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Average homeowners insurance cost in July 2024

Updated Jul 01, 2024

The average cost of homeowners insurance in the U.S. is $2,230 per year for $300,000 in dwelling coverage. However, your actual rates may vary depending on several 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 $2,230 per year — about $186 per month — for a policy with $300,000 in dwelling coverage. However, insurance is not one size fits all. Coverage and cost vary drastically based on several factors like the age of a home, square footage, cost of building materials and location. Plus, insurance is regulated on a state, as opposed to a federal level, so state laws can influence how much home insurance is. Natural disasters common to specific areas can also have a hand in determining premiums. If you have a loan on your home, your financial lender can require you to carry a certain amount of home insurance coverage. Depending on your location and mortgage lender, you may need flood insurance in addition to a home policy.

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

  • On average, the most expensive states for homeowners insurance are Florida, Nebraska and Oklahoma, while the least expensive states are Vermont, West Virginia and Delaware.
  • While inflation has slowed down since its peak in June 2022, 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 high likelihood of future extreme weather-related losses.
  • According to our research, USAA, American Family and Nationwide offer some of the lowest average home insurance rates for $300,000 in dwelling coverage.
  • On average, homeowners with poor credit histories pay 91 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 $1,000 per year, as seen in Vermont, West Virginia and Delaware, but cost well over $5,000 a year in states like Florida and Nebraska. Below is a breakdown of the average cost of homeowners insurance by state.

Average home insurance cost by state

The average annual home insurance premium for a home with a dwelling coverage amount of $300,000.

