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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Average homeowners insurance cost in February 2023

The average cost of homeowners insurance throughout the United States is $1,428 per year for a policy with $250,000 in dwelling coverage. However, your actual rates may vary depending on a variety of factors.

Updated Feb 01, 2023
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

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How much does home insurance cost in my state?

To get a better sense of what your home policy might cost, it could help to review average home insurance rates in each state. Some states may not face a high risk of natural disasters, for example, while others have a cheaper cost of living that makes it more affordable to rebuild after a claim. Based on Bankrate’s analysis of average premiums across the country, home insurance with $250,000 in dwelling coverage can cost less than $700 per year, as seen in Hawaii, Vermont and Delaware, but cost close to or over $3,000 a year in states like Oklahoma, Kansas and Nebraska. Below is a breakdown of the average cost of homeowners insurance by state.

Learn more: How to estimate the cost of home insurance

Average home insurance cost by state

The average annual home insurance premium for a home with a dwelling coverage amount of $250,000.

State Average annual rate Average monthly rate % difference from national average
Alabama $1,631 $136 14%
Alaska $1,056 $88 -26%
Arizona $1,268 $106 -11%
Arkansas $2,123 $177 49%
California $1,225 $102 -14%
Colorado $2,152 $179 51%
Connecticut $1,244 $104 -13%
Delaware $679 $57 -52%
Florida $1,981 $165 39%
Georgia $1,394 $116 -2%
Hawaii $382 $32 -73%
Idaho $905 $75 -37%
Illinois $1,410 $117 -1%
Indiana $1,225 $102 -14%
Iowa $1,318 $110 -8%
Kansas $3,083 $257 116%
Kentucky $2,009 $167 41%
Louisiana $1,992 $166 40%
Maine $947 $79 -34%
Maryland $1,164 $97 -18%
Massachusetts $1,199 $100 -16%
Michigan $1,527 $127 7%
Minnesota $1,930 $161 35%
Mississippi $1,900 $158 33%
Missouri $1,769 $147 24%
Montana $1,736 $145 22%
Nebraska $2,951 $246 107%
Nevada $889 $74 -38%
New Hampshire $736 $61 -48%
New Jersey $775 $65 -46%
New Mexico $1,789 $149 25%
New York $1,506 $126 5%
North Carolina $1,294 $108 -9%
North Dakota $1,900 $158 33%
Ohio $1,140 $95 -20%
Oklahoma $3,659 $305 156%
Oregon $723 $60 -49%
Pennsylvania $760 $63 -47%
Rhode Island $1,223 $103 -14%
South Carolina $1,172 $98 -18%
South Dakota $2,105 $175 47%
Tennessee $1,755 $146 23%
Texas $1,967 $164 38%
Utah $696 $58 -51%
Vermont $658 $55 -54%
Virginia $887 $74 -38%
Washington $948 $79 -34%
Washington, D.C. $893 $74 -37%
West Virginia $1,125 $94 -21%
Wisconsin $890 $74 -38%
Wyoming $954 $79 -33%

*Rates are for $250,000 in dwelling coverage

 

What are the five cheapest states for homeowners insurance?

The states with the least expensive average annual homeowners insurance premiums are Hawaii, Vermont, Delaware, Utah and Oregon. So, how much should you budget for homeowners insurance in these locations? These states have average premiums that are less than $750 per year, likely due to a relatively low risk of home damage from natural disasters like tornadoes, hurricanes and wildfires. Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average.
 
  • Hawaii: $382 per year — 73 percent below national average
  • Vermont: $658 per year — 54 percent below national average
  • Delaware: $679 per year — 52 percent below national average
  • Utah: $696 per year — 51 percent below national average
  • Oregon: $723 per year — 49 percent below national average
*Rates are for $250,000 in dwelling coverage
 
 

What are the five most expensive states for homeowners insurance? 

