The average homeowners insurance cost in the United States in 2022 is $1,393 per year for a policy with $250,000 in dwelling coverage. This is a 6% increase from 2021’s average price of $1,312 per year. Having a policy suited to your needs is an integral part of your financial planning. To ensure that the rates featured here are as accurate as possible, Bankrate’s insurance editorial team analyzed average premiums, obtained from Quadrant Information Services, from 163 insurance companies in all U.S. ZIP codes.

Bankrate’s insurance team monitors the latest data and industry trends to help you understand the average home insurance cost, which can give you a starting point when shopping for a policy. Keep in mind, though, that how much you pay for homeowners insurance could be higher or lower than the average due to unique factors related to you and your house.

  • On this page Summary of Bankrate’s homeowners insurance cost analysis How much is homeowners insurance? Average cost of homeowners insurance by state The most expensive states for homeowners insurance The least expensive states for homeowners insurance Average homeowners insurance cost by company Average home insurance cost by coverage amount Components of homeowners insurance policies Factors that affect homeowners insurance cost Home characteristics Location characteristics How to reduce the cost of homeowners insurance Frequently asked questions Methodology

Summary of Bankrate’s homeowners insurance cost analysis

  • In 2022, the average homeowner spends $1,3193 on homeowners insurance per year for a policy with $250,000 in dwelling coverage.
  • On average, the most expensive states for homeowners insurance in 2022 are Oklahoma and Kansas, while the least expensive states are Hawaii and Vermont.
  • Homeowners insurance costs are rising, having increased about 6% in the last year; the average annual premium in 2021 was $1,312.

How much is homeowners insurance?

The national average home insurance cost is $1,393 per year for $250,000 in dwelling coverage. This is a roughly 6% increase over 2021’s average home insurance cost, which is consistent with the 7% inflation level that the United States is currently experiencing. However, your home insurance policy premium depends on several factors. Geographic location plays a significant role in premiums. Some areas of the country are more prone to natural disasters, for example, while some areas could have higher rebuilding costs. The average homeowners insurance rates in the table below can give you a guideline for how much you can expect to pay in your state for a policy with a $250,000 dwelling coverage limit.

Average cost of homeowners insurance by state

Learn more: Home insurance rates by state

The most expensive states for homeowners insurance

The states with the most expensive average annual home insurance premiums are Oklahoma, Kansas, Nebraska, Arkansas and Kentucky. How much does homeowners insurance cost in these pricey areas? In each of these states, the average price of home insurance exceeds $2,000 per year. The average cost of homeowners insurance in these states is outlined in the table below.

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.

The least expensive states for homeowners insurance

The states with the least expensive average annual homeowners insurance premiums are Hawaii, Vermont, Utah, Delaware and New Hampshire. So, how much should you budget for homeowners insurance in these locations? These states have average premiums that are less than $1,000 per year, likely due to a relatively low risk of home damage. The table below shows the average cost of home insurance coverage in these states and how the prices compare to the national average.

These states may have a lower risk for natural disasters, and some could also have low premiums due to a generally low cost of living. The price of materials and labor may be lower in certain areas, which could mean you need less coverage to repair or rebuild your home if it is damaged.

Average homeowners insurance cost by company

You may be wondering if the home insurance company you choose affects the price of homeowners insurance. The short answer is yes, because each company has its own rating system. Rates for even the same amount of coverage will vary between companies, often by hundreds of dollars or more. Based on the homeowners insurance providers we reviewed, Erie Insurance is generally the least expensive insurance company for $250,000 in dwelling coverage, followed closely by USAA and Progressive.

Based on our list of insurers, the most expensive homeowners insurance company is Amica, followed by Farmers and Chubb. In addition to rate considerations, we reviewed these particular providers based on market share, customer satisfaction and coverage options. Not all companies may be available in all states.

Each homeowners insurance company sets its rates, which means that the average home insurance cost will vary from carrier to carrier even within the same state and ZIP code (in states where ZIP-code rating is allowed).

Obtaining home insurance quotes from multiple insurance providers could help you find the coverage you need for a lower price. Comparing multiple companies might help you decide which carrier can offer you the coverage and price that best fits your needs.

Learn more: Best home insurance companies

Average home insurance cost by coverage amount

While the rates above are for home insurance policies with $250,000 in dwelling coverage, not all homes will fit into that level of coverage. Some homeowners may need more or less coverage, depending on the size of their home, the features in their home and the cost of living in the area. For example, homeowners insurance for a home needing only $150,000 in dwelling coverage would usually cost significantly less per year than home insurance with $250,000 in dwelling coverage.

Generally, the less dwelling coverage you have, the cheaper your coverage will be. However, there’s no need to calculate exactly what your house would cost to rebuild before you shop for coverage. Home insurance companies have their own valuation tools to determine this, although having an idea of the rebuilding cost of your home could help you from over- or under-insuring your dwelling. The table below shows the average annual home insurance premium for five different levels of dwelling coverage. This data reflects 2021 average rates.

Learn more: How much home insurance do you need?

Components of homeowners insurance policies

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% 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% 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 limits. For example, you may only have 10% 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 money. 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 10-20% 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.

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.

Factors that affect the cost of homeowners insurance

Insuring your home is a gamble for an insurance company. Like auto insurance, certain types of houses — and houses located in certain areas — create a higher likelihood that the company will have to pay claims. Average home insurance rates vary based on several rating factors. Understanding the most significant factors that impact your home insurance premium might help to guide you when shopping for a home.

