Home insurance costs about $369 monthly or $4,422 annually on average. Residents pay $149 more per month, or $1,787 more annually, than the national average, making it the 7th most expensive state for home insurance.
Average Home Insurance Cost in Montana
Updated: June 1, 2025
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Rates updated:
Jun 06, 2025
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Key Takeaways
Depending on your financial history, home details and other personal information, home insurance costs in Montana can range from $2,849 to $29,540.
Montana's home insurance premiums are the 5th most expensive in the country, at 68% over the national average.
To find the best home insurance in Montana, determine your coverage needs; research costs, providers and search for multiple quotes.
How Much Is Home Insurance in Montana?
| Montana Average | $369 | $4,422 | 68% |
| National Average | $220 | $2,635 | 0% |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Average Home Insurance Cost by City
Home insurance costs vary depending on your city. Property age, weather-related factors and home valuations can drastically affect home insurance costs.
| Billings | $444 | $5,330 |
*These rates represent a home built in 2000 out of frame with $250K Dwelling, $125K Personal Property, and $200K Liability coverage with a $1,000 deductible.
Why Is Home Insurance so Expensive in Montana?
Home insurance is expensive in Montana mainly because of the increasing number of claims, the high risk of severe weather and natural disasters, rising material and labor costs and state insurance laws. Below, we explain each factor in detail:
Rising Claims
Higher claim frequencies indicate increased risk, leading insurers to raise premiums to cover potential payouts. More claims often result from localized trends or an uptick in incidents, such as burglaries or water damage.
High Weather Risks
Areas prone to severe weather, like hurricanes or wildfires, face greater risks of property damage. Insurers adjust home insurance costs accordingly to mitigate potential losses from these natural disasters.
Rising Material and Labor Costs
As the price of building materials and labor increases, so does the cost to repair or rebuild homes. Insurance companies must account for these higher expenses in their premiums to ensure adequate coverage.
State Insurance Laws
State-specific regulations can impact insurance costs. Mandates on coverage requirements or how insurers can set rates may lead to higher premiums to comply with local legislation.
What Affects Montana Home Insurance Costs?
For most home insurance companies, pricing is usually influenced by several key factors:
- Location
- Coverage chosen
- Home build details
- Provider chosen
- Credit
- Claims history
Next, we'll explore how these elements specifically impact insurance rates.
How Much Does Location Affect Home Insurance Costs?
Location is the biggest factor affecting home insurance rates in Montana, with rates varying by up to 40%. Weather risks, home value and population density in your area play a major role in determining costs.
| Lowest | Montana Very Small Tier Aggregate | $233 | $2,795 |
| Highest | Montana State Remnant Tier Aggregate | $517 | $6,209 |
How Much Does Coverage Affect Home Insurance Costs?
Coverage choices are the second most influential factor in Montana home insurance rates, averaging from $2,091 to $11,172 per year. Higher coverage limits and lower deductibles increase premiums, while lower limits and higher deductibles reduce costs.
| Lowest | $100K Dwelling / $50K Personal Property / $100K Liability | 2000 | $174 | $2,091 |
| Highest | $1MM Dwelling / $500K Personal Property / $1MM Liability | 500 | $931 | $11,172 |
How Much Do Home Details Affect Home Insurance Costs?
Depending on home details like age, construction materials and roof type, homeowners insurance rates in Montana can range from $143 to $386 per month. These factors will affect replacement costs and the risk of damage or theft, making it the third most influential factor for insurance rates.
| Lowest | New | Superior | Tile | $143 | $1,710 |
| Highest | Old | Frame | Shake-Treated | $386 | $4,637 |
How Much Does the Provider You Choose Affect Home Insurance Costs?
Your choice of insurer is the fourth most influential factor in Montana home insurance rates, with prices ranging from 76% below to 311% above the state average.
| Lowest | Chubb | $85 | $1,017 |
| Highest | Travelers | $1,427 | $17,129 |
How Much Does Credit Affect Home Insurance Costs?