The states with the most expensive average annual home insurance premiums are Oklahoma, Kansas, Nebraska, Colorado and Arkansas. In each of these states, the average price of home insurance exceeds $2,000 per year, and in the two most expensive states — Oklahoma and Kansas — homeowners pay over $3,000 per year, on average. The higher rates are likely due to a higher risk of widespread home damage; many of these states are in an area of the country where tornado damage is relatively common. The average cost of homeowners insurance in these states is outlined below.

  • Oklahoma: $3,659 per year — 156 percent above national average
  • Kansas: $3,083 per year — 116 percent above national average
  • Nebraska: $2,951 per year — 107 percent above national average
  • Colorado: $2,152 per year — 51 percent above national average
  • Arkansas: $2,123 per year — 49 percent above national average
*Rates are for $250,000 in dwelling coverage
 
The threat of natural disasters plays a significant role in determining your home insurance cost. The more likely that damage is to occur, the more likely that insurance companies are to have to pay out claims. This means that higher premiums must be charged for companies to have sufficient reserves to handle a large influx of claims. Knowing the risks associated with your state and ZIP code can help you make informed home insurance decisions.
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Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

Leaving so soon? Your custom quotes are just minutes away.

Average cost of home insurance by city

In addition to the state you live in, your individual city may also have an impact on your home insurance rates. Risk factors like weather damage and crime statistics vary by city, as do the costs for materials and labor. Below are the 25 largest cities in the U.S. by population and their average premiums, as provided by Quadrant Information Services. According to our research, Detroit has the highest average annual premium on this list, at $2,544, while San Jose’s average annual premium is the lowest, at $867.

City Average annual rate* Average monthly rate* Percent difference from national average
Los Angeles, CA $1,368 $114 -4%
Chicago, IL $1,570 $31 10%
Houston, TX $1,934 $161 35%
Phoenix, AZ $1,335 $111 -7%
Dallas, TX $2,108 $119 48%
Austin, TX $1,715 $143 20%
Fort Worth, TX $2,090 $174 46%
Columbus, OH $1,157 $96 -19%
Charlotte, NC $1,256 $105 -12%
Indianapolis, IN $1,319 $110 -8%
Seattle, WA $932 $78 -35%
Denver, CO $2,170 $181 52%
Washington, D.C. $893 $74 -37%
Nashville, TN $1,620 $135 13%
Detroit, MI $1,557 $130 9%
Las Vegas, NV $908 $76 -36%
Oklahoma City, OK $4,148 $346 190%
Portland, OR $686 $57 -52%
Memphis, TN $1,911 $159 34%
Baltimore, MD $1,224 $102 -14%

*Rates are for $250,000 in dwelling coverage

How much does home insurance cost by company?

Every insurance company has its own method for determining rates. Some factors that might affect the final premium might be the location and size of your home, claims history, and even credit scores in some states. Based on Bankrate’s analysis of average premiums from carriers that write business in multiple locations for policies with $250,000 in dwelling coverage, the most expensive carriers were Amica, The Hartford and Chubb, while Erie and USAA had the cheapest average home premiums

Compare rates from top home insurance companies across different coverage levels

Home insurance is a many-faceted product and while $250,000 in dwelling coverage may be sufficient for some homeowners, it may not be enough for others or could be too much for others. Your home’s characteristics, your location and local labor costs are among some of the factors that may determine how much you pay for coverage (and how much coverage you need).

Below you will find premium data provided by Quadrant Information Services for different coverage selections. We’ve also included our Bankrate Score to help you understand how these companies ranked based on several metrics, including average rate, J.D. Power customer satisfaction score, financial strength, available digital tools and more. The Bankrate Score is out of a possible 5.0 points.

