How much is homeowners insurance on a million-dollar home?

The average annual national cost of homeowners insurance on a million-dollar home is $6,253, based on $1 million in dwelling coverage, $300,000 in liability coverage and a $2,500 deductible. You might have paid $1 million for your home, but that doesn’t mean it’s the right amount of dwelling coverage. In some areas, market values are inflated, leading to homes that cost more than their replacement cost.

Estimated yearly premium to insure a $1M home in the U.S.
Coverage	Average annual premium	Average monthly premium
$1M dwelling, $300k liability, $2,500 deductible	$6,253	$521

Read our methodology

“A million-dollar home can be a lot of different things,” says Brenda Powell Wells, director of the Risk Management and Insurance Program at East Carolina University. “In California, it might be a 1,500-square-foot cottage. In other places, it might be a 4,000-square-foot property.”

Location does impact insurance costs, just not because of real estate prices. Are you in a rural area? A city? An area prone to hurricanes or wildfires? Risky weather patterns mean more expensive homeowners insurance, no matter the value of your home.

For example, the average cost of homeowners insurance on a $1 million home in Massachusetts is $3,861 a year. Compare this to Florida, where the average is a whopping $20,711. Factors like severe weather, an insurance crisis due to lawsuits, and insurers leaving the state contribute to Florida's high rates.

Below we've compared three U.S. cities based on what you can buy for $1 million. A market price of $1 million buys you a very different home in various locations, and you should note that:

A 9,150 square foot home has very different dwelling coverage needs from a 906 square-foot one, even though they have similar market values.
The home listed in Florida, at 1,400 square feet, probably doesn't have a replacement cost of $1 million, despite its purchase price.
The replacement cost of the home, based on its size and features, is far more important for insurance than the market value.

$1 million home comparison: How location affects market value vs. dwelling coverage
City	Median home price	$1 million home example	Average cost of insurance, $1 million dwelling coverage*
Aurora, IL	$345,000	9 bed, 6.5 bath, 9,150 sq. feet	$5,658
San Diego, CA	$944,000	2 bed, 1 bath, 906 sq. ft.	$4,073
Fort Lauderdale, FL	$610,000	3 bed, 2 bath, 1,400 sq. feet	$29,872

Read our methodology

*$1 million dwelling, $100,000 liability, $1,000 deductible (2% hurricane deductible in FL)

Source: Redfin: How much house $1 million buys you across the U.S.

The cost of homeowners insurance can only be determined after you meet with an insurance professional and discuss the details of your home and how much coverage you need. Online insurance calculators help with estimates.

State-by-state cost of homeowners insurance on a $1 million home

The table below shows what home insurance might cost state by state. This is an average, and individual prices will depend on your situation. You’ll note there are 19 states and Washington, D.C., where a hurricane/windstorm deductible applies.

Comparison of annual homeowners insurance premiums for a $1 million dwelling by state, based on standard coverage and deductible.
State	Annual premium for a $1M house	Monthly premium for a $1M house	Hurricane deductible
Alaska	$3,152	$263	None
Alabama	$8,742	$728	2%
Arkansas	$8,829	$736	None
Arizona	$5,521	$460	None
California	$4,321	$360	None
Colorado	$9,785	$815	None
Connecticut	$4,540	$378	2%
Washington, D.C.	$3,788	$316	None
Delaware	$3,903	$325	2%
Florida	$20,711	$1,726	2%
Georgia	$6,089	$507	2%
Hawaii	$2,181	$182	None
Iowa	$6,467	$539	None
Idaho	$5,743	$479	None
Illinois	$6,346	$529	None
Indiana	$6,588	$549	None
Kansas	$13,553	$1,129	None
Kentucky	$9,310	$776	None
Louisiana	$16,302	$1,358	2%
Massachusetts	$3,861	$322	2%
Maryland	$4,444	$370	2%
Maine	$3,743	$312	2%
Michigan	$6,959	$580	None
Minnesota	$7,125	$594	None
Missouri	$9,480	$790	None
Mississippi	$6,078	$506	2%
Montana	$7,313	$609	None
North Carolina	$6,403	$534	2%
North Dakota	$6,622	$552	None
Nebraska	$10,112	$843	None
New Hampshire	$3,086	$257	2%
New Jersey	$3,405	$284	2%
New Mexico	$8,444	$704	None
Nevada	$4,287	$357	None
New York	$4,629	$386	2%
Ohio	$5,047	$421	None
Oklahoma	$12,703	$1,059	None
Oregon	$3,997	$333	None
Pennsylvania	$3,723	$310	2%
Rhode Island	$5,943	$495	2%
South Carolina	$8,657	$721	2%
South Dakota	$8,829	$736	None
Tennessee	$7,634	$636	None
Texas	$10,751	$896	2%
Utah	$4,246	$354	None
Virginia	$5,432	$453	2%
Vermont	$2,455	$205	None
Washington	$4,252	$354	None
Wisconsin	$4,199	$350	None
West Virginia	$3,928	$327	None
Wyoming	$5,735	$478	None

Read our methodology

$1M homeowners insurance calculator

Home insurance calculator by ZIP code

Average home insurance rates on 1M house in Texas

Most & least expensive ZIP codes for homeowners insurance in Texas

Most expensive
Least expensive

ZIP code	City	Highest rate
77550	Galveston	$10,164
77586	El Lago	$9,906
77551	Galveston	$9,536
77554	Galveston	$9,358

ZIP code	City	Lowest rate
78559	Iglesia Antigua	$1,956
78593	Santa Rosa	$1,999
79915	El Paso	$2,008
79905	El Paso	$2,009

Read our methodology

Best homeowners insurance on a $1 million house

Amica ranks as the best home insurance company for a $1 million home, based on a combination of rates, Insurance.com's annual customer survey, National Association of Insurance Commissioners (NAIC) complaint index and AM Best Financial strength ratings. It's the cheapest carrier in our ranking and also has the lowest complaint ratio.

See how major insurance companies ranked below.

Top-rated insurers offering policies for million-dollar homes, including average premiums and satisfaction ratings.
Company	AM Best	NAIC	Average annual premium	Survey score	Insurance.com rating
Amica	A+	0.37	$3,296	4.12	4.57
Allstate	A+	1.26	$4,356	4.38	4.27
Travelers	A++	0.91	$5,658	4.25	4.2
State Farm	A+	1.15	$5,297	4.32	4.13
Farmers	A	0.89	$8,048	4.31	3.71
Nationwide	A	1.34	$7,761	4.31	3.63
Progressive	A+	1.5	$8,699	4.04	3.42
USAA	A++	0.46	$5,433	4.53	4.47

Read our methodology

What does homeowners insurance on a $1 million home cover?

Homeowners insurance on a million-dollar home has the same coverage as any other policy, although you may choose to purchase a high-value home insurance policy that adds some extra benefits. The most important part of your homeowners insurance is Coverage A, dwelling coverage. This protects the structure of your home, and this is where replacement cost comes into play. You need to choose enough dwelling coverage to rebuild your home. High-value home insurance policies often include extended or guaranteed replacement cost coverage to extend your protection.

Every homeowners insurance policy includes the following:

Dwelling coverage. Coverage A on your home policy, this is the portion that covers repairs or rebuilding of the structure of your home.
Other structures. Coverage B on your policy, this covers detached structures such as fences, garages, and sheds. This is usually set at 10% of the dwelling coverage, but may be higher on a million-dollar policy.
Personal property. Coverage C covers your belongings, both in and, at a more limited level, out of the house. This usually ranges from 50% to 70% of the dwelling coverage but may be a higher amount on a high-value policy.
Additional living expenses/Loss of use. Coverage D provides funds for a place to live if your house is being repaired and is uninhabitable due to a covered loss.
Liability. Coverage E covers the cost of liability claims and lawsuits when you are held responsible for injuries or damage to someone else.

You may also want to look into flood insurance, as it’s not included in a regular home insurance policy. Additional coverage such as earthquake or windstorm coverage can be added as well.

Homeowners insurance on a million-dollar home by liability level

If you own a million-dollar home, increasing your liability limits is important to protect your assets. A standard policy comes with $100,000, but increasing your coverage is easy and affordable; the rate increases range from $1 a year at USAA to $237 at State Farm. Progressive shows no rate increase at all.

Take a look at the table below. You’ll see that increasing your liability limits does raise your rates, but not significantly.

How increasing liability coverage from $100k to $300k affects the annual premium on a $1M home.
Company	$1,000,000 with $2,500 deductible and $100,000 liability	$1,000,000 with $2,500 deductible and $300,000 liability	Difference
Amica	$3,270	$3,296	$26
Allstate	$4,327	$4,356	$29
State Farm	$5,060	$5,297	$237
USAA	$5,432	$5,433	$1
Travelers	$5,625	$5,658	$33
Erie Insurance	$6,720	$6,743	$23
Auto-Owners	$6,775	$6,819	$44
American Family	$6,797	$6,825	$28
Farmers	$7,981	$8,048	$67
Progressive	$8,699	$8,699	$0

Read our methodology

Homeowners insurance on a million-dollar home by credit rating

The average cost of a $1 million policy with $300,000 in liability for a homeowner with excellent credit is $5,320; it jumps to $13,894 with poor credit.

