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Average homeowners insurance cost in February 2024

The average cost of homeowners insurance in the U.S. is $1,759 per year for $250,000 in dwelling coverage. However, your actual rates may vary depending on a variety of factors.

Updated Feb 22, 2024
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2023
national
avg.

$1,428/yr*

VS
2024
national
avg.

$1,759/yr*

*Based on $250K dwelling coverage

How much is home insurance?

Based on rate data provided by Quadrant Information Services, the national average homeowners insurance cost is $1,759 per year — about $147 per month — for a policy with $250,000 in dwelling coverage. This is about 23 percent more than the 2023 homeowners insurance average of $1,428 for the same level of 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.

Lightbulb

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

  • As of 2024, the national average cost of homeowners insurance rose 23 percent more to $1,759 per year for a policy with $250,000 in dwelling coverage.
  • On average, the most expensive states for homeowners insurance are Nebraska, Oklahoma, and Kansas, while the least expensive states are Hawaii, Vermont 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 $250,000 in dwelling coverage.
  • On average, homeowners with poor credit histories pay 185 percent more for home insurance than homeowners with excellent credit.
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Why you can trust Bankrate

Read our full methodology

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 $250,000 in dwelling coverage can cost less than $750 per year, as seen in Hawaii, Vermont 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 $250,000.