Caret Down
USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Average annual rate
$969
Average monthly rate
$81
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Average annual rate
$1,462
Average monthly rate
$122
Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Average annual rate
$957
Average monthly rate
$80
Chubb
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$1,775
Average monthly rate
$148
Amica
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$2,996
Average monthly rate
$250
American Family
Rating: 3.13 stars out of 5
3.1
Bankrate Score
Info
Average annual rate
$1,168
Average monthly rate
$97
Nationwide
Rating: 3.22 stars out of 5
3.2
Bankrate Score
Info
Average annual rate
$1,153
Average monthly rate
$96
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$1,340
Average monthly rate
$112
Farmers
Rating: 2.9 stars out of 5
2.9
Bankrate Score
Info
Average annual rate
$1,664
Average monthly rate
$139
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Average annual rate
$1,249
Average monthly rate
$104
The Hartford
Rating: 3.52 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$1,973
Average monthly rate
$164
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Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Average annual rate
$1,208
Average monthly rate
$101
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Average annual rate
$1,794
Average monthly rate
$150
Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Average annual rate
$1,269
Average monthly rate
$106
Chubb
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$2,313
Average monthly rate
$193
Amica
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$4,313
Average monthly rate
$359
American Family
Rating: 3.13 stars out of 5
3.1
Bankrate Score
Info
Average annual rate
$1,464
Average monthly rate
$122
Nationwide
Rating: 3.22 stars out of 5
3.2
Bankrate Score
Info
Average annual rate
$1,519
Average monthly rate
$127
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$1,772
Average monthly rate
$148
Farmers
Rating: 2.9 stars out of 5
2.9
Bankrate Score
Info
Average annual rate
$2,232
Average monthly rate
$186
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Average annual rate
$1,654
Average monthly rate
$138
The Hartford
Rating: 3.52 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$2,452
Average monthly rate
$204
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

USAA
Rating: 3.7 stars out of 5
3.7
Bankrate Score
Info
Average annual rate
$1,440
Average monthly rate
$120
State Farm
Rating: 3.2 stars out of 5
3.2
Bankrate Score
Info
Average annual rate
$2,224
Average monthly rate
$185
Erie
Rating: 3.1 stars out of 5
3.1
Bankrate Score
Info
Average annual rate
$1,601
Average monthly rate
$133
Chubb
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$2,858
Average monthly rate
$238
Amica
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$5,400
Average monthly rate
$450
American Family
Rating: 3.13 stars out of 5
3.1
Bankrate Score
Info
Average annual rate
$1,749
Average monthly rate
$146
Nationwide
Rating: 3.22 stars out of 5
3.2
Bankrate Score
Info
Average annual rate
$1,884
Average monthly rate
$157
Allstate
Rating: 3.5 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$2,205
Average monthly rate
$184
Farmers
Rating: 2.9 stars out of 5
2.9
Bankrate Score
Info
Average annual rate
$2,832
Average monthly rate
$236
Travelers
Rating: 3.3 stars out of 5
3.3
Bankrate Score
Info
Average annual rate
$2,051
Average monthly rate
$171
The Hartford
Rating: 3.52 stars out of 5
3.5
Bankrate Score
Info
Average annual rate
$2,889
Average monthly rate
$241
Powered by Coverage.com (NPN: 19966249)
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.

Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Top five least expensive companies for home insurance

  • Erie: $957 per year — 33 percent below national average
  • USAA: $969 per year — 32 percent below national average
  • Auto-Owners: $1,049 per year — 27 percent below national average
  • Nationwide: $1,075 per year — 22 percent  below national average
  • Travelers: $1,249 per year — 13 percent  below national average
Rates are for $250,000 in dwelling coverage
Advertising Disclosure
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions.
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Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in states where it is licensed. Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.

Quick Facts
Moneybag
$382/year
average savings through Bankrate
Two Thirds
2 out of 3 homes
are underinsured
Insurance Home
1 out of every 20
insured homes makes a claim each year
Circle Check
100% of homes
need insurance before getting a mortgage
See more providers in
Choose from insurers in
Mortgage

Leaving so soon? Your custom quotes are just minutes away.

How much does home insurance cost by coverage amount?

