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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Updated
The average homeowners insurance claim costs more than $18,000, yet 24% of Americans have no emergency savings.[1] [2] That’s why you should consider homeowners insurance to protect your home, belongings, and finances against fire, natural disasters, theft, and other costly surprises.
The average homeowners insurance policy with $300,000 in dwelling coverage costs $234 per month, according to Compare.com data. But your personal rate depends on factors like your home’s value, coverage limits, claims history, discounts, and location.
Premiums have risen recently due to inflation and more frequent catastrophic losses,[3] from events like extreme weather and natural disasters. In 2025, severe storms and wildfires caused up to $260 billion in insured losses. Rates are expected to continue climbing, which makes it even more important to understand average costs in your area and other ways to save. To get you started, we’ll break down current home insurance rates, factors affecting your premium, and how to save on your policy.
The average monthly cost of home insurance is $234 for a policy with $300,000 in dwelling coverage, according to Compare.com data.
Florida is the most expensive state for home insurance, with rates averaging $536 per month.
Crime rates, weather patterns, and home values affect how much you pay for homeowners insurance.
Your home insurance policy’s dwelling coverage helps cover the cost of rebuilding your home if it’s damaged or destroyed. Keep in mind that your home’s rebuild value may be different from the purchase price or current market value, since it depends on its square footage and the current costs of building materials and labor. If you don’t carry enough dwelling coverage, you might have to make up the difference out of pocket.
Generally, the more dwelling coverage you need, the more your policy will cost.
But dwelling coverage is just one part of your home insurance. Standard policies also include coverage for personal property, liability, other structures on your property, and living expenses if you’re temporarily displaced.
The table below shows how dwelling coverage limits affect premiums, according to Compare.com data.
Company | Average Monthly Premium |
|---|---|
| Grange | $77 |
| CSAA | $80 |
| Amica | $94 |
| AIG | $106 |
| National General | $109 |
| USAA | $125 |
| Westfield | $125 |
| Foremost | $134 |
| American Family | $135 |
| AFI | $148 |
| Travelers | $148 |
| Allstate | $150 |
| Mercury | $150 |
| Farmers | $158 |
| ASI | $167 |
| State Farm | $180 |
| Auto-Owners | $191 |
| Nationwide | $192 |
| Erie | $197 |
| Encompass | $204 |
| Chubb | $209 |
| Country Financial | $221 |
| Allied | $228 |
| Metropolitan | $250 |
| Shelter | $253 |
Company | Average Monthly Premium |
|---|---|
| Grange | $112 |
| CSAA | $116 |
| Amica | $130 |
| AIG | $143 |
| Westfield | $149 |
| National General | $161 |
| USAA | $166 |
| American Family | $180 |
| AFI | $182 |
| Foremost | $203 |
| Mercury | $203 |
| Allstate | $204 |
| Travelers | $205 |
| ASI | $210 |
| Farmers | $226 |
| State Farm | $230 |
| Auto-Owners | $250 |
| Encompass | $268 |
| Nationwide | $274 |
| Erie | $277 |
| Country Financial | $291 |
| Chubb | $302 |
| Allied | $325 |
| Metropolitan | $354 |
| Shelter | $355 |
Company | Average Monthly Premium |
|---|---|
| Grange | $147 |
| CSAA | $151 |
| Amica | $164 |
| Westfield | $174 |
| AIG | $187 |
| USAA | $203 |
| National General | $216 |
| AFI | $219 |
| American Family | $224 |
| ASI | $258 |
| Mercury | $258 |
| Allstate | $259 |
| Travelers | $260 |
| State Farm | $274 |
| Foremost | $279 |
| Farmers | $293 |
| Auto-Owners | $312 |
| Encompass | $328 |
| Erie | $353 |
| Nationwide | $353 |
| Country Financial | $360 |
| Chubb | $384 |
| Allied | $427 |
| Shelter | $464 |
| Metropolitan | $475 |
Company | Average Monthly Premium |
|---|---|
| Grange | $180 |
| CSAA | $185 |
| Amica | $196 |
| Westfield | $199 |
| AIG | $229 |
| USAA | $240 |
| AFI | $258 |
| American Family | $268 |
| National General | $284 |
| ASI | $300 |
| Allstate | $309 |
| State Farm | $317 |
| Mercury | $320 |
| Travelers | $322 |
| Foremost | $352 |
| Farmers | $371 |
| Auto-Owners | $375 |
| Encompass | $386 |
| Erie | $425 |
| Nationwide | $433 |
| Country Financial | $434 |
| Chubb | $465 |
| Allied | $533 |
| Shelter | $574 |
| Metropolitan | $596 |
Company | Average Monthly Premium |
|---|---|
| CSAA | $267 |
| Grange | $269 |
| Westfield | $272 |
| Amica | $279 |
| USAA | $327 |
| AIG | $337 |
| American Family | $345 |
| AFI | $352 |
| ASI | $400 |
| State Farm | $416 |
| National General | $424 |
| Allstate | $427 |
| Mercury | $459 |
| Travelers | $460 |
| Encompass | $518 |
| Auto-Owners | $523 |
| Farmers | $533 |
| Foremost | $552 |
| Erie | $605 |
| Country Financial | $616 |
| Nationwide | $642 |
| Chubb | $645 |
| Shelter | $838 |
| Allied | $867 |
| Metropolitan | $929 |
The cost of homeowners insurance varies among insurance companies. That’s because each insurer weighs risk factors a bit differently, such as your location, age, credit history, and claims history.
