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Average homeowners insurance cost in April 2024

Updated Apr 11, 2024

The average cost of homeowners insurance in the U.S. is $2,151 per year for $300,000 in dwelling coverage. However, your actual rates may vary depending on a variety of factors.

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How much is home insurance?

Based on rate data provided by Quadrant Information Services, the national average homeowners insurance cost is $2,151 per year — about $179 per month — for a policy with $300,000 in dwelling coverage. Insurance is not one size fits all. Coverage and cost vary drastically based on several unique factors, including the age of a home, square footage, cost of building materials and location. Each state has different regulations and natural hazards that also impact the cost of home insurance. Plus, if you have a loan on your home, your financial lender can also have a say in the minimum amount of home insurance coverage you must purchase.

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Key insights from Bankrate's 2024 home insurance rates analysis:

  • On average, the most expensive states for homeowners insurance are Nebraska, Oklahoma and Kansas, while the least expensive states are Vermont, New Hampshire and Delaware.
  • While inflation has slowed down, insurance rates are reactionary. The cost of home insurance is still increasing due to the impact inflation has had on the previous losses experienced by the insurance company, the elevated cost of building materials and the future risk posed by extreme weather. 
  • According to our research, Erie, Auto-Owners and USAA offer some of the lowest average home insurance rates for $300,000 in dwelling coverage.
  • On average, homeowners with poor credit histories pay 171 percent more for home insurance than homeowners with excellent credit.
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Experience is the key to our insight at Bankrate. Licensed agents are a part of our insurance editorial staff, using decades of combined industry knowledge to provide accurate and in-depth content on various insurance subjects. With access to proprietary premium data from Quadrant Information Services, we use our expertise to analyze and transcribe this data into meaningful insights for our readers. The insurance landscape can be confusing, but Bankrate is here with current and accurate information that may help you make effective coverage decisions.

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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 your state. Some states may not face a high risk of natural disasters, 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 home insurance costs, policies with $300,000 in dwelling coverage can cost less than $1500 per year, as seen in Vermont, New Hampshire and Delaware, but cost well over $4,000 a year in states like Oklahoma 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 $300,000.

