Average Cost of Homeowners Insurance (2025)
Homeowners in the U.S. pay an average of $2,532 per year for home insurance, but rates vary significantly by state, city, insurer, and coverage amount.
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Written byJessica Martel
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Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
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Edited byChris Schafer
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15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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Table of contents
The national average home insurance rate is $2,532 per year for a policy with $300,000 in dwelling coverage, based on Insurify data. The cost of home insurance can fluctuate according to your location, coverage limits, and the insurance company you choose.
Here’s what you should know about the average cost of homeowners insurance by state, city, insurer, coverage amount, and deductible. You’ll also find practical tips to help you lower your home insurance premiums.
Quick Facts
State average rates for home insurance are highest in Florida, while Vermont has the lowest rates.
Homeowners insurance premiums differ based on local crime rates, proximity to a fire station, and whether you live in a high-risk flood or earthquake zone.[1]
To save on insurance, compare quotes from multiple companies, bundle your policies, or consider increasing your deductible.
Average home insurance cost by state
The cost of home insurance can vary widely between states, cities, and even ZIP codes within a city. This is due to factors such as weather risks, rebuilding costs, reinsurance costs, and crime rates.
Florida has the highest average home insurance rate of any state, in part because of the number of severe weather events that occur in the state. Between 1980 and 2024, Florida experienced 94 weather disasters with losses exceeding $1 billion each, according to the National Centers for Environmental Information (NCEI).[2]
Vermont has the lowest average home insurance rates in the country. During the same period (1980–2024), the state had only 19 weather disasters with losses exceeding $1 billion.[3]
Below are the average annual home premiums for each state based on $300,000 in dwelling coverage, according to Insurify data.
Average Annual Cost by State
State  | Average Annual Cost |
|---|---|
| Alaska | $1,224 |
| Alabama | $2,988 |
| Arkansas | $3,012 |
| Arizona | $2,028 |
| California | $2,160 |
| Colorado | $2,748 |
| Connecticut | $1,728 |
| Delaware | $1,212 |
| Florida | $5,640 |
| Georgia | $2,304 |
| Hawaii | $1,380 |
| Iowa | $2,268 |
| Idaho | $1,668 |
| Illinois | $2,232 |
| Indiana | $1,980 |
| Kansas | $3,336 |
| Kentucky | $3,048 |
| Louisiana | $5,136 |
| Massachusetts | $1,716 |
| Maryland | $1,836 |
| Maine | $1,188 |
| Michigan | $2,220 |
| Minnesota | $2,196 |
| Missouri | $2,796 |
| Mississippi | $3,012 |
| Montana | $2,028 |
| North Carolina | $3,444 |
| North Dakota | $2,472 |
| Nebraska | $3,204 |
| New Hampshire | $1,128 |
| New Jersey | $1,152 |
| New Mexico | $2,592 |
| Nevada | $1,260 |
| New York | $1,248 |
| Ohio | $1,584 |
| Oklahoma | $4,560 |
| Oregon | $1,320 |
| Pennsylvania | $1,200 |
| Rhode Island | $2,292 |
| South Carolina | $2,436 |
| South Dakota | $2,352 |
| Tennessee | $2,844 |
| Texas | $4,140 |
| Utah | $1,500 |
| Virginia | $1,536 |
| Vermont | $936 |
| Washington | $1,392 |
| Washington D.C. | $1,212 |
| Wisconsin | $1,404 |
| West Virginia | $1,524 |
| Wyoming | $1,668 |
Average home insurance cost by insurance company
Home insurance rates also differ between insurance companies. Insurers use many of the same metrics, such as replacement cost, location, and the age and size of your home, to determine your premiums. But each company weighs these factors differently, which leads to variations in quoted prices.
The following table highlights the average annual premiums from top insurers.
The below rates are estimated rates current as of: Tuesday, October 7 at 12:00 PM PDT.
Insurance Company | Average Annual Premium: With $300,000 in Dwelling Coverage |
|---|---|
| Amica | $1,392 |
| USAA | $1,752 |
| American Family | $1,860 |
| Travelers | $2,004 |
| Farmers | $2,160 |
| Allstate | $2,256 |
| Nationwide | $2,676 |
| State Farm | $2,712 |
| Erie | $3,012 |
| Chubb | $3,636 |
Average home insurance cost by dwelling coverage
Dwelling coverage, known as Coverage A, covers the physical structure of your home. If a covered peril damages or destroys your home, such as a hailstorm or fire, dwelling coverage helps cover the cost to repair or rebuild.
Generally, the more dwelling coverage you have, the higher your premiums will be. Mortgage lenders will often require you to have dwelling coverage equal to the cost of your home’s market value. Since dwelling insurance doesn’t cover damage from earthquakes and floods, you may want to purchase additional policies, especially if you live in a high-risk area.
The following table shows the average yearly cost of different dwelling coverage limits.
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Average home insurance cost by city
The cost of home insurance can vary between cities and even ZIP codes within a city.
The city of New Orleans has one of the highest average monthly costs for homeowners insurance, according to Insurify data. The city’s low elevation and network of levees make it vulnerable to storm surge and flooding, increasing the risk to homeowners and driving up insurance premiums.
