Julia Taliesin is an insurance content writer at Insurify. She began her career as a journalist, covering local government and business in Somerville, Mass.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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The average home insurance rate is currently $215 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.
Quick Facts
Florida is the most expensive state for home insurance, according to Insurify data. Vermont is the cheapest.
Super-regional insurer Westfield Insurance has the cheapest national average home insurance rates.
Dogs, trampolines, and pools can increase your home insurance rates.
Average cost of home insurance by 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.
For example, Florida’s exposure to multiple types of severe and damaging weather contributes to its high home insurance costs. Between 1980 and 2024, the state suffered 94 $1 billion-plus weather disasters, according to the National Centers for Environmental Information.
By contrast, Vermont — the cheapest U.S. state for home insurance — experienced 19 $1 billion-plus weather disasters during the same time period.
Here are the average annual home insurance premiums for each state for $300,000 in dwelling coverage, according to Insurify data.
Average Annual Cost by State
Cheapest 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.
Here are the five cheapest states for a $300,000 homeowners insurance policy, along with their average annual premiums:
Vermont: $954
Hawaii: $1,164
Alaska: $1,197
New Hampshire: $1,226
Delaware: $1,254
Fewer costly weather events and comparatively lower crime rates contribute to a state’s lower cost of home insurance.
Most expensive states for home insurance
The five most expensive states for homeowners insurance all have average costs that are well above the national average. They also share a high risk of damage from severe weather, like hurricanes and tornadoes, or from wildfire.
Here are the states with the highest annual costs for a home insurance policy with $300,000 in dwelling coverage:
Florida: $10,675
Louisiana: $8,372
Oklahoma: $6,081
Texas: $4,789
Colorado: $4,779
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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Average cost of home insurance in major U.S. cities
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] 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. These averages are for a policy with $300,000 in dwelling coverage and a $1,000 deductible.
City
▲▼
Average Annual Cost
▲▼
Average Monthly Cost
▲▼
Albuquerque, New Mexico
$2,375
$198
Anchorage, Alaska
$1,163
$97
Atlanta
$3,196
$266
Baltimore
$2,271
$189
Brooklyn, New York
$2,581
$215
Charlotte, North Carolina
$2,476
$206
Chicago
$2,945
$245
Columbus, Ohio
$1,481
$123
Dallas
$4,978
$415
Denver
$5,223
$435
Detroit
$4,274
$356
Fargo, North Dakota
$2,505
$209
Houston
$5,980
$498
Indianapolis
$2,356
$196
Jackson, Mississippi
$3,060
$255
Kansas City, Kansas
$3,086
$257
Las Vegas
$1,664
$139
Los Angeles
$2,525
$210
Milwaukee
$1,665
$139
Minneapolis
$3,083
$257
Nashville
$2,428
$202
New Orleans
$13,836
$1,153
New York City
$3,088
$257
Omaha, Nebraska
$4,076
$340
Philadelphia
$2,026
$169
Phoenix
$2,709
$226
Salt Lake City
$1,716
$143
Seattle
$1,318
$110
Virginia Beach
$2,542
$212
Washington, D.C.
$1,266
$105
Factors that affect home insurance rates
Factors affecting home insurance rates that your insurer may consider include:
Location
Regional climate risk and crime rates affect your likelihood of filing a claim.
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.
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.
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.
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.
Insurance Company
▲▼
Average Annual Rate: $300K Dwelling Coverage
▲▼
Average Annual Rate: $500K Dwelling Coverage
▲▼
Westfield
$1,189
$1,522
Unitrin
$1,339
$1,823
Grange
$1,358
$2,202
Hastings Mutual Insurance Co
$1,463
$2,300
AIG
$1,587
$2,510
Erie
$1,656
$2,478
American Family
$1,702
$2,383
Cincinnati Insurance
$1,870
$2,809
USAA
$1,954
$2,782
Foremost
$2,052
$3,552
Good to Know
Not all home insurance companies offer coverage in every state. Some, like Westfield and Erie, are regional insurers, meaning they offer coverage in a limited number of states. Others, like Unitrin or American Family, offer homeowners insurance in every state or nearly every state.
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 national average annual home insurance premium for different dwelling coverage amounts.