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.

  • Year built: Older houses often cost more to insure because repair costs may be higher than they would for newer homes. Repairing or replacing features such as custom molding, plaster walls and wood floors could require specialists, making these features more expensive to repair in the event of a claim.
  • Roof condition: The age and condition of a home’s roof play a role in homeowners insurance rates. Older roofs may not withstand windstorms or hail damage as well as newer roofs. Likewise, roof materials can affect your homeowners insurance rate. Some types of roofing material may be more resistant to damage, which could lower your premium, and other types may be more expensive to repair or replace, which could increase your premium.
  • Construction quality: Many homeowners policies do not cover the expense of bringing a home up to the current building code following a claim. Insurance companies typically offer an optional ordinance or law endorsement, which can help pay for expenses related to code upgrades made during covered repairs.
  • Special features: Features such as hot tubs and swimming pools can make a home more appealing, but they can also increase homeowners insurance premiums if they raise repair and replacement costs and add liability risks. Homes with recreational features such a pool, spa or jacuzzi might need higher liability coverage in case a guest sustains an injury.

Location characteristics

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 separate policies or endorsements to protect against these types of disasters.
  • Fire risk: According to the Triple-I, structure fires caused over $12 billion worth of property damage in 2020, the most recent year with available data. Insurance companies rate homeowners premiums based on proximity to a fire station and fire hydrants because rapid emergency response often minimizes damage.
  • Crime risk: If you live in a high-crime neighborhood, your insurance rates might be impacted. You can help offset this cost to your premiums by installing additional safety features in your home, such as deadbolts and a security alarm system.

How to reduce the cost of homeowners insurance

Some ways to save on homeowners insurance include:

  • Bundle your auto and home policies with one carrier
  • Shop around and compare home insurance quotes
  • Ask for discounts
  • Choose appropriate home coverage types
  • Increase your home insurance deductible
  • Improve your credit score
  • Work with an independent agent
  • Make updates to your home

Frequently asked questions

  • Why did my home insurance go up? Home insurance premiums can change for a number of reasons. If you change your coverage, like adding an endorsement or increasing a coverage limit, your premium will likely change. Endorsements can cost anywhere from a few dozen dollars to hundreds of dollars a year, depending on the coverage type and limits you buy. If you file a claim during your policy term, you could see an increase in your premium at your renewal. Depending on the severity of your claim, the cause of the damage and the underlying factors on your policy, you may see anywhere from a modest to a substantial increase in premium after a claim. Even if nothing has changed, you may still see some fluctuation in your home insurance cost. Companies base your homeowners insurance cost on several factors, including the number and amount of claims paid out in the previous year, the projected likelihood of claims in your area and the price of materials and labor in your state.Because risk levels and the cost of materials and labor constantly change, insurance companies use new rates every year. When your policy renews, the price may change even if everything else is the same because the policy renews based on the company’s new rates. Can I make changes to my home that will lower my insurance cost? Maybe. Some home renovations can lower your premium. Many companies will give a discount for newly-updated roofs, for example, because this type of renovation lowers your risk of filing a claim for roof damage. Some carriers also have discounts for updated utility systems, like your plumbing, electrical, and heating and cooling systems. A security system might also lower your home insurance costs. Local security alarms — the kind that ring only at your residence — may scare away burglars and vandals, leading to a decreased risk of severe theft. Monitored alarms, which ring at your residence and also alert authorities, often come with a larger discount. This is because by automatically altering the proper authorities, these alarms can lessen potential claim damage by getting emergency crews to your home as quickly as possible. Can I lower my coverage to decrease my premium? Yes, but it might not be the best financial strategy. If you remove endorsements or lower your coverage limits, you’ll likely see a decrease in your premium. However, you could also be at risk for out-of-pocket costs should you need to file a claim. If your policy includes endorsements that you don’t actually need, removing them could be a good way to lower your insurance costs. You should always review changes with your agent or insurance company first to ensure that you aren’t changing your policy in a way that exposes you to potential risks in the future. How much is home insurance and how can I find the cheapest option? The average cost for $250,000 in dwelling coverage in the U.S. is $1,393 per year. Remember that premiums vary based on your geographic location, risk level, home price and more. For this reason, getting quotes from a few providers and seeking homeowners insurance discounts might be the best way to find the cheapest homeowners insurance rates for you. If you are looking for more information about the average costs in your area, check out our homeowners insurance costs by state in this article. And keep in mind that there is more to home insurance than price. Skimping on coverage to get a lower rate could leave you with hefty expenses if your home is damaged. Does my home insurance cost affect my mortgage payment? It might. If you have an escrow account for your home insurance, you’ll pay a portion of your premium each month with your mortgage payment. This amount will be collected in your escrow account, and your mortgage company will then use the money to pay for your insurance policy each renewal. If your insurance is escrowed, the higher your premium, the higher your monthly mortgage payment is likely to be since it includes a portion of your premium each month. If you do not have an escrow account and pay your insurance yourself, your policy premium should not affect your mortgage payment.

Methodology

Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all 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

Different coverage levels

For the various coverage levels we shared, these limits were used and 2021 Quadrant rates were used:

$150,000 dwelling coverage profile:

  • Coverage A, Dwelling: $150,000
  • Coverage B, Other Structures: $15,000
  • Coverage C, Personal Property: $75,000
  • Coverage D, Loss of Use: $30,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

$350,000 dwelling coverage profile:

  • Coverage A, Dwelling: $350,000
  • Coverage B