Caret DownCaret Up
Average annual premium
$2,969
Average monthly premium
$247
Difference from national average
+ $818
Average annual premium
$1,189
Average monthly premium
$99
Difference from national average
- $962
Average annual premium
$2,070
Average monthly premium
$173
Difference from national average
- $81
Average annual premium
$3,019
Average monthly premium
$252
Difference from national average
+ $868
Average annual premium
$1,403
Average monthly premium
$117
Difference from national average
- $748
Average annual premium
$2,988
Average monthly premium
$249
Difference from national average
+ $837
Average annual premium
$1,657
Average monthly premium
$138
Difference from national average
- $494
Average annual premium
$1,026
Average monthly premium
$86
Difference from national average
- $1,125
Average annual premium
$5,770
Average monthly premium
$481
Difference from national average
+ $3,619
Average annual premium
$2,057
Average monthly premium
$171
Difference from national average
- $94
Average annual premium
$1,146
Average monthly premium
$95
Difference from national average
- $1,005
Average annual premium
$1,201
Average monthly premium
$100
Difference from national average
- $950
Average annual premium
$2,079
Average monthly premium
$173
Difference from national average
- $72
Average annual premium
$1,647
Average monthly premium
$137
Difference from national average
- $504
Average annual premium
$1,881
Average monthly premium
$157
Difference from national average
- $270
Average annual premium
$3,914
Average monthly premium
$326
Difference from national average
+ $1,763
Average annual premium
$2,603
Average monthly premium
$217
Difference from national average
+ $452
Average annual premium
$5,710
Average monthly premium
$476
Difference from national average
+ $3,559
Average annual premium
$1,154
Average monthly premium
$96
Difference from national average
- $997
Average annual premium
$1,599
Average monthly premium
$133
Difference from national average
- $552
Average annual premium
$1,606
Average monthly premium
$134
Difference from national average
- $545
Average annual premium
$1,796
Average monthly premium
$150
Difference from national average
- $355
Average annual premium
$2,527
Average monthly premium
$211
Difference from national average
+ $376
Average annual premium
$4,289
Average monthly premium
$357
Difference from national average
+ $2,138
Average annual premium
$2,099
Average monthly premium
$175
Difference from national average
- $52
Average annual premium
$2,311
Average monthly premium
$193
Difference from national average
+ $160
Average annual premium
$5,121
Average monthly premium
$427
Difference from national average
+ $2,970
Average annual premium
$1,257
Average monthly premium
$105
Difference from national average
- $894
Average annual premium
$941
Average monthly premium
$78
Difference from national average
- $1,210
Average annual premium
$1,102
Average monthly premium
$92
Difference from national average
- $1,049
Average annual premium
$2,405
Average monthly premium
$200
Difference from national average
+ $254
Average annual premium
$1,710
Average monthly premium
$143
Difference from national average
- $441
Average annual premium
$2,535
Average monthly premium
$211
Difference from national average
+ $384
Average annual premium
$2,475
Average monthly premium
$206
Difference from national average
+ $324
Average annual premium
$1,460
Average monthly premium
$122
Difference from national average
- $691
Average annual premium
$4,675
Average monthly premium
$390
Difference from national average
+ $2,524
Average annual premium
$1,050
Average monthly premium
$87
Difference from national average
- $1,101
Average annual premium
$1,144
Average monthly premium
$95
Difference from national average
- $1,007
Average annual premium
$1,983
Average monthly premium
$165
Difference from national average
- $168
Average annual premium
$2,320
Average monthly premium
$193
Difference from national average
+ $169
Average annual premium
$2,529
Average monthly premium
$211
Difference from national average
+ $378
Average annual premium
$2,395
Average monthly premium
$200
Difference from national average
+ $244
Average annual premium
$4,039
Average monthly premium
$337
Difference from national average
+ $1,888
Average annual premium
$1,117
Average monthly premium
$93
Difference from national average
- $1,034
Average annual premium
$799
Average monthly premium
$67
Difference from national average
- $1,352
Average annual premium
$1,391
Average monthly premium
$116
Difference from national average
- $760
Average annual premium
$1,316
Average monthly premium
$110
Difference from national average
- $835
Average annual premium
$1,328
Average monthly premium
$111
Difference from national average
- $823
Average annual premium
$1,145
Average monthly premium
$95
Difference from national average
- $1,006
Average annual premium
$1,352
Average monthly premium
$113
Difference from national average
- $799
Average annual premium
$1,327
Average monthly premium
$111
Difference from national average
- $824
Average annual premium
$2,057
Average monthly premium
$171
Difference from national average
- $94
Average annual premium
$1,146
Average monthly premium
$95
Difference from national average
- $1,005
Average annual premium
$1,201
Average monthly premium
$100
Difference from national average
- $950
Average annual premium
$2,079
Average monthly premium
$173
Difference from national average
- $72
Average annual premium
$1,647
Average monthly premium
$137
Difference from national average
- $504
Average annual premium
$1,881
Average monthly premium
$157
Difference from national average
- $270
Average annual premium
$3,914
Average monthly premium
$326
Difference from national average
+ $1,763
Average annual premium
$2,603
Average monthly premium
$217
Difference from national average
+ $452
Average annual premium
$5,710
Average monthly premium
$476
Difference from national average
+ $3,559
Average annual premium
$1,154
Average monthly premium
$96
Difference from national average
- $997
Average annual premium
$1,599
Average monthly premium
$133
Difference from national average
- $552
Average annual premium
$1,606
Average monthly premium
$134
Difference from national average
- $545
Average annual premium
$1,796
Average monthly premium
$150
Difference from national average
- $355
Average annual premium
$2,527
Average monthly premium
$211
Difference from national average
+ $376
Average annual premium
$4,289
Average monthly premium
$357
Difference from national average
+ $2,138
Average annual premium
$2,099
Average monthly premium
$175
Difference from national average
- $52
Average annual premium
$2,311
Average monthly premium
$193
Difference from national average
+ $160
Average annual premium
$5,121
Average monthly premium
$427
Difference from national average
+ $2,970
Average annual premium
$1,257
Average monthly premium
$105
Difference from national average
- $894
Average annual premium
$941
Average monthly premium
$78
Difference from national average
- $1,210
Average annual premium
$1,102
Average monthly premium
$92
Difference from national average
- $1,049
Average annual premium
$2,405
Average monthly premium
$200
Difference from national average
+ $254
Average annual premium
$1,710
Average monthly premium
$143
Difference from national average
- $441
Average annual premium
$2,535
Average monthly premium
$211
Difference from national average
+ $384
Average annual premium
$2,475
Average monthly premium
$206
Difference from national average
+ $324
Average annual premium
$1,460
Average monthly premium
$122
Difference from national average
- $691
Average annual premium
$4,675
Average monthly premium
$390
Difference from national average
+ $2,524
Average annual premium
$1,050
Average monthly premium
$87
Difference from national average
- $1,101
Average annual premium
$1,144
Average monthly premium
$95
Difference from national average
- $1,007
Average annual premium
$1,983
Average monthly premium
$165
Difference from national average
- $168
Average annual premium
$2,320
Average monthly premium
$193
Difference from national average
+ $169
Average annual premium
$2,529
Average monthly premium
$211
Difference from national average
+ $378
Average annual premium
$2,395
Average monthly premium
$200
Difference from national average
+ $244
Average annual premium
$4,039
Average monthly premium
$337
Difference from national average
+ $1,888
Average annual premium
$1,117
Average monthly premium
$93
Difference from national average
- $1,034
Average annual premium
$799
Average monthly premium
$67
Difference from national average
- $1,352
Average annual premium
$1,391
Average monthly premium
$116
Difference from national average
- $760
Average annual premium
$1,316
Average monthly premium
$110
Difference from national average
- $835
Average annual premium
$1,328
Average monthly premium
$111
Difference from national average
- $823
Average annual premium
$1,145
Average monthly premium
$95
Difference from national average
- $1,006
Average annual premium
$1,352
Average monthly premium
$113
Difference from national average
- $799
Average annual premium
$1,327
Average monthly premium
$111
Difference from national average
- $824
*Based on policies with $300k dwelling coverage