Caret DownCaret Up
Average annual premium
$2,085
Average monthly premium
$174
Difference from national average
+ $326
Average annual premium
$1,019
Average monthly premium
$85
Difference from national average
- $740
Average annual premium
$1,778
Average monthly premium
$148
Difference from national average
+ $19
Average annual premium
$2,809
Average monthly premium
$234
Difference from national average
+ $1,050
Average annual premium
$1,266
Average monthly premium
$105
Difference from national average
- $493
Average annual premium
$3,212
Average monthly premium
$268
Difference from national average
+ $1,453
Average annual premium
$1,623
Average monthly premium
$135
Difference from national average
- $136
Average annual premium
$764
Average monthly premium
$64
Difference from national average
- $995
Average annual premium
$1,968
Average monthly premium
$164
Difference from national average
+ $209
Average annual premium
$1,761
Average monthly premium
$147
Difference from national average
+ $2
Average annual premium
$408
Average monthly premium
$34
Difference from national average
- $1,351
Average annual premium
$1,014
Average monthly premium
$85
Difference from national average
- $745
Average annual premium
$1,896
Average monthly premium
$158
Difference from national average
+ $137
Average annual premium
$1,523
Average monthly premium
$127
Difference from national average
- $236
Average annual premium
$1,688
Average monthly premium
$141
Difference from national average
- $71
Average annual premium
$4,072
Average monthly premium
$339
Difference from national average
+ $2,313
Average annual premium
$2,282
Average monthly premium
$190
Difference from national average
+ $523
Average annual premium
$3,247
Average monthly premium
$271
Difference from national average
+ $1,488
Average annual premium
$1,147
Average monthly premium
$96
Difference from national average
- $612
Average annual premium
$1,375
Average monthly premium
$115
Difference from national average
- $384
Average annual premium
$1,262
Average monthly premium
$105
Difference from national average
- $497
Average annual premium
$1,757
Average monthly premium
$146
Difference from national average
- $2
Average annual premium
$2,174
Average monthly premium
$181
Difference from national average
+ $415
Average annual premium
$2,028
Average monthly premium
$169
Difference from national average
+ $269
Average annual premium
$1,854
Average monthly premium
$155
Difference from national average
+ $95
Average annual premium
$2,172
Average monthly premium
$181
Difference from national average
+ $413
Average annual premium
$4,745
Average monthly premium
$395
Difference from national average
+ $2,986
Average annual premium
$1,165
Average monthly premium
$97
Difference from national average
- $594
Average annual premium
$843
Average monthly premium
$70
Difference from national average
- $916
Average annual premium
$916
Average monthly premium
$76
Difference from national average
- $843
Average annual premium
$2,168
Average monthly premium
$181
Difference from national average
+ $409
Average annual premium
$1,728
Average monthly premium
$144
Difference from national average
- $31
Average annual premium
$1,429
Average monthly premium
$119
Difference from national average
- $330
Average annual premium
$2,519
Average monthly premium
$210
Difference from national average
+ $760
Average annual premium
$1,308
Average monthly premium
$109
Difference from national average
- $451
Average annual premium
$4,565
Average monthly premium
$380
Difference from national average
+ $2,806
Average annual premium
$954
Average monthly premium
$79
Difference from national average
- $805
Average annual premium
$968
Average monthly premium
$81
Difference from national average
- $791
Average annual premium
$1,476
Average monthly premium
$123
Difference from national average
- $283
Average annual premium
$1,209
Average monthly premium
$101
Difference from national average
- $550
Average annual premium
$2,455
Average monthly premium
$205
Difference from national average
+ $696
Average annual premium
$2,177
Average monthly premium
$181
Difference from national average
+ $418
Average annual premium
$2,130
Average monthly premium
$177
Difference from national average
+ $371
Average annual premium
$955
Average monthly premium
$80
Difference from national average
- $804
Average annual premium
$694
Average monthly premium
$58
Difference from national average
- $1,065
Average annual premium
$1,154
Average monthly premium
$96
Difference from national average
- $605
Average annual premium
$1,157
Average monthly premium
$96
Difference from national average
- $602
Average annual premium
$1,167
Average monthly premium
$97
Difference from national average
- $592
Average annual premium
$1,026
Average monthly premium
$85
Difference from national average
- $733
Average annual premium
$1,044
Average monthly premium
$87
Difference from national average
- $715
Average annual premium
$1,190
Average monthly premium
$99
Difference from national average
- $569
Average annual premium
$1,761
Average monthly premium
$147
Difference from national average
+ $2
Average annual premium
$408
Average monthly premium
$34
Difference from national average
- $1,351
Average annual premium
$1,014
Average monthly premium
$85
Difference from national average
- $745
Average annual premium
$1,896
Average monthly premium
$158
Difference from national average
+ $137
Average annual premium
$1,523
Average monthly premium
$127
Difference from national average
- $236
Average annual premium
$1,688
Average monthly premium
$141
Difference from national average
- $71
Average annual premium
$4,072
Average monthly premium
$339
Difference from national average
+ $2,313
Average annual premium
$2,282
Average monthly premium
$190
Difference from national average
+ $523
Average annual premium
$3,247
Average monthly premium
$271
Difference from national average
+ $1,488
Average annual premium
$1,147
Average monthly premium
$96
Difference from national average
- $612
Average annual premium
$1,375
Average monthly premium
$115
Difference from national average
- $384
Average annual premium
$1,262
Average monthly premium
$105
Difference from national average
- $497
Average annual premium
$1,757
Average monthly premium
$146
Difference from national average
- $2
Average annual premium
$2,174
Average monthly premium
$181
Difference from national average
+ $415
Average annual premium
$2,028
Average monthly premium
$169
Difference from national average
+ $269
Average annual premium
$1,854
Average monthly premium
$155
Difference from national average
+ $95
Average annual premium
$2,172
Average monthly premium
$181
Difference from national average
+ $413
Average annual premium
$4,745
Average monthly premium
$395
Difference from national average
+ $2,986
Average annual premium
$1,165
Average monthly premium
$97
Difference from national average
- $594
Average annual premium
$843
Average monthly premium
$70
Difference from national average
- $916
Average annual premium
$916
Average monthly premium
$76
Difference from national average
- $843
Average annual premium
$2,168
Average monthly premium
$181
Difference from national average
+ $409
Average annual premium
$1,728
Average monthly premium
$144
Difference from national average
- $31
Average annual premium
$1,429
Average monthly premium
$119
Difference from national average
- $330
Average annual premium
$2,519
Average monthly premium
$210
Difference from national average
+ $760
Average annual premium
$1,308
Average monthly premium
$109
Difference from national average
- $451
Average annual premium
$4,565
Average monthly premium
$380
Difference from national average
+ $2,806
Average annual premium
$954
Average monthly premium
$79
Difference from national average
- $805
Average annual premium
$968
Average monthly premium
$81
Difference from national average
- $791
Average annual premium
$1,476
Average monthly premium
$123
Difference from national average
- $283
Average annual premium
$1,209
Average monthly premium
$101
Difference from national average
- $550
Average annual premium
$2,455
Average monthly premium
$205
Difference from national average
+ $696
Average annual premium
$2,177
Average monthly premium
$181
Difference from national average
+ $418
Average annual premium
$2,130
Average monthly premium
$177
Difference from national average
+ $371
Average annual premium
$955
Average monthly premium
$80
Difference from national average
- $804
Average annual premium
$694
Average monthly premium
$58
Difference from national average
- $1,065
Average annual premium
$1,154
Average monthly premium
$96
Difference from national average
- $605
Average annual premium
$1,157
Average monthly premium
$96
Difference from national average
- $602
Average annual premium
$1,167
Average monthly premium
$97
Difference from national average
- $592
Average annual premium
$1,026
Average monthly premium
$85
Difference from national average
- $733
Average annual premium
$1,044
Average monthly premium
$87
Difference from national average
- $715
Average annual premium
$1,190
Average monthly premium
$99
Difference from national average
- $569
*Based on policies with $250k 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, New Hampshire and New Jersey. So, how much should you budget for homeowners insurance in these locations?  With Hawaii being the exception, 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. In Hawaii, wind damage is typically excluded from home insurance and must be bought as a stand-alone policy, which drastically reduces the average premium of standard home insurance. So Hawaii homeowners may expect to pay more than the average rates displayed. Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average.
 