Average annual premium
$2,745
Average monthly premium
$229
Difference from national average
+ $515
Average annual premium
$987
Average monthly premium
$82
Difference from national average
- $1,243
Average annual premium
$2,000
Average monthly premium
$167
Difference from national average
- $230
Average annual premium
$3,056
Average monthly premium
$255
Difference from national average
+ $826
Average annual premium
$1,453
Average monthly premium
$121
Difference from national average
- $777
Average annual premium
$3,124
Average monthly premium
$260
Difference from national average
+ $894
Average annual premium
$1,677
Average monthly premium
$140
Difference from national average
- $553
Average annual premium
$966
Average monthly premium
$81
Difference from national average
- $1,264
Average annual premium
$5,533
Average monthly premium
$461
Difference from national average
+ $3,303
Average annual premium
$1,945
Average monthly premium
$162
Difference from national average
- $285
Average annual premium
$1,134
Average monthly premium
$94
Difference from national average
- $1,096
Average annual premium
$1,265
Average monthly premium
$105
Difference from national average
- $965
Average annual premium
$2,189
Average monthly premium
$182
Difference from national average
- $41
Average annual premium
$1,655
Average monthly premium
$138
Difference from national average
- $575
Average annual premium
$2,012
Average monthly premium
$168
Difference from national average
- $218
Average annual premium
$4,103
Average monthly premium
$342
Difference from national average
+ $1,873
Average annual premium
$3,113
Average monthly premium
$259
Difference from national average
+ $883
Average annual premium
$4,274
Average monthly premium
$356
Difference from national average
+ $2,044
Average annual premium
$1,190
Average monthly premium
$99
Difference from national average
- $1,040
Average annual premium
$1,528
Average monthly premium
$127
Difference from national average
- $702
Average annual premium
$1,622
Average monthly premium
$135
Difference from national average
- $608
Average annual premium
$1,809
Average monthly premium
$151
Difference from national average
- $421
Average annual premium
$2,417
Average monthly premium
$201
Difference from national average
+ $187
Average annual premium
$2,820
Average monthly premium
$235
Difference from national average
+ $590
Average annual premium
$2,065
Average monthly premium
$172
Difference from national average
- $165
Average annual premium
$2,521
Average monthly premium
$210
Difference from national average
+ $291
Average annual premium
$5,249
Average monthly premium
$437
Difference from national average
+ $3,019
Average annual premium
$1,138
Average monthly premium
$95
Difference from national average
- $1,092
Average annual premium
$973
Average monthly premium
$81
Difference from national average
- $1,257
Average annual premium
$1,112
Average monthly premium
$93
Difference from national average
- $1,118
Average annual premium
$2,058
Average monthly premium
$172
Difference from national average
- $172
Average annual premium
$1,690
Average monthly premium
$141
Difference from national average
- $540
Average annual premium
$2,495
Average monthly premium
$208
Difference from national average
+ $265
Average annual premium
$2,538
Average monthly premium
$212
Difference from national average
+ $308
Average annual premium
$1,188
Average monthly premium
$99
Difference from national average
- $1,042
Average annual premium
$4,700
Average monthly premium
$392
Difference from national average
+ $2,470
Average annual premium
$986
Average monthly premium
$82
Difference from national average
- $1,244
Average annual premium
$1,149
Average monthly premium
$96
Difference from national average
- $1,081
Average annual premium
$1,961
Average monthly premium
$163
Difference from national average
- $269
Average annual premium
$2,360
Average monthly premium
$197
Difference from national average
+ $130
Average annual premium
$2,732
Average monthly premium
$228
Difference from national average
+ $502
Average annual premium
$2,410
Average monthly premium
$201
Difference from national average
+ $180
Average annual premium
$3,726
Average monthly premium
$311
Difference from national average
+ $1,496
Average annual premium
$1,182
Average monthly premium
$98
Difference from national average
- $1,048
Average annual premium
$806
Average monthly premium
$67
Difference from national average
- $1,424
Average annual premium
$1,497
Average monthly premium
$125
Difference from national average
- $733
Average annual premium
$1,337
Average monthly premium
$111
Difference from national average
- $893
Average annual premium
$952
Average monthly premium
$79
Difference from national average
- $1,278
Average annual premium
$1,154
Average monthly premium
$96
Difference from national average
- $1,076
Average annual premium
$1,352
Average monthly premium
$113
Difference from national average
- $878
Average annual premium
$1,377
Average monthly premium
$115
Difference from national average
- $853
Average annual premium
$1,945
Average monthly premium
$162
Difference from national average
- $285
Average annual premium
$1,134
Average monthly premium
$94
Difference from national average
- $1,096
Average annual premium
$1,265
Average monthly premium
$105
Difference from national average
- $965
Average annual premium
$2,189
Average monthly premium
$182
Difference from national average
- $41
Average annual premium
$1,655
Average monthly premium
$138
Difference from national average
- $575
Average annual premium
$2,012
Average monthly premium
$168
Difference from national average
- $218
Average annual premium
$4,103
Average monthly premium
$342
Difference from national average
+ $1,873
Average annual premium
$3,113
Average monthly premium
$259
Difference from national average
+ $883
Average annual premium
$4,274
Average monthly premium
$356
Difference from national average
+ $2,044
Average annual premium
$1,190
Average monthly premium
$99
Difference from national average
- $1,040
Average annual premium
$1,528
Average monthly premium
$127
Difference from national average
- $702
Average annual premium
$1,622
Average monthly premium
$135
Difference from national average
- $608
Average annual premium
$1,809
Average monthly premium
$151
Difference from national average
- $421
Average annual premium
$2,417
Average monthly premium
$201
Difference from national average
+ $187
Average annual premium
$2,820
Average monthly premium
$235
Difference from national average
+ $590
Average annual premium
$2,065
Average monthly premium
$172
Difference from national average
- $165
Average annual premium
$2,521
Average monthly premium
$210
Difference from national average
+ $291
Average annual premium
$5,249
Average monthly premium
$437
Difference from national average
+ $3,019
Average annual premium
$1,138
Average monthly premium
$95
Difference from national average
- $1,092
Average annual premium
$973
Average monthly premium
$81
Difference from national average
- $1,257
Average annual premium
$1,112
Average monthly premium
$93
Difference from national average
- $1,118
Average annual premium
$2,058
Average monthly premium
$172
Difference from national average
- $172
Average annual premium
$1,690
Average monthly premium
$141
Difference from national average
- $540
Average annual premium
$2,495
Average monthly premium
$208
Difference from national average
+ $265
Average annual premium
$2,538
Average monthly premium
$212
Difference from national average
+ $308
Average annual premium
$1,188
Average monthly premium
$99
Difference from national average
- $1,042
Average annual premium
$4,700
Average monthly premium
$392
Difference from national average
+ $2,470
Average annual premium
$986
Average monthly premium
$82
Difference from national average
- $1,244
Average annual premium
$1,149
Average monthly premium
$96
Difference from national average
- $1,081
Average annual premium
$1,961
Average monthly premium
$163
Difference from national average
- $269
Average annual premium
$2,360
Average monthly premium
$197
Difference from national average
+ $130
Average annual premium
$2,732
Average monthly premium
$228
Difference from national average
+ $502
Average annual premium
$2,410
Average monthly premium
$201
Difference from national average
+ $180
Average annual premium
$3,726
Average monthly premium
$311
Difference from national average
+ $1,496
Average annual premium
$1,182
Average monthly premium
$98
Difference from national average
- $1,048
Average annual premium
$806
Average monthly premium
$67
Difference from national average
- $1,424
Average annual premium
$1,497
Average monthly premium
$125
Difference from national average
- $733
Average annual premium
$1,337
Average monthly premium
$111
Difference from national average
- $893
Average annual premium
$952
Average monthly premium
$79
Difference from national average
- $1,278
Average annual premium
$1,154
Average monthly premium
$96
Difference from national average
- $1,076
Average annual premium
$1,352
Average monthly premium
$113
Difference from national average
- $878
Average annual premium
$1,377
Average monthly premium
$115
Difference from national average
- $853
*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 Vermont, West Virginia, Delaware, New Hampshire and Oregon. Getting familiar with home average home insurance costs in these states can help you plan your budget. Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average.