What are the five cheapest states for homeowners insurance?

The states with the least expensive average annual homeowners insurance premiums are Union Mutual, American National, Kentucky Farm Bureau, Hastings Mutual and MMG. So, how much should you budget for homeowners insurance in these locations? Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average.

  • Vermont: $799 per year — 63 percent below national average
  • New Hampshire: $941 per year — 56 percent below national average
  • Delaware: $1,026 per year — 52 percent below national average
  • Oregon: $1,050 per year — 51 percent below national average
  • New Jersey: $1,102 per year — 49 percent below national average

*Rates are for $300,000 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 Florida, Louisiana, Nebraska, Oklahoma and Mississippi. In each of these states, the average price of home insurance exceeds $2,800 per year, and in the two most expensive states — Oklahoma and Nebraska— homeowners pay over $4,000 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.

  • Florida: $5,770 per year — 168 percent above national average
  • Louisiana: $5,710 per year — 165 percent above national average
  • Nebraska: $5,121 per year — 138 percent above national average
  • Oklahoma: $4,675 per year — 117 percent above national average
  • Mississippi: $4,289 per year — 99 percent above national average
*Rates are for $300,000 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. Think about it this way: after a severe weather event, it’s likely that many homeowners will file a claim for storm-related damage. To make sure there is enough money in reserve to handle a large volume of claims, insurers tend to charge more expensive rates to homeowners in high-risk weather areas. Knowing the weather-related risks associated with your state and ZIP code can help you make informed home insurance decisions.

Find a great rate on home insurance

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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, Oklahoma City has the highest average annual premium on this list, at $5,443, while Portland, Oregon’s average annual premium is the lowest at $985.
City
Average annual rate
Average monthly rate
Percent difference from national average
Los Angeles, CA $1,792 $149 17 percent less
Chicago, IL $2,560 $213 19 percent more
Houston, TX $5,296 $441 146 percent more
Phoenix, AZ $2,459 $205 14 percent more
Dallas, TX $3,894 $325 81 percent more
Austin, TX $2,333 $194 8 percent more
Fort Worth, TX $4,284 $357 99 percent more
Columbus, OH $1,485 $124 31 percent less
Charlotte, NC $1,632 $136 24 percent less
Indianapolis, IN $1,804 $150 16 percent less
Seattle, WA $1,286 $107 40 percent less
Denver, CO $3,219 $268 50 percent more
Washington, D.C. $1,327 $111 38 percent less
Nashville, TN $2,284 $190 6 percent more
Detroit, MI $3,344 $279 56 percent more
Las Vegas, NV $1,325 $110 38 percent less
Oklahoma City, OK $5,443 $454 153 percent more
Portland, OR $985 $82 54 percent less
Memphis, TN $3,117 $260 45 percent more
Baltimore, MD $1,766 $147 18 percent less
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Other location-specific rate factors
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 standalone policies or endorsements for these types of disasters.
  • Fire risk: According to the Triple-I, structure fires caused around $10.5 billion worth of residential home damage in 2022, the most recent year with available data. Insurance companies assign homeowners premiums based on proximity to a fire station and fire hydrants because rapid emergency response often minimizes damage.
  • Property crime risk: Neighborhoods prone to frequent crime may cause your home to be considered high-risk, which can negatively impact your insurance rates. Depending on the discounts available with your insurance carrier, installing additional safety features in your home, such as deadbolts and a security alarm system, may help you offset the higher premium.  

