- The average homeowners insurance premium in the United States is $1,428 a year.
- Your home's value, location, and coverage amount all impact your price.
- Many important coverage riders are just a few dollars per month to add on
Unlike with physical objects like a refrigerator or a car, it can be difficult to pinpoint the cost of homeowners insurance. Apart from asking all your friends, family, and neighbors what they pay in premiums, it's hard to know if the quote you've received is outrageous or a steal.
Fortunately, there's a lot of data available to help you set realistic expectations for your homeowners insurance cost. This article will examine how much the average homeowner is paying in homeowners insurance premiums, the factors that affect your specific policy, and how you can save.
The average cost of homeowners insurance
The average annual premium in the United States in 2019 was $1,272, according to the most recent data from the Insurance Information Institute.
But, each home's costs for insurance vary widely based on various factors, including your home's value.
Here's how much homeowners insurance costs for a standard all-perils homeowners insurance policy for a single-family residence on average by home value in the United States, according to the most recent release of the Homeowners Insurance Report by the National Association of Insurance Commissioners (NAIC):
| Estimated Home Value | Average annual premiums for an HO3 Policy |
| $49,999 and under | N/A |
| $50,000 to $74,999 | $737 |
| $75,000 to $99,999 | $831 |
| $100,000 to $124,999 | $890 |
| $125,000 to $149,999 | $944 |
| $150,000 to $174,999 | $990 |
| $175,000 to $199,999 | $1,031 |
| $200,000 to $299,999 | $1,132 |
| $300,000 to $399,999 | $1,290 |
| $400,000 to $499,999 | $1,502 |
| $500,000 and above | $2,181 |
*The above table uses data from the NAIC Homeowners Report. Prices may vary for condos, townhouses, and other non-single-family residences.
The average cost of homeowners insurance by state
Where you live will also impact your cost of homeowners insurance. If you live in an area with high real estate values, this also means that it would cost more to replace your home if it were destroyed. So the NAIC says that average premiums tend to be higher in densely populated areas.
Second, your potential exposure to catastrophe plays a significant role in what you pay for homeowner's insurance. If you live in an area prone to floods, earthquakes, or tornadoes, you can expect to pay more than someone living in an area with less risk of experiencing a natural disaster.
Here's the average annual homeowners insurance premium by state, according to 2019 data from the Insurance Information Institute.
| State | Average Annual Premium |
| Alabama | $1,463 |
| Alaska | $962 |
| Arizona | $850 |
| Arkansas | $1,456 |
| California | $1,177 |
| Colorado | $1,618 |
| Connecticut | $1,153 |
| Delaware | $908 |
| District of Columbia | $1,275 |
| Florida | $1,988 |
| Georgia | $1,362 |
| Hawaii | $1,182 |
| Idaho | $799 |
| Illinois | $1,054 |
| Indiana | $983 |
| Iowa | $913 |
| Kansas | $1,519 |
| Kentucky | $1,172 |
| Louisiana | $2,037 |
| Maine | $936 |
| Maryland | $1,212 |
| Massachusetts | $1,617 |
| Michigan | $999 |
| Minnesota | $1,433 |
| Mississippi | $1,622 |
| Missouri | $1,299 |
| Montana | $1,287 |
| Nebraska | $1,564 |
| Nevada | $791 |
| New Hampshire | $1,021 |
| New Jersey | $1,237 |
| New Mexico | $1,126 |
| New York | $1,357 |
| North Carolina | $1,193 |
| North Dakota | $1,236 |
| Ohio | $853 |
| Oklahoma | $2,000 |
| Oregon | $727 |
| Pennsylvania | $955 |
| Rhode Island | $1,731 |
| South Carolina | $1,303 |
| South Dakota | $1,218 |
| Tennessee | $1,259 |
| Texas | $1,982 |
| Utah | $743 |
| Vermont | $947 |
| Virginia | $1,080 |
| Washington | $908 |
| West Virginia | $968 |
| Wisconsin | $750 |
| Wyoming | $1,244 |
*The above table uses data from the Insurance Information Institute
Most expensive states for homeowners insurance
Here are the states where annual homeowners insurance premiums are least affordable, on average, according to Insurance Information Institute.
| State | Average Annual Premium |
| Louisiana | $2,037 |
| Oklahoma | $2,000 |
| Florida | $1,988 |
| Texas | $1,982 |
| Rhode Island | $1,731 |
| Mississippi | $1,622 |
| Colorado | $1,618 |
| Massachusetts | $1,617 |
| Nebraska | $1,564 |
| Connecticut | $1,531 |
*The above table uses data from the Insurance Information Institute
Cheapest states for homeowners insurance
Here are the states where annual homeowners insurance premiums are most affordable, on average, according to the Insurance Information Institute.
