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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
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Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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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.
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 $2,584 annually, 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] 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.
Regional insurers may offer cheaper home insurance rates than national insurers.
Vermont has the cheapest average home insurance rates, while Florida has the most expensive.
Crime rates, weather patterns, and home values affect how much you pay for homeowners insurance.
The cost of homeowners insurance varies among insurance companies. The table below shows average annual premiums for $300,000 in dwelling coverage from some major home insurers, according to Compare.com data.
Insurance Company  | Average Annual Premium |
|---|---|
| Westfield | $1,189 |
| Kemper | $1,339 |
| Hastings Mutual | $1,463 |
| AIG | $1,587 |
| Erie | $1,656 |
| American Family | $1,702 |
| Cincinnati Insurance | $1,870 |
| USAA | $1,954 |
| Foremost | $2,052 |
| State Farm | $2,133 |
| Armed Forces Insurance | $2,158 |
| Travelers | $2,282 |
| PURE Insurance | $2,303 |
| Progressive | $2,355 |
| Allstate | $2,401 |
| Auto-Owners | $2,495 |
| Nationwide | $2,526 |
| Grange | $2,752 |
| Allied | $2,825 |
| Farmers | $2,909 |
| Encompass | $3,111 |
| Chubb | $3,162 |
| Universal | $3,421 |
| Hanover | $4,473 |
| MetLife | $4,678 |
| COUNTRY Financial | $4,722 |
| Shelter | $5,955 |
Westfield has the cheapest average annual rate, at $1,189. Kemper and Hastings Mutual round out the top three cheapest insurers, with rates significantly lower than the nationwide average of $2,584 per year.
Get personalized quotes from top insurers and protect your home.
Homeowners insurance rates also vary by state. While homeowners in Vermont pay only $954 annually for $300,000 in dwelling coverage, Florida homeowners pay an average of $10,675 per year for the same coverage.
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 table 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 $1,982 per year — nearly half of Jacksonville’s average of $3,754. That’s because Jacksonville is densely populated, growing quickly, has more severe weather, and has higher home values.
Let’s look at average annual 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 Annual Premium |
|---|---|
| Atlanta, GA | $3,280 |
| Austin, TX | $3,153 |
| Baltimore, MD | $2,355 |
| Birmingham, AL | $2,646 |
| Buffalo, NY | $1,982 |
| Charlotte, NC | $2,547 |
| Chicago, IL | $2,945 |
| Cincinnati, OH | $1,562 |
| Cleveland, OH | $1,530 |
| Columbus, OH | $3,825 |
| Detroit, MI | $4,420 |
| Hartford, CT | $2,221 |
| Houston, TX | $5,980 |
| Indianapolis, IN | $2,432 |
| Jacksonville, FL | $3,754 |
| Kansas City, MO | $3,140 |
| Los Angeles, CA | $2,525 |
| Louisville, KY | $3,054 |
| Minneapolis, MN | $3,165 |
| Nashville, TN | $2,493 |
| New York, NY | $3,088 |
| Orlando, FL | $5,997 |
| Philadelphia, PA | $2,111 |
| Phoenix, AZ | $2,805 |
| Pittsburgh, PA | $1,265 |
| Raleigh, NC | $2,826 |
| Richmond, VA | $1,691 |
| Salt Lake City, UT | $1,812 |
| St. Louis, MO | $2,682 |
| Tampa, FL | $6,479 |
Your home insurance policy’s dwelling coverage helps cover the cost of rebuilding your home if it’s damaged or destroyed. It’s different from your home’s market value, which includes the land. Your home’s rebuild value depends on its square footage and the current costs of building materials and labor.
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.
Dwelling Coverage Amount | Average Annual Premium |
|---|---|
| $100,000 | $1,215 |
| $150,000 | $1,562 |
| $200,000 | $1,909 |
| $250,000 | $2,246 |
| $300,000 | $2,584 |
| $350,000 | $2,932 |
| $400,000 | $3,280 |
| $450,000 | $3,632 |
| $500,000 | $3,984 |
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 annual premiums by credit tier, according to Compare.com data.
Credit Tier | Average Annual Premium |
|---|---|
| Excellent | $2,455 |
| Good | $2,584 |
| Average | $2,687 |
| Poor | $2,791 |
We found that homeowners with poor credit pay 14% 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.
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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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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:
Tariffs: Construction materials used to rebuild homes have increased because of recent tarriffs. The knock-on effects could increase home insurance rates by 38%, according to Insurify.[9]
Climate change: More frequent and destructive extreme weather events lead to more catastrophic claims, according to the Insurance Information Institute (Triple-I).[10] In response, insurance companies are raising rates, canceling policies, or no longer offering coverage in some states.
Legal system abuse: False or exaggerated damage claims, especially in disaster-prone areas, contribute to rising costs.[11]
Fires: Fire incidents have dropped 54% since 1980, but inflation-adjusted property losses are still 3% higher, according to the National Fire Protection Association (NFPA).[12]
While you can’t control inflation, climate change, or tariffs, you can take steps to lower your home insurance costs.
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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.
Shop around. Comparing home insurance quotes from multiple companies can help you get the coverage you need at the best price.
Compare rates and save money today.
We answered some common questions from homeowners about the average cost of home insurance. Check them out below.
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.
The 80% rule means you must insure your home for at least 80% of its replacement cost to receive full coverage for partial claims.[13] Your insurer may pay only part of the repair costs if you insure it for less than 80%, and you’ll have to cover the rest.
You should insure your home for the full replacement cost to ensure you can rebuild it in case it’s destroyed. Your insurance company should have a valuation tool that can determine the replacement cost value of your home.
Homeowners insurance costs an average of $2,932 annually for a house with $350,000 in dwelling coverage, according to Compare.com data.
Homeowners insurance with $100,000 in dwelling coverage costs an average of $1,215 per year, according to Compare.com data.
Homeowners insurance with $500,000 worth of dwelling coverage costs an average of $3,984 annually, according to Compare.com data.
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Mandy Sleight has over 15 years of insurance knowledge and expertise in auto, home, life, health, pet, supplemental benefits, and other insurance products. She’s a sought-after insurance expert, appearing in Bankrate.com, Moneygeek.com, U.S. News & World Report, Reviews.com, CNET, and other publications, and she's been writing for Compare.com since 2023.
Mandy uses her background and experience working for well-known insurance companies like State Farm and Nationwide Insurance to create engaging and easy-to-understand content that helps readers make smarter insurance choices that have a positive effect on their budgets and finances.
Matthew Gross is an editor at Compare.com. With a background in editing and SEO, he’s passionate about creating content that helps readers get the information they need to make more informed decisions. Prior to Compare.com, Matthew brought his user-centered approach to his work with global brands like Apple and Adobe.
Matthew graduated from Illinois State University, where he earned his bachelor’s degree in Journalism.
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Amica Mutual, Allstate, and Nationwide rank among our top five best home insurance companies for their good customer service scores and coverage options.
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Westfield, Erie, and American Family are among the cheapest home insurance companies, with average annual rates starting at $1,189.
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Homeowners pay an average of $2,584 per year for $300,000 worth of dwelling coverage. Find out how you can save money on your homeowners insurance.
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If you’re new to homeownership or simply seeking a lower rate, these tips will help you compare home insurance quotes and choose the right coverage.
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Many factors determine how much home insurance you need. We explain how to estimate your coverage to protect your home and everything in it.
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