How much does home insurance cost by company?

Home insurance is a multi-faceted product with many factors influencing your policy premium. Aside from location, claim history, square footage and several other rating factors, the amount of coverage you purchase and the company you choose may also impact the price of your policy. While $300,000 in dwelling coverage may be appropriate for some homeowners, it could be insufficient or too high for others. Some home insurance companies may use the age of your roof as a strong rating factor while others are more concerned with your home's proximity to the fire department.

Based on Bankrate’s analysis of policies with $300,000 in dwelling coverage, the most expensive carriers were Farmers, Chubb, and Allstate while Erie and USAA had the cheapest average home premiums for this coverage amount. Below you’ll find premium data provided by Quadrant Information Services for different coverage selections from some of the largest carriers by market share.

Caret Down
Insurance company Average annual rate Average monthly rate
$1,442
$120
$1,774
$148
$1,633
$136
$3,578
$298
$1,863
$155
$1,662
$138
$1,813
$151
$2,326
$194
$2,525
$210
$2,092
$174
$1,662
$138
$1,813
$151
$2,326
$194
$2,525
$210
$2,092
$174
Insurance company Average annual rate Average monthly rate
$1,602
$134
$1,962
$163
$1,766
$147
$3,806
$317
$2,056
$171
$1,832
$153
$2,049
$171
$2,564
$214
$2,906
$242
$2,382
$198
$1,832
$153
$2,049
$171
$2,564
$214
$2,906
$242
$2,382
$198
Insurance company Average annual rate Average monthly rate
$1,920
$160
$2,380
$198
$2,060
$172
$4,206
$351
$2,455
$205
$2,164
$180
$2,536
$211
$3,186
$266
$3,652
$304
$2,916
$243
$2,164
$180
$2,536
$211
$3,186
$266
$3,652
$304
$2,916
$243

Top five least expensive companies for home insurance

  • Erie: $1,633 per year — 24 percent less than the national average
  • USAA: $1,442 per year —  33 percent less than the national average
  • Auto-Owners:  $1,410 per year — 34 percent less than the national average
  • Nationwide:  $1,813 per year — 16 percent less than the national average
  • Travelers:  $2,092 per year —  3 percent less than the below national average
*Rates are for $300,000 in dwelling coverage

Our industry experts weigh in

What are some indicators that it’s a good time to shop around for a new home insurance policy?


Senior wealth advisor at Versant Capital Management

“It may be a good time to shop around if you are questioning your premium costs, are unhappy with your insurer’s service or you simply know you may be able to get the same coverage at a lower cost with a different insurer due to a discount like bundling or some other factor.”

What affects my homeowners insurance rate?

The purpose of insurance is to share financial risk with another entity (an insurance provider), making a potential loss more manageable for the policyholder. Factors that increase or decrease the amount of risk the insurance company assumes can heavily influence insurance premiums. Understanding the most influential factors that impact your home insurance rates may help you save money when purchasing a new home or starting a policy with a new insurance provider.

Average home insurance cost by dwelling coverage amount

Dwelling insurance — also known as coverage A — is the limit your insurance company will pay to repair or rebuild your home when damaged by a covered peril. Having the appropriate level of coverage may help financially protect one of your biggest financial assets. If you have a mortgage on your home, your financial lender may have certain minimum dwelling coverage requirements you must fulfill as a condition of your loan.

It is also important to note that other parts of your insurance policy, such as other structures, personal property and loss of use — typically listed as coverage B, C and D, respectively — are based on percentages of the dwelling coverage. For example, if you have $200,000 worth of insurance for dwelling coverage, you probably have $20,000 or 10 percent of coverage A allotted for other structures coverage. Depending on your state, you may also have separate deductibles for wind or other storm damage. That additional deductible will also likely be calculated as a percentage of your dwelling coverage.

While selecting lower coverage limits may save you some money on your policy premium, it may undercut the coverage you need throughout the rest of your policy. The proprietary rate data below highlights how dwelling coverage limits affect average homeowners premiums.