  • Vermont: $806 per year — 64 percent below national average
  • West Virginia: $952 per year — 57 percent below national average
  • Delaware: $966 per year — 57 percent below national average
  • New Hampshire: $973 per year — 56 percent below national average
  • Oregon: $986 per year — 56 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, Nebraska, Oklahoma, Louisiana and Kansas. In each of these states, the average price of home insurance exceeds $4,000 per year, and in the two most expensive states — Florida and Nebraska — homeowners pay over $5,000 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: $5,533 per year — 148 percent above national average
  • Nebraska: $5,249 per year — 135 percent above national average
  • Oklahoma: $4,700 per year — 111 percent above national average
  • Louisiana: $4,274 per year — 92 percent above national average
  • Kansas: $4,103 per year — 84 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.

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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.

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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 $5,476, while Portland, Oregon’s average annual premium is the lowest at $915.
City
Average annual rate
Average monthly rate
Percent difference from national average
Los Angeles, CA $1,851 $154 17 percent less
Chicago, IL $2,702 $225 21 percent more
Houston, TX $4,973 $414 123 percent more
Phoenix, AZ $2,383 $199 7 percent more
Dallas, TX $3,613 $301 62 percent more
Austin, TX $2,254 $188 1 percent more
Fort Worth, TX $3,787 $316 70 percent more
Columbus, OH $1,203 $100 46 percent less
Charlotte, NC $1,723 $144 23 percent less
Indianapolis, IN $1,825 $152 18 percent less
Seattle, WA $1,312 $109 41 percent less
Denver, CO $3,344 $279 50 percent more
Washington, D.C. $1,377 $115 38 percent less
Nashville, TN $2,329 $194 4 percent more
Detroit, MI $3,016 $251 35 percent more
Las Vegas, NV $1,223 $102 45 percent less
Oklahoma City, OK $5,476 $456 146 percent more
Portland, OR $915 $76 59 percent less
Memphis, TN $3,236 $270 45 percent more
Baltimore, MD $1,634 $136 27 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 damage. Some areas may have a higher risk of wind damage, for example, while other areas often sustain damage from fires.

  • Weather- and location-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 as standalone policies or optional endorsements.
  • Fire risk: According to Triple-I, structure fires caused around $10.5 billion worth of residential home damage in 2022, the most recent year data are available. 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: If your home is in a neighborhood prone to frequent crime, like vandalism and break-ins, it could be considered high risk, which can negatively impact your insurance rates. Depending on the discounts available from 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 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.

Below, our insurance editorial team has listed average rates from some of the most prominent insurance companies. To help you pinpoint the cheapest home insurance company for your coverage needs, our table includes average insurance rates for policies with a $300K, $350K and $450K dwelling coverage limit.

Caret Down
Insurance company Average annual rate Average monthly rate
$1,452
$121
$1,854
$155
$1,827
$152
$3,521
$293
$1,863
$155
$1,594
$133
$1,681
$140
$1,959
$163
$2,500
$208
$2,325
$194
$1,544
$129
$1,594
$133
$1,681
$140
$1,959
$163
$2,500
$208
$2,325
$194
$1,544
$129
Insurance company Average annual rate Average monthly rate
$1,608
$134
$2,048
$171
$1,935
$161
$3,849
$321
$2,056
$171
$1,746
$145
$1,887
$157
$2,187
$182
$2,860
$238
$2,664
$222
$1,720
$143
$1,746
$145
$1,887
$157
$2,187
$182
$2,860
$238
$2,664
$222
$1,720
$143
Insurance company Average annual rate Average monthly rate
$1,926
$161
$2,474
$206
$2,279
$190
$4,363
$364
$2,455
$205
$2,040
$170
$2,239
$187
$2,636
$220
$3,604
$300
$3,370
$281
$2,080
$173
$2,040
$170
$2,239
$187
$2,636
$220
$3,604
$300
$3,370
$281
$2,080
$173

