How Much Is Home Insurance in 2024?

The average home insurance rate is currently $198 per month for $300,000 in dwelling coverage, according to Insurify data. Your home’s age, condition, and location affect insurance rates significantly. The coverage and deductible you choose will also influence what you pay month to month and out of pocket if you file a claim.

You might also need disaster coverage, like earthquake or wildfire insurance, if your home is in a vulnerable region. For example, if you live in a high-risk flood zone and have a federally backed mortgage, your lender will require you to purchase flood insurance.^[1] Even if you have a conventional mortgage, your lender will likely have specific requirements for insuring your home.

Learn about the average home insurance premiums for different groups and the factors that affect rates.

How much homeowners insurance costs in your state

Homeowners insurance rates can vary widely by state and even by ZIP code. Severe weather risk and high property crime rates will raise regional premiums, but the local insurance market and state legislation can also affect rates.

This table includes the average annual home insurance premium for each state for $300,000 in dwelling coverage, according to Insurify data.

Cheapest and most expensive states for home insurance

Vermont has the cheapest average home insurance premiums in the U.S. It has some of the lowest property crime rates and fewer natural disasters.^[2] It’s not immune, though: Vermont has faced many significant flooding events, including three in the last year.

Florida has higher property crime rates and more destructive severe storms, given its long coastline and storm exposure. The Sunshine State faces an insurance market crisis, with factors that include excessive litigation and fraud schemes that contributed to major insurer losses, according to the Insurance Information Institute (Triple-I).

These are the five cheapest and most expensive states for home insurance for $300,000 in dwelling coverage, according to Insurify data.

Why homeowners insurance rates are rising

Inflation and climate catastrophes contribute to rising homeowners insurance rates, according to Insurify’s home insurance report. Florida, Louisiana, and Oklahoma have the highest average home insurance rates in the U.S. and face increasingly frequent and severe weather. The 10 most expensive states are all prone to severe weather events, including hurricanes, tornadoes, and wildfires.

Insurance companies set rates based on risk, so if you’re in a vulnerable area, your premiums will be higher to reflect the increased likelihood you’ll file a claim. The rising cost of labor and repairs contributes to higher premiums because it’s become more expensive to fix the damage from accidents and weather events.

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How much homeowners insurance costs by city

Home insurance varies widely by location and can be different even for cities within the same state. Weather risk, crime rates, and regional labor and repair costs can all affect your premium.^{[3] [4]} The overall age of the city’s construction can also be a factor since your home’s age and condition influence your rates.

These are the average annual and monthly home insurance costs for some of the biggest cities in the U.S.

Factors that affect home insurance rates

Factors affecting home insurance rates that your insurer may consider include:

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  Location

  Regional climate risk and crime rates affect your likelihood of filing a claim.

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  Building condition

  A home with old electrical, plumbing, or HVAC systems is more likely to have water or fire damage.

• 

  Credit history

  Most states let insurers review your credit history, which data shows can indicate your likelihood of filing a claim.

• 

  Proximity to fire station

  The closer you are to fire protection services, the sooner they can put out any home fire, limiting damages.^[5]

• 

  Deductible

  Choosing a higher deductible means a lower premium, but you’ll have to pay more out of pocket if you file a claim.

• 

  Discounts

  Installing safety and anti-theft systems, storm-resistant features, or bundling multiple policies can lower your home insurance rates.

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  Coverage amount

  Insuring a $300,000 dwelling will cost less than a $750,000 home.

• 

  Inflation

  Labor and lumber prices influence repair costs, affecting how costly it is to pay a claim and fix damages.

Homeowners insurance costs by company

Insurance costs can even vary by company. Though insurers typically consider the same rating factors, each has its own way of assessing risk factors. Each company also has its unique policy roster to consider and may offer higher or lower rates depending on its risk portfolio.

Homeowners insurance companies compete with each other, which means you could get different products or services if you shop around. Comparing home insurance quotes is one of the best ways to save on premiums.

Cheapest companies for home insurance

These are the 10 insurers with the cheapest average annual home insurance rates for $300,000 and $500,000 of dwelling coverage.

Average cost of homeowners insurance by dwelling coverage amount

Dwelling coverage is the part of an insurance policy that pays to rebuild your home. A lower dwelling coverage amount usually means cheaper rates, while a higher one means more expensive rates. It’s not the same as your home’s market value and depends on square footage, building materials, and how inflation is affecting labor and material costs.