“Low credit scores are correlated with losses,” Wells says. If an insurance company views you as a financial risk, your rates will be higher.

Estimated impact of credit rating (excellent, fair, poor) on insurance premiums for a $1 million home.
Credit tier	$1,000,000 with a $2,500 deductible $100,000 liability	$1,000,000 with $2,500 deductible and $300,000 liability
Excellent	$5,288	$5,320
Fair	$7,997	$8,060
Good	$6,455	$6,494
Poor	$13,760	$13,894

Read our methodology

How to save on homeowners insurance on a million-dollar home

There are several ways to get lower rates on your home insurance policy:

Ask about discounts. “Talk to your agent about discounts available, such as for smoke alarms and security systems,” Wells says. You can save an average of 18% for bundling your home and auto, for example.
Raise your deductible. You can save an average of $512 a year by going from a $500 deductible to $2,500, although you will pay more if you file a claim.
Upgrade your home. If you live in a severe-weather state, equipping your home with weather-resistant features like hurricane shutters or siding or fire-retardant stucco can get you a discount. A new roof earns an average discount of 11%.
Keep your credit score in good shape, as people with good and excellent credit scores pay significantly less for home insurance (an average savings of $8,000 a year) than those with poor credit scores.

How much coverage do you need to insure a $1 million dollar home?

You should insure your home for 100% of its replacement cost, and consider adding extended or guaranteed replacement cost coverage to protect you from inflation. Replacement cost is not related to the market value of your home, which is what you can sell it for.

“You need replacement cost coverage, which is enough insurance to rebuild the home the way it was,” Wells says. “The market value of the home is irrelevant.”

A simplified way to calculate the replacement cost of your home is to take the square footage of your house and multiply it by the price of labor and materials in your area to get a rough estimate. It’s best to consult your insurance agent, however.

“I personally feel that you should have your insurer help you estimate the replacement cost of the house,” Wells says. “They have tools to do that. If you are going to make an error, err on the side of over-insurance rather than under-insuring. In the event of a loss, you’ll be glad you had more insurance than needed.”

Standard policies (HO-3) insure your dwelling at replacement cost and your personal belongings at actual cash value (ACV), which only pays out at a depreciated amount. You can add replacement cost coverage for contents as an endorsement. High-value home insurance policies (HO-5) usually include replacement cost coverage for your personal property and insure it against all perils rather than named perils.

Factors affecting the cost of homeowners insurance on a $1 million home

A lot of factors affect the cost of a $1 million home insurance policy, including:

Where you live
The replacement cost of your home
Your credit history, in most states
Your personal claims history and the claims history of the property
Your deductible
Other coverage limits, such as liability and personal property

“Weather and climate and topography are definitely important. A million-dollar beach house in a hurricane-prone area is much harder to insure than one in an area away from the beach,” Wells says.

California has seen an uptick in wildfires, and home insurance is becoming increasingly difficult to obtain—some major carriers have pulled out of the state. In Florida, severe weather, including storms and flooding, is causing an insurance crisis. Each state has its unique challenges.

Methodology

Home insurance rates are fielded by Quadrant Information Services for Insurance.com in all 50 states and Washington, D.C. National and state home insurance averages are based on the following parameters:

$1,000,000 in dwelling coverage
$300,000 in liability coverage
A $2,500 deductible
A 2% hurricane deductible in applicable states
Good credit

We also gather data for:

$100,000 in liability coverage
Deductibles ranging from $500 to $5,000

Learn more about our data and methodology.

FAQ: Homeowners insurance on a million-dollar home

Can I insure my $1M home for less than the replacement cost?

You may be able to, but it’s not recommended. Replacement cost coverage pays to rebuild your home from scratch using today’s prices for new materials. Insurance companies follow an 80/20 rule when it comes to claims; if you have insured your home for less than 80% of its replacement cost, your claim settlement may be lower.

Is replacement cost coverage mandatory for a $1 million home?

While there is no law, mortgage companies do require you to carry replacement cost coverage on your home. So, unless you own the home outright, you will likely be required to carry a replacement cost policy.

Is it hard to find home insurance on a $1 million house?

No. The value of the home and its replacement cost don't impact the ease of getting insurance, but age, location and other risks do. “I wouldn’t say it’s hard to get insurance on a million-dollar home in and of itself,” Wells says, “but other factors come into play, such as location. Weather, climate and topography are definitely important. A million-dollar beach house in a hurricane-prone area is much harder to insure than one in an area away from the beach.”

Helpful home insurance tools and calculators