Average homeowners insurance rates by state in 2023

The average home insurance rate in the U.S. is $2,777 a year, or $231 a month for $300,000 in dwelling coverage and liability and a $1,000 deductible. The cost of home insurance by state varies, however, in some cases by thousands of dollars.

The most expensive state for home insurance is Oklahoma, at an average cost of $5,317 a year. Hawaii is the cheapest state for home insurance at only $582 a year, on average. Where you live in the state will also make a difference; for example, coastal homes will be more costly than those inland, as a general rule.

Severe weather, building costs and what's included in a standard home policy are all major factors in the cost of home insurance. Differences in each of these factors lead to much variation in the average cost of homeowners insurance by state.

Below, we’ll look at average home insurance rates in each state and explain why some states are more expensive than others.

Homeowners insurance cost by state

The cost of home insurance by state varies a lot because so many factors go into rate calculations. Homeowners in states with a lot of natural disasters, such as hurricanes, hail storms and tornadoes, tend to have the highest home insurance rates. An Insurance.com analysis of 2022 rates from top insurers for nearly every ZIP code in the country.

Oklahoma, Kansas, Nebraska, Arkansas, Texas and South Dakota are the most expensive states for home insurance. Among the least expensive states for home insurance are Hawaii and California.

As you’ll see in the homeowners insurance cost by state chart below, Oklahoma is the most expensive state for home insurance, with a rate $2,540 higher than the national average. While these rates are based on 2022 rates for a coverage level of $300,000 for dwelling and liability coverage and a $1,000 deductible, we'll compare other coverage levels further down the page.

Which state has the highest homeowners insurance rates?

Oklahoma has the highest average cost of homeowners insurance at $5,317. Below, you'll see the top five most expensive states for homeowners insurance. All of these states are prone to severe storms, including tornadoes and hail, causing an increase in home insurance costs.

Which state has the cheapest homeowners insurance rates?

Hawaii is the least expensive state for homeowners insurance, with an average rate of $582. Below are the top five least expensive states for homeowners insurance.

Why is home insurance so cheap in some states? States have different rules regarding what a standard home insurance policy includes. Exclusions or separate deductibles for wind storms are common and have a big impact on the average rate. Standard home insurance policies in Hawaii exclude damage from hurricanes, resulting in much lower average rates.

Compare homeowners insurance rates by ZIP code

Not every part of the state has the same average rates; your ZIP code makes a difference. Our home insurance calculator lets you get a home insurance estimate for your ZIP code at various coverage levels. You'll see the average rate, as well as the highest and lowest, fielded from major carriers.

Comparing homeowners insurance rates is the quickest path to cheaper rates. Choosing a higher deductible, making sure you get all the discounts that you can and not filing too many claims can also ensure you get the cheapest home insurance.

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HOME INSURANCE CALCULATOR

Average home insurance rates in CALIFORNIA

Zip

Dwelling Dwelling coverage pays for the rebuilding or repair of your physical home structure. Choose an amount that would cover the cost of rebuilding your home.

$200,000$300,000$400,000$500,000$600,000 $200,000

Deductible Choose the amount you want to pay out-of-pocket before insurance kicks in. This applies to your dwelling and personal belongings claims.

$1,000 $1,000

Liability Covers the medical expenses of people who are hurt while in your home or on your property, as well as damage you caused to others’ property. Also covers legal fees if you are sued by someone hurt in your home or on your property. Limits of $300,000 or $500,000 are recommended.

$100,000$300,000 $100,000

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94404 - Foster City

Dwelling $200,000, Deductible $1,000 and Liability $100,000.

AVERAGE RATE: $797

HIGHEST RATE: $1,179 LOWEST RATE: $496

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

• METHODOLOGY +

  Methodology ×

  Insurance.com 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%. Guest Medical limit: $5,000. Personal property: 50% of dwelling coverage for replacement value.

Average homeowners insurance rates by coverage level in each state

The cost of homeowners insurance varies not just based on where you live, but on the coverage you choose. In the sections below, we look at several different coverage levels. The dwelling coverage is the replacement coverage for the house itself and has the biggest impact on rates.

All of these rates have a $1,000 deductible and $300,000 in liability.

$200,000 in dwelling coverage by state

Homeowners in Oklahoma pay the highest insurance rates for a policy with $200,000 in dwelling coverage. In comparison, the cost of home insurance is the lowest in Hawaii, at $440 a year for the same coverage limits.

Homeowners insurance on a $300k home

For a homeowners insurance policy with $300,000 in dwelling coverage, Oklahoma has the highest rate at $5,317 and Hawaii has the lowest rate at $582 based on a 2022 analysis by Insurance.com.

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

Homeowners insurance on a $400,000 home

At $400,000 in coverage, the highest annual average rate is $6,387 in Oklahoma, and the lowest annual average rate is $749 in Hawaii.

$500,000 in dwelling coverage by state

Below are the average annual home insurance rates for the dwelling coverage of $500,000 and $1,000 deductible.

How much is homeowners insurance on average?

The average yearly cost of homeowners insurance is $2,777 for a dwelling and liability coverage of $300,000, with a $1,000 deductible, but rates vary by coverage level.

The nationwide average annual rates for home insurance for various coverage levels are shown below.

What to consider when buying home insurance

When buying a homeowners 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. 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.

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.

Best home insurance companies for 2023

When shopping for home insurance, you want to do more than just compare average homeowners insurance rates. After all, the true test of an insurer is customer service and how claims are handled.

Insurance.com’s annual best home insurance companies ranking lists the top national insurers. Here are the top-rated home insurance companies for 2023, based on an analysis of average rates, AM Best ratings, and a survey of insurance customers run by our sister site, Insure.com.

Factors that affect homeowners insurance rates

Many factors affect home insurance rates. They include

• Age. Older homes have older wiring and plumbing, so they are a bigger risk of causing a fire or flooding a basement.
• Building materials. How your home is constructed affects insurance rates.
• Deductible. A higher deductible means lower rates.
• Claims history. The claims history includes both claims you filed and ones that previous owners filed.
• Credit history. Nearly all states allow insurers to consider a person's credit history.

Another thing that can affect rates is 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 upgrading your wiring, plumbing, and heating.

How does location affect homeowners 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, says 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. Another part of the state may have lower rates because severe weather losses are less frequent.

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

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.

Frequently asked questions about home insurance rates

Methodology

Insurance.com, in 2022, 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 an excellent insurance score insuring a new business HO-3 policy for a 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. Content was updated for 2023.

*Some state rates will vary based on the addition of a hurricane deductible and may be much higher when included.