How Much is Home Insurance?
The average cost of a standard home insurance policy is $2,801 per year nationally, though rates vary by location, coverage limits and more.
Homeowners insurance cost by company
Erie, State Farm and USAA offer the cheapest home insurance rates among large companies. However, Erie is only available in 12 states and Washington, D.C., while USAA is only available to current military, veterans and their families.
Many home insurance companies offer discounts that can lower your rate. Some common home insurance discounts are for bundling home and auto coverage with the same company, not filing any claims for a certain amount of time, and buying a new or newer home.
Not all companies offer the same discounts, though, so shop around and compare home insurance quotes from several insurers to get the most possible.
| Company | Annual rate | Monthly rate | LendingTree score | |
|---|---|---|---|---|
 | Erie | $2,055 | $171 |  |
 | State Farm | $2,427 | $202 | |
 | USAA* | $2,507 | $209 | |
 | Allstate | $2,560 | $213 | |
 | Chubb | $2,606 | $217 | |
 | Progressive | $2,648 | $221 | |
 | Country Financial | $2,827 | $236 | |
 | Nationwide | $3,055 | $255 |  |
 | American Family | $3,072 | $256 | |
 | Travelers | $3,149 | $262 | |
 | Farmers | $3,801 | $317 | |
Average rates are based on a policy with $400,000 of dwelling coverage and $200,000 of personal property coverage.
*Only available to military members, veterans and their families.
Average cost of homeowners insurance by state
The national average cost of a home insurance policy is $2,801 a year, with average rates ranging from $632 a year in Hawaii to $6,133 in Oklahoma.
| State | Average rate |
|---|---|
| Alabama | $3,217 |
| Alaska | $1,475 |
| Arizona | $2,623 |
| Arkansas | $3,722 |
| California | $1,260 |
| Colorado | $4,489 |
| Connecticut | $2,618 |
| Delaware | $1,701 |
| Florida | $3,889 |
| Georgia | $2,869 |
| Hawaii | $632 |
| Idaho | $2,178 |
| Illinois | $2,743 |
| Indiana | $2,643 |
| Iowa | $2,697 |
| Kansas | $5,412 |
| Kentucky | $4,671 |
| Louisiana | $4,033 |
| Maine | $1,863 |
| Maryland | $1,810 |
| Massachusetts | $1,906 |
| Michigan | $2,467 |
| Minnesota | $3,642 |
| Mississippi | $4,201 |
| Missouri | $3,387 |
| Montana | $3,068 |
| Nebraska | $5,912 |
| Nevada | $1,626 |
| New Hampshire | $1,760 |
| New Jersey | $1,744 |
| New Mexico | $3,354 |
| New York | $1,897 |
| North Carolina | $3,378 |
| North Dakota | $2,911 |
| Ohio | $2,207 |
| Oklahoma | $6,133 |
| Oregon | $1,885 |
| Pennsylvania | $1,928 |
| Rhode Island | $2,240 |
| South Carolina | $3,335 |
| South Dakota | $3,605 |
| Tennessee | $2,857 |
| Texas | $5,180 |
| Utah | $1,507 |
| Vermont | $1,339 |
| Virginia | $2,499 |
| Washington | $1,600 |
| Washington, D.C. | $1,764 |
| West Virginia | $2,511 |
| Wisconsin | $2,159 |
| Wyoming | $2,323 |
Average rates are based on a policy with $400,000 of dwelling coverage and $200,000 of personal property coverage.
Home insurance companies look at various factors besides the state you live in when calculating your quote. These can include:
- Age of the home
- Construction materials used
- Proximity to a fire hydrant or station
- Crime rate in your area
- Your insurance claim history
Most expensive states for homeowners insurance
Oklahoma and Nebraska have the highest average home insurance rates in the U.S. Tornadoes hit both states frequently, which can make home insurance rates higher.
