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The Cost of Homeowners Insurance by Location
According to data we obtained from Quadrant Information Services, the national average cost of homeowners insurance coverage is $2,511.25 per year. However, due to a variety of local risk factors, the average in your state could be very different.
Whether affected by an elevated crime rate, high risk for extreme weather events or an unusually cheap cost of living, state averages range from $782.00 to $6,325.00 in annual premiums. Interact with the map below to find out what the typical resident of your state pays for home insurance.
The Cost of Homeowners Insurance by Provider
In addition to location, the provider and coverage limits you select can greatly impact your homeowners insurance rates. Your dwelling coverage determines the amount your provider will pay to repair your property after a covered loss. Many providers require you to insure your property for 80% to 100% of its replacement cost. Below are some of our highest-ranking home insurance companies and their national average premiums for various dwelling amounts.
*All sample quotes in this article are based on $350,000 dwelling for a single male homeowner.
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Factors That Impact Home Insurance Rates
Your state, city — even your neighborhood — can affect the cost of your home insurance premium. But location is just one of many factors that roll into your overall perceived risk. Here, we look at other important variables that insurers consider when determining your rates.
Claims History
When you file a claim for a covered loss, your insurance company could pay for most or all of the damages. However, filing that claim will likely increase your rates at renewal. Even if you switch companies, most insurers review the past five to seven years of your claims history with previous providers and charge higher rates if you filed a claim within that time frame. Here’s how much you can expect to pay if you’ve recently filed one of three common claim types:
Credit Score
Like your past claims, your creditworthiness affects your home insurance premiums. In most states, insurance companies can check what’s called a credit-based insurance score, which references portions of the credit score that lenders calculate to help insurance providers calculate your relative risk for filing claims.
Though most states have regulations in place to prevent this from being the sole or major reason for policy denial, it is a contributing factor to determining your policy’s premium, as each insurer weighs credit history differently.
Risks
If you’re having trouble insuring your home, it's probably considered high-risk by most insurance companies. Providers consider a variety of factors about the home and homeowner to determine overall risk level. If you identify with one or more of the following factors, you may have a high-risk home.
The Home
- The Location: Your home is in an area of elevated risk for property crime or natural disasters, such as flooding or hurricanes. Additionally, some states, such as California, are at increased risk for damage from earthquakes.
- Condition: A property that has structural issues or is in disrepair is a red flag to many home insurers.
- High-risk features: Having a swimming pool, trampoline, or other inherently risky feature on your property can increase your premiums or cause you to be denied coverage. These are sometimes referred to as “attractive nuisances,” because they tend to attract curious children who could get injured.
- Age: If you have a historical home with older architectural features or its roof is more than 20 years old, insurers will see it as a higher risk.
- Vacancy: A home that is rarely used could be more susceptible to property crime and undetected maintenance issues that lead to damage, such as a burst pipe. This could lead insurers to consider the property a high risk.
The Homeowner
- Aggressive pets: If your dog is aggressive or has a history of biting, it will increase your perceived risk. Some providers will not insure breeds that are seen as aggressive, such as pit bulls, regardless of your pet’s temperament. Others assess an individual dog's biting history, regardless of breed.
- Excessive claims history: Filing a claim will increase your premiums, but filing several claims in short succession could cause you to be non-renewed by your carrier and have trouble finding another that is willing to insure you.
- Home-based businesses: Depending on the kind of business you run from your home, the high value of business equipment and assets could present increased risk to insurers. They may require a separate policy or endorsem*nt to cover these items.
- Low credit score: In most states, insurers use elements of your credit history to help determine your risk profile.
Dwelling Age
Due to the accumulated years of wear and tear on an older home’s structure, foundation, plumbing, electrical and other major systems, it is more likely to have issues that newer homes don’t. When it comes to making repairs, it can be complicated and expensive to bring outdated structures and systems up to modern building codes. Insurance companies equate older homes with an increased risk of filing a claim and price your coverage accordingly.
The age of your roof is particularly important, as well. A home’s roof is its first line of defense against some weather events, such as severe windstorms, so you’ll get lower home insurance premiums for a new roof than an old one.
Insurance Deductible
All home insurance policies have a deductible, which is the portion of covered losses that the policyholder is responsible for paying before policy benefits kick in. Choosing a higher deductible removes risk from your insurer and reduces your premiums but increases your out-of-pocket costs if damages occur. A lower deductible increases your monthly costs but minimizes your financial risk during a loss.
How Has Inflation Impacted the Cost of Home Insurance?
Insurance premiums are heavily influenced by the cost to repair or replace your home after a covered event. During times of high inflation, the cost of construction materials and labor can rise dramatically — which means home damage will likely be more expensive to repair.
According to the Insurance Information Institute, insurance companies raise premiums to ensure an adequate “policyholder surplus,” which is the amount of money a company must keep in reserve to pay claims.
However, inflation is not the sole cause of rapidly increasing home insurance premiums. Residents of coastal areas already pay a higher cost for home insurance because they are more prone to natural disasters. A combination of high inflation and increasingly frequent natural disasters has resulted in insurers significantly raising premiums for homeowners in such areas.
The problem is further compounded by insurers pulling out of high-risk areas. For example, in July 2023, Farmers stopped selling home insurance in Florida, citing the need to manage its exposure to risk. In theory, fewer home insurance providers in one area can increase demand and put upward pressure on premiums.
How To Save Money on Homeowners Insurance
While you have little control over some factors, such as your home’s location or age, there are other ways to save money on your home insurance premiums.
