How much does homeowners insurance cost?
How much does homeowners insurance cost? The average homeowners insurance costs $101 a month. However, your home insurance rates may vary. For example, Plymouth Rock home insurance rates are as low as $97 a month, but MetLife home insurance rates reach $206 per month. Several factors determine whether affordable homeowners insurance is available to you. Shop around and compare multiple insurance companies to secure the best home insurance costs.
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
UPDATED: Jun 30, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.
UPDATED: Jun 30, 2023
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance company and cannot guarantee quotes from any single insurance company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different insurance companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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Are you wondering, “How much does homeowners insurance cost?” Looking to make your home more eco-friendly? We will delve into the cost factors of homeowners insurance and explore the benefits of recycling at home. Discover the key topics we’ll cover, including the factors that influence insurance rates and the environmental impact of recycling.
We’ll also provide you with a simple and persuasive call-to-action: Enter your zip code to compare rates from the best insurance providers, so you can find the perfect coverage at an affordable price while taking steps towards a greener future.
How much does homeowners insurance cost?
Home insurance quotes are based on several factors. Each factor determines whether affordable home insurance is available to you.
One of those factors happens to be where you live. According to the National Association of Insurance Commissioners (NAIC), the average cost of home insurance is $101 a month (or $1,213 per year).
However, you’ll notice that some areas have home insurance rates that are more expensive. Sometimes, you may live in a city or state where homeowners insurance is cheaper.
Let’s review the average cost of home insurance for each state in the nation:
Average Monthly Home Insurance Rates by State
| State | Average Monthly Home Insurance Rates |
|---|---|
| Alabama | $117 |
| Alaska | $82 |
| Arizona | $70 |
| Arkansas | $118 |
| California | $89 |
| Colorado | $135 |
| Connecticut | $125 |
| Delaware | $73 |
| District of Columbia | $105 |
| Florida | $163 |
| Georgia | $109 |
| Hawaii | $95 |
| Idaho | $64 |
| Illinois | $92 |
| Indiana | $86 |
| Iowa | $82 |
| Kansas | $135 |
| Kentucky | $96 |
| Louisiana | $166 |
| Maine | $75 |
| Maryland | $89 |
| Massachusetts | $129 |
| Michigan | $82 |
| Minnesota | $117 |
| Mississippi | $132 |
| Missouri | $115 |
| Montana | $103 |
| Nebraska | $131 |
| Nevada | $65 |
| New Hampshire | $82 |
| New Jersey | $101 |
| New Mexico | $90 |
| New York | $110 |
| North Carolina | $92 |
| North Dakota | $108 |
| Ohio | $73 |
| Oklahoma | $162 |
| Oregon | $59 |
| Pennsylvania | $79 |
| Rhode Island | $136 |
| South Carolina | $107 |
| South Dakota | $107 |
| Tennessee | $103 |
| Texas | $163 |
| Utah | $61 |
| Vermont | $78 |
| Virginia | $86 |
| Washington | $73 |
| West Virginia | $81 |
| Wisconsin | $68 |
| Wyoming | $99 |
| National Average | $101 |
Oregon has the cheapest home insurance rates in the United States, but Louisiana is the most expensive state for home insurance.
The average home insurance cost per month is a general price. Your home insurance rates may vary. You’ll likely have a different home insurance rate when you decide which company you want to use.
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What is the cheapest home insurance company?
Before you buy home insurance, shop around to see which home insurance company has the most affordable rate.
Here’s a list of the most affordable home insurance companies in the United States:
- Plymouth Rock – $97/month
- Hippo – $125/month
- Travelers – $130/month
- Stillwater – $132/month
- ASI– $135/month
- Safeco – $140/month
- Progressive – $142/month
- Nationwide – $145/month
- Tower Hill – $149/month
- State Auto – $150/month
- Velocity – $154/month
- Mercury – $160/month
- Encompass – $202/month
- MetLife – $206/month
MetLife has the highest home insurance rates, but Plymouth Rock has the cheapest rates.
Some insurance companies also have a significant market share in car insurance. For example, Nationwide is more expensive, but it’s one of the leading auto and home insurance companies.
