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HOME INSURANCE INSIGHTS

Learn the role key factors play in influencing your home insurance cost, and see average homeowners insurance rates by state and coverage level so you know what to expect to pay.

Whether you own a home already or you’re house-hunting, it’s wise to know average home insurance rates for your state and your ZIP code so you can anticipate what your expense is when shopping your policy and creating a family budget. Knowing what you can expect to pay also helps you save money when comparing rates because you can more easily flag rates that are above the average home insurance cost for your area.

Homeowners insurance rates by ZIP code

What you pay for coverage depends on many factors, but one of the major variables is where you live. By using our home insurance calculator below, you can get a home insurance estimate for your ZIP code for various coverage levels. You'll see the average rate, as well as the highest and lowest fielded from major carriers. The point of showing the high and low rates is to demonstrate how much rates can vary among insurance companies -- no two charge the identical amount for a policy. The difference between the high and low rate is what you can potentially save by comparison shopping.

HOME INSURANCE CALCULATOR

Average home insurance rates in CALIFORNIA

$200,000
$1,000
$100,000
94404 - Foster City
Dwelling $200,000, Deductible $1,000 and Liability $100,000.

AVERAGE RATE: $669

HIGHEST RATE: $1,029 LOWEST RATE: $443
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Most & least expensive zip codes for homeowners insurance in California

Most Expensive

Zip CodeCityHighest Rate
92561Mountain Center$1,031
90210Beverly Hills$1,029
90069Los Angeles$1,020
90046Los Angeles$1,011

Least Expensive

Zip CodeCityLowest Rate
93445Oceano$606
93117Goleta$607
93111Goleta$610
93433Grover Beach$615

Which state has the highest homeowners insurance rates?

Oklahoma has the highest average home insurance rates of $4,445, based on an Insurance.com rate analysis. Below you'll see the top five states that are most expensive for homeowners insurance, with a more detailed explanation below.

Most Expensive States for Homeowners Insurance
RankStateAverage rate
1Oklahoma$4,445
2Kansas$3,931
3Florida$3,643
4Arkansas$3,439
5Texas$3,429

Which state has the lowest homeowners insurance rates?

Hawaii is the least expensive state for homeowners insurance, with average rate of $499, based on a home insurance rate analysis across the country. Below are the top five states that are the least expensive for homeowners insurance.

Lowest Homeowners Insurance Rates
RankStateAverage rate
1Hawaii$499
2California$1,166
3Vermont$1,212
4Utah$1,378
5New Hampshire$1,455

Average home insurance cost by state

While many factors go into calculating your rate, where you live is chief among them. Homeowners in states that are prone to hurricanes, hail storms, tornadoes and earthquakes tend to pay the most for home insurance. Insurance.com’s analysis of rates from top insurers for nearly every ZIP code in the country bears this out. Oklahoma, Kansas, Florida, Arkansas, Texas and Mississippi are the most expensive states for home insurance among common coverage levels analyzed by Insurance.com. Among the least expensive states for home insurance are Hawaii and Vermont

As you’ll see in the homeowners insurance cost by state chart below, Oklahoma is the most expensive state for home insurance, $2,140 more than the national average for the coverage level analyzed. We show average home rates for three other common coverage levels at the end of this article.

Homeowners insurance for 300k home: Average cost by state

$300,000 dwelling with $1,000 deductible and $300,000 liability

Note that the dollar differences in parenthesis are those that are greater than the national average.

