Average Cost of Home Insurance (June 2024)

The national average cost of home insurance is $2,071 per year. But homeowners face varying costs in different states.

Sarah Sharkey
Written bySarah Sharkey
Sarah Sharkey
Sarah SharkeyInsurance Writer
  • 7+ years writing insurance and personal finance content

  • Contributor to top media, including USA Today

A passionate personal finance advocate, Sarah’s writing has graced the pages of many of the personal finance and insurance industries’ top web publications.

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Chris Schafer
Edited byChris Schafer
Chris Schafer
Chris SchaferSenior Editor
  • 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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Updated December 19, 2023

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The rate you pay for home insurance varies based on several factors, including the location, size, and age of your home.[1]

The average rate for homeowners insurance across the country is $2,191 per year for $400,000 in dwelling coverage, according to Insurify data. If you only need $100,000 in dwelling coverage, you’ll pay an average of $847. And if you need $500,000 in dwelling coverage, you’ll pay an average of $2,665.

This article will show you what goes into these costs while also giving you the insights you need to make your home insurance as affordable as possible.

Quick Facts
  • Several factors determine your home insurance rates, including your home’s location, value, age, and more.

  • Replacement cost coverage pays to replace your damaged home or items with identical components.

  • Residents of Florida pay the highest home insurance rates in the nation, on average, while residents of New Hampshire, Oregon, and Ohio pay some of the lowest rates.

Average cost of home insurance

The average cost of home insurance for $300,000 in dwelling coverage is $1,751 per year. However, rates around this average vary drastically based on the home’s location, the insurance company, and more.

Insurers rate your home’s unique factors differently. That’s why it’s important to compare quotes from several insurers to find the best policy for you at a rate you can afford.

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Why home insurance rates are increasing

Home insurance rates have been on the rise in recent years. Home insurance premiums are expected to rise by 9% in 2023, according to a recent Insurify report. That adds to the 7% increase in home insurance premiums seen between 2021 and 2022.

Several contributing factors cause these increases, including inflation driving up the cost of home repairs, an uptick in severe weather events that cause significant damage to homes, and supply chain delays.

Average cost of home insurance by state

Home insurance costs vary from state to state. The table below illustrates the annual average costs you can expect to find in each state for $300,000 in dwelling coverage.

StateAverage Annual Cost
Alabama$2,810
Alaska$1,113
Arizona$1,590
Arkansas$2,731
California$1,350
Colorado$3,059
Connecticut$1,485
Delaware$1,076
Florida$9,079
Georgia$2,190
Hawaii$1,287
Idaho$1,177
Illinois$1,768
Indiana$1,741
Iowa$1,908
Kansas$3,307
Kentucky$2,078
Louisiana$4,231
Maine$1,163
Maryland$1,497
Massachusetts$1,610
Michigan$1,488
Minnesota$2,183
Mississippi$3,221
Missouri$2,457
Montana$1,597
Nebraska$3,459
Nevada$1,089
New Hampshire$1,181
New Jersey$1,177
New Mexico$2,045
New York$1,894
North Carolina$1,846
North Dakota$2,275
Ohio$1,176
Oklahoma$5,027
Oregon$1,058
Pennsylvania$1,249
Rhode Island$1,756
South Carolina$2,487
South Dakota$2,590
Tennessee$2,128
Texas$3,801
Utah$1,026
Vermont$906
Virginia$1,334
Washington$1,163
Washington, D.C.$1,171
West Virginia$1,385
Wisconsin$1,288
Wyoming$1,928

Cheapest and most expensive states for home insurance

The cheapest states for home insurance include Vermont, Utah, and Oregon. Each of these states experiences relatively few natural disasters, which could mean fewer claims for insurance companies to handle.[2]

On the other end of the scale, Florida, Oklahoma, and Louisiana are the most expensive states for home insurance. A higher number of natural disasters that cause extensive damage and lead to many home insurance claims are likely partially responsible for higher premiums in these states.

Why Florida homes are more expensive to insure

When looking at the average costs, you might have noticed that Floridians pay the most for home insurance. Some Floridians have seen their insurance premiums increase by more than 40% this year.[3]

Severe weather, particularly hurricanes, is one major factor pushing the cost of insurance higher in the Sunshine State. When a major storm makes landfall in Florida, it can cause billions of dollars in damages. For example, when Hurricane Ian hit southwest Florida in 2022, it caused more than $109 billion in damages.

Beyond severe weather, insurance companies face other challenges in the state, including fraud (particularly roofing fraud), high replacement costs, and instances of excessive litigation.