Dwelling coverage is crucial when it comes to home insurance. This is because this is the amount that will be paid out to rebuild your home if it has experienced a covered total loss. A higher dwelling coverage typically results in higher annual premium, but it’s still possible to find competitive premiums from different home insurance carriers. The proprietary rate data below highlights how your dwelling coverage limit could affect your average homeowners premium.
 
Dwelling coverage limit Average annual rate Average monthly rate
$150,000 $975 $81
$250,000 $1,428 $119
$350,000 $1,879 $157
$450,000 $2,343 $195
$750,000 $3,761 $313

Learn more: How much home insurance do you need?

What are other types of home insurance costs?

Home insurance cost by credit tier

In some states, your credit score could be used as an insurance rating factor. Credit scores can be an indicator of risk, as studies show that those with lower credit scores tend to file more claims compared to those with higher credit scores. For this reason, home insurance for people with bad credit is generally more expensive compared to those with average, good and excellent credit scores.

Not all states factor in credit scores, however. California, Maryland and Massachusetts do not allow the use of credit scores for insurance rating purposes. 

Dwelling coverage amount Poor credit Average credit Good credit Excellent credit
$250,000 $3,274 $1,571 $1,428 $1,207

Home insurance cost by claims history

Damaging events can happen to even the most responsible homeowner. If your home was damaged by an event covered by your policy, like wind or fire, has been robbed or someone sues you for injuries sustained at your residence, your home insurance policy could step in to cover the damages. However, a surcharge could be added to your policy at renewal.

Type of claim Average dollar amount of claim paid out* Average annual rate after a claim
Wind $12,000 $1,570
Liability $31,000 $1,749
Theft $5,000 $1,763
Fire $80,000 $1,773
*Based on the Insurance Information Institute’s (Triple-I) estimates of average home claim payouts. Average rates based on a claim filed on a home insurance policy with $250,000 in dwelling coverage.

Home insurance cost by home age

The age of your home is also a factor that home insurance companies consider when determining your premium. Older homes might be more expensive to build back after a loss, especially to bring up to code to modern safety and building codes. Below is a look at how much an average home insurance policy might cost depending on the age of a home. 

Date home was built Average annual rate
1959 $1,748
1982 $1,750
1992 $1,748
2010 $1,669
2020 $1,218

What does home insurance cover? 

Every homeowners insurance policy provides specific protections which help guard against substantial financial loss due to fire, storms, theft, vandalism and legal liability. The most common home insurance coverage types include:

  • Dwelling coverage, equal to your home’s rebuilding cost: This pays for covered damages, up to your dwelling coverage limit, that affect your home’s primary structure and attached structures such as carports or garages. This coverage is typically set at replacement cost value.
  • Other structures coverage, usually 10–20 percent of your dwelling coverage limit: This coverage provides property damage protection for structures not attached to your home, such as a detached garage, driveway, fences or shed.
  • Personal property coverage, usually 50–75 percent of your dwelling limit: This protects the contents of your home, including clothing, furniture and electronics. Within your personal property coverage, you may have additional sublimits. For example, you may only have 10 percent of your personal property coverage for items stored at other locations, and you may have a cap on coverage for certain items, like fine art and jewelry. You may have the option to choose between replacement cost coverage or actual cash value coverage. Replacement cost policies are typically more expensive than actual cash value policies.
  • Personal liability coverage, usually between $100,000 and $500,000: This pays for medical expenses or damage to others’ property if you are legally liable for injuries on your property, incidents that happen away from your property or damage to others’ property. It also covers legal fees if a lawsuit is brought against you by the injured party.
  • Medical payments coverage, usually between $1,000 and $5,000: This covers the medical expenses for someone outside your household who is injured on your property, regardless of fault.
  • Loss of use coverage, usually between 10–30 percent of your dwelling coverage: This provides coverage for additional living expenses should you need to temporarily stay elsewhere while your home is being repaired after a covered claim.