Dwelling coverage is just one part of a home insurance policy, which also typically includes personal property, liability, other structures, loss of use, and other types of coverage.

This table shows the average annual home insurance premium for three different dwelling coverage amounts from the five cheapest home insurers.

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Homeowners insurance costs by credit tier

Insurers typically review credit history to inform home insurance premiums. Insurance companies do a “soft” credit pull that won’t affect your credit score, so applying for multiple policies or switching insurers for a better rate won’t ding your credit score.^[6] 

Insurers typically generate a credit-based insurance score, which can predict your likelihood of filing a claim and its cost, according to credit-reporting agency Experian.

Since credit history is just one of many factors affecting rates, the average rate difference between someone with excellent and poor credit is only about $300 a year, according to Insurify data. These are the national average annual home insurance premiums by credit tier.

How to get cheaper homeowners insurance

Home insurance costs are rising. The good news is that you can take action to keep your insurance costs on the lower side. Consider these strategies as you seek cheaper rates:

• Shop around. Every insurance company offers different premiums. As a homeowner, it’s a good idea to shop around to lock in the best rates.

• Increase your home insurance deductible. A higher deductible typically leads to a lower insurance premium. This could work for you if you can afford to pay more out of pocket when you file a claim.

• Bundle your insurance policies. If you need home insurance, you likely need other types of insurance, like life insurance or auto insurance. Consider bundling your policies through the same insurance company to snag a better rate on each.

• Ask for a discount. Many insurance companies offer discounts. Don’t be afraid to ask if you qualify for a discount on your homeowners insurance policy. You may qualify for something you weren’t aware existed.

• Work on your credit. In many states, insurers can consider your credit history when determining rates. Generally, better credit translates to lower insurance premiums. You can build your credit by paying bills on time and paying off credit cards.

• Limit your insurance coverage. Buying less liability insurance could help you lower your insurance costs. Still, try not to skimp on the dwelling coverage amount; otherwise, you could be in a tough situation if your home is destroyed and you need to file a claim.

What home insurance covers

The level of home insurance coverage you need varies based on your unique situation. For example, an older, more expensive home may be more likely to have structures and systems that break down and need repair. 

This table outlines some home insurance coverage options and potential coverage amounts.

What homeowners insurance doesn’t cover

Home insurance has some notable exclusions, so depending on your home’s age, condition, and location, you may want to consider buying additional coverage. Regardless, reading your policy is extremely important so you know what it includes and in which areas you may need to purchase more coverage.

Cause matters when it comes to what homeowners insurance covers. For example, water damage from a burst pipe is covered if you keep the home properly heated, but damage from a flood isn’t. These are some common home insurance coverage exceptions:

• Floods: You’ll need a separate policy to cover flood damage from severe weather.

• Earth movement: Standard home insurance policies don’t cover damage from landslides, mudslides, sinkholes, volcanic eruptions, and earthquakes.

• Pest damage: If rodents or insects chew on your home, your home insurance won’t cover the damage.

• Routine wear and tear or neglect: Insurers expect you to maintain your home, so homeowners insurance won’t cover damages like worn roofing and rotting boards.

• Expensive valuables: Your policy likely includes some personal property coverage, but if you have pricey items to insure, check your limits to confirm you have enough coverage.

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Other types of home insurance coverage

You can buy certain additional coverages as an add-on through your home insurer, but for some things, you’ll need an entirely separate policy.

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  Flood insurance

  If the Federal Emergency Management Agency designates your area as a special flood hazard zone, your lender will likely require you to get flood insurance either from a private insurer or the National Flood Insurance Program. NFIP flood insurance can cover your home’s structure and contents, but private insurers may offer higher coverage limits or additional coverages you need to fully insure your home.

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  Earthquake insurance

  Earthquake insurance covers damage or costs an earthquake directly causes, such as home repairs, personal property damage, debris removal, and extra living expenses. Your insurer may offer earthquake insurance as a policy add-on, or you may need to purchase coverage through another private or public insurer, like the California Earthquake Authority.

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  Windstorm insurance

  Windstorm insurance covers hail or wind damage from a tornado, thunderstorm, or hurricane. This coverage could be important if you have a coastal home in an area with a high storm risk. Your insurer may include coverage in your standard policy or offer it as an additional coverage option, or your state may have a public plan, like the Texas Windstorm Insurance Association.

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