Learn More: How Much Homeowners Insurance Do You Need?

Learn More: How Much Homeowners Insurance Do You Need?

Average cost of home insurance by company

Every insurance company has a slightly different method of assessing risks. This leads to different companies offering different insurance rates.

The table below highlights the average rates of home insurance with $300,000 in dwelling coverage by company.

Insurance CompanyAverage Annual Rate
Westfield$943
Grange$1,062
Mercury$1,129
Armed Forces Insurance Exchange$1,292
Erie$1,342
American Family$1,360
CSAA$1,416
AIG$1,418
Travelers$1,555
ASI$1,583
Allstate$1,607
USAA$1,643
Auto-Owners Insurance Co$1,658
State Farm$1,692
United P&C$1,698
Farmers$1,767
Chubb$1,804
Amica Mutual$1,827
Nationwide$1,908
Foremost$2,158
National General$2,387
Encompass$2,442
Alfa$2,507
Metropolitan$2,642
Country$2,859

Average cost of home insurance by dwelling coverage

Dwelling coverage is an essential component of your home insurance policy. Specifically, dwelling coverage is designed to help you pay to repair or rebuild the structure of your home after damage from a covered peril.

For example, if your roof is damaged by hail, dwelling coverage might help you pay to repair it.

The cost of home insurance varies based on the level of coverage you need. The table below includes the average annual cost of $250,000 in dwelling coverage and $500,000 in dwelling coverage by insurance company.

Insurance Company$250K in Dwelling Coverage$500K in Dwelling Coverage
Westfield$943$1,119
Grange$1,062$1,740
Mercury$1,129$1,779
Armed Forces Insurance Exchange$1,292$1,755
Erie$1,342$2,002
American Family$1,360$1,867
CSAA$1,416$2,092
AIG$1,418$2,191
Travelers$1,555$2,431
ASI$1,583$2,451
Allstate$1,607$2,305
USAA$1,643$2,283
Auto-Owners Insurance Co$1,658$2,363
State Farm$1,692$2,457
United P&C$1,698$2,661
Farmers$1,767$2,862
Chubb$1,804$2,806
Amica Mutual$1,827$2,804
Nationwide$1,908$3,002
Foremost$2,158$3,620
National General$2,387$3,703
Encompass$2,442$3,773
Alfa$2,507$4,152
Metropolitan$2,642$4,191
Country$2,859$4,409

What affects your home insurance premium?

Multiple factors affect home insurance premiums, and you can find the most influential factors here.

Location

The location of your home has a big effect on your home insurance premiums. Some of the risks tied to your home’s physical location include:

  • The location of the nearest fire department: A nearby fire department can lower your insurance costs. But a home without a highly rated fire department nearby might face higher rates.

  • Proximity to the coast: In general, homeowners closer to the coast will face higher insurance premiums than inland homeowners.

  • Rate of crime: Homeowners in areas with higher crime rates might pay higher insurance premiums than homeowners in areas with lower crime rates.

Replacement cost of your home

The replacement cost of your home equals the amount of money required to rebuild your home from scratch. This is different from your home’s market value, which includes the value of your land and is focused on what someone would be willing to pay to purchase the property. In general, home insurance premiums are based on replacement costs.

This means that a larger home with expensive features will be more expensive to insure than a smaller home with baseline features.

If you own an older home, you may not be able to buy a replacement cost policy. Instead, your insurer might offer a modified replacement cost policy. This means the policy would cover repairs and replacements using modern materials.

Coverage type

If you opt for an insurance policy with additional coverage, you’ll face higher insurance premiums. Below is a breakdown of some of the standard coverage types:

  • illustration card https://a.storyblok.com/f/162273/100x100/c922a01b77/house.svg

    Dwelling coverage

    If your home is damaged or destroyed by a covered event, this type of coverage will help you pay to repair or replace the home.

  • car in carage

    Other structures coverage

    If you have additional buildings that aren’t attached to your home, like a garage or a shed, dwelling coverage usually won’t cover them. Instead, you’ll need to purchase other structures coverage.

  • illustration card https://a.storyblok.com/f/162273/100x100/32ed42213e/personal-property.svg

    Personal property coverage

    Personal property coverage helps replace personal items, such as clothing and electronics, destroyed by a covered peril, like a fire.

  • illustration card https://a.storyblok.com/f/162273/x/4c9753bdbe/medical-payments.svg

    Liability coverage

    If someone is injured on your property, liability coverage will help pay for their medical expenses and your legal fees. It may also cover property damage that you cause to others.

