The average cost of home insurance is $2,777 a year or $231 a month in the United States for a policy with $300,000 in dwelling coverage and liability and a $1,000 deductible.
The amount of dwelling coverage has a big impact on home insurance rates. For example, with dwelling coverage of $200,000, the average rate is $2,233, while the cost of a homeowners insurance policy with $500,000 in dwelling coverage averages $3,594.
A lot of factors affect homeowners insurance rates, including the age and size of the home, claim history, cost of construction materials, and location. Read on to compare home insurance rates by insurance company, state and even ZIP code, and find out what you can expect to pay for the coverage you need.
- How much does home insurance cost?
- Get home insurance rates in your ZIP code
- Average home insurance cost by ZIP code
- Average home insurance cost by state
- How much is homeowners insurance per month?
- How to get a homeowners insurance estimate
- Best home insurance companies
- Frequently asked questions: Homeowners insurance rates
- Methodology
How much does home insurance cost?
Although the national average cost of home insurance is $2,777 a year, the cost varies by coverage level and location. The most expensive state for home insurance is Oklahoma at $5,317 a year and the cheapest home insurance is found in Hawaii at $582 a year.
Here are the nationwide average annual rates for homeowners insurance at several coverage levels, all with a $1,000 deductible.
| Average rate | Dwelling coverage | Liability |
|---|---|---|
| $2,218 | $200,000 | $100,000 |
| $2,233 | $200,000 | $300,000 |
| $2,762 | $300,000 | $100,000 |
| $2,777 | $300,000 | $300,000 |
| $3,215 | $400,000 | $100,000 |
| $3,231 | $400,000 | $300,000 |
| $3,580 | $500,000 | $100,000 |
| $3,594 | $500,000 | $300,000 |
| $3,823 | $600,000 | $100,000 |
| $3,839 | $600,000 | $300,000 |
Get home insurance rates in your ZIP code
What you will pay for home insurance depends on a lot of factors, but you can start by comparing rates in your ZIP code. Using our home insurance calculator below, you can compare average home insurance rates by ZIP code for 10 different coverage levels.
HOME INSURANCE CALCULATOR
Average home insurance rates in CALIFORNIA
AVERAGE RATE: $797
Most & least expensive zip codes for homeowners insurance in California
Most Expensive
| Zip Code | City | Highest Rate |
|---|---|---|
| 92325 | Crestline | $1,450 |
| 92391 | Twin Peaks | $1,426 |
| 92321 | Cedar Glen | $1,425 |
| 92352 | Lake Arrowhead | $1,423 |
Least Expensive
| Zip Code | City | Lowest Rate |
|---|---|---|
| 94086 | Sunnyvale | $742 |
| 94085 | Sunnyvale | $743 |
| 94087 | Sunnyvale | $743 |
| 95051 | Santa Clara | $743 |
Average home insurance cost by ZIP code
Insurance.com’s analysis found the highest homeowners insurance rates in ZIP code 77471, Rosenberg, Texas.
ZIP codes in Weatherford, Oklahoma, and Hubert, North Carolina rank second and third, respectively.
We looked at home insurance estimates by ZIP code across the country to find the highest average rate for home insurance in each state as well as the least expensive average rate for home insurance.
The top 10 most expensive locations by ZIP code based on 2022 data are:
| ZIP code | State | City | Average annual premium |
|---|---|---|---|
| 77471 | Texas | Rosenberg | $6,638 |
| 73096 | Oklahoma | Weatherford | $6,308 |
| 28539 | North Carolina | Hubert | $6,143 |
| 67861 | Kansas | Leoti | $5,848 |
| 68861 | Nebraska | Odessa | $5,733 |
| 88135 | New Mexico | Texico | $5,484 |
| 29585 | South Carolina | Pawleys Island | $5,415 |
| 81041 | Colorado | Granada | $5,057 |
| 39576 | Mississippi | Waveland | $4,790 |
The top 10 least expensive ZIP codes for home insurance are:
| ZIP code | State | City | Average annual premium |
|---|---|---|---|
| 96813 | Hawaii | Honolulu | $579 |
| 94086 | California | Sunnyvale | $1,004 |
| 1342 | Massachusetts | Deerfield | $1,178 |
| 8504 | New Jersey | Blawenburg | $1,239 |
| 5439 | Vermont | Colchester | $1,241 |
| 19808 | Delaware | Pike Creek | $1,250 |
| 20852 | Maryland | North Bethesda | $1,322 |
| 99835 | Alaska | Sitka | $1,328 |
| 98383 | Washington D.C. | Chico | $1,377 |
Average home insurance cost by state
How much is homeowners insurance per month?