Not every homeowners insurance policy contains the same components. If you are unsure what your policy covers, talk to your agent or insurance company for clarification.

What affects my homeowners insurance rate? 

Insuring your home comes with some risk for an insurance company. Like how cars’ risks are determined on auto insurance, certain types of houses — and houses located in certain areas — create a higher likelihood that the company will have to pay claims. Average home insurance rates vary based on several rating factors. Understanding the most significant factors that impact your home insurance premium might help to guide you when shopping for a home.

Home characteristics

Every home is different, which means insurance companies rate each home on a case-by-case basis. Your home’s specific characteristics will play a role in determining how much you pay for homeowners insurance.

  • Year built: Older houses often cost more to insure because repair costs may be higher than they would for newer homes. Repairing or replacing features such as custom molding, plaster walls and wood floors could require specialists, making these features more expensive to repair in the event of a home insurance claim.
  • Roof condition: The age and condition of a home’s roof play a role in homeowners insurance rates. Older roofs may not withstand windstorms or hail damage as well as newer roofs. Likewise, roof materials can affect your homeowners insurance rate. Some types of roofing material may be more resistant to damage, which could lower your premium, and other types may be more expensive to repair or replace, which could increase your premium.
  • Construction quality: Many homeowners policies do not cover the expense of bringing a home up to the current building code following a claim. Insurance companies typically offer an optional “ordinance or law endorsement,” which can help pay for expenses related to code upgrades made during covered repairs.
  • Special features: Features such as hot tubs and swimming pools can make a home more appealing, but they can also increase homeowners insurance premiums if they raise repair and replacement costs and add liability risks. Homes with recreational features such as a pool, sauna or hot tub might need higher liability coverage in case a guest sustains an injury.

Location characteristics

Geographic location typically impacts your insurance rates because every area of the country has a different risk level for potential damages. Some areas may have a higher risk of wind damage, for example, while other areas of the country often sustain damage from fires.

  • Weather-related risks: Standard homeowners policies generally do not cover flood damage or damage from earthquakes. In fact, some insurance companies do not cover homes in flood zones at all. Other insurance companies sell private flood insurance or offer earthquake coverage in separate policies or endorsements to protect against these types of disasters.
  • Fire risk: According to the Triple-I, structure fires caused over $8.7 billion worth of residential home damage in 2021, the most recent year with available data.  Insurance companies rate homeowners premiums based on proximity to a fire station and fire hydrants because rapid emergency response often minimizes damage.
  • Property crime risk: If you live in a high-crime neighborhood, your insurance rates might be impacted. You may be able to help offset this cost to your premiums by installing additional safety features in your home, such as deadbolts and a security alarm system.

Learn more: What does homeowners insurance cover?

Invest Rate
Recent news:
The home insurance market has faced a number of challenges in 2022. Bankrate stays current on inflation, severe weather and complex challenges, and unfortunately, in at least two states, the home insurance markets have been especially volatile.
 
Inflation and its effect on homeowners insurance
 
  • Inflation is causing the cost of home repairs to increase, which means home insurance rates are increasing. This helps companies ensure they have enough money in their claims reserves to pay out higher losses.
  • Florida’s home insurance market is struggling due to widespread roofing scams and fraudulent lawsuits. These issues place a financial strain on insurance companies, which is causing many companies to pause business, pull out of the market or go insolvent.
  • Hurricane risk is causing home insurance struggles for Louisiana homeowners and insurance carriers operating in the state. In coastal states like Florida and Louisiana, some initial estimates have put the full cost of Hurricane Ian’s damage at $41 to $70 billion.