In contrast, the city of Washington, D.C., has some of the most affordable average rates, which is partly due to a low risk of weather disasters.
The following table highlights annual city averages across different states. All rates are for $300,000 in dwelling coverage.
City | Average Annual Premium |
|---|---|
| Albuquerque, NM | $1,680 |
| Anchorage, AK | $1,176 |
| Atlanta, GA | $2,088 |
| Baltimore, MD | $1,776 |
| Charlotte, NC | $2,172 |
| Chicago, IL | $2,472 |
| Columbus, OH | $1,500 |
| Dallas, TX | $4,368 |
| Denver, CO | $3,468 |
| Detroit, MI | $2,520 |
| Houston, TX | $5,244 |
| Indianapolis, IN | $2,100 |
| Kansas City, KS | $2,496 |
| Jackson, MS | $2,652 |
| Las Vegas, NV | $1,392 |
| Los Angeles, CA | $3,048 |
| Milwaukee, WI | $1,368 |
| Minneapolis, MN | $2,424 |
| Nashville, TN | $2,676 |
| New Orleans, LA | $10,620 |
| New York City, NY | $1,968 |
| Omaha, NE | $3,180 |
| Philadelphia, PA | $1,500 |
| Phoenix, AZ | $2,004 |
| Salt Lake City, UT | $1,524 |
| Seattle, WA | $1,356 |
| Virginia Beach, VA | $2,460 |
| Washington, D.C. | $1,212 |
Average home insurance cost by deductible amount
Your deductible is the amount you pay out of pocket before your home insurance kicks in. Selecting a higher deductible will typically result in lower monthly premiums.
In many cases, you’ll have a dollar amount deductible, such as $500 or $1,000.
Percentage deductibles, which are based on a percentage of your home’s insured value, are also an option. For instance, if your home is insured for $100,000, and you have a 2% deductible, your insurer will deduct $2,000 from your payment when you make a claim.
If you live in an area with a high natural disaster risk, such as flooding or earthquakes, you may also need an extra policy that comes with an additional deductible. For instance, if you purchase hurricane, flood, earthquake, or windstorm insurance, you may need to pay an extra deductible when you make a claim.
Deductible Amount | Average Annual Premium |
|---|---|
| $500 | $2,763 |
| $1,000 | $2,511 |
| $2,500 | $2,556 |
| $5,000 | $2,135 |
| $10,000 | $2,009 |
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.
How to lower your homeowners insurance costs
Homeowners insurance rates are rising nationwide, but you can take steps to lower the costs, including:
Compare quotes. To find the best rates, shop around and get insurance quotes from at least three companies.
Raise your deductible. By increasing your deductible, you can lower your monthly premiums. Raising your deductible to $1,000 can help you save up to 25%. Just make sure you can afford the higher out-of-pocket cost.
Bundle home and auto policies. Many companies offer bundling discounts when you purchase two or more policies from the same insurer.
Install protective devices. Some companies offer discounts if you install safety features like smoke detectors, burglar alarms, water sensors, or impact-resistant roofing.
Maintain a good credit history. A solid credit history can result in lower premiums, as many insurers use your credit information when determining your insurance costs.
Avoid small claims. Rather than filing a small claim, consider paying out of pocket. Too many claims in your history can signal a greater level of risk to insurers, resulting in higher premiums.
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Average cost of homeowners insurance FAQs
If you still have questions about the average cost of homeowners insurance, check out the additional information below.
The average monthly cost of homeowners insurance in the U.S. is $211 for $300,000 in dwelling coverage, according to Insurify data. But your premiums can vary based on factors such as your location, weather risks, local crime rate, and proximity to a fire station.
Vermont has the cheapest homeowners insurance, at $936 per year for a policy with $300,000 in dwelling coverage and a $1,000 deductible.
Florida has the most expensive homeowners insurance, at $5,640 per year for $300,000 in dwelling coverage with a $1,000 deductible.
To estimate the cost of dwelling coverage, you can multiply the square footage of your home by the local per-square-foot cost to build. To estimate coverage for your belongings, complete a home inventory checklist.
The national average cost for a policy with $500,000 in dwelling coverage is $3,876 per year, according to Insurify data.
The 80/20 rule for home insurance is an industry standard that suggests insuring your home for at least 80% of its full replacement cost.
Methodology
Insurify data scientists analyzed rates from more than 180 home insurance companies sourced directly from Insurify’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Default Coverage Assumptions
- Dwelling coverage: $300,000
- Deductible: $1,000
- Personal property limit: $25,000
- Liability limit: $300,000
Additional data points beyond these default values are sourced from Insurify’s proprietary database. Rates are updated monthly.
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Jessica Martel
Jessica is a freelance writer, professional researcher, and mother of two rambunctious little boys. She specializes in personal finance, women and money, and financial literacy. Jessica is fascinated by the psychology of money and what drives people to make important financial decisions. She holds a Masters of Science degree in Cognitive Research Psychology.
Jessica has been a contributor at Insurify since July 2023.
15+ years in content creation
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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