Average Home Insurance Cost by State
Rank State Average rate $ more or less than $2,305 national average rate % difference from national average $2,305
1Oklahoma$4,445($2,140)93%
2Kansas$3,931($1,626)71%
3Florida$3,643($1,338)58%
4Arkansas$3,439($1,134)49%
5Texas$3,429($1,124)49%
6Mississippi$3,340($1,035)45%
7Louisiana$3,270($965)42%
8South Dakota$3,172($867)38%
9Nebraska$3,133($828)36%
10Missouri$3,111($806)35%
11Colorado$3,082($777)34%
12Minnesota$3,010($705)31%
13Alabama$2,981($676)29%
14Kentucky$2,862($557)24%
15Montana$2,809($504)22%
16Tennessee$2,692($387)17%
17South Carolina$2,678($373)16%
18North Dakota$2,601($296)13%
19Georgia$2,555($250)11%
20Iowa$2,540($235)10%
21West Virginia$2,486($181)8%
22Indiana$2,423($118)5%
23New Mexico$2,299$60%
24Illinois$2,201$104-5%
25Michigan$2,153$152-7%
26Rhode Island$2,125$180-8%
27Ohio$2,107$198-9%
28Wyoming$2,083$222-10%
29North Carolina$2,009$296-13%
30Arizona$1,976$329-14%
31Connecticut$1,961$344-15%
32Virginia$1,956$349-15%
33Massachusetts  $1,920$385-17%
34Idaho$1,842$463-20%
35New York$1,840$465-20%
36Maine$1,833$472-20%
37Alaska$1,799$506-22%
38New Jersey$1,744$561-24%
39Wisconsin$1,732$573-25%
40Pennsylvania$1,720$585-25%
41Oregon$1,608$697-30%
42Delaware$1,521$784-34%
43Maryland$1,518$787-34%
44Washington$1,514$791-34%
45DC$1,488$817-35%
46Nevada$1,486$819-36%
47New Hampshire$1,455$850-37%
48Utah$1,378$927-40%
49Vermont$1,212$1,093-47%
50California$1,166$1,139-49%
51Hawaii$499$1,806-78%

Insurers review many factors when calculating your home insurance rate. Some of these variables are beyond your control, but you do have some influence over how much you pay for home insurance. By pricing other insurers every few years at least, choosing a higher deductible, making sure you get all the discounts that you can and not filing too many claims, you can do your part to get the lowest insurance rates possible for your home. We'll explain these topics in detail:

How much is homeowners insurance?

The nationwide average annual cost for home insurance for common coverage levels, based on a rate analysis by Insurance.com:

Average Home Insurance Rates by Coverage Level
Average rateDwelling coverageDeductibleLiability
$1,806$200,000$1,000$100,000
$1,824$200,000$1,000$300,000
$2,285$300,000$1,000$100,000
$2,305$300,000$1,000$300,000
$2,694$400,000$1,000$100,000
$2,709$400,000$1,000$300,000
$3,046$500,000$1,000$100,000
$3,056$500,000$1,000$300,000
$3,304$600,000$1,000$100,000
$3,323$600,000$1,000$300,000

What to consider when buying home insurance

When buying a homeowner insurance policy, you decide the coverage amount for the following:

  • Dwelling
  • Liability
  • Medical payments

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%
  • Loss of use – 20%

You also choose a home insurance deductible amount, which applies to claims for damage to your home or belongings, but not if you’re sued or a medical claim is filed by someone injured in your home. Deductibles usually come in the amounts of $500, $1,000, $1,500, $2,000 and $2,500. The higher your deductible, the lower your rate.

You should buy enough dwelling coverage to match the full replacement cost of your home. It's a good idea to get at least $300,000 of liability coverage to ensure sufficient coverage. 

Learning how to calculate your home replacement cost or value is important, because the amount helps you determine how much dwelling coverage to buy. Figuring out an accurate replacement cost can be done by using online tools, calculating it yourself or by hiring an appraiser.

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.

How to find the best home insurance companies

When shopping for home insurance, you want to do more than just compare average homeowners insurance rates. After all, how you’re treated when you file a claim is priceless. 

