As Insurify’s home and pet insurance editor, Danny also specializes in auto insurance. His goal is to help consumers navigate the complex world of insurance buying.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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Home insurance is one of the best tools for homeowners to protect their most important assets: their homes. This coverage provides financial protection from damages like fire, storms, theft, and various other perils. State laws don’t require it, but your mortgage lender likely will.
The average cost of home insurance has been rising in recent years. The average annual cost rose from $1,984 in 2021 to $2,377 in 2023. Prices will likely continue increasing, with a projected annual cost of $2,522 by the end of 2024.[1]
Here’s what you need to know about home insurance before buying a policy.
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Key statistics and facts in home insurance
Knowing some of the most important statistics and facts about home insurance can help guide you toward the best possible policy for you. Learn more about home insurance by taking a look at the following key facts:
The average premium in the United States for a $300,000 dwelling policy is $2,377 per year, according to Insurify data.
Vermont is the cheapest state for home insurance, with an average annual premium of $918 for a $300,000 dwelling policy.
Florida is the most expensive state for home insurance, with an average annual premium of $10,996 for a $300,000 dwelling policy.
The most commonly claimed peril is wind and hail damage, which accounted for 40.7% of home insurance claims submitted in the U.S. in 2022, according to the Insurance Information Institute (Triple-I).
The average claim payout across property damage and liability claims between 2018 and 2022 was $15,749, according to Triple-I.[2]
Westfield offers the cheapest homeowners insurance on average nationwide, with a $1,080 annual premium for a $300,000 dwelling policy.
Most expensive states for homeowners insurance
Numerous factors affect the price of home insurance, but your location is the most influential. States like Florida and Louisiana often experience excessive damage from hurricanes and flooding, so they typically have the most expensive home insurance rates. People in states that see frequent severe weather pay more than people in states with little storm risk.
Below, you can see average yearly premiums for the top 10 most expensive states for home insurance.
People in states that don’t commonly have much severe weather typically pay the cheapest home insurance rates. Vermont is the cheapest, as it hardly sees any major natural disasters, so home insurers can comfortably provide cheap rates. States that see consistent flooding and severe winds are almost always going to have higher rates for home insurance.
Compare average annual premiums for the 10 least expensive states for home insurance below.
The average annual home insurance premium in the U.S. is $2,377 for a $300,000 dwelling policy. The state you live in heavily influences your insurance costs, but so will the insurance company you choose. Many companies offer a wide variety of home insurance discounts, such as loyalty, claim-free, new home, smart home, and bundling discounts. These can help you save on your annual insurance premiums.
Below, you can compare average yearly premiums for a policy with $300,000 in dwelling coverage from the cheapest home insurance companies.
Insurance Company
▲▼
Average Yearly Premium ($300K in Coverage)
▲▼
Westfield
$1,080
Grange
$1,220
Hastings Mutual
$1,364
Erie
$1,388
Unitrin
$1,424
Amica Mutual
$1,585
AIG
$1,591
American Family
$1,657
American National
$1,663
Armed Forces Insurance Exchange
$1,733
Homeowners insurance perils
Some of the most common home insurance perils include fire, lightning, wind, hail, water damage, freezing, theft, and liability risks.[3] But home insurance doesn’t cover all perils. For example, standard home insurance doesn’t cover earthquake or flood damage. If you want coverage for earthquakes or floods, you’ll need separate earthquake and flood insurance policies.
The most expensive perils to claim are fire and lightning, which cost an average of $83,991 per claim, according to Triple-I. The most common perils homeowners claim are wind and hail, making up 40.7% of all home insurance claims in 2022.[2]
Homeowners insurance claims
The most common home insurance claims involve the following perils: wind and hail, water damage and freezing, and fire and lightning. These three damages made up 90.2% of all claims submitted in 2022.
The average cost of a claim payout between 2018 and 2022 was $15,749, according to Triple-I.[2] Submitting claims can affect the price of your home insurance policy, as insurers will potentially see your home as a higher risk than before.
Here are the perils homeowners filed claims for in 2022, according to Triple-I.
