The annual premium for homeowners insurance in the United States is around $1,784, however, this number might vary widely depending on the state in which you live.
According to research conducted by NerdWallet, the average annual premium for homeowners insurance is $1,784, which breaks down to around $149 per month. Having said that, this is only a standard.
A deductible of $1,000 is included in our example policy, in addition to a dwelling coverage limit of $300,000 and a liability coverage limit of $300,000. The amount of coverage you need, as well as the size and location of your property, will determine how much your individual homeowner’s insurance policy will cost.
To provide you with the average cost of homeowner’s insurance in each state as well as in the main cities throughout the United States, we collected pricing data from 150 different insurance firms.
What is the average annual premium for homeowner’s insurance in your state?
Your current neighborhood has a significant impact on the cost of your homeowner’s insurance premiums. Hover your mouse pointer over the state in which you live on the map below to see the typical cost of homeowner’s insurance in that state.
The yearly premiums for homeowner’s insurance may range substantially. According to the findings of our investigation, the annual premium for homeowner’s insurance in several places, such as Hawaii, Delaware, and Vermont, is less than $1,000. In the meanwhile, states such as Oklahoma, Nebraska, and Texas have yearly rates that are on average more than $3,000.
The following table provides the yearly and monthly average costs of homeowner’s insurance for each state.
|
State |
Average annual cost |
Average monthly cost |
|---|---|---|
|
National average |
$1,784 |
$149 |
|
Alabama |
$2,381 |
$198 |
|
Alaska |
$1,266 |
$106 |
|
Arizona |
$1,599 |
$133 |
|
Arkansas |
$3,198 |
$266 |
|
California |
$1,284 |
$107 |
|
Colorado |
$2,340 |
$195 |
|
Connecticut |
$1,284 |
$107 |
|
Delaware |
$796 |
$66 |
|
Florida |
$2,122 |
$177 |
|
Georgia |
$1,980 |
$165 |
|
Hawaii |
$458 |
$38 |
|
Idaho |
$1,043 |
$87 |
|
Illinois |
$2,021 |
$168 |
|
Indiana |
$1,691 |
$141 |
|
Iowa |
$1,642 |
$137 |
|
Kansas |
$3,347 |
$279 |
|
Kentucky |
$2,306 |
$192 |
|
Louisiana |
$2,064 |
$172 |
|
Maine |
$1,089 |
$91 |
|
Maryland |
$1,454 |
$121 |
|
Massachusetts |
$1,261 |
$105 |
|
Michigan |
$1,958 |
$163 |
|
Minnesota |
$2,505 |
$209 |
|
Mississippi |
$2,955 |
$246 |
|
Missouri |
$2,603 |
$217 |
|
Montana |
$2,086 |
$174 |
|
Nebraska |
$4,004 |
$334 |
|
Nevada |
$993 |
$83 |
|
New Hampshire |
$816 |
$68 |
|
New Jersey |
$942 |
$78 |
|
New Mexico |
$1,378 |
$115 |
|
New York |
$1,205 |
$100 |
|
North Carolina |
$1,700 |
$142 |
|
North Dakota |
$1,921 |
$160 |
|
Ohio |
$1,608 |
$134 |
|
Oklahoma |
$3,830 |
$319 |
|
Oregon |
$914 |
$76 |
|
Pennsylvania |
$930 |
$78 |
|
Rhode Island |
$1,156 |
$96 |
|
South Carolina |
$1,896 |
$158 |
|
South Dakota |
$2,490 |
$207 |
|
Tennessee |
$2,816 |
$235 |
|
Texas |
$3,341 |
$278 |
|
Utah |
$874 |
$73 |
|
Vermont |
$854 |
$71 |
|
Virginia |
$1,131 |
$94 |
|
Washington |
$1,126 |
$94 |
|
Washington, D.C. |
$902 |
$75 |
|
West Virginia |
$1,298 |
$108 |
|
Wisconsin |
$1,087 |
$91 |
|
Wyoming |
$1,453 |
$121 |
The following states have the lowest average premiums for homeowner’s insurance:
Approximately $38 per month or $458 per year is the average cost of living in Hawaii.
On average, Delaware residents pay $796 each year, which is about $66 per month.
On average, the state of New Hampshire charges $816 each year, which comes out to roughly $68 per month.