Insurance.com’s annual Best Home Insurance Companies ranking lists top insurers on customer service metrics. Here are the top-rated home insurance companies for 2021, based on a survey of 2,700 customers, asking them about customer service, claims processing and price:

  1. State Farm
  2. American Family
  3. Liberty Mutual
  4. Allstate
  5. AIG
  6. Safeco
  7. Erie
  8. Auto-Owners
  9. Travelers
  10. Nationwide

 

Factors that affect homeowners insurance cost

Home insurance companies analyze potential risk when devising home insurance rates.

Many factors affect home insurance rates. Here's a look at what impacts home insurance rates:

  • Your home's age -- Older homes have older wiring and plumbing so they are a bigger risk of causing a fire or flooding a basement.
  • Your home's building materials -- Insurers consider a wood-framed home a greater risk than a home made of brick. Fire, wind and pests can cause more damage to a wooden home compared to a brick structure.
  • Your home insurance deductible -- Insurance companies like higher deductibles. A higher deductible means you're less apt to file a claim and will pay more for repairs if you file a claim.
  • Your homeowners insurance discounts -- Insurance companies offer dozens of discounts. Some of the largest discounts include those for having a new home, bundling your home insurance with your auto insurance, and for upgrading your wiring, plumbing and heating. Note: Insurers usually have a cap on the percentage of discounts you can receive. The limit is often set at 30%.
  • Your home's claims history -- The claims history includes both your filed claims and ones that previous owners filed. If you file more than one claim in a 10-year period, you can expect your insurance rates to increase. They'll increase even more if you file more home claims. That could even cause your insurance company to drop you because you're considered too much of a risk.
  • Credit history -- Nearly all states allow insurers to consider a person's credit history when devising a home insurance premium. Insurance companies say that credit history is a good indication as to whether a person will file claims.

Once an insurer compiles that information, it is able to create a home insurance rate. An insurance company first looks at the home's perceived risk, the home's location and the homeowner. An insurer then reviews filed claims and adds surcharges to the rate. They lastly subtract applicable discounts. The result is your home insurance premium.

Location plays an important role in the cost of home insurance

Location is one of the biggest factors in your home insurance rates.

Insurers consider many factors when judging location:

  • Weather (areas that experience more natural disasters will likely have higher premiums)
  • Population density
  • Nearness to an area that could lead to claims, such as woods (fire risk) or dangerous roads or intersections (cars crashing into your living room)
  • Proximity to a fire department and fire hydrant
  • Claims history for the area

Home insurance companies base rates in part by location, which can go well beyond the state level, said Burl Daniel, CPCU, CIC, CRM, Property and Casualty Insurance Expert Witness, in Fort Worth, Texas.

Daniel said that generally speaking, insurers base rates and premiums on a home's COPE:

  • Construction (brick/frame)
  • Occupancy (owner/tenant)
  • Protection (fire department rating)
  • Exposure (residential vs. commercial neighborhood) 

One part of a state might have higher rates because there is more crime. Or another part of the state may have lower rates because severe weather losses are less frequent.

For instance, someone who lives in New England near the ocean might not get as much snow as someone 25 miles inland. So, the person along the coast with less snowfall may pay less due to a lower risk of freeze losses. Or, on the other hand, if that person living right along the coastline may pay more because of increased risk of ocean windstorm-related damage.

"It's not one size fits all," said Daniel.

Living near a full-time fire station with a nearby hydrant plays a role in your home insurance rates. The reason an insurer wants a home near a fire department and hydrant is that there is less chance of your home burning down if you live near a fire station. Having a hydrant nearby also means that firefighters can start battling a house fire faster than if the hydrant is down the street -- or even miles away.

 

Weather-related claims

If you live in the part of the country with brutal, frigid winters, you will likely pay more for your insurance. Not only because rough winters can cause damage from snow and ice, but also frigid temperatures can cause frozen pipes and flooded basements.

Areas prone to wildfires can also have higher rates. Major wildfires aren't just contained to areas that don't get much rain like Southern California. Wildfires have destroyed thousands of acres in the Pacific Northwest and Tennessee in recent years. Those areas will likely see their home insurance rates increase.

Weather-related claims are often the most frequent, according to III. Here are the top five most frequent claims:

  • Theft
  • Wind and hail
  • Water damage and freezing
  • Vandalism and malicious mischief
  • Fire, lightning and debris removal

Water damage and freezing are the highest total dollar amount for claims. The most expensive homeowners insurance claims by incident are:

  • Fire, lightning and debris removal
  • Bodily injury and property damage
  • Wind and hail
  • Water damage and freezing
  • Vandalism and malicious mischief

One way to keep your insurance rates down is to not file claims. That might sound counter-productive. You have insurance so why shouldn't you take advantage of it, right? Wrong.

More claims mean higher insurance premiums and can cause your insurer to drop you. In fact, filing claims will increase your rates more than nearly anything else. 

Insurance.com found in a 2021 homeowners insurance claim analysis that the average percentage rate increases for home insurance claims are as follows:

Average Percentage Rate Increases for Home Insurance Claims
Claim typeAverage % increaseAverage % increase for two claims
Fire29%60%
Theft27%55%
Liability25%52%
Water25%50%
Medical18%34%
Weather16%29%

Here's one way to make sure that you don't file too many claims -- raise your deductible. The deductible is what you have to pay for repairs after filing a claim. The insurance company picks up the rest of the repair costs. An added benefit -- raising your deductible will also decrease your home insurance premium.

If you decide to increase your deductible, make sure you set aside enough money to pay for the higher deductible in case you have to file a claim.

Risky areas to insure a home

Insurance companies review claims from an entire neighborhood when devising rates. Insurers gauge risk by looking at the number of burglaries, vandalism and weather-related claims in an area. Insurance companies usually use zip codes when gauging an area, but your neighborhood and even your street can influence your home insurance rates.

Daniel said insurers may deem a high-crime neighborhood or ones without a nearby full-time fire department and nearby fire hydrants as high risk.

When an insurer perceives higher risk of loss, it may only offer limited policies or policies with limited perils coverage and/or higher deductibles so there is less chance of claims due to increased risk of loss.

If it's bad enough, an insurer can say the risks are too high and may not write a homeowners insurance policy, said Daniel.

Average homeowners insurance rates by state for three common coverage levels

$200,000 dwelling with $1,000 deductible and $300,000 liability

Average Homeowners Insurance Rates
State Average annual rate $ more or less national average $1,824 % difference from national average $1,824
Oklahoma$3,572$1,74896
Kansas$3,174$1,35074
Texas$2,940$1,11661
Florida$2,876$1,05258
Arkansas$2,875$1,05158
Louisiana$2,656$83246
Nebraska$2,636$81245
Mississippi$2,625$80144
Alabama$2,599$77542
South Dakota$2,594$77042
Colorado$2,514$69038
Missouri$2,500$67637
Montana$2,407$58332
Kentucky$2,331$50728
North Dakota$2,314$49027
Tennessee$2,298$47426
Minnesota$2,254$43024
South Carolina$2,057$23313
Iowa$2,027$20311
Georgia$2,002$17810
West Virginia$1,986$1629
Indiana$1,925$1016
New Mexico$1,851$271
Illinois$1,749$75-4
Michigan$1,725$99-5
Ohio$1,612$212-12
Wyoming$1,592$232-13
Arizona$1,529$295-16
Rhode Island$1,516$308-17
Virginia$1,495$329-18
Massachusetts$1,485$339-19
Connecticut$1,478$346-19
Idaho$1,396$428-23
Maine$1,386$438-24
New York$1,374$450-25
North Carolina$1,373$451-25
Wisconsin$1,372$452-25
New Jersey$1,327$497-27
Alaska$1,320$504-28
Pennsylvania$1,319$505-28
Oregon$1,247$577-32
Maryland$1,124$700-38
Washington$1,122$702-38
DC$1,099$725-40
Delaware$1,085$739-41
Nevada$1,083$741-41
Utah$1,064$760-42
New Hampshire$1,058$766-42
Vermont$916$908-50
California$820$1,004-55
Hawaii$365$1,459-80

$400,000 dwelling with $1,000 deductible and $300,000 liability

Average Annual Home Insurance Rates
State Average annual rate $ more or less than national average of $2,709 % difference from national average of $2,709
Oklahoma$4,938$2,22982
Kansas$4,427$1,71863
Mississippi$4,100$1,39151
Florida$3,962$1,25346
Arkansas$3,871$1,16243
Louisiana$3,704$99537
Texas$3,648$93935
Nebraska$3,628$91934
Minnesota$3,578$86932
South Dakota$3,571$86232
Missouri$3,534$82530
Colorado$3,502$79329
Alabama$3,457$74828
Montana$3,232$52319
Kentucky$3,110$40115
Iowa$3,086$37714
South Carolina$3,072$36313
Tennessee$3,063$35413
Georgia$3,035$32612
West Virginia$3,018$30911
Indiana$2,866$1576
New Mexico$2,730$211
Rhode Island$2,656$53-2
Illinois$2,620$89-3
Michigan$2,563$146-5
Ohio$2,496$213-8
North Dakota$2,477$232-9
Wyoming$2,467$242-9
Connecticut$2,410$299-11
North Carolina$2,367$342-13
Massachusetts$2,365$344-13
Virginia$2,323$386-14
Arizona$2,304$405-15
Maine$2,271$438-16
New York$2,256$453-17
Idaho$2,220$489-18
New Jersey$2,174$535-20
Wisconsin$2,149$560-21
Pennsylvania$2,112$597-22
Alaska$2,095$614-23
Oregon$2,004$705-26
Maryland$1,951$758-28
Delaware$1,932$777-29
Washington$1,921$788-29
DC$1,903$806-30
Nevada$1,884$825-30
New Hampshire$1,726$983-36
Utah$1,694$1,015-37
Vermont$1,542$1,167-43
California$1,508$1,201-44
Hawaii$666$2,043-75

$500,000 dwelling with $1,000 deductible and $300,000 liability

Average Home Insurance Rates
State Average annual rate $ more or less than national average rate $3,506 % difference from national average rate $3,506
Oklahoma$5,056$1,55044
Kansas$4,790$1,28437
Arkansas$4,619$1,11332
Mississippi$4,426$92026
Florida$4,287$78122
Louisiana$4,091$58517
Missouri$4,077$57116
Minnesota$4,060$55416
Texas$4,040$53415
South Dakota$4,034$52815
Alabama$3,813$3079
Nebraska$3,801$2958
Colorado$3,674$168)5
Georgia$3,561$552
Iowa$3,532$261
South Carolina$3,497$90
West Virginia$3,462$44-1
Tennessee$3,397$109-3
Indiana$3,265$241-7
Montana$3,232$274-8
Kentucky$3,213$293-8
New Mexico$3,123$383-11
Rhode Island$3,028$478-14
Illinois$3,026$480-14
Michigan$2,960$546-16
Ohio$2,843$663-19
Massachusetts$2,820$686-20
Connecticut$2,808$698-20
Arizona$2,666$840-24
North Carolina$2,655$851-24
New York$2,638$868-25
Virginia$2,618$888-25
New Jersey$2,602$904-26
Maine$2,579$927-26
Idaho$2,575$931-27
North Dakota$2,547$959-27
Pennsylvania$2,538$968-28
Wisconsin$2,494$1,012-29
Alaska$2,482$1,024-29
Maryland$2,425$1,081-31
Delaware$2,411$1,095-31
Wyoming$2,329$1,177-34
Oregon$2,319$1,187-34
DC$2,309$1,197-34
Nevada$2,280$1,226-35
Washington$2,175$1,331-38
New Hampshire$2,076$1,430-41
Utah$2,038$1,468-42
California$1,888$1,618-46
Vermont$1,868$1,638-47
Hawaii$833$2,673-76

Methodology:

Insurance.com in 2020 commissioned Quadrant Information Systems to field home insurance rates from major insurers in each state for nearly all ZIP codes in the country for 10 coverage levels based on various dwelling and deductible limits. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Personal Property defaulted: 50%. Guest Medical limit: $5,000. Personal property: 50% of dwelling coverage for actual cash value.