- Oklahoma: $6,133
- Nebraska: $5,912
- Kansas: $5,412
- Texas: $5,180
- Kentucky: $4,671
Cheapest states for homeowners insurance
Homeowners in Hawaii pay the cheapest home insurance rates in the U.S., on average. Areas with low crime rates and few national disasters tend to see lower rates.
Hawaii has many local home insurance companies that offer affordable rates well below the national average.
- Hawaii: $632
- California: $1,260
- Vermont: $1,339
- Alaska: $1,475
- Utah: $1,507
Average cost of homeowners insurance by coverage amount
The average cost of homeowners insurance is $2,498 a year for a policy with $350,000 of dwelling coverage. A $400,000 policy averages $2,801 a year, and a $450,000 policy costs around $3,111 a year.
The cost difference between policies with different dwelling coverage Your home insurance policy’s dwelling coverage pays to repair or rebuild the structure of your home if a fire, hail or other event damages or destroys it. amounts is relatively low. A policy with $400,000 of dwelling coverage costs about 12% more than one with $350,000 of coverage. The difference between a $400,000 and a $450,000 policy is 11%.
The cost difference varies between home insurance companies as well, which makes comparing quotes important.
| Dwelling coverage | Annual rate |
|---|---|
| $350,000 | $2,498 |
| $400,000 | $2,801 |
| $450,000 | $3,111 |
Homeowners insurance cost by city
Homeowners in bigger cities usually pay more for home insurance. Of the 25 biggest cities in the U.S., San Jose has the cheapest home insurance rates of around $1,087 a year. Oklahoma City has the most expensive average rate of $7,541 a year.
| City | Annual rate |
|---|---|
| Austin | $3,444 |
| Boston | $2,007 |
| Charlotte | $2,194 |
| Chicago | $3,322 |
| Columbus | $2,165 |
| Dallas | $5,729 |
| Denver | $5,307 |
| El Paso | $2,600 |
| Fort Worth | $6,084 |
| Houston | $5,624 |
| Indianapolis | $3,010 |
| Jacksonville | $2,651 |
| Las Vegas | $1,699 |
| Los Angeles | $1,466 |
| Nashville | $2,698 |
| New York City | $2,795 |
| Oklahoma City | $7,541 |
| Philadelphia | $2,892 |
| Phoenix | $2,983 |
| San Antonio | $3,422 |
| San Diego | $1,168 |
| San Francisco | $1,174 |
| San Jose | $1,087 |
| Seattle | $1,547 |
| Washington, D.C. | $1,764 |
Average rates are based on a policy with $400,000 of dwelling coverage and $200,000 of personal property coverage.
Home insurance rates can vary from city to city because of several factors, including each city’s:
- Crime rate
- Building costs
- Extreme weather trends
- Flood probability
Factors that affect home insurance rates
Home insurance companies look at many factors when coming up with your rate. These include:
- The location of your home: Your home insurance rate may be higher if you live in an area with a high crime rate or severe weather.
- Coverage limits: The amount of coverage you need can have a big impact on how much you pay for a policy.
- Deductible amount: Choosing a higher deductible usually lowers your premium, while a lower deductible leads to a higher premium.
- Age and condition of your home: Your home insurance rate can be higher if you live in an older home. If your home was built using vulnerable materials, your home insurance premium may be higher.
- Claims history: Your home insurance rate can increase if you have a claim on your record. We recommend considering the potential premium increase before submitting small claims.
How can I lower my home insurance cost?
If you live in a state with many natural disasters or you’re a high-risk homeowner, there are still ways you can lower your home insurance rate.
- Take advantage of home insurance discounts: Insurance companies can offer great savings with discounts. You may be able to save money if you bundle your home and auto insurance policies with the same company or by installing safety alarms.
- Replace your roof: If you have an older roof or if it’s in poor condition, your home insurance rate can be higher.
- Shop around: Insurance companies may weigh risk factors differently, which can lead to different quotes. Getting home insurance quotes from multiple companies helps you find the best company for your needs.