  • illustration card https://a.storyblok.com/f/162273/100x100/e5213a7025/loss-of-use.svg

    Loss of use coverage

    This coverage kicks in when you have to temporarily leave your home due to damage. It helps pay for hotel stays, meals, and transportation.

Higher coverage limits generally lead to higher home insurance premiums.

Your individual situation

Your unique situation will also affect your home insurance premiums. For example, in many states insurers can consider your credit history when determining premiums. Homeowners with a higher credit rating tend to pay less for home insurance.

Other individual factors that can affect your rates include the condition of your roof, your marital status, and whether you own a dog, a swimming pool, or a trampoline.

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What home insurance covers

The level of home insurance coverage you need varies based on your unique situation. Homeowners with a more expensive, older home likely need a higher level of coverage than someone with a smaller, new home.

The table below outlines some of the things that home insurance covers and potential coverage amounts.

Coverage TypeAmount CoveredWhat’s Covered
Dwelling coverageVaries but should be based on the cost to rebuild your homeThe cost to repair or replace the physical structure of your home; damage caused by flood, earthquake, or routine wear isn’t covered
Other structures coverageVaries but usually equates to 10% of the insurance value on your homeThe cost to repair or replace separate structures on your property, like a shed or fence
Personal property coverageVaries but usually equates to 50% of the insurance value on your homeFunds to repair or replace personal belongings you store in your home; for example, it might help replace items lost in a fire
Personal liability coverage$100,000+If someone not living with you is injured on your property and you’re liable, this coverage can help pay for your legal expenses and their medical care.
Medical payments coverageVaries but usually $1,000 to $5,000If someone is injured on your property, medical payments coverage can help pay for their medical bills, regardless of fault.
Loss of use coverageVaries but usually 20% of the insurance coverage value on your homeIf damage to your home makes it unlivable, loss of use coverage can help you pay for living expenses elsewhere. For example, it might cover the cost of hotel bills and restaurant meals.

How to get cheaper home insurance

Home insurance costs are rising. The good news is that you can take action to keep your insurance costs on the lower side. Below are some strategies to consider as you seek lower 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. In general, a higher deductible leads to a lower insurance premium. If you can afford to take on a higher deductible, this is a viable option.

  • 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 of them.

  • 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 are allowed to consider your credit history when determining rates. Generally, better credit translates to lower insurance premiums. Consider building your credit by paying your bills on time and paying off credit cards.

  • Limit your insurance coverage. A lower amount of liability insurance could help you tap into lower insurance costs. But 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.

Home insurance cost FAQs

Still have questions about how to secure a more affordable home insurance rate? Find your answers here.

  • What is the average cost of home insurance?

    The average homeowners insurance rate across the nation is $1,751 per year for $300,000 in dwelling coverage. But average costs vary, sometimes dramatically, from state to state.

  • How is home insurance calculated?

    Average home insurance rates are helpful, but they don’t tell the whole story. Insurance companies take several different factors into account when determining premiums, including your location, the size of your home, and local construction costs.

  • How much homeowners insurance do you need?

    In general, you’ll need enough home insurance coverage to rebuild the structure of your home. For example, if it’ll cost $500,000 to rebuild your home, then you’ll want $500,000 in dwelling coverage. But if your rebuilding costs are lower, you won’t need as much coverage.

  • Why are home insurance rates increasing?

    Many factors are pushing the cost of home insurance higher. An increasing number of severe weather events is one contributing factor. In some states, like Florida, higher levels of insurance fraud also push costs higher. Finally, the continued rise in inflation makes home insurance more expensive because it raises home values and the costs of materials needed to build or repair homes.

Methodology

Insurify’s team of data scientists analyze millions of home insurance quotes and weigh publicly available reviews, claims payout rates, complaint indexes, financial strength scores, company reputations, and proprietary quoting data. Our editorial team applies this insight to inform our unbiased reviews and recommendations.

Sources

  1. Insurance Information Institute. "Home buyer's insurance guide."
  2. National Centers for Environmental Information. "Overview."
  3. NPR. "Feeling the pinch of high home insurance rates? It's not getting better anytime soon."
Sarah Sharkey
Sarah SharkeyInsurance Writer

Sarah Sharkey is a personal finance writer who enjoys helping people make savvy financial decisions. She covered insurance and personal finance topics. You can find her work on Business Insider, Money Under 30, Rocket Mortgage, Bankrate, and more. Connect with her on LinkedIn.

Chris Schafer
Edited byChris SchaferSenior Editor
Chris Schafer
Chris SchaferSenior Editor
  • 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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