Each company has a specific market share determined by how much it earns in a particular industry. Check out the information below to see the best insurance companies in the home insurance industry:
Top 10 Home Insurance Companies in the United States
| Rank | Companies | Direct Written Premiums | Market Share |
|---|---|---|---|
| 1st | State Farm | $19,717,032 | 18% |
| 2nd | Allstate Corp. | $9,773,497 | 9% |
| 3rd | USAA Insurance Group | $7,362,747 | 7% |
| 4th | Liberty Mutual | $6,991,283 | 6% |
| 5th | Farmers Insurance Group of Companies | $6,043,865 | 6% |
| 6th | Travelers Companies Inc. | $4,866,357 | 4% |
| 7th | American Family Insurance Group | $4,442,467 | 4% |
| 8th | Nationwide Mutual Group | $3,344,181 | 3% |
| 9th | Chubb Ltd. | $3,113,149 | 3% |
| 10th | Progressive Corp. | $1,897,225 | 2% |
State Farm is the leading company in home insurance and car insurance.
In addition to State Farm, some insurance companies who appear as auto insurance leaders also have a sizable market share in the home insurance market.
How much are the average home insurance rates by coverage limit?
Just like other insurance policies, homeowners insurance comes with a coverage limit. The higher the coverage amount, the more you’ll pay for home insurance per month.
Let’s review examples to get an idea of how coverage amounts impact home insurance:
Average Home Insurance Rates by Coverage Amount
| Coverage Limit Range | Average Monthly Home Insurance Rates |
|---|---|
| $49,999 and Under | $54 |
| $50,000 to $74,999 | $62 |
| $75,000 to $99,000 | $69 |
| $100,000 to $124,999 | $74 |
| $125,000 to $149,999 | $78 |
| $150,000 to $174,999 | $82 |
| $175,000 to $199,999 | $85 |
| $200,000 to $299,999 | $93 |
| $300,000 to $399,000 | $106 |
| $400,000 to $499,000 | $124 |
| $500,000 and Above | $179 |
Expect your home insurance rates to increase when you request more on your coverage limits.
Which home insurance coverage types affect monthly rates?
Did you know that home insurance has different coverage options? Adding coverages to your home insurance policy can raise your home insurance rates.
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Here’s a list of standard homeowners insurance coverage options that you may find at home insurance companies:
- Dwelling coverage
- Other structures coverage
- Personal property coverage
- Personal liability coverage
- Medical payment coverage
- Loss of use coverage
Each coverage option provides something unique to your home insurance policy. However, some home insurance coverages come with specific limits on top of your initial home insurance policy.
How can I reduce home insurance rates?
Home insurance discounts are an effective way to bring down home insurance costs.
But how much can you save on a home insurance policy? Let’s look at the top home insurance discounts:
- Multi-Policy Discount – Between 5% and 15%
- Renewal Discount – At least 5%
- Home Security Discount – Up to 20%
- Good Credit Discount – Up to 40%
Maintaining an excellent credit score can secure the most affordable home insurance.
Good credit correlates to a low risk of filing claims. Stack a bundling discount and save up to 15% more on home insurance.
What factors affect home insurance quotes?
We mentioned how several factors determine home insurance rates. Now, let’s look at a quick summary of the most significant factors that impact homeowners insurance quotes:
- State and county where you live
- The value of your home and renovation costs
- Coverage amount
- The age and condition of your home
- Home security and other safety features
- Credit history
- Different types of home coverage options
- Your deductible
- Bundling other insurance from the same company (such as car and life insurance)
Let’s not forget that the company that holds your policy is also a factor. If you can find a better home insurance company, don’t hesitate to compare multiple companies.
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What components are included in a home insurance policy?
Your home insurance policy information is compacted to this one page called the declaration page (also called the DEC page). But there’s more to the declaration page than monthly rates and discounts.
As you review your homeowners insurance, you’ll see a list of items vital to understanding your policy.
Let’s review the things you’ll find on your homeowners insurance declaration page:
- Your policy number
- Name of the policyholder
- Address of the insured property
- The policy’s coverage level and limits
- Monthly home insurance rates
- Deductibles
- Your appointed home insurance agent
- Home insurance discounts
Be sure to keep a physical and digital copy of your declarations page.
Case Studies: How much does homeowners insurance cost?
Case Study 1: Urban Condo in New York City
John and Sarah recently purchased a condominium in the heart of New York City. The condo has an estimated value of $1 million. They opted for a comprehensive homeowners insurance policy that includes coverage for their personal belongings, liability protection, and additional living expenses in case their condo becomes uninhabitable. The annual premium for their policy is $1,800.