Approximately $71 per month or $854 per year is the typical cost of living in Vermont.
On average, $874 a year, or about $73 per month, in the state of Utah.
The following states have the highest average premiums for homeowner’s insurance:
On average, residents in Nebraska earn $4,004 each year, which comes out to around $334 every month.
On average, Oklahoma residents spend $3,830 each year, which comes out to roughly $319 per month.
On average, $3,347 each year in Kansas, which comes out to roughly $279 every month.
In the state of Texas, the average cost of living is $3,341 per year, or approximately $278 per month.
On average, residents in Arkansas pay $3,198 each year, which comes out to roughly $266 every month.
What is the going rate for homeowner’s insurance in your town?
We conducted a pricing comparison study across the United States’ 20 most populous metropolitan regions to determine the typical cost of homeowner’s insurance in each location. The annual average rent in Dallas was the highest at $3,887, making it the most costly market. In the meanwhile, Las Vegas came in as the most affordable city on the list, with an annual fee of just $1,018 on average.
|
City |
Average annual cost |
Average monthly cost |
|---|---|---|
|
Austin |
$2,321 |
$193 |
|
Charlotte |
$1,221 |
$102 |
|
Chicago |
$2,284 |
$190 |
|
Columbus |
$1,628 |
$136 |
|
Dallas |
$3,887 |
$324 |
|
Denver |
$2,832 |
$236 |
|
El Paso |
$1,727 |
$144 |
|
Fort Worth |
$3,813 |
$318 |
|
Houston |
$3,695 |
$308 |
|
Indianapolis |
$1,930 |
$161 |
|
Jacksonville |
$1,619 |
$135 |
|
Las Vegas |
$1,018 |
$85 |
|
Los Angeles |
$1,472 |
$123 |
|
New York City |
$1,710 |
$142 |
|
Philadelphia |
$1,420 |
$118 |
|
Phoenix |
$1,839 |
$153 |
|
San Antonio |
$2,443 |
$204 |
|
San Diego |
$1,256 |
$105 |
|
San Francisco |
$1,276 |
$106 |
|
San Jose |
$1,114 |
$93 |
Cost of homeowner’s insurance on average among companies
We compared the average premiums charged by the 10 most dominant home insurance providers in the United States, as measured by market share.
With an annual fee that is on average $1,356 less than the other places on the list, Erie took first place. In the meanwhile, Travelers was the most costly option, with a yearly premium of $2,872 on average.
The following table provides an average yearly pricing for homeowner’s insurance from 10 of the most prominent firms. Take into consideration the possibility that certain companies may not provide homeowner’s insurance in your state.
|
Company |
Average annual cost |
Average monthly cost |
|---|---|---|
|
$1,632 |
$136 |
|
|
American Family |
$1,748 |
$146 |
|
American Strategic* |
$2,172 |
$181 |
|
$1,990 |
$166 |
|
|
$1,356 |
$113 |
|
|
$2,066 |
$172 |
|
|
$2,207 |
$184 |
|
|
$1,529 |
$127 |
|
|
$2,872 |
$239 |
|
|
USAA** |
$1,724 |
$144 |
Cost of homeowner’s insurance on average, based on previous claims
If you have made claims on your homeowner’s insurance policy in the past, you should expect to pay a higher premium. The following is an explanation of how submitting a claim might effect the cost of your homeowner’s insurance in the future.
|
Type of claim |
Average annual insurance cost |
|---|---|
|
No previous claims |
$1,784 |
|
Wind |
$1,952 |
|
Water |
$2,127 |
Cost of homeowner’s insurance on average, based on the age of the house
An older house’s maintenance costs and insurance premiums are likely to be higher than those of a modern home for the same reasons that it lacks the safety measures that are included in the latter. Check out the table below to see how the yearly cost of insurance for a new house compares to that of an older home. (The coverage restrictions for each of the three homes were exactly the same.)
|
Date home was built |
Average annual cost |
|---|---|
|
1972 |
$1,809 |
|
1997 |
$1,784 |
|
2021 |
$1,098 |
What components make up the total cost of a homeowner’s policy?
Insurance plans for homeowners often include coverage for the following six common areas:
Dwelling. This covers any damage done to your house by an event that is covered by the policy, like a windstorm or a fire.