Dwelling Coverage
▲▼
Average Annual Premium
▲▼
$150,000
$1,562
$250,000
$2,246
$300,000
$2,584
$400,000
$3,280
$500,000
$3,984
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Average cost of condo insurance
Condo insurance, also called HO-6 coverage, is a type of homeowners insurance specifically for people who own and live in a condominium unit. Condo insurance covers a condo’s interior, some fixtures, your personal property, and your liability as a property owner.
It doesn’t cover a building’s roof, exterior, or landscaping. A condominium association master policy covers those things.
Like a standard HO-3 homeowners insurance policy, condo policy premiums can vary based on location. Condos are susceptible to weather-related damage and property crimes just like single-family homes.
Here’s how much condo insurance costs for different levels of dwelling coverage.
Dwelling Coverage
▲▼
Average Annual Premium
▲▼
$100,000
$972
$200,000
$1,527
$300,000
$2,056
$400,000
$2,906
Average cost of homeowners insurance 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.[4]
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 per year, according to Insurify data. These are the national average annual home insurance premiums by credit tier.
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.
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.
Coverage Type
▲▼
Amount Covered
▲▼
What’s Covered
▲▼
Dwelling coverage
Varies (should be based on the cost of rebuilding your home)
The cost to repair or replace the physical structure of your home, including damage from fire or theft
Varies (usually 20% of the insurance coverage value on your home)
If damage makes your home unlivable, loss of use coverage can help you pay for living expenses elsewhere, like hotel bills and restaurant meals
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.
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.
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.
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.
Homeowners insurance cost FAQs
Though the national average home insurance premium is $2,584 for $300,000 in dwelling coverage, costs vary widely based on your home, location, and unique risk. If you’re still looking for more information, here are some answers to frequently asked questions about homeowners insurance costs.
What’s a reasonable price for homeowners insurance for a $750,000 home?
If you can secure a home insurance policy for less than the average cost in your area for the dwelling coverage amount you need, that may be a good price. But many factors influence the cost of home insurance, including location, the age of the home, your credit history, and the insurance company you choose.
Is $3,300 per year normal for California homeowners insurance?
The average annual cost of home insurance in California for a policy with $500,000 in dwelling coverage is $2,855, according to Insurify data. But the average home value in the Golden State is $773,263, according to Zillow. So if your home’s value is average or higher, $3,300 might be a reasonable price for a home insurance policy.
How much is the average cost of home insurance per year?
The national average cost of homeowners insurance is $2,584 for $300,000 in dwelling coverage. Averages can also vary by state, city, and even ZIP code, so it’s important to compare quotes from multiple insurance companies before choosing a policy.
What is the cost of home insurance in Massachusetts?
Average home insurance costs in Massachusetts range from $928 per year for a policy with $100,000 in dwelling coverage to $2,906 annually for $500,000 in dwelling coverage.
Over a 10-year period, is home insurance really worth it?
Homeowners insurance is always worth having. First, if you have a mortgage, your lender will almost certainly require you to have home insurance as a condition for getting and keeping your home loan. And your chances of needing to file at least one claim per decade are fair. Annually, about one out of every 18 insured homes has a claim, according to the Insurance Information Institute.
How much is home insurance for a rental property?
If you rent out a house you own, your property insurance will cost about 25% more than it would if you lived in the house yourself.[5]
Julia Taliesin is an insurance content writer at Insurify. She began her career as a journalist, covering local government and business in Somerville, Mass. She reported multiple investigative stories about municipal finances and budget allocation, building development and inspection, and personnel. When the pandemic began she became a de facto public health reporter, writing daily and weekly reports using available data to quickly communicate rates of infection and city response.
She's worked for print and digital outlets, writing everything from quick-hit breaking news to long-form community features. More recently, Julia managed content strategy at a startup creating a social platform for licensed nurses, overseeing a team of nurse freelancers and editing interview transcripts and news articles for publication.
She holds a Bachelor's degree in communications from Simmons University, with a focus in journalism. Outside of work, Julia enjoys working on crafting projects, learning about homesteading, and singing in cover bands.
Evelyn PimplaskarEditor-in-Chief, Director of Content
10+ years in insurance and personal finance content
30+ years in media, PR, and content creation
Evelyn leads Insurify’s content team. She’s passionate about creating empowering content to help people transform their financial lives and make sound insurance-buying decisions.
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