A higher credit score makes you appear more reliable, which can lower your home insurance costs. Premiums vary by up to 82%, with annual average rates ranging from $2,039 to $12,044.
| Lowest | Excellent | $170 | $2,039 |
| Highest | Poor | $1,004 | $12,044 |
How Much Does Claims History Affect Home Insurance Costs?
Filing more claims will increase your perceived risk for insurers, which can increase premiums, although in the Treasure State, claims history has a smaller impact on cost than other factors. We found that depending on your claims history, rates can be affected by up to 11% or $528 annually.
| Lowest | Claim free for 5+ years | $347 | $4,166 |
| Highest | 2 claims in past 5 years | $424 | $5,086 |
Tips to Save on Montana Home Insurance
With rising home insurance costs in the Treasure State, finding ways to save on premiums is crucial. Here are some tips to help you secure the best and cheapest home insurance in Montana tailored to your needs.
- 1
Find How Much Coverage You Need Beforehand
Determining how much home insurance you need before buying allows you to frame how you search for coverage and avoid being oversold by agents. In addition to standard coverage options, consider if you need add-ons to protect any additional items you own. Learn more about determining how much home insurance you need and standard coverage options.
- 2
Research Costs and Discounts Beforehand
To determine if you’re getting a good deal, understand the average costs for you and your home. Also, ask agents about all available home insurance discounts, as some insurers apply certain reductions only if requested. Understand the average costs for you.
- 3
Compare Multiple Providers Through Different Avenues
To find the best coverage, use online comparison sites, brokers, provider websites, and agents.
- 4
Consider Bundling Policies
Bundling policies can lead to significant savings. For example, combining home and auto insurance in your state can save up to xx% on home insurance and $xx annually on both policies. Consider combining home and auto insurance in your state.
- 5
Reduce Your Personal Risk Profile
To get cheaper premiums on your home, consider making improvements like adding storm shutters or home security systems. Also, improving your credit score can decrease premiums drastically. For example, moving from a fair to a good credit score can save you 28% on average.
- 6
See if You Are Eligible for State Programs
Check if your state offers programs to help get affordable coverage if you're denied traditional home insurance. For example, in Montana, the TFPA policy insures you if traditional insurers deny you coverage. While TFPA plans don’t offer the same coverage amount as traditional policies, they meet mortgage requirements.
Montana Home Insurance Calculator: Bottom Line
Home insurance costs vary, mainly by location and coverage level. For affordable rates, research and compare. Then, try our estimate tool for the best deal.
Homeowners Calculator Insurance Montana: FAQ
To help estimate your expenses, MoneyGeek answers common questions you may have about home insurance in this state.
How much does homeowners insurance cost in Montana?
Montana's average monthly home insurance cost is $369 for a dwelling coverage of $250K. However, your rate will depend on factors like your credit score, liability and property coverage limits, and deductible.
How do I know how much dwelling coverage to get?
Homeowners can estimate their required dwelling coverage by calculating the cost to replace their home after damage, often with help from an appraiser. While this study uses a baseline coverage of $250K, you can use the MoneyGeek homeowners insurance calculator to find the best coverage limit for your needs.
What factors affect home insurance costs the most?
The biggest factors affecting home insurance costs are your location, chosen coverage level and provider. Your credit score and home details also play a crucial role.
How We Determined Our Montana Home Insurance Estimates
When determining the average cost of home insurance in Montana, we used a base profile for a simple estimate consistent with the following:
- $250,000 dwelling coverage
- $125,000 personal property coverage
- $200,000 liability coverage
- Home Built Year: 2000
- Construction type: Frame
- Roof type: Composition
- $1,000 deductible
- No claims in the past 5+ years
- Fire protection level of 3
However, rates will vary widely depending on factors such as coverage level, provider chosen, the age of the home, other features of the home, insured credit and claims history, among other factors. All other combinations presented in this article assume the home was built in 2000.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.