How to reduce the cost of homeowners insurance?

Homeowners insurance rates vary by state, demographics and even the type of home you live in. However, there are ways to reduce the cost for homeowners insurance:

  • Compare quotes from insurers:Invest time into comparing quotes from several providers before signing anything - both for cost and benefits offered. The ore information you have about what's out there when shopping around, the easier it will become to find insurers that offer great deals. Shop online or ask your friends in order to get recommendations from them.
  • Raise your deductible:The higher you set your deductible in terms for losses under an insurance policy, the lower are monthly premiums and potential out-of-pocket expenses associated with it.
  • Install deadbolts, locks, alarm systems or other devices:The installation of a sprinkler system and fire alarm can help you save money on your home insurance. Many companies will give discounts up to 15% for installing these safety features in addition to smoke detectors, dead-bolt locks, or burglar alarms.
  • Bundle your insurance policies:You can get 5 to 15% off your premium when you buy two or more policies from the same company. You can bundle your home and auto insurance policies, but make sure that this combined rate is less than what it would cost to buy the policies separately.
  • Look for discounts:Check for any discounts you might be eligible for. Some companies offer similar types of discounts to different people, while others vary their offers from state to state and depend on your location for what they will provide you.
  • Improve your credit score:If you want to save money on your homeowners insurance, then having a sound credit history is the way to go. Insurers are becoming more reliant on this information, and it will help cut insurance costs significantly. To maintain a good credit score, make sure to pay your bills on time, avoid getting more credit than you need and keep a low balance.

Frequently asked questions

Can I lower my coverage to decrease my premium?

A homeowner can lower the coverage to decrease their premium, but this is not recommended. By lowering your coverage, you will not get adequate protection. For example, if a tree falls on the house and it does $20,000 worth of damage and you have had full coverage with only $15,000 in damages that would cover the repairs then you would have to pay for the remaining costs. Home insurance rates by state varies but you can find affordable premium if you shop around.

Can I make changes to my home that will lower my insurance cost?

Yes, there are many ways to lower your insurance cost and making your home disaster resistant is one of them. You may be able to save on your insurance premiums by adding storm shutters, strengthening your roof or purchasing sturdy materials. You should also consider streamlining the heating system, electrical system and plumbing in order to lower the possibility of fire and water damage.

How much is home insurance in Texas?

Based on an Insurance.com’s rate analysis, on average the home insurance cost in Texas is $3,429. Home insurance rates by zip code varies and Texas is counted among the states with the highest homeowners insurance rates.

How much is homeowners insurance in California?

Based on the average homeowners insurance by state analysis, the cost of home insurance in California is $1,166. It is one of the five states with least expensive homeowners insurance.

How much should I pay for home insurance?

The amount you pay for homeowners insurance is determined by many factors. And the cost varies depending on the individual, but it typically requires enough dwelling coverage to rebuild one's home and enough personal property protection for their belongings.

What are the largest homeowners insurance companies?

Based on the latest data from AM Best, State Farm is the largest home insurance company, followed by Allstate, USAA, Liberty Mutual and Farmers.

Largest Homeowners Insurance Companies
RankCompanyPremiums writtenMarket share
1State Farm1971703217.84%
2Allstate9,773,4978.84%
3USAA7,362,7476.66%
4Liberty Mutual6,991,2836.33%
5Farmers6,043,8655.47%
6Travelers4,866,3574.40%
7American Family4,442,4674.02%
8Nationwide3,344,1813.03%
9Chubb3,113,1492.82%
10Progressive1,897,2251.72%