The table below shows average monthly premiums for $300,000 in dwelling coverage from some major home insurers, according to Compare.com data.
Company | Average Annual Premium |
|---|---|
| Grange | $112 |
| CSAA | $116 |
| Amica | $130 |
| AIG | $143 |
| Westfield | $149 |
| National General | $161 |
| USAA | $166 |
| American Family | $180 |
| AFI | $182 |
| Foremost | $203 |
| Mercury | $203 |
| Allstate | $204 |
| Travelers | $205 |
| ASI | $210 |
| Farmers | $226 |
| State Farm | $230 |
| Auto-Owners | $250 |
| Encompass | $268 |
| Nationwide | $274 |
| Erie | $277 |
| Country Financial | $291 |
| Chubb | $302 |
| Allied | $325 |
| Metropolitan | $354 |
| Shelter | $355 |
Westfield has the cheapest average rate, at $149 per month. Kemper and Hastings Mutual round out the top three cheapest insurers, with rates significantly lower than the nationwide average of $234 per month.
Get personalized quotes from top insurers and protect your home.
Homeowners insurance rates also vary by state. Homeowners in Vermont, for example, pay only $924 annually for $300,000 in dwelling coverage. But Florida homeowners pay an average of $6,432 per year for the same coverage, thanks to rate increases after hurricanes Helene and Milton caused severe damage in 2024, resulting in about 300,000 home insurance claims.
Geographical risks play a major role in determining home insurance costs. For example, homeowners in states prone to severe weather pay higher premiums because of the increased likelihood of damage and large-scale claims. And as climate disasters become more frequent, insurers raise rates to keep up with the growing risk in these areas.
Check out the map below for the average homeowner policy costs by state, according to Compare.com data.
State | Average Annual Premium |
|---|---|
| Alabama | $4,317 |
| Alaska | $1,197 |
| Arizona | $2,432 |
| Arkansas | $3,525 |
| California | $1,965 |
| Colorado | $4,779 |
| Connecticut | $2,035 |
| Delaware | $1,254 |
| Florida | $10,675 |
| Georgia | $2,755 |
| Hawaii | $1,164 |
| Idaho | $1,883 |
| Illinois | $2,516 |
| Indiana | $2,068 |
| Iowa | $2,560 |
| Kansas | $3,601 |
| Kentucky | $2,625 |
| Louisiana | $8,372 |
| Maine | $1,266 |
| Maryland | $1,767 |
| Massachusetts | $1,894 |
| Michigan | $2,383 |
| Minnesota | $2,846 |
| Mississippi | $3,758 |
| Missouri | $2,724 |
| Montana | $1,805 |
| Nebraska | $3,779 |
| Nevada | $1,370 |
| New Hampshire | $1,226 |
| New Jersey | $1,339 |
| New Mexico | $3,488 |
| New York | $2,124 |
| North Carolina | $2,359 |
| North Dakota | $2,929 |
| Ohio | $1,485 |
| Oklahoma | $6,081 |
| Oregon | $1,268 |
| Pennsylvania | $1,372 |
| Rhode Island | $2,223 |
| South Carolina | $3,153 |
| South Dakota | $2,871 |
| Tennessee | $2,584 |
| Texas | $4,789 |
| Utah | $1,621 |
| Vermont | $954 |
| Virginia | $1,717 |
| Washington | $1,470 |
| District of Columbia | $1,266 |
| West Virginia | $1,374 |
| Wisconsin | $1,496 |
| Wyoming | $1,740 |
Premiums can also vary between cities, even within the same state. You’ll likely pay higher premiums if you live in an area with high home values, rapid growth, or high crime levels. Severe weather and natural disasters will also increase your rates. On the other hand, if you live somewhere with less crime, slower growth, and fewer storms, you’ll pay lower premiums.