 

Learn more: How much home insurance do you need?

$150,000
Average annual rate
$1,274
Average monthly rate
$106
$300,000
Average annual rate
$2,151
Average monthly rate
$179
$350,000
Average annual rate
$2,450
Average monthly rate
$204
$450,000
Average annual rate
$3,046
Average monthly rate
$254
$750,000
Average annual rate
$4,824
Average monthly rate
$402

Average home insurance cost by credit rating

In most states, your credit history could be used as an insurance rating factor. Depending on where you live, home insurance companies will generally review your credit history when you apply for a quote. This is because credit history can be an indicator of risk — studies show that those with lower credit scores tend to file more claims compared to those with higher credit scores. As a result, home insurance for people with bad credit is generally more expensive compared to those with average, good and excellent credit scores. If you own your home with a partner, their credit history may also impact your rates. 

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

Poor Credit
Average annual rate for $300,000 coverage
$4,973
Average Credit
Average annual rate for $300,000 coverage
$2,362
Good Credit
Average annual rate for $300,000 coverage
$2,151
Excellent Credit
Average annual rate for $300,000 coverage
$1,837
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Does marital status impact home insurance rates?

For both home and auto insurance, carriers usually place shoppers who are married or in a recognized domestic partnership in a lower-risk group. This is because married couples tend to file fewer claims. Therefore, may receive slightly lower premiums. 

However, if your spouse has other personal rating factors that may negatively impact your rates, like a poor credit history, owning and insuring a home together may increase your premium. If homeowners divorce and update their policies, their insurance rates may change for several reasons, including individual rating factors and the change in marital status itself. If the change in marital status impacts the premium, it will likely happen at the next renewal.

Average 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, fire or theft, 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 $11,650 $2,254
Liability $30,324 $2,286
Theft $4,415 $2,301
Fire $77,340 $2,299
*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 $300,000 in dwelling coverage.

Average home insurance cost by deductible amount

Your deductible is another factor that can impact the cost of your home insurance. Generally, the higher your deductible, the lower your rate. When you set a high deductible, you take on some of the risk that would otherwise be transferred to your homeowners insurance company. In turn, your carrier will usually offer you a cheaper premium. 

A high deductible means higher out-of-pocket expenses in the event of a covered claim, so choosing a deductible you can comfortably pay with no warning is essential. While selecting a high deductible can be a valid cost-saving measure for some homeowners, others might experience financial hardship if they need to file a claim and can’t afford their deductible. Additionally, your lender may issue maximum deductible limits under the terms of your loan.

To provide a baseline, below you’ll find average rates for some of the most common home insurance deductible amounts:

$1,500
Average annual rate for $300,000 in dwelling coverage
$2,094
$2,000
Average annual rate for $300,000 in dwelling coverage
$1,969
$5,000
Average annual rate for $300,000 in dwelling coverage
$1,760

Average 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 if you need to bring them up 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.

1959
Average annual rate
$2,650
1982
Average annual rate
$2,663
1992
Average annual rate
$2,655
2010
Average annual rate
$2,456
2020
Average annual rate
$1,850
*Rates are for $300,000 in dwelling coverage.

Average home insurance cost by 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.

  • Roof condition: The age and condition of a home's roof impact the cost of home insurance rates. Insurance companies can charge more for a home with an older roof since it is more susceptible to windstorms and hail damage than a newer one. Some providers have age restrictions and only offer insurance to homeowners with roofs under a certain age, usually between 15 and 20 years old or newer. Roofs beyond 20 years old can typically qualify for actual cash value coverage, which is more affordable but has a lower claim payout.
  • Construction materials: Roofs and exterior walls constructed of materials with higher fire ratings or are more wind resistant, like metal roofs or brick structures, may qualify the policy for additional discounts. On the other hand, special features, like a cedar shingle roof, marble tile or antique woodwork can have higher replacement value due to the cost of materials, availability and the skilled labor needed for repairs.
  • Increased liability concerns: Attractive nuances features like swimming pools, trampolines and even playground equipment can increase your liability as a homeowner. If you have any of these features, your insurance company can raise your rate to account for the additional risk and require additional safety measures, such as a fence with a lock. Certain dog breeds can also be a liability risk that results in a higher premium. Some insurance providers require dogs to complete a certified training course to lower the risk of a dog bite lawsuit.

