planning, CFP®, EA, at Hopwood Financial Services
Belle Osvath
Belle OsvathFinancial Advisor CFP ®, AIF®, CSLP at VLP Financial Advisors
Marissa Sweet
Marissa SweetCommercial Property and Casualty Insurance Consultant at PropertyCashin.com
Katherine Armstrong
Katherine ArmstrongFinancial Planner – MBA, CFP®, CRPC®
Barry Choi
Barry ChoiPersonal Finance and Travel Expert at MoneyWeHave.com
Brett Holmes, CFP
Brett Holmes, CFPFinancial Advisor at Berman McAleer
Matt Hylland
Matt HyllandFinancial Planner at Arnold & Mote Wealth Management
David Echeverry
David EcheverryVisiting Assistant Professor of Finance, Mendoza College of Business, University of Notre Dame
Dr. Oliver Cruz-Milan
Dr. Oliver Cruz-MilanAssistant Professor of Marketing at Texas A&M University - Corpus Christi
Joseph F. Eschleman, CIMA
Joseph F. Eschleman, CIMAPresident of Towerpoint Wealth
Marianela Collado, CFP
Marianela Collado, CFPCEO and Certified Financial Planner at Tobias Financial Advisors
Chris Jennings, CFP
Chris Jennings, CFPWealth Advisor at Heron Wealth
Lauryn Williams
Lauryn WilliamsCFP® Professional
Chad Nehring
Chad NehringCertified Financial Planner
Laura Sendldorfer
Laura SendldorferFinancial Advisor & Insurance Specialist at Offit Advisors
May Jiang, CFP
May Jiang, CFPFounder of Beyond Profit and Wealth Consulting
Jay Rigler
Jay RiglerMoney Coach
Cristina Livadary
Cristina LivadaryCFP®, RLP®; CEO & Co-Founder of Mana Financial Life Design
Catherine Valega
Catherine ValegaFinancial Planner and Wealth Advisor at Green Bee Advisory
Phil Hearn
Phil HearnStrategic Business Consultant at Real Estate Bees
Jake Hill
Jake HillCEO of DebtHammer
Kayla Burrows
Kayla BurrowsProperty and Casualty Licensed Florida Agent at Eagle Insurance Group

About Mandy Sleight


Mandy Sleight headshot

Mandy Sleight is a writer for MoneyGeek and has been an insurance agent since 2005. As a freelance writer, she uses her vast knowledge of the insurance industry to create informative, engaging and easy-to-understand content for consumers. Her work has been featured in Market Watch, Kiplinger and other major publications.


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