2024 trends in the home insurance industry
Home insurance prices have been increasing across the country for the last few years due to a number of factors, including inflation and climate concerns. The average annual cost of home insurance in the U.S. increased from $1,984 in 2021 to $2,377 in 2023 and will likely increase to $2,522 by the end of 2024, according to Insurify data.[1]
States in areas that see a lot of extreme weather have seen the most intense increases. Florida, Oklahoma, and Louisiana are among the hardest-hit states when it comes to home insurance costs, as they face a lot of coastal flooding and tornadoes.
Homeowners insurance policies
The most common homeowners insurance policy is the HO-3 policy, also known as the special form policy. This policy covers damage from fire, extreme weather, theft, falling trees, and personal liability, among other things. An HO-1 policy, also known as the basic form policy, is less robust. It covers fire but doesn’t include damage from fallen trees.
Companies sell various other types of home insurance policies, including specific ones for condos and mobile homes. The right policy for you depends on your location, financial situation, and coverage needs. If you have concerns about potential severe damages, an HO-5, also known as a comprehensive form policy, might be right for you.
Common coverage limits are between $250,000 and $500,000, and typical deductibles are between $500 and $2,500. Although home insurance is a great tool for property owners, states don’t require it, so many homeowners are uninsured or underinsured.[3] Of homeowners in the U.S., 88% have insurance and 12% don’t have coverage for their homes.[4]
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Homeowners insurance coverage
Standard home insurance policies typically include the following coverages:
Your dwelling
Policies cover damage to your dwelling from covered perils, such as fire, windstorms, and vandalism.
Other structures
Many policies protect other structures, like fences and garages.
Personal property
Home insurance also covers damage to your personal belongings, like furniture and electronics.
Liability
Home insurance pays for legal expenses if someone incurs an injury at your home.
Additional living expenses
Homeowners insurance also pays for temporary living costs if your home becomes unlivable due to a covered peril.
Largest home insurance companies by market share
Market share refers to an insurance company’s percentage of the total market. For example, State Farm has the highest market share for homeowners insurance, capturing 17.71% of the total home insurance market in the U.S. Allstate and Liberty Mutual rank second and third, with 8.88% and 6.86% of the total market, respectively.
Here are the 10 largest U.S. home insurance companies by market share, according to data from the National Association of Insurance Commissioners (NAIC).
Insurance Company
▲▼
Market Share
▲▼
State Farm
17.71%
Allstate
8.88%
Liberty Mutual
6.86%
USAA
6.78%
Farmers
5.88%
Travelers
4.96%
American Family
4.59%
Nationwide
2.67%
Chubb
2.55%
Citizens Property Insurance Corporation
2.10%
Homeowners insurance facts FAQs
The following information can help answer your remaining questions about how homeowners insurance works.
What is the most important thing in homeowners insurance?
The most important aspect of homeowners insurance is having adequate coverage. Not purchasing enough home insurance can be extremely costly because home repairs can get expensive quickly. Talk to your insurance agent about how much home insurance coverage you actually need.
What is one of the main benefits of homeowners insurance?
The main benefit of homeowners insurance is that it provides you with peace of mind and significant financial protection against unexpected disasters that could cause significant damage to your home and your wallet.
What are the three main types of homeowners insurance?
Most standard home insurance covers your dwelling, other structures, personal property, liability, and additional living expenses. The three main types of homeowners insurance are HO-2 (Broad Form), HO-3 (Special Form), and HO-5 (Comprehensive Form). Each policy covers increasingly more perils for homes.
What is the most expensive state for homeowners insurance?
Florida is the most expensive state for homeowners insurance, with an average annual premium of $10,996 for a policy with $300,000 in dwelling coverage. It’s the most expensive state because it’s prone to damage from hurricanes, flooding, and wind. If you live in Florida, you may also want to consider buying a separate policy for flood insurance from the National Flood Insurance Program (NFIP) or a private insurer.
Danny is a Brooklyn-based writer with a producer’s license for property and casualty insurance. A former editor at Insurify, he specializes in auto, home, and pet insurance. He works to translate his insurance expertise into digestible, easy-to-understand content for drivers, homeowners, and pet owners alike.
Danny has been a contributor at Insurify since March 2022.
3+ years experience in insurance and personal finance editing
Katie uses her knowledge and expertise as a licensed property and casualty agent in Massachusetts to help readers understand the complexities of insurance shopping.
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