How to estimate the cost of insurance

Ultimately, the goal of home insurance is to help you rebuild your home and replace your personal property after a covered claim. The best way to estimate your home insurance cost is by getting an accurate account of how much coverage you need in the event of a total loss and evaluating your level of risk. To calculate how much coverage you need, you will need the following information:

  • Estimate the replacement cost value (RCV) of your home
  • Estimate the replacement cost of any detached structures on your property, such as sheds, fences and garages
  • Estimate the cost to replace your personal property. This includes any items not permanently attached to your home, from clothing and furniture to appliances and electronics

Next, take a look at what additional risk can impact your home. These risks can take the form of liability concerns or potential physical hazards. Reviewing coverage concerns with your agent, along with estimates of the values noted above, will help you get an accurate estimate of homeowners insurance from multiple carriers.

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Keep in mind

Here are some talking points you can keep in mind when speaking with your agent. Having specific questions ready ahead of time will help your agent quickly identify the appropriate endorsements and liability limits. 

  • Do you have a dog?
  • Do you have a swimming pool, trampoline or any other attractive nuisance on your property?
  • Do you frequently entertain guests in your home?
  • Do you have a home-based business?
  • Do you have any personal items or collections that need special coverage, such as jewelry, art, furs or valuable stamps?
  • Do you live in a moderate- to high-risk area prone to floods, earthquakes or wildfires?

 

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. Common expenses covered are lodging, food and laundry services.

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.

How are home insurance rates changing?

Generally, home and auto insurance premiums have been increasing post-pandemic, partly due to inflation. As building material prices and labor costs continue to rise, home insurance carriers must raise premiums to cover their increased claims expenses.

Also, according to Triple-I, the effects of climate change may directly impact home insurance costs. Damage from wildfires, tornadoes, hurricanes and floods costs more each year, causing some insurance companies to limit their coverage in high-risk areas. The National Centers for Environmental Information recorded 60 natural disasters over the past three years that caused over $1 billion dollars in damage each. After adjusting for inflation, damage from billion-dollar disasters from the past three years averages out to $149.2 billion per year.

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: Most insurance companies offer a discount to homeowners who also insure their cars with them. You may save even more if you need other insurance products, such as motorcycle, RV or even life insurance, where available. 
  • Compare home insurance quotes: Shopping around and comparing homeowners insurance quotes from three or more companies could help you find the coverage you need at the most competitive price. However, if a company offers a rate drastically lower than what you are currently paying, ensure all coverage levels and deductibles are the same.
  • Ask for discounts: Bundling is not the only way to save. Insurers generally have multiple discounts you can apply to your policy. For instance, if you remain claims-free for a certain period of time, you may be able to lower your premium. Or, if you install a home security system, your insurer may offer a discount. Speaking with a representative from your home insurance company can be a good way to help you identify any new 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. Consider contacting your insurance agent and asking for a policy review when your credit score has moved into a better placement — this may drastically lower your policy premium.
  • Work with an independent agent: Independent insurance brokers usually charge a brokerage fee on top of your home insurance premium. However, they work with several carriers and only make money by keeping you as a customer. This creates an incentive for them to work hard to find you the best policy, which could save you more than when working with a direct carrier.
  • 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.
  • Green discounts: Some insurance companies offer discounts to homeowners that make eco-friendly home improvements. Energy efficient homes may be eligible for a Leadership in Energy and Environmental Design (LEED) discount as well as qualify for certain tax credits and incentive programs. These options vary by state and carrier.
  • Increase your home insurance deductible: Your deductible is the amount of a claim you are financially responsible for. 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. If you are considering raising your deductible to save money, experts recommend speaking with an agent to talk through all your options.

Frequently asked questions

Methodology

Base profile

Bankrate utilizes Quadrant Information Services to analyze April 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:

  • Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
  • Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
  • Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
  • Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
  • Coverage E, Liability: $500,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply. 

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

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 in losses), liability ($31,000 in losses), theft ($5,000 in losses) and wind ($12,000 in losses).”

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.

Bankrate Scores

Our 2024 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. 
5
Rating: 5 stars out of 5
Overall Score
  • Cost & ratings 50%
  • Coverage & savings 30%
  • Support 20%
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.
Savings

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Written by
Shannon Martin
Writer, Insurance

Shannon Martin is a licensed insurance agent and Bankrate analyst with over 15 years of experience in the industry. She enjoys helping others navigate the insurance world by cutting through complex jargon and empowering readers to make strong financial decisions independently.

Edited by Editor II, Insurance
Reviewed by Senior wealth advisor at Versant Capital Management