For example, let’s look at Buffalo, NY, and Jacksonville, FL.[4] Despite higher crime rates and heavy snowfall, Buffalo homeowners pay an average premium of $104 per month — nearly half of Jacksonville’s average of $336. That’s because Jacksonville is densely populated, growing quickly, has more severe weather, and has higher home values.
Let’s look at average monthly homeowner insurance premiums for $300,000 in dwelling coverage with a $500 deductible in major U.S. cities, according to Compare.com data.
City | Average Monthly Premium |
|---|---|
| Austin, TX | $38 |
| Boston, MA | $181 |
| Charlotte, NC | $200 |
| Chicago, IL | $283 |
| Dallas, TX | $61 |
| Denver, CO | $411 |
| Houston, TX | $72 |
| Indianapolis, IN | $246 |
| Jacksonville, FL | $155 |
| Las Vegas, NV | $114 |
| Los Angeles, CA | $221 |
| Miami, FL | $592 |
| Mobile, AL | $68 |
| Nashville, TN | $225 |
| New Orleans, LA | $774 |
| New York, NY | $199 |
| Oklahoma City, OK | $74 |
| Philadelphia, PA | $19 |
| Phoenix, AZ | $188 |
| San Antonio, TX | $42 |
| San Diego, CA | $174 |
| San Francisco, CA | $166 |
| Seattle, WA | $132 |
| Tampa, FL | $239 |
| Washington, D.C. | $91 |
In many states, insurers consider your credit history when determining your home insurance premium. Companies use this to predict your likelihood of filing claims, especially costly ones.[5] [6] The lower your credit-based insurance score, the riskier insurers consider you to be and will charge you more for homeowners insurance.
That said, California, Maryland, Massachusetts, and Michigan don’t allow insurance companies to use credit scores in home insurance pricing.[7]
The table below shows average monthly premiums by credit tier, according to Compare.com data.
Credit Tier | Average Monthly Premium |
|---|---|
| Poor | $234 |
| Average | $234 |
| Good | $160 |
| Excellent | $96 |
We found that homeowners with poor credit pay 20% more for insurance than homeowners with excellent credit. But regardless of your credit, you can probably still uncover savings by comparing quotes from as many companies as possible.
Compare personalized quotes from dozens of top insurers.
The cost of homeowners insurance keeps climbing — it’s even rising faster than inflation. Between 2018 and 2022, home insurance premiums outpaced inflation by 9%, according to the U.S. Department of the Treasury.[8]
Several key factors driving the increases include:
Construction materials used to rebuild homes have increased because of recent tariffs. The knock-on effects could increase home insurance rates by 38%, according to Insurify.
More frequent and destructive extreme weather events, known as “billion-dollar weather and climate disasters,” lead to more catastrophic claims. In 2024, for example, losses from climate disasters exceeded $1 billion, according to National Oceanic and Atmospheric Administration (NOAA) data. In response, insurance companies are raising rates, canceling policies, or no longer offering coverage in some states.
False or exaggerated damage claims, especially in disaster-prone areas, contribute to rising costs.
Fire incidents have dropped 54% since 1980, but inflation-adjusted property losses are still 3% higher, according to the National Fire Protection Association (NFPA).
While inflation has cooled somewhat recently, labor and materials costs remain high, contributing to rising home insurance rates.
Insurance companies are paying more for their own insurance, which is passed down to policyholders, according to data from Insurify.
While you can’t control inflation, climate change, or tariffs, you can take steps to lower your home insurance costs.
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Insurance companies consider several factors when determining home insurance costs, including:
Location: Crime rates, natural disaster risks, and local labor and materials costs affect the likelihood that you’ll file a claim and how much the insurer might have to pay.