Top 5 least expensive companies for home insurance

  • Erie: $1,827 per year — 18 percent less than the national average
  • USAA: $1,452 per year —  35 percent less than the national average
  • Auto-Owners:  $1,544 per year — 31 percent less than the national average
  • Nationwide:  $1,681 per year — 25 percent less than the national average
  • Travelers:  $2,325 per year —  4 percent more than the national average
*Rates are for $300,000 in dwelling coverage

Industry experts weigh in

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. — Kenneth Chavis IV, Senior wealth advisor at Versant Capital Management

Home insurance rating factors

The purpose of insurance is to transfer the bulk of financial risk to another entity (an insurance provider) to make a potential loss more manageable for the policyholder. In simpler terms, it’s cheaper to pay insurance premiums than it is to rebuild your home from the ground up. 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’s physical structure 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 usually 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
$1,354
Average monthly rate
$113
$300,000
Average annual rate
$2,230
Average monthly rate
$186
$350,000
Average annual rate
$2,490
Average monthly rate
$208
$450,000
Average annual rate
$3,020
Average monthly rate
$252
$750,000
Average annual rate
$4,451
Average monthly rate
$371
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Bankrate’s take: Check your dwelling coverage limit before your policy renews

The amount of dwelling coverage you need may change from year to year. In a high-inflation environment when the cost of construction materials becomes more expensive, you could find that your dwelling coverage limit is not enough to fully rebuild your home. You can consult with a licensed agent when your policy comes up for renewal to ensure you are fully protected. Depending on your insurance company, it could be more cost effective to add an inflation guard or extended dwelling endorsement to your policy in lieu of raising your coverage limits.

Average home insurance cost by credit tier

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 can be an indicator of risk — insurance actuarial data 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. If you own your home with a partner, their credit history may also impact your rates.

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

Poor Credit
Average annual rate for $300,000 coverage
$3,748
Average Credit
Average annual rate for $300,000 coverage
$2,402
Good Credit
Average annual rate for $300,000 coverage
$2,230
Excellent Credit
Average annual rate for $300,000 coverage
$1,960
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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, you likely won’t see any changes until your policy renews.

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 $12,913 $2,322
Liability $25,323 $2,344
Theft $4,646 $2,354
Fire $83,519 $2,349
*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.
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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, you likely won’t see any changes until your policy renews.

A Comprehensive Loss Underwriting Exchange, or CLUE, report can tell you about claims filed by previous owners of your home. Knowing that your guest room sink is prone to leaking or that your backyard shed has been broken into can help you stay one step ahead of potential claims-causing incidents.

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 more 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 usually 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
$2,178
$2,000
Average annual rate for $300,000 in dwelling coverage
$2,046
$5,000
Average annual rate for $300,000 in dwelling coverage
$1,835

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. Plus, an older home is more likely to be built with harder-to-source materials, which can also make repairs more expensive. 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
$2,786
1982
Average annual rate
$2,809
1992
Average annual rate
$2,814
2010
Average annual rate
$2,528
2020
Average annual rate
$1,956
*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 restore your home and property to a pre-loss state. 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:

  • The replacement cost value (RCV) of your home
  • The replacement cost of any detached structures on your property, such as sheds, fences and garages
  • The cost to replace your personal property, including any items not permanently attached to your home (e.g., clothing, furniture, appliances, electronics and so on. Creating a home inventory can help with this.

Next, consider other risks like liability concerns or potential physical hazards. Reviewing coverage concerns with your agent, along with estimates of the values noted above, will help an insurer produce a more accurate estimate for you when requesting quotes.

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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?
  • Have you upgraded or replaced your roof recently?

Related content:

Frequently asked questions

Methodology

Bankrate utilizes Quadrant Information Services to analyze July 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 Bankrate Score considers variables our insurance editorial team determined impact 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%

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. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.

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Written by
Natalie Todoroff
Writer, Insurance
Natalie Todoroff is an insurance writer for Bankrate, prior to which she wrote for a popular insurance comparison shopping app. She has a Bachelor of Arts in English and has written over 800 articles about insurance throughout her career.
Edited by Editor, Insurance
Reviewed by Senior wealth advisor at Versant Capital Management