On average, home insurance costs about $231 per month, but the price depends on the coverage level.
| Average rate | Dwelling coverage | Liability |
|---|---|---|
| $185 | $200,000 | $100,000 |
| $186 | $200,000 | $300,000 |
| $230 | $300,000 | $100,000 |
| $231 | $300,000 | $300,000 |
| $268 | $400,000 | $100,000 |
| $269 | $400,000 | $300,000 |
| $298 | $500,000 | $100,000 |
| $300 | $500,000 | $300,000 |
| $319 | $600,000 | $100,000 |
| $320 | $600,000 | $300,000 |
How to get a homeowners insurance estimate
There are many variables to consider when working up a homeowner insurance estimate, and we’ll break it down into a few easy steps.
Step 1: Calculate how much dwelling coverage you need
Step 2: Decide how much homeowners liability you need (and medical payments)
Step 3: Choose additional coverage options
Step 4: Choose a deductible
The limits of your coverage for the following are typically a set percentage of your dwelling coverage limit as shown below:
- Other structures – 10%
- Personal property – 50% (you choose between replacement value or actual cash value)
- Loss of use – 20%
So, how do you decide the coverage amounts and additional coverage? We'll explain that next.
Step 1: Estimate how much dwelling coverage you need
Your dwelling coverage should equal the cost to repair damage to your home or rebuild it completely at equal quality — at current prices. This is called the replacement cost. Figuring out how to calculate home replacement cost can be a challenging task, but can be done by making a thorough inventory of building materials used for your home, using online calculators, or, you can hire an appraiser to do it for you.
When buying homeowners insurance, you should get enough dwelling coverage to match the full replacement cost of your home.
Step 2: Decide how much homeowners liability you need (and medical payments)
Most home insurance policies come with $100,000 in personal liability insurance but most experts recommend upping your limits to at least $300,000.
Liability insurance pays out when you or a family member are legally responsible for others’ injuries or property damage. Personal liability also covers legal fees if you are sued, as well as any resulting judgments from a lawsuit, up to your policy limits.
Medical payments coverage pays for injuries to guests in your home, regardless of who is at fault. Medical payments differs from liability insurance in significant ways, primarily in that it is for minor incidents and comes in very low limits of $1,000 or $5,000. The latter amount of $5,000 is recommended.
Step 3: Choose additional coverage options
With the basics in place, you can look at the options available from the insurance company. Common add-ons and home insurance endorsements you might want to consider are:
- Upgrading to higher or guaranteed replacement cost
- Upgrading personal property coverage to replacement cost
- Water and sewer backup
- Riders on high-value items such as jewelry and art
Some companies offer upgrade packages that include the most popular options for one price.
Step 4: Choose a deductible
The deductible is your share of the repair cost when you file a claim. Your home insurance premium will be lower if you choose a high deductible. If you have a $500 deductible, you're going to pay more on your premiums than if you have a $2,000 deductible.
Going with a higher deductible will save you money. It will also mean you pay more out-of-pocket if there’s a claim. That’s why it’s important to know the trade-off you’re making – and be comfortable with it -- when choosing a home insurance deductible.
Best home insurance companies
With every type of insurance coverage, it's true that the cheapest policy isn't always the wisest choice. You want an insurance company that is financially healthy and that has a good reputation for service.
Insurance.com’s ranking provides an in-depth look at the best home insurance companies in 2023, based on a number of factors. Insurance.com ranked the major insurance companies for average price, A.M. Best rating, and based on a survey of customers performed by our sister site, Insure.com. Here are the results of that analysis.
| Company Name | Rating (out of 5) |
|---|---|
| State Farm | 4.6 |
| Auto-Owners | 4.0 |
| Travelers | 3.6 |
| Allstate | 3.5 |
| Erie | 3.4 |
| Progressive | 3.1 |
| Nationwide | 3.0 |
| American Family | 2.9 |
| Farmers | 2.4 |
While USAA rated highly, it's not ranked because of its military eligibility requirements. Of course, the best homeowners insurance company for you will depend on personal factors. That’s why it’s best to compare policies and quotes for your specific needs before you choose a company.
Frequently asked questions: Homeowners insurance rates
Why are home insurance rates so low in some areas?
There are a number of reasons why home insurance is cheaper in some places than others. Factors that make a ZIP or city cheaper for home insurance include:
- Few major weather-related losses.
- A low crime rate.
- Relatively few major liability lawsuits.
- Many well-organized neighborhood watch groups.
While every state has areas where rates are cheaper, there are also reasons why a state like Hawaii has such low rates overall.
“One major factor in Hawaii is the fact that most standard homeowner insurance policies do not cover hurricane damage. Hurricane Iniki, which hit in 1992 did so much damage that the majority of insurers excluded hurricane damage from their coverage. Homeowners in Hawaii now have to purchase a separate hurricane damage policy,” says Michael Barry, spokesman for the Insurance Information Institute.
Why are home insurance rates so high in some areas?
It’s likely no surprise that many of the most expensive ZIP codes for home insurance are in states that experience lots of severe weather. The most expensive ZIPs in Louisiana, Mississippi, Alabama, Texas, and Florida are coastal areas prone to catastrophic storms. Texas. In states like Kansas and Oklahoma, tornadoes and other storms play a part. Naturally, the more claims paid out by insurers for damage due to wind, hail, and flooding, the higher home insurance rates will be for everyone.
“Homeowner rates are based on actual and anticipated losses across the state so if a state is prone to natural disasters, it will push up the cost of insurance for everyone in the state,” Barry says. “It will have the biggest impact on areas where natural disasters tend to hit most often, coastal areas for example.”
How can you get cheaper homeowners insurance rates?
Here are some ways to reduce the cost of homeowners insurance:
- Bundle home and auto insurance to save more
- Shop around for a better deal
- Increase deductibles
- Remove risks such as trampolines from home
- Maintain a good credit score
Remember you can lower your rate by making sure you receive all the home insurance discounts for which you qualify. For example, buying your home insurance from the same company that covers your cars, called bundling, can save you an average of 19%.
How are homeowners rates calculated?
The biggest factors influencing the cost of homeowners insurance are:
- Your home’s location. Allows the insurance company to look at the risk factors in that area.
- Your home’s value. Bear in mind that the value for insurance isn’t the same as the market value.
- Cost to rebuild. The cost to rebuild your home if it were completely destroyed.
- Construction costs. Local construction costs, including building materials availability and price, and building regulations, among other factors.
- Your home’s age. Older homes may have more risks, such as outdated wiring.
- Risk exposure. Risk exposure on your property, for instance, from a swimming pool, trampoline, guest house, or aggressive dog breed.
- Fire protection. Your neighborhood’s fire protection rating, or, how close your home is to a fire station.
- Claim history. Your personal and neighborhood claims history, as well as the previous homeowner’s claim history
- Insurance score. Your insurance score is based, in part, on your credit score (only three states don’t allow this – Massachusetts, Hawaii, and California; Maryland doesn’t use credit for home rates but does for auto rates)
For more information on how home insurance rates are determined, review some of the main factors affecting your home insurance rate. You can also use the home insurance calculator below to see what average rates are in your neighborhood.
Methodology
Insurance.com compared homeowners insurance rates in 2022 provided by Quadrant Data Solutions for dwelling coverage ranging from $200,000 to $600,000 with liability limits of $100,000 and $300,000 and a deductible of $1,000 for all available ZIP codes. ZIP codes were ranked based on the average rates for dwelling coverage of $300,000, liability coverage of $300,000, and a $1,000 deductible and include all credit ratings. Content was updated in 2023.
