The Average Cost of Homeowners Insurance in 2024
Normal range: $900 - $1,800
Homeowners insurance costs $1,500 on average, depending on the size of the home and the state. Most spend between $900 and $1,800.
Homeowners insurance offers you financial protection should your home incur damage or destruction. It also covers your personal belongings and liability if someone gets hurt on your property. If you have a mortgage, your lender will require you to have home insurance when you transfer the title. The average national cost of homeowner’s insurance is $1,500 per year, but costs vary based on where you live, the value of your home, and other factors. Let’s take a look at how to determine the cost of your homeowners insurance.
- Average
- $1,500
- Low end
- $645
- high end
- $2,100
Average Cost of Homeowners Insurance Near You
The cost of homeowner’s insurance largely depends on the state you live in. Each state has its own laws and weather risks. Here are a few examples of the average cost of homeowners insurance by state.
| State | Cost |
|---|---|
| Alabama | $1,578 |
| Alaska | $1,000 |
| Arizona | $1,600 |
| Arkansas | $2,100 |
| California | $1,088 |
| Colorado | $1,488 |
| Connecticut | $1,200 |
| Delaware | $800 |
| Florida | $1,744 |
| Georgia | $1,370 |
| Hawaii | $862 |
| Idaho | $1,350 |
| Illinois | $1,350 |
| Indiana | $1,200 |
| Iowa | $1,192 |
| Kansas | $2,800 |
| Kentucky | $1,800 |
| Louisiana | $2,000 |
| Maine | $1,000 |
| Maryland | $1,200 |
| Massachusetts | $1,269 |
| Michigan | $1,300 |
| Minnesota | $1,900 |
| Mississippi | $2,150 |
| Missouri | $1,950 |
| Montana | $1,750 |
| Nebraska | $1,865 |
| New Mexico | $1,087 |
| Nevada | $850 |
| New Hampshire | $850 |
| New Jersey | $1,000 |
| New Mexico | $1,450 |
| New York | $1,085 |
| North Carolina | $1,400 |
| North Dakota | $1,900 |
| Ohio | $1,200 |
| Oklahoma | $3,150 |
| Oregon | $800 |
| Pennsylvania | $950 |
| Rhode Island | $1,250 |
| South Carolina | $1,335 |
| South Dakota | $1,900 |
| Tennessee | $1,900 |
| Texas | $2,400 |
| Utah | $750 |
| Vermont | $850 |
| Virginia | $1,050 |
| Washington | $950 |
| Washington, D.C. | $900 |
| West Virginia | $1,050 |
| Wisconsin | $928 |
| Wyoming | $1,200 |
How Much Does Homeowners Insurance Cost Based on Home Value?
The estimated value of your home, also referred to as dwelling coverage, impacts how much you pay each year for homeowners insurance. Here’s the average annual cost based on the value of your home.
| Estimated Home Value | Annual Average Cost |
|---|---|
| $49,999 and under | $645 |
| $50,000 to $74,999 | $748 |
| $75,000 to $99,999 | $826 |
| $100,000 to $124,999 | $888 |
| $125,000 to $149,999 | $937 |
| $150,000 to $174,999 | $981 |
| $175,000 to $199,999 | $1,018 |
| $200,000 to $299,999 | $1,114 |
| $300,000 to $399,999 | $1,272 |
| $400,000 to $499,999 | $1,482 |
| $500,000 and above | $2,148 |
Factors That Affect Home Insurance Costs
Many factors can impact home insurance costs, making it a little confusing to know what to expect. Here are the most common factors to help you navigate potential insurance expenses (and even savings!).
Renovations
Choosing your renovations wisely can actually lower your home insurance costs. Replacing your roof, updating your electrical system, installing a home security system, and investing in storm-resistant upgrades around your home are several examples that can help curb costs.
Pets
Certain dog breeds may increase your home insurance or even result in denied coverage in some locations. A few common breeds include pit bulls, rottweilers, German shepherds, Alaskan malamutes, and wolf-dog hybrids.