Case Study 2: Suburban Single-Family Home in Texas
Mark and Lisa reside in a spacious single-family home located in a suburban area in Texas. Their house is valued at $300,000, and they decided to obtain homeowners insurance coverage that protects their dwelling, personal property, liability, and offers additional living expenses coverage. Given the lower risk factors in their area, their annual premium is $1,200.
Case Study 3: Rural Farmhouse in Iowa
Jim and Emily own a picturesque farmhouse situated in a rural area of Iowa. Their property is valued at $500,000, and they wanted to ensure comprehensive coverage for their home, personal possessions, liability, and added protection for their farm equipment and structures. Due to the remote location and potential risks associated with farming, their annual premium for homeowners insurance amounts to $2,500.
Case Study 4: Coastal Beach House in California
David and Maria own a $2.5 million beachfront property in California. They secured a specialized homeowners insurance policy to safeguard their investment. The policy covers their dwelling, personal belongings, liability, and includes endorsements for floods and earthquakes. Due to the property’s value and coastal location, their annual premium amounts to $8,500.
Case Study 5: Townhouse in a Gated Community
Sarah and Michael reside in a townhouse located within a gated community. The property has an appraised value of $400,000. They chose a comprehensive homeowners insurance policy that covers their dwelling, personal items, liability, and offers additional living expenses coverage. Due to the added security provided by the gated community, their annual premium is relatively lower at $900.
Homeowners Insurance Cost: The Bottom Line
Several factors determine home insurance costs. Unfortunately, some of those factors can’t be changed.
However, you can still find a homeowners insurance company with a reliable policy and affordable coverage.
Now that you know more about how much homeowners insurance costs, you’re ready to use our free comparison tool below to compare multiple insurance companies in your area.
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Frequently Asked Questions
How much does homeowners insurance typically cost?
The cost of homeowners insurance can vary based on a number of factors, including the location of your home, the age and condition of your home, the size of your home, and the amount of coverage you need. On average, homeowners insurance costs around $1,200 per year, but this can range from a few hundred dollars to several thousand dollars depending on your individual circumstances.
What factors affect the cost of homeowners insurance?
Several factors can affect the cost of homeowners insurance, including the age and condition of your home, the location of your home, the size of your home, the materials used to construct your home, your credit score, your claims history, and the amount of coverage you need. Generally speaking, homes in areas with higher crime rates or prone to natural disasters tend to have higher insurance premiums.
How can I get a lower rate on my homeowners insurance?
There are several ways to lower the cost of your homeowners insurance. One way is to increase your deductible, which is the amount you pay out of pocket before your insurance coverage kicks in. You can also bundle your homeowners insurance with other insurance policies, such as auto insurance, to get a multi-policy discount. Additionally, installing safety features such as smoke detectors and security systems can help lower your insurance premium.
What types of coverage are included in a standard homeowners insurance policy?
A standard homeowners insurance policy typically includes coverage for the structure of your home, your personal belongings, liability protection, and additional living expenses if you need to temporarily relocate due to damage to your home. Some policies may also include coverage for specific events, such as floods or earthquakes, but these may need to be added as separate endorsements or policies.
How do I choose the right homeowners insurance policy for me?
To choose the right homeowners insurance policy, it’s important to evaluate your individual needs and risks. Consider the value of your home and belongings, your location and the risks associated with your area, your budget, and any additional coverage you may need, such as flood insurance. It’s also a good idea to compare policies from multiple insurers to find the best coverage and price for your needs.
Compare The Best Insurance Quotes In The Country
Compare quotes from the top insurance companies and save!
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Zach Fagiano
Licensed Insurance Broker
Zach Fagiano has been in the insurance industry for over 10 years, specializing in property and casualty and risk management consulting. He started out specializing in small businesses and moved up to large commercial real estate risks. During that time, he acquired property & casualty, life & health, and surplus lines brokers licenses. He’s now the Senior Vice President overseeing globa...
Licensed Insurance Broker
Editorial Guidelines: We are a free online resource for anyone interested in learning more about insurance. Our goal is to be an objective, third-party resource for everything insurance related. We update our site regularly, and all content is reviewed by insurance experts.