Personal belongings and effects. This compensates for lost, damaged, or stolen property.
Different kinds of buildings. This policy protects other buildings on your property, like a shed or fence, that are not related to your primary residence.
If your house is rendered uninhabitable as a result of damage that is covered by your insurance policy, the loss of use provision of your policy, often known as extra living costs coverage, will pay for you to reside elsewhere.
If another person is hurt because of your carelessness or if you accidentally damage their property, you are responsible for paying for the damages.
No matter who was at blame for the accident that occurred on your property, medical payments will cover the associated medical costs.
In what ways are the premiums for homeowner’s insurance determined?
When determining the cost of homeowner’s insurance, insurers take a number of different criteria into consideration. The following are some of the most frequent:
Your house. In addition to the age of your house, the components that went into its construction are another component that will play a role in determining the price of your homeowner’s insurance policy. For instance, the cost of insuring a home constructed of concrete is often lower than the cost of insuring a house made of wood since concrete structures are more fire resistant and sturdier than wooden structures.
One of the most important aspects that determine the cost of your homeowner’s insurance is the neighborhood in which you reside. It’s possible that your premium will be higher if your house is located in a dangerous area or if it’s a long way from the nearest fire station. Living in a region that is prone to natural disasters, like frequent hurricanes or earthquakes, might potentially drive up your premium.
Renovations. It is possible that some renovations, such as modernizing an outdated electrical or plumbing system, may result in reduced premiums for homeowners insurance.
Exceptional qualities. Because of the increased risk of harm that they provide, “attractive nuisances” like swimming pools, trampolines, and other similar features may drive up the premiums you pay for your homeowner’s insurance.
Your ceiling. Home insurance will evaluate not just the current state of your roof but also how it was built. For instance, if your roof is built of metal or slate instead of another material, you can be eligible for a cheaper premium since these materials are less combustible.
Your dog. Your homeowner’s insurance premium can go up if the breed of your dog is one that is considered to be dangerous by the insurance company, such as a pit bull. There is a possibility that the firm may not even be willing to cover you.
Your deductible. A greater deductible will result in a reduced premium for your homeowner’s insurance. According to the findings of NerdWallet’s examination of rates, increasing your deductible from $1,000 to $2,500 may result in an average savings of 12% each year. Be sure to set aside enough money to cover the cost of the deductible in case you end up having to make a claim on the policy.
Your coverage limitations. Your home insurance premiums might increase according to the amount of liability and property coverage you choose.
Your past experiences with credit. Your credit-based insurance score, which is comparable to your FICO score but not exactly the same, may be used by insurers to determine your premiums in most states. Those with a checkered credit history may be required to pay a higher premium for homeowner’s insurance. This is due to the fact that several studies have established a link between having low credit and submitting claims.
For instance, the sample homeowner we used in our rate research has an excellent credit score and would pay an annual premium of $1,784 on average for homeowner’s insurance. A homeowner with bad credit would pay an average of $3,142 for the same dwelling and coverage limitations as a homeowner with good credit, which is an increase of 76%.
In the states of California, Maryland, and Massachusetts, it is illegal to utilize credit to determine the rates of insurance policies covering homeowners, renters, condos, and mobile homes.
Discounts on homeowners’ insurance A great number of insurance companies provide consumers with discounts that might help them pay less for homeowner’s insurance, such as
Multiple policies. You can be eligible for a discount on your home insurance if you bundle it with another policy, like auto insurance, for example.
Equipment for safety and protection. Investing in safety measures for your house, such as smoke detectors, deadbolts, security cameras, and the like, might end up saving you some cash.
Claims-free. Homeowners who haven’t made a claim in a very recent period of time, often within the last three to five years, are eligible for a discount from many different insurers.
How to lower the cost of your homeowner’s insurance
The easiest method to ensure that you are paying the lowest possible price for your coverage is to shop around at least once a year. We strongly advise obtaining price estimates for house insurance from a minimum of three different providers. In order to do an accurate comparison of the three plans, you must first ensure that the coverage limits and deductibles are comparable among them all.
If you don’t feel like doing your own comparison shopping, you may ask an independent agent or broker to do it for you and provide you with the results.
Increasing your deductible and searching for discounts are two more smart things you can do to cut the cost of your homeowner’s insurance policy.