“By focusing on areas such as deductible amounts and liability limits while keeping a detailed inventory list, these changes can provide substantial savings each year while still protecting yourself against potential financial losses because of unforeseen events beyond one’s control,” said John Espenschied, owner of Insurance Brokers Group.
- Bundle policies: One of the best ways to save money on your homeowners insurance policy is to bundle with another policy from the same carrier, typically car insurance. Bundling can save you anywhere from 5% to 25% on your premiums. If you already have an auto insurance policy and cost is an important factor for you, consider purchasing your home insurance policy with the same company.
- Look for discounts: Most providers offer several other insurance discounts. Some are easier to qualify for, like outfitting your home with security systems or enrolling in automatic payments, while others are more difficult for some to attain, like having a new home or recently purchasing one.
- Make renovations: Although this can be costly up front, insurers will see an updated and repaired home as a lower risk to insure and offer lower premiums. Conversely, you may find yourself paying extra if your home has an older roof or outdated systems.
- Maintain good credit: Although you likely won’t have time to improve your credit when shopping for home insurance, it’s a great thing to keep in mind over time. By gradually improving or maintaining your credit, you may see a discount on your home insurance premiums at renewal.
- Avoid small claims: Filing a home insurance claim, even a small one, is likely to increase your home insurance premiums at your policy’s renewal date. Consider whether reporting a claim is worth this uptick in cost. For example, if a covered loss will cost less than your deductible to replace or repair or you filed a claim within the past few years, you may not want to alert your home insurance provider.
- Compare providers. Not all home insurers calculate risk the same way. If you’re about to purchase home insurance or you already have home insurance but want to save money on your premiums, we recommend getting quotes from several providers to compare prices. In addition to price, compare coverage options, customer reviews and third-party ratings.
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Frequently Asked Questions About the Cost of Homeowners Insurance
Florida is impacted by more hurricanes than any other U.S. state and has a high level of insurance fraud and litigated claims. Because of this high propensity for property damage caused by natural disasters and man-made factors, insurers are either increasing rates or shutting down business in Florida. According tothe latest Issues Brief on the Florida insurance market, Triple-I projects an average statewide increase of 40% or more in 2023.
One reason you could be seeing higher premiums even if you haven’t filed a claim is because “U.S. auto and homeowners insurance premium rates lagged behind the inflation rate in 2020 and 2021,” according to the Insurance Information Institute. According to the Triple-I, home replacement costs have increased a cumulative 55% since 2019. Rising costs for building materials and labor increase the price to replace or repair your property and therefore your insurance premiums.
According to cost data provided by Quadrant, the most expensive states for home insurance are:
- Oklahoma: $6,325.00
- Nebraska: $5,476.00
- Texas $5,137.00
- Kansas: $4,378.00
- Kentucky: $4,257.00
Homeowners insurance will typically not cover flooding or earthquake damage. Flood insurance and earthquake insurance are typically separate policies but sometimes can be added as an endorsem*nt, depending on your insurer. Flood insurance can be purchased from the federally backed National Flood Insurance Program or dozens of private insurers. In California, earthquake insurance can be purchased from the California Earthquake Authority, a specialty insurer.
No, house insurance isn’t cheaper without a mortgage. Your home is vulnerable to the same risks whether you own it outright or are still making payments. Therefore, home insurance providers don’t consider your mortgage status during underwriting.
Other Insurance Resources From MarketWatch Guides
Read our comprehensive guides on the following insurance categories to find top providers and peace of mind that you have all aspects of life covered.
- Leading Pet Insurance Companies
- Top Travel Insurance Companies
- Best Homeowners Insurance Providers
- Leading Renters Insurance Companies
- Affordable Renters Insurance Providers
- Top Term Life Insurance Providers
- Budget-friendly Homeowners Insurance Companies
Cost Methodology
We at the Guides Home Team gathered home insurance quotes for the providers in this article using data from Quadrant Information Services. Quadrant is a leading source of property and casualty insurance solutions and data.
Our sample homeowner is a 40-year-old single male with good credit and no prior claims history. Our sample policies featured a $1,000 deductible and the following coverage and limits:
- Dwelling: $350,000
- Other Structures: $25,000
- Personal Property: $150,000
- Loss of Use: $50,000
- Liability: $300,000
- Medical Payments: $1,000
For each provider, we gathered a quote for 50% of the ZIP codes in every state it is licensed in. We used the most populous ZIP codes for our study. We took the average of these individual quotes to calculate a national average premium per provider. Our sample rates are for informational purposes only. Actual premiums will vary.
Credible Insurance, Inc. d/b/a Credible Insurance Agency (CA Lic. # 0M90597). VA: Credible Insurance Agency, Inc., MN SOS: Credible Cover, Inc.
Sabrina LopezSenior Editor
Sabrina Lopez is an editor with over six years of experience writing and editing digital content with a particular focus on home services, home products and personal finance. When she is not working on articles to help consumers make informed decisions, Sabrina enjoys creative writing and spending time with her family and their two parrots.
Mark FriedlanderAdvisor
Mark Friedlander is Director, Corporate Communications, at the Insurance Information Institute (Triple-I), a New York-based nonprofit research and education organization focused on providing consumers with a better understanding of insurance. Mark serves as a national spokesperson for the Triple-I, handling a wide array of insurance industry media issues. His responsibilities also include spearheading the association’s hurricane season communications strategy and its member company support and media outreach in Florida, where he is based.