| State | Average Annual Premium |
| Oregon | $727 |
| Utah | $743 |
| Wisconsin | $750 |
| Nevada | $791 |
| Idaho | $799 |
| Arizona | $850 |
| Ohio | $853 |
| Delaware | $908 |
| Washington | $908 |
| Iowa | $913 |
*The above table uses data from the Insurance Information Institute
The average homeowners insurance cost by company
Costs may vary by state and even city, and most homeowners insurance companies are regional. So the cheapest homeowners insurance company in California probably isn't the cheapest option in Vermont or Maine. This said, based on nationwide averages, the cheapest homeowners insurance companies are:
- Erie Homeowners Insurance: $979 annually
- USAA Homeowners Insurance: $969 annually (only available to active-duty military members, veterans, and immediate family members)
- Auto-owners homeowners insurance: $1,094 annually
- Nationwide Homeowners Insurance: $1,075 annually
- Travelers Homeowners Insurance: $1,249 annually
Don't forget to calculate all your homeowners insurance costs
Homeowners insurance averages on sites like III and NAIC measure standard all perils or named perils policies meant to cover your home's basic needs depending on property type (i.e. HO3, HO6, etc). Listed insurance perils in these policies are either the ones the policy will cover (to the exclusion of all others) or the ones excluded (the policy will cover any peril not excluded). So some states like Hawai'i may come in surprisingly low given the average cost of properties and other factors. However, if you're buying a home (and subsequently homeowners insurance) in any area, make sure you account for all required insurance types for your home.
For example, while Florida's homeowners insurance rates may already seem extremely high, the III and NAIC's numbers are for a basic homeowners policy. So you must add hurricane and flood coverage for certain flood zones to your monthly costs. Similarly, properties in Hawai'i require separate hurricane policies and flood policies in some flood zones to get a mortgage. Unfortunately, specialty coverages (earthquake, hurricane, etc.) may cost much more than your basic homeowners policy depending on where you live, the type of home, etc. All mortgage-required insurance combined may product significantly different numbers for some states.
The Average cost of homeowners insurance – frequently asked questions (FAQs)
Homeowners insurance covers your dwelling, personal property, home related liability, and additional living expenses if your home becomes inhabitable due to a covered event. While homeowners insurance is not required by law, your mortgage lender may require you to have it.
Your home's value and location are two of the most significant variables that affect homeowners insurance prices. However, a few other factors can drive your premiums up or down. Of note, your purchase price does not determine your home's insurance requirements. Instead, insurance companies run calculations based on square footage, types of interior upgrades, and other factors that determine the replacement cost should you suffer a total loss. The difference between your purchase price and replacement cost (insurance value) may vary more widely for beachfront properties and other high-value land areas. Your mortgage lender will require a replacement cost estimate or use the estimate from your appraisal.
Other variables that affect your homeowners insurance:
- The deductible you choose: Generally, premiums go down as deductibles increase.
- Age of your home: Older homes often require more work to rebuild to modern safety standards, so they can cost more to insure than newer homes.
- Condition of your roof: If your roof is relatively new and in good condition, you'll typically pay less than a homeowner with a roof that's old or built with lower-quality materials
- Past claims: You can expect to pay more if you've made several claims in the past or live in an area with a high claims rate.
Add features to make your home safer: If you're looking for ways to reduce your homeowners insurance premiums, think about ways you could improve the safety of your home. Adding any of the following safety features to your home could qualify you for a homeowners insurance discount:
- Smoke detectors
- Deadbolt locks
- Fire extinguishers
- Storm shutters
- Security system
- Sprinkler system
- New or reinforced roof
Bundle your insurance policies: You may also save on homeowners insurance by bundling your home and auto insurance policies together.
Raise your deductible: Finally, raising your deductible could reduce your premiums. But make sure that you don't set a premium that's higher than you'd be able to pay without going into debt. Know that if you have a mortgage on your home, your lender may require that your deductible stays below a certain limit.
Shop around: The last variable that can impact your home insurance price is the company you choose. Premiums can vary widely by insurance company. So one of the best ways to save on homeowners insurance could be to shop around before choosing an insurance provider.
Get at least three to five quotes before choosing a home insurer. Or, to save time, you could use an online homeowners insurance shopping tool like Policygenius to compare dozens of insurance companies at once.