  • Hawaii: $408 per year — 77 percent below national average
  • Vermont: $694 per year — 61 percent below national average
  • Delaware: $764 per year — 57 percent below national average
  • New Hampshire: $843 per year — 52 percent below national average
  • New Jersey: $916 per year — 48 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 Nebraska, Oklahoma, Kansas, Louisiana and Colorado. 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.

  • Nebraska: $4,745 per year — 170 percent above national average
  • Oklahoma: $4,565 per year — 159 percent above national average
  • Kansas: $4,072 per year — 131 percent above national average
  • Louisiana: $3,247 per year — 85 percent above national average
  • Colorado: $3,212 per year — 83 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.

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 $5,223, while Portland, Oregon’s average annual premium is the lowest at $904.
City
Average annual rate
Average monthly rate
Percent difference from national average
Los Angeles, CA $1,432 $119 19 percent less
Chicago, IL $2,144 $179 22 percent more
Houston, TX $2,046 $170 16 percent more
Phoenix, AZ $1,912 $159 9 percent more
Dallas, TX $2,245 $187 28 percent more
Austin, TX $1,443 $120 18 percent less
Fort Worth, TX $2,252 $188 28 percent more
Columbus, OH $1,326 $111 25 percent less
Charlotte, NC $1,373 $114 22 percent less
Indianapolis, IN $1,638 $136 7 percent less
Seattle, WA $1,144 $95 35 percent less
Denver, CO $3,208 $267 82 percent more
Washington, D.C. $1,190 $99 32 percent less
Nashville, TN $2,032 $169 15 percent more
Detroit, MI $1,758 $146 0 percent more
Las Vegas, NV $1,191 $99 32 percent less
Oklahoma City, OK $5,223 $435 197 percent more
Portland, OR $904 $75 49 percent less
Memphis, TN $2,420 $202 38 percent more
Baltimore, MD $1,442 $120 18 percent less

*Rates are for $250,000 in dwelling coverage

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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 over $8.7 billion worth of residential home damage in 2021, 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 $250,000 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 $250,000 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
$1,076
$90
$1,461
$122
$1,138
$95
$2,021
$168
$1,429
$119
$1,457
$121
$1,375
$115
$1,600
$133
$2,081
$173
$1,573
$131
$1,457
$121
$1,375
$115
$1,600
$133
$2,081
$173
$1,573
$131
Insurance company Average annual rate Average monthly rate
$1,336
$111
$1,784
$149
$1,503
$125
$2,660
$222
$1,842
$154
$1,801
$150
$1,813
$151
$2,107
$176
$2,789
$232
$2,084
$174
$1,801
$150
$1,813
$151
$2,107
$176
$2,789
$232
$2,084
$174
Insurance company Average annual rate Average monthly rate
$1,585
$132
$2,172
$181
$1,885
$157
$3,288
$274
$2,196
$183
$2,133
$178
$2,245
$187
$2,610
$218
$3,566
$297
$2,535
$211
$2,133
$178
$2,245
$187
$2,610
$218
$3,566
$297
$2,535
$211

Top five least expensive companies for home insurance

  • Erie: $1,138 per year — 35 percent less than the national average
  • USAA: $1,076 per year —  39 percent less than the national average
  • Auto-Owners:  $1,384 per year — 21 percent less than the national average
  • Nationwide:  $1,375 per year — 22 percent less than the national average
  • Travelers:  $1,573 per year —  11 percent less than the below national average
*Rates are for $250,000 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. 

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
$1,195
Average monthly rate
$100
$250,000
Average annual rate
$1,759
Average monthly rate
$147
$350,000
Average annual rate
$2,328
Average monthly rate
$194
$450,000
Average annual rate
$2,904
Average monthly rate
$242
$750,000
Average annual rate
$4,643
Average monthly rate
$387

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 $250,000 coverage
$4,192
Average Credit
Average annual rate for $250,000 coverage
$1,953
Good Credit
Average annual rate for $250,000 coverage
$1,759
Excellent Credit
Average annual rate for $250,000 coverage
$1,473
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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 $1,836
Liability $30,324 $1,869
Theft $4,415 $1,881
Fire $77,340 $1,881
*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.

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 a higher out-of-pocket expense 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 $250,000 in dwelling coverage
$1,699
$2,000
Average annual rate for $250,000 in dwelling coverage
$1,584
$5,000
Average annual rate for $250,000 in dwelling coverage
$1,392

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
$2,045
1982
Average annual rate
$2,059
1992
Average annual rate
$2,059
2010
Average annual rate
$2,000
2020
Average annual rate
$1,507
*Rates are for $250,000 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.

Understanding home insurance rate trends may be integral in finding a policy that fits your needs and budget. See the carrier comparison tool below to compare average homeowners insurance rates for $250K in dwelling coverage from 2021 to today.

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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.

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 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. 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 the latest rates from February, 2024 for ZIP codes and carriers in all 50 states and Washington, D.C. 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 the latest rates from 2024 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
Unless otherwise noted, 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 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. 
 
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.
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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