Leslie Kasperowicz is an insurance expert with four years of direct agency experience and over a decade of creating educational content to help insurance shoppers make confident, informed decisions.
John is the editorial director for CarInsurance.com, Insurance.com and Insure.com. Before joining QuinStreet, John was a deputy editor at The Wall Street Journal and had been an editor and reporter at a number of other media outlets where he covered insurance, personal finance, and technology.
A home insurance calculator makes finding the best deal on home insurance easier. To get accurate home insurance quotes, you need to know how much coverage you need.
The average cost of homeowners insurance is $2,601 a year, which is $217 a month, nationwide. That's for $300,000 in dwelling coverage and liability with a $1,000 deductible. That rate is just an average; your coverage needs will be specific to your home, as will your rates.
It's easy to compare sample rates with our home insurance calculator. Just enter your ZIP code and a few coverage basics to see homeowners insurance rates in your area.
Home insurance calculator by ZIP code
Average home insurance rates in Texas
Most & least expensive ZIP codes for homeowners insurance in Texas
What you need to know to use a
home insurance calculator
Choosing coverage
How to estimate home insurance coverage
To get accurate home insurance quotes, you need to understand the coverage you're buying. There are three major parts of a home insurance policy that you need to consider before you start shopping. The one that has the most impact on homeowners insurance rates is the dwelling coverage.
Dwelling coverage
Dwelling coverage on a home insurance policy is the coverage for the house itself (the dwelling). It’s based on a replacement cost calculation and should be enough to rebuild your house at current construction costs. It’s not the same as your home’s market value, which is how much you could sell it for (or how much you paid for it).
There are a few ways to calculate home replacement cost, including online calculators or hiring an appraiser. When you request a quote, the insurance company will create a replacement cost calculation. The more detail you provide about your home, the more accurate it will be.
An accurate dwelling amount is vital to getting the best home insurance quotes and the right coverage; most of the other coverages on your policy are a percentage of the dwelling coverage, so take the time to make sure you have it right and aren't underinsured.
Liability coverage
Homeowners liability insurance pays out when you or a family
member are legally responsible for injuries or property damage to
others. It covers:
Medical and related expenses for injuries to others for which you are responsible
Damage caused to others' property for which you are responsible
Legal fees if you are sued
Judgments resulting from a lawsuit, up to your policy limits.
Experts recommend at least $300,000 in liability coverage; if you have a lot of assets you should consider a higher limit.
Personal property
The other critical coverage is for your belongings. It's
called personal property coverage. It's important to make an inventory of all
the items you own so
that you can determine how much personal property coverage you
need.
Personal property coverage is typically 50% to 70% of your dwelling coverage limits. However, there are special limits on certain types of property. If you have valuable items, such as fine art, musical instruments, or expensive jewelry, you may need an endorsement to cover them.
You should also consider adding replacement cost coverage for your personal property. This covers your belongings for the cost to replace each item new rather than for the actual cash value, which is the depreciated value.
Other home insurance coverage
Your home insurance policy also includes several other coverages.
These are the standard coverages:
Additional living expenses/Loss of use. Loss of use pays
for living expenses elsewhere during repairs from a covered
claim, and is usually 20% of the dwelling coverage.
Other structures. Covers other structures on the property not connected to the house
like garages or sheds, usually at 10% of the dwelling coverage.
Medical payments. Pays medical bills for
injuries on your property regardless of fault.
You may have options to adjust the amount of coverage for each of these, and may also be offered a wide range of optional add-ons for your policy. It’s best to take the time to consider each option.
Comparing quotes
How to compare home insurance quotes
Home insurance rates will vary by company, so it’s important
to know how to compare them.
Make sure you know how much coverage you need and choose a
deductible.
Compare quotes apples-to-apples with the same coverage levels.
Note any added perks that are included at no extra charge from
each insurance company.
Research each company you’re considering to check its
reputation for financial stability, customer service, and claims
satisfaction.
Choose the company with the best combination of price, coverage,
and reputation.
A home insurance calculator is a good way to get started on your
home insurance shopping.
Rating factors
What factors are used to calculate homeowners insurance rates?
Exactly what you pay for home insurance depends on how much coverage
you buy, your homeowner profile and other factors.
Insurance companies take these things into account to calculate home
insurance cost:
The location of your home
The age and size of your home
The building materials used to construct the home
The number and severity of claims in your neighborhood
Your credit history
Your marital status
Risks like a trampoline, pool and some dog breeds
The claims history of the home
The frequency of severe weather and natural disasters in your area
Home insurance FAQs
How much should I expect to pay for homeowners insurance?
Home insurance premiums vary based on location, claims history, risk
and even your credit history. You’ll pay more for home
insurance if you’re in an area with higher claims. That may be
a region with severe weather, such as hurricanes or tornadoes. It
could also be an area with many break-ins and fires. You can get an
estimate of your home insurance rates by looking at the average home
insurance rates for common coverage levels below (rates are with a
$1,000 deductible).
Average rate
Dwelling coverage
Liability
$2,219
$200,000
$100,000
$2,233
$200,000
$300,000
$2,763
$300,000
$100,000
$2,779
$300,000
$300,000
$3,215
$400,000
$100,000
$3,231
$400,000
$300,000
$3,580
$500,000
$100,000
$3,595
$500,000
$300,000
$3,825
$600,000
$100,000
$3,841
$600,000
$300,000
Why is my homeowners insurance quote so high?
While each homeowner’s particular situation is unique, the
following factors can increase home insurance quotes significantly:
You live in an area prone to severe storms (hurricanes, tornadoes,
hailstorms)
There is a history of claims on the house you own
Your home or roof is more than 20 years old
You have bad credit
You have a pool, trampoline wood stove or a certain breed of dog
You live far from the nearest fire station or in a remote location
How can I lower my homeowners insurance rate?
The best ways to lower your home insurance rate is by:
Comparison shopping: No two insurers will price a
policy the same way because they assess risk differently and use
their own formulas for deciding what you pay. You should compare
quotes from at least three insurance companies once a year to be
sure you are getting the coverage you want at the best price.
Maintain good credit: In nearly all states
(Massachusetts, California and Hawaii are the
exceptions) insurance companies are allowed to use your credit
history when setting your rate. If you have good or excellent
credit, you will pay much less.
Apply for discounts:Home
insurance discounts
can net you savings. But you may need to ask for them. While some
discounts rely on factors that are out of your control to a
degree, others are up to you. For instance, you can bundle your
auto and home insurance, sign up for automatic online billing, or
install security and safety systems.
Explore related calculators
If you are budgeting for renters or condo insurance coverage, we also have
an insurance cost estimator for renters insurance and condo insurance.
They work similarly to the home insurance calculator.
The average cost of homeowners insurance in the U.S. is $2,601 a year, putting the average cost of home insurance per month at $217, for $300,000 in dwelling coverage. At that coverage level, Allstate is cheapest at $2,098 annually. Your insurance rate will vary based on where you live and factors specific to your home.
The average cost of condo insurance is $656 a year, or $55 per month. However, costs can vary depending on where you live and how much coverage you purchase. A condo insurance calculator is a useful tool for estimating rates.
You can expect to pay about $22 a month for renters insurance in the U.S. Renters insurance rates are affected more my personal property coverage than by liability. At $40,000 in personal property coverage and $100,000 liability the average cost is $246 a year; for $300,000 in liability the average annual cost is $263.