How to reduce the cost of homeowners insurance

Homeowners insurance is a good way to shield your finances from sudden misfortune, in many cases, but it can have a large impact on your budget. Thankfully, there are ways to save on your homeowners insurance premium, which could help you get the valuable protection you need at a price that works with your wallet. If you need to lower your home insurance bill, consider taking the following steps:

  • Bundle your auto and home policies: Many insurance carriers also offer auto insurance. If you buy your homeowners insurance coverage with the same company that handles your auto policy, you could save on your premiums.
  • Compare home insurance quotes: Shopping around and reviewing homeowners insurance quotes from three or more companies could help you find the coverage you need at the most competitive price.
  • Ask for discounts: In addition to bundling discounts, many companies offer other ways to save, including claims-free discounts, home alarm system discounts and loyalty discounts. If you’re not sure if you qualify, a company representative may be able to help you identify savings opportunities.
  • Choose appropriate home coverage types: Understanding which type of home insurance is right for you, which optional coverage types you need and what policy limits are best for your situation could help you prevent over- or under-insuring your home.
  • Improve your credit score: Most states take your credit into consideration when you purchase home insurance. Homeowners with lower credit scores have a higher statistical likelihood of filing claims and, as such, usually pay higher rates. Improving your credit could lower your premium over time.
  • Work with an independent agent: Working with any licensed insurance professional can be helpful, but independent insurance agents may have a significant impact on your home insurance cost. Independent agents work with numerous companies, which allows them to provide a single touchpoint for you while taking over the legwork of shopping your account.
  • Renovate your home: Some home renovations, like getting a new roof or replacing old, out-of-date electrical or plumbing systems, can help lower your premium. These projects could reduce the risk of home damage, which, in turn, may save you money on insurance.
  • Increase your home insurance deductible: Your deductible is the amount of a claim you are willing to pay out of pocket. Most homeowners insurance policies have a minimum $1,000 deductible, although $500 deductibles may be an option with some companies. The higher your deductible, the lower your premium, but the more you’ll pay out of pocket if you file a claim.

Frequently asked questions

Methodology

Base profile

Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit. Our base profile includes the following coverage limits:
 
  • Coverage A, Dwelling: $250,000
  • Coverage B, Other Structures: $25,000
  • Coverage C, Personal Property: $125,000
  • Coverage D, Loss of Use: $50,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000
Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base), and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.
 
Claims: Rates were calculated based on the following insurance claims assigned to our homeowners: fire ($80,000 loss), liability ($31,000 loss), theft ($5,000 loss) and wind ($12,000 loss).
 
Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: 1959, 1982, 1992, 2010, 2016 (base) and 2020.
 
Various dwelling coverage limits
Bankrate utilizes Quadrant Information Services to analyze 2023 rates for ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
 
  • Coverage A, Dwelling: $350,000, $450,000
  • Coverage B, Other Structures: $35,000, $45,000
  • Coverage C, Personal Property: $175,000, $225,000
  • Coverage D, Loss of Use: $70,000, $90,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required). Depending on your dwelling coverage limit, you may need to have a higher deductible.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.

 

Bankrate Scores

Our 2023 Bankrate Score considers variables our insurance editorial team determined impacts policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories. 
 
Like our previous Bankrate Scores, each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. This year, our 2023 scoring model provides a more comprehensive view, indicating when companies excel across several key areas and better highlighting where they fall short.
 
  • Tier 1 (Cost & ratings): To determine how well auto and home insurance companies satisfy these priorities, 2023 quoted premiums from Quadrant Information Services (if available), as well as any of the latest third-party agency ratings from J.D. Power, AM Best and the NAIC, were analyzed.
  • Tier 2 (Coverage & savings): We assessed companies’ coverage options and availability to help policyholders find a provider that balances cost with coverage. Additionally, we evaluated each company’s discount options listed on its website.
  • Tier 3 (Support): To encompass the many ways a home insurance company can support policyholders, we analyzed avenues of customer accessibility along with community support. This analysis incorporated additional financial strength ratings from S&P and Moody’s and factored a company’s corporate sustainability efforts.
Written by
Cate Deventer
Insurance Writer & Editor
Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent.
Edited by Insurance Editor
Reviewed by Senior wealth manager, LourdMurray