Home Material
That wood siding or cedar shakes might not sound as picturesque when you see your homeowner’s insurance. The materials your home’s made out of can also impact how high or low your home insurance will be. For example, homes made from sturdier materials like concrete, brick, or stone tend to cost less to insure than homes made out of wood, which is more prone to pests, water damage, and fires.
Value of Your Home
If your home is worth $300,000, your insurance costs more than if you live in a $170,000 house. That’s because replacing or repairing a higher value home is more expensive. As seen above, you can expect your homeowners insurance payments to increase with your home’s value.
Location and Neighborhood
Where you live plays a key role in the cost of your home insurance. If you're in a high-risk flood, hurricane, earthquake, wildfire, or tornado zone, you'll pay more than if you lived in a mild climate. How far you live from the fire station and the crime rate of your neighborhood also impacts the cost.
Some insurance companies sell separate flood or earthquake insurance policies because not all companies offer coverage for these natural disasters. If you live in an area prone to these types of extreme weather conditions, talk with your insurance provider about your options.
Age of Your Home
Older homes typically cost more to insure than newer homes due to the increased cost of repairs and lack of safety features. For example, repairing custom molding or wood floors in the case of an insurance claim can be expensive. Old aluminum wiring or outdated plumbing can increase the risk of filing a claim.
However, you may be able to obtain a lower homeowners insurance rate if your older home has undergone renovations, such as adding storm-proof windows or updating the electrical systems.
Attractive Nuisances
Certain features in and around your home may be considered "attractive nuisances" and raise your insurance rates. If you have a swimming pool, hot tub, or treehouse, insurance companies take into account that more injuries could happen on your property. These features can also raise the cost of a claim by needing replacement or repair.
Roof Condition
Since your roof is a key protector of your home, the age and condition of your roof can impact your home insurance rates. An older roof (15 to 20 years old) might bump up your costs in comparison to a newer roof.
Getting a new roof can be stressful, but getting your claim fulfilled doesn’t have to be
Coverage Limits
The amount of dwelling coverage (your home’s value) and liability coverage affects your homeowners insurance cost. You also have to pay extra for add-on coverages, such as sewer and drain back-up or an umbrella plan.
Deductible
Your deductible is how much you pay out of pocket for every claim you file. Deductibles typically range from $500 to $2,000 or more. Lower deductibles tend to mean higher premiums.
Claims History
If you've filed a homeowners insurance claim before, your insurance rate might be higher. Your rate may also increase if you live in an area with a high number of claims, such as a location prone to natural weather disasters.
Credit Score
Your credit history can be a factor in your home insurance rate. A high credit score typically means a lower insurance cost, though some states aren't allowed to use credit scores for setting insurance prices.
Discounts
You may be able to get a discount on your homeowner's insurance for any number of reasons. Common discounts include:
Being an active military member, educator, or emergency responder
Being a non-smoker
Paying your premium annually instead of monthly
Having a monitored security system
Living in a gated community
Being a part of a homeowners association
Choosing paperless statements and billing
8 Ways to Save Money on Homeowners Insurance
You can reduce your home insurance costs by taking a few steps. Here are the best ways to lower your home insurance cost:
Bundle your home and auto policies with one insurance company.
Shop around periodically for the best rates for your home.
Increase your deductible (if you have enough in savings to cover the cost should something happen).
Boost your credit score.
Make security and safety updates to your home, such as wind protection or a security alarm system.
Ask for discounts on your insurance policy.
Adjust your insurance coverage level and add-ons.
Avoid filing claims for small incidents that you can pay out of pocket.
FAQ About Homeowners Insurance
How do you choose a homeowners insurance company?
Choose a homeowners insurance company by finding a company that provides coverage in your area, has competitive rates, offers discounts, and has good reviews. You should shop around and request price quotes from multiple companies before making a final decision.
Does home insurance cover appliance breakdowns?
Home insurance usually does not cover appliances that break down due to age or wear and tear, but covers repair or replacement cost under a covered incident. If you have a fire in your home and an appliance gets damaged, your home insurance is likely to cover the costs.