How Much Is Homeowners Insurance on a $1 Million House?

Based on our analysis of rate filings across all 50 states, a homeowner with a $1,000 deductible pays $894 per month ($10,733 per year) for a $1 million dwelling policy with $500,000 in personal property coverage and $1 million in liability. That figure is 3.1 times the $289 per month rate for a comparable $250,000 dwelling policy.

State-level factors like hurricane exposure, tornado and hail corridors, wildfire risk, litigation environments and fraud rates create wide pricing gaps for $1 million dwelling policies. Our analysis of the same profile across all 50 states shows a range from $2,416 per year in Hawaii to $33,685 per year in Florida, a $31,269 per year spread driven entirely by geography.

The five most expensive states for $1 million dwelling coverage, Florida, Oklahoma, Louisiana, Texas and Nebraska, all sit in hurricane, tornado or hail corridors where catastrophic weather losses and reinsurance pricing inflate premiums well above the $10,733 national average. 

The five cheapest states, Hawaii, Delaware, Vermont, Oregon and Washington, D.C., share lower catastrophic weather exposure and smaller claims volumes. Our analysis at this coverage level finds that the $31,269 per year gap between Florida and Hawaii means your location can affect your premium more than any personal profile factor, including credit score.

Your credit score and claims history are two profile factors that change your premium independently for a $1 million home, and the dollar impact of every factor is increased at the $1 million level compared to a $250,000 policy. 

The sections below hold all other base profile variables constant, specifically a middle-aged homeowner, good credit, $1,000 deductible, middle-aged home and claim-free for 5+ years, to show the isolated effect of each factor.

Credit-based insurance scores are the single largest personal pricing variable for a $1 million home in our data. At this coverage level, the dollar impact of credit is amplified compared to lower-value homes: a credit tier shift that adds $1,261 per year on a $250,000 policy adds $4,070 per year on a $1 million policy, an amplification effect confirmed by our analysis.

The gap between excellent and poor credit at this coverage level is $16,140 per year: a homeowner with excellent credit pays $555 per month for the same $1 million dwelling policy that costs a homeowner with poor credit $1,900 per month. Improving credit from good to excellent saves $4,079 per year, making it the single most cost-effective personal action before buying or renewing a policy at this dwelling value. Homeowners shopping for the best homeowners insurance companies should address credit before requesting quotes to make sure they're priced into the lowest available tier.

Insurers treat filed claims as a predictor of future losses, and the dollar penalty scales with dwelling value. A single claim on a $1 million home adds $1,708 per year, roughly triple the $552 penalty on a $250,000 policy per our analysis, making claim-filing decisions more consequential for high-value homeowners.

Two claims add $3,145 per year to the premium on a $1 million home. A homeowner filing a second small claim should weigh whether the payout is worth roughly $15,725 in additional premiums over five years. 

The penalty for the second claim ($1,437 per year above the first claim's surcharge) is steeper than the first claim's penalty ($1,708 per year above claim-free), so the cost of filing compounds and each successive claim is more expensive than the last, per our data. Comparing quotes from cheap homeowners insurance companies after a claim can help offset some of the surcharge by finding a carrier that weights claims history differently.

Older high-value homes have more expensive systems to replace, including custom wiring, aging plumbing and original roofing, and the replacement cost of those systems is factored into the premium at a higher base. The pricing gap between home age tiers is amplified at the $1 million coverage level compared to lower coverage tiers, as our data shows below.

The spread between a newer and older $1 million home is $5,245 per year, more than triple the $1,683 per year spread at the $250,000 coverage level, which shows how home age pricing is amplified at higher dwelling values per our analysis. 

High-value homeowners with older properties have a strong financial incentive to invest in system upgrades: moving from older to middle-age pricing saves $1,942 per year at this coverage tier, and roof replacements, updated electrical panels and modern plumbing are the upgrades most likely to trigger a reclassification from your insurer. Reviewing the average cost of homeowners insurance at lower dwelling values confirms that this amplification effect is specific to the $1 million coverage tier.

The deductible is one of the few cost levers a homeowner controls directly, and at the $1 million coverage level the dollar savings from raising the deductible are larger than on lower-value policies. We frame this as a tradeoff decision: the right deductible depends on how much you can absorb out of pocket for any single claim.

Raising the deductible from $1,000 to $2,000 saves $1,056 per year on a $1 million policy, compared to $341 per year on a $250,000 policy. The savings are proportionally larger because the insurer's exposure reduction is greater on a high-value home. The tradeoff is direct: you need $2,000 available out of pocket for the first dollar of any claim. 

The higher deductible pays for itself in less than one year if you don't file a claim, making it the better financial choice for most $1 million homeowners who maintain a cash reserve. Homeowners seeking the most affordable homeowners insurance at this coverage level should treat the $2,000 deductible as a first step before comparing carrier quotes.

The pricing factors above don't exist in isolation, and stacking unfavorable factors creates a much higher total cost than any single variable suggests. Our data shows how combining poor credit with multiple claims dramatically inflates the premium on a $1 million home, producing a worst-case vs. best-case comparison that spans nearly $23,000 per year.

The gap between the best-case profile (excellent credit, claim free, $6,654 per year) and the worst-case profile (poor credit, two claims, $29,474 per year) is $22,820 per year for the same $1 million dwelling coverage, a $1,902 per month difference driven entirely by credit and claims, not by the home itself. 

Our analysis confirms that credit alone accounts for more of the cost spread than claims, home age and deductible combined at this coverage level. High-value homeowners with any credit concerns should prioritize credit improvement before shopping for a policy, and comparing quotes from cheap homeowners insurance providers after improving credit makes sure the savings are fully realized.

Our data shows several moves that reduce the premium at this coverage level. Insuring a $1 million home doesn't have to cost $10,733 per year. Each action below references a specific dollar amount from our rate data and frames the savings as a concrete step you can take.

The cost of insuring a $1 million home varies by more than $22,000 per year depending on your credit, claims history and location. Credit score is the most powerful variable you control, with a $4,079 per year savings available by moving from good to excellent credit at this dwelling level. 

To get the lowest rate for your profile: improve your credit before shopping, raise your deductible to $2,000 if you can absorb the out-of-pocket cost and compare quotes from at least three insurers. These steps can collectively reduce a $10,733 per year base premium by more than $5,000 per year for the right profile.