Our research on the average cost of homeowners insurance included more than 100,000 quotes from dozens of companies for every zip code in the us. uu. we saw average premiums as low as $20 per month and as high as $390 per month, with a national average of $146 per month. For information on the origin of our numbers, consult our methodology.
average cost of homeowners insurance by state
Insurance companies consider many factors when determining their rates, including your state’s risk profile. For example, Florida’s climate puts it at higher risk from hurricanes, which is reflected in the state’s higher premiums.
The chart above can help you get an idea of the average cost of homeowners insurance across the country so you know what to expect when shopping for homeowners insurance. Find your state in our state guide to learn more.
average cost of homeowners insurance by amount of coverage
The cost of homeowners insurance changes depending on the coverage you choose. We analyzed thousands of quotes for five different amounts of homeowners coverage, which is the amount for which the structure of your home is insured. We use homeowners coverages ranging from $200,000 to $500,000 while we collect the quotes. here are some selected values:
Higher amounts of homeowners coverage raise homeowners insurance rates because the insurance company must be prepared to pay more in the event of a loss. keep in mind that your housing amount is the cost to rebuild your home, not the market value of your home. think of it as the value of your home minus its location. the amount of your housing depends on the materials of your home, its size and local labor costs.
average cost of homeowners insurance by deductible
Your deductible is the amount of money you pay out of pocket after a loss and before your homeowners insurance kicks in to cover the rest. So, if your insurance company approves a claim for $5,500 and you have a $1,000 deductible, you’ll pay $1,000 out of pocket and your insurance will cover the remaining $4,500.
According to our numbers, raising your deductible from $1,000 (a common amount) to $2,000 can save you $197 a year. For that $1,000 deductible savings to make sense, you’d have to go a little over seven years without a claim to justify the $197-a-year savings.
You should be prepared to pay your deductible at any time. For example, if your deductible is $2,000, you should have that cash on hand at all times in case you experience a loss.
average home insurance premium by company
chubb offers the cheapest average home insurance premium of the companies we surveyed at $1570 per year. We looked at the average rates from some of the largest home insurance companies. here’s how they compare to chubb.
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. your rates may vary. **usaa is only available to military, veterans and their families.
average home insurance rates by city
we analyzed rates in the 10 largest cities in the us. uu. to find the average cost of homeowners insurance in each city. Among the most populous cities, Dallas has the highest median homeowners insurance rate at $4,342 per year, followed by Houston at $3,236 per year.
what does home insurance cover?
There are six coverages in a standard homeowners insurance policy, all of which influence the cost of homeowners insurance. You can lower your home insurance premium by lowering coverage limits or paying more for more protection.
how to calculate your homeowners insurance rate
According to our data, the most important factor in determining how much you’ll pay for home insurance is the amount of coverage on your home. To estimate how much you’ll pay, you need to follow two steps: first, get your benchmark rate by calculating how much home coverage you need, and second, raise or lower your benchmark rate based on your state’s risk.
Get your base rate based on your home coverage by consulting our home insurance cost by home amount calculation. Once you have this benchmark, adjust your premium up or down based on the percentage listed for your state in our cost-by-state table.
how to save on home insurance
There are several ways to lower your home insurance premiums, including switching companies, combining policies, and increasing your deductible.
factors that affect the cost of home insurance
Insurance companies consider many variables, or rate factors, when setting premiums. you can think of them in three buckets: the characteristics of your home, your location, and your personal profile. here are some important ones:
If you want to lower your premium, you can improve your credit score and reduce the number of claims you file. The number of claims you have made in the past can affect your risk status and therefore your home insurance premium. Additionally, many insurance companies have higher rates or may even deny coverage to homeowners with certain breeds of dogs known to bite.
Insurance companies track many of these factors, such as crime rates and the value of your home. but if someone moves or moves, or upgrades a part of their home, we recommend that you let your insurer know. Some factors can lower your rates and others can increase them, but either way, you and your insurer should be on the same page before a disaster.
Most common home insurance losses
Property damage accounts for more than 97% of all homeowners insurance claims, and liability claims account for just under 3%. of property claims, wind, hail, fire and lightning are the most common.
frequently asked questions
how much does homeowners insurance cost?
Homeowners insurance costs an average of $1,754 a year, according to our study.
what determines the cost of homeowners insurance?
Many factors, including where you live, the risk level of your home and the amount of coverage you purchase, affect the cost of homeowners insurance. our study found that the coverage and location of the home are some of the most important factors.
How much home insurance do I need?
Your particular situation determines how much homeowners insurance you need. Generally, you’ll need enough homeowners coverage to cover the cost of rebuilding your home and enough personal property protection to cover your belongings.
methodology
We collect quotes from every zip code in all 50 states. the following coverages were used:
- $275,000 home coverage (unless otherwise noted)
- $27,500 other structures
- $137,500 personal property
- $55,000 loss of use coverage
- $100,000 liability
- $5,000 medical payments
- $1,000 deductible (unless otherwise noted)
- american family
- statewide
- farmers
- at the national level
- state farm
- travellers
- united states
We use the largest carriers in each respective state to reflect local homeowners insurance markets. while there are too many to provide a complete list, here are some of the more popular providers we use:
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