Updated: January 12, 2026
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The average home insurance cost in the United States is $3,548 annually or $296 monthly for a policy with $250,000 in dwelling coverage.
Your home's location, value and coverage level affect your annual home insurance cost the most.
Home insurance is cheapest in states like Hawaii and Delaware, and most expensive in states with severe weather, like Florida or Louisiana.
The average cost of home insurance is $3,548 annually or $296 per month for $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability protection.
Actual home insurance costs depend on location, coverage level, home age, credit score and more. See how average costs vary by home type and homeowner situation to understand where your rate might fall.
National Average | $3,548 |
Lower Dwelling Coverage Limit ($100K) | $1,875 |
Higher Dwelling Coverage Limit ($500K) | $6,016 |
Older Homes (1980) | $4,126 |
Newer Homes (2020) | $2,424 |
Homeowners with Poor Credit | $6,711 |
*The rates above are for homeowners ages 41 to 60 with good credit and no claims history. They use a home built in 2000 being insured for $250K in dwelling coverage, unless otherwise noted.
Where you live drives your homeowners insurance rate, often determining whether you'll pay $500 or over $5,000 annually. The sections below show how average premiums vary by state and city.
Home insurance rates by ZIP code can vary dramatically, even within the same city. Neighboring areas might differ by hundreds of dollars due to local crime rates, fire protection and claim history, so shop around to find the best coverage and premium for your situation.
Home insurance companies quote vastly different rates for the same house and coverage. Each insurer uses its own pricing models and risk assessments, which explains why quotes can vary by thousands of dollars annually.
Shopping around matters: the difference between the most and least expensive options is over $5,000 per year on average. The table shows average premiums from national insurers, though the cheapest option varies by individual homeowner:
| AIG Insurance | $91 | $1,090 |
| Amica | $119 | $1,428 |
| CSAA | $126 | $1,514 |
| AAA | $135 | $1,623 |
| American Modern | $174 | $2,089 |
| USAA | $186 | $2,233 |
| Farmers | $188 | $2,251 |
| Allstate | $198 | $2,381 |
| Homesite | $210 | $2,525 |
| Nationwide | $287 | $3,441 |
| Chubb | $369 | $4,431 |
| Progressive | $454 | $5,445 |
| Travelers | $571 | $6,848 |
Price matters when choosing an insurer, but it shouldn't be your only consideration. The best homeowners insurance companies combine competitive rates with responsive customer service and efficient claims handling, factors that matter when you need to use your coverage.
Your coverage limits and deductible significantly affect your premiums. While your coverage limits determine the maximum your insurer will cover, your home insurance deductible is the amount you agree to pay out of pocket before your insurer covers the rest of a claim.
The average annual cost for a policy with $250,000 in dwelling coverage and a $1,000 deductible is $3,548, or about $296 per month. Increasing that coverage to $500,000 raises the average cost to $6,016 per year, a nearly 70% price increase for double the structural protection.
| $100K Dwelling / $50K Personal Property / $100K Liability | $152 | $1,828 |
| $250K Dwelling / $125K Personal Property / $200K Liability | $289 | $3,467 |
| $500K Dwelling / $250K Personal Property / $300K Liability | $490 | $5,874 |
| $750K Dwelling / $375K Personal Property / $500K Liability | $693 | $8,317 |
| $1MM Dwelling / $500K Personal Property / $1MM Liability | $894 | $10,733 |
Dwelling coverage protects the biggest investment most people ever make: their home, including attached structures like garages. It does not cover detached structures, personal belongings or liability since those require separate coverage components.
Too little coverage saves money up front 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. You want to insure your home for its full rebuild cost so you’re financially protected without overpaying.
Though a higher deductible reduces your monthly premium, only select an amount you can comfortably afford to pay out of pocket. When a major loss occurs, you'll need to pay your full deductible upfront before your insurance coverage kicks in to handle the remaining repair costs.
Your credit score affects your home insurance premium in most states. Insurers view higher credit scores as a sign of reliability and lower risk, which translates to lower rates. Homeowners with excellent credit may pay around $5,000 less per year than those with poor credit. But some states (including California, Hawaii, Michigan and Massachusetts) don't allow insurers to factor credit scores into your rate. Check your state's specific regulations as insurance laws vary by location.
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.
| Excellent | $200 | $2,404 |
| Good | $296 | $3,548 |
| Fair | $305 | $3,654 |
| Below Fair | $389 | $4,673 |
| Poor | $559 | $6,711 |
Your home's age affects your insurance premium. A house built in 2020 with $250,000 in dwelling coverage averages $2,424 per year, while the same policy for a home built in 2000 costs about $3,548.
Older homes often have outdated electrical, plumbing or roofing systems, increasing the risk of damage and potential claims. Newer homes are built to modern safety codes and have safer, more efficient systems. That lowers the likelihood of costly claims, resulting in lower premiums for newly built homes.
The table shows how rates change depending on when your home was built and your desired dwelling coverage:
| Older | $344 | $4,126 |
| Middle Age | $296 | $3,548 |
| Newer | $202 | $2,424 |
These guides help you understand what you'll pay and which insurers offer the best coverage for homes at different price points:
What drives home insurance costs can help you make smarter coverage choices. The key factors that affect premiums and which states tend to be 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'll file expensive claims. Knowing what drives your rate helps you find better deals and avoid overpaying.
The cost to rebuild your home is one of the biggest factors in your premium. Higher dwelling coverage means more financial protection and a higher rate.
Your belongings are typically insured for 70% to 75% of your dwelling limit, but you can increase it. Higher limits mean more coverage for furniture, electronics and other valuables, but also a higher premium.
Replacement cost coverage (RCV) pays to replace items at full value, while actual cash value (ACV) deducts for depreciation. RCV costs more but offers better financial protection.
A higher deductible amount lowers your premium but increases what you'll owe out of pocket if you file a claim. Choose a level you can afford in an emergency.
Older homes have higher premiums because older electrical, plumbing and heating systems break down more often. Upgrades to roofing, plumbing and electrical can help lower costs.
Where you live affects risk. Areas prone to severe weather or with higher crime rates face higher premiums.
Metal and tile roofs often earn you discounts because they last longer and resist storm damage. Older or damaged roofs raise insurance costs.
In most states, insurers use your credit score to help set your rate. Higher scores mean lower premiums, but credit can't be used in California, Massachusetts, Michigan or Maryland.
Filing frequent or small claims can raise your premium. Claims stay on your record for three to five years and follow you between insurers.
Less common factors like having a pool, aggressive dog breeds, security systems or distance from a fire station can also affect your rate.
Most insurance companies look at similar factors when setting your premium. However, each provider weighs these factors differently. One insurer may emphasize your home's age, while another focuses more on your claims history.
Two companies can give very different quotes for the same homeowner profile. Comparing rates across multiple insurers is the best way to find affordable coverage that meets your needs.
Some states consistently offer lower home insurance rates due to fewer natural disasters, lower crime and favorable construction costs. Hawaii tops the list of the 5 most affordable states for homeowners insurance based on $250,000 in dwelling coverage.
| Hawaii | $601 | $-2,867 |
| Delaware | $949 | $-2,518 |
| Vermont | $1,054 | $-2,413 |
| Oregon | $1,124 | $-2,343 |
| New Hampshire | $1,151 | $-2,316 |
Homeowners in some states face much higher insurance costs due to frequent natural disasters, higher crime rates and elevated rebuilding expenses. Florida faces the highest home insurance costs in the nation for policies with $250,000 in dwelling coverage due to its exposure to hurricanes, frequent severe weather events and elevated risk of flooding.
What you pay for home insurance varies based on personalized factors about you and your home, as well as the coverage type you want. Use the home insurance cost calculator below to estimate your annual premium based on factors like location, dwelling coverage and deductible. It's a quick way to see how your choices impact what you pay.
MoneyGeek’s home insurance calculator will give you a ballpark estimate of your cost — It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Jan 15, 2026
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
Home insurance costs depend on dozens of factors, from your home's age and location to your personal claims history. We answer common questions about what drives these costs.
Homeowners insurance costs an average of $3,548 nationwide for a policy with $250,000 in dwelling coverage. Your yearly premium varies based on where you live, your home's characteristics and the coverage limits you select. States with frequent natural disasters or high crime rates see premiums well above the national average.
A good monthly payment for homeowners insurance depends on your coverage needs and location, but the national average of $296 per month provides a helpful benchmark. Monthly premiums range from around $90 with some insurers to over $570 with others for similar coverage. Your personalized rate considers your location, claim history, desired coverage level and more.
A good monthly payment for homeowners insurance depends on your coverage needs and location, but the national average of $296 per month provides a helpful benchmark. Monthly premiums range from around $90 with some insurers to over $570 with others for similar coverage. Your personalized rate considers your location, claim history, desired coverage level and more.
To get an idea of what you can expect to pay, use MoneyGeek's estimator tool or request personalized quotes from insurance companies.
Home insurance premiums depend on location, home features and personal factors. Areas prone to hurricanes, wildfires or high crime face higher costs. Your home's age, construction materials, roof condition and square footage matter too.
Your claims history, credit score and chosen coverage limits and deductible influence rates. Details like having a security system or being close to a fire station can affect your premium.
Comparing home insurance quotes may feel overwhelming when prices for identical coverage can differ by thousands of dollars. We built this analysis to show what homeowners actually pay and why rates vary so much, giving you the context to know if you're getting a competitive deal.
Our Research Approach
We partnered with Quadrant Information Services to gather premium data from major national and regional insurers across all 50 states. This gave us industry-wide rate information to compare what insurers charge for the same home profile in different locations.
Most homeowners get quotes from just two or three companies. Our broader analysis reveals whether you're seeing competitive rates or missing better options in your area.
The homeowner we profiled:
This represents the typical American homeowner most insurers consider low-risk. Your rates will differ if you're younger, have lower credit scores or filed recent claims, but this baseline shows what standard pricing looks like.
The home we insured:
Standard coverage package:
Your actual premium depends on your home's age, construction quality, claims history and exact coverage limits, but our analysis reveals whether you're getting a good rate or paying more than necessary.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.