Claims history: Homeowners with prior claims are typically more likely to file future claims, so they’ll typically pay more.
Home characteristics: The age of your home and appliances, construction materials, and square footage affect how much coverage you need and the likelihood you’ll file a claim.
Discounts: Bundling your home and auto and installing a security system or storm-resistant shutters could lower your premium.
Fire station and hydrant distance: You may pay less for insurance if you live near a fire station or hydrant because it can help reduce damage.
Deductible: You can get a lower rate if you choose a higher deductible. But make sure you have enough savings if you need to file a claim, because you’ll pay more out of pocket.
Roof condition: You could pay more for insurance if your house has an older roof because it provides less protection from the elements and is more likely to be damaged by a storm.
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Some tips to help you save money on homeowners insurance include:
Ask about discounts. Insurance companies don’t always advertise their discounts. Ask your insurer what discounts it offers to find out if you qualify for any.
Improve your credit. Paying your bills on time, avoiding debt, and removing errors on your credit report can help boost your credit score and lower your insurance premium.
Bundle your home and auto insurance. Insuring your house and car with the same company could help you save with a multi-policy discount.
Raise your deductibles. Higher deductibles generally translate into lower insurance premiums. Just be sure you can cover the additional out-of-pocket cost in the event of a claim.
Shop around. Comparing home insurance quotes from multiple companies can help you get the coverage you need at the best price.
Review coverage annually. Reassess your coverage limits and options each year, and adjust coverage if needed. For example, you may need to increase limits if you’ve recently put on a new roof.
We answered some common questions from homeowners about the average cost of home insurance. Check them out below.
The typical monthly cost of home insurance varies widely by insurance company. Other factors, like the home itself, location, your age, your credit history, and claims history, can all affect policy rates.
No. Most insurance companies charge installment fees to bill you monthly, so it’s usually slightly more expensive. You can typically save on homeowners insurance by paying in full for the year.
Climate change and inflation are the main reasons home insurance premiums have gone up recently. Rising construction material and labor costs, as well as more frequent severe weather, have also contributed to higher rates.
It depends. Your home insurance costs will affect your mortgage payment if your lender pays the premium. If you have an escrow account, your mortgage payment includes your homeowners insurance premium. Because of this, your mortgage payment can change if your insurance costs do, too.
Homeowners insurance costs an average of $2,052 annually for a house with $200,000 in dwelling coverage, according to Compare.com data.
Homeowners insurance with $300,000 in dwelling coverage costs an average of $2,808 per year, according to Compare.com data.
Homeowners insurance costs an average of $3,564 annually for a house with $400,000 in dwelling coverage, based on Compare.com data.
Homeowners insurance with $500,000 worth of dwelling coverage costs an average of $4,332 annually, according to Compare.com data.
Homeowners insurance costs an average of $6,204 annually for a house with $750,000 in dwelling coverage, based on our data.
Compare.com data scientists analyzed rates from more than 180 home insurance companies sourced directly from Compare.com’s partner companies and Quadrant Information Services. Rates span all 50 states and Washington, D.C., and quote averages represent the mean price for a given coverage level and geographic area. To ensure data reliability, only insurers meeting minimum quote thresholds were included in the analysis.
Unless otherwise specified, quoted rates reflect the average cost for homeowners with no prior claims and good credit with a home construction year of 1980. The default coverage assumptions include:
Additional data points beyond these default values are sourced from Compare.com’s proprietary database. Rates are updated monthly.
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
At Compare.com, it’s our mission to give you the tools to find the best (and most affordable) insurance for your unique needs and budget. We strive to provide information that’s helpful, clear, and unbiased, and we believe that comparing insurance companies should never put you at risk of spam. Our editorial team — which is made up of experienced writers, editors, insurance agents, and data analysts — has spent thousands of hours researching and creating the coverage overviews, side-by-side comparisons, and detailed reviews you see across our site.
While we make money through partnerships with some of the brands we discuss in our articles, our editorial team operates 100% independently, and these partners never influence or affect the topics, reviews, ratings, or recommendations we provide. We never guarantee favorable reviews or mentions in exchange for compensation from any brands or partners, and we uphold strict editorial standards to ensure our content is always independent, truthful, and unbiased.
