Average Cost of Home Insurance

Home insurance costs an average of $3,548 per year in 2025, about $296 per month to protect what's likely your biggest investment. This average reflects a standard policy with $250,000 in dwelling coverage, $125,000 in personal property coverage and $200,000 in liability protection.

Your actual home insurance rate depends on where you live, which insurer you choose, how much coverage you need and factors like your home's age and your claims history. See how average costs vary by home type and homeowner situation to understand where your rate might fall.

*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.

Insurers use your state to assess risk, which directly impacts what you pay for home insurance coverage. They factor in regional hazards like hurricanes, tornadoes, wildfires and hail damage, as well as local crime rates, building costs and how often residents file claims. States with frequent natural disasters or high construction costs consistently rank as the most expensive places to insure a home, with some locations' average premiums costing up to 10 times more than others.

Home insurance premiums differ dramatically between cities, even within the same state. Insurance companies adjust rates based on local risk factors like severe weather patterns, crime statistics and population density.

Homeowners in hurricane-prone coastal areas generally pay much higher premiums than those in cities with milder weather and lower disaster risk. Urban areas with higher crime rates tend to pay more for home insurance coverage compared to suburban communities.

See how these location-based factors translate into actual premium differences for $250,000 in dwelling coverage across cities.

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:

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 dwelling coverage limit significantly affects your home insurance premium. The average annual cost for a policy with $250,000 in dwelling coverage 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.

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.

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. Deductibles apply per claim, and you must pay this amount before your coverage begins. You can compare how average homeowners insurance costs change based on deductible level below.

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.

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:

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.

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 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 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 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.

Home insurance costs $3,548 annually on average, but what you pay for coverage depends on factors personalized to you and your home. Even though insurers use the same types of factors to determine costs, rates vary by thousands of dollars between insurers for identical coverage.

The cheapest quote isn't always your best option. Factor in customer service quality and how smoothly companies handle claims, since these matter when you need to use your policy. Comparing multiple quotes helps you get the financial protection you need without overpaying.

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.

Shopping for home insurance means wading through quotes that vary by thousands of dollars for the same coverage. We designed our methodology to cut through that confusion by showing you what typical homeowners actually pay and which factors drive those differences.

We gathered premium data from major national and regional insurers across all 50 states, partnering with Quadrant Information Services to access industry-wide rate information. This approach reveals how location, coverage levels and home characteristics affect what you'll pay.

Our standardized profile represents typical American homeowners: ages 41 to 60 with good credit scores (769-792 range), no recent claims history and a financially stable risk profile. The property profile uses a home built in 2000 with wood-frame construction, composite shingle roof and standard safety features insured for $250,000 in replacement value.

Base coverage standards include:

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

For premium home analysis, we increased coverage to $1,000,000 dwelling coverage, $500,000 personal property coverage and $1,000,000 liability coverage to show how protection levels affect premiums.

We collected rate data across diverse U.S. locations to capture regional variations in pricing. Our analysis accounts for state-specific regulations, natural disaster risks, crime rates and local building costs that influence premium calculations. This methodology helps you understand whether you're paying a competitive rate for your specific situation and coverage needs.