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What are homeowners insurance premiums and how do they work?
Powered by Coverage.com (NPN: 19966249)
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.
Key takeaways
- A home insurance premium is the amount you pay for your policy.
- As of July 2025, the national average cost of home insurance for a policy with $300K in dwelling coverage is $2,466 per year.
- Your home’s location, age and structure, as well as the coverage levels you choose and other factors, affect your home insurance premium.
- Nebraska has the highest average home insurance rate at $6,425 per year for $300K in dwelling coverage.
- Vermont has the cheapest average home insurance rate at $69 per year for $300K in dwelling coverage.
Frequently asked questions
Rates
Bankrate utilizes Quadrant Information Services to analyze July 2025 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates for our base profile are based on the following characteristics and coverage limits:

Dwelling coverage
$300,000Other structures coverage
$30,000Personal property coverage
$150,000Loss of use coverage
$60,000Liability coverage
$500,000Medical payment coverage
$1,000The 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.
If otherwise specified, the base profile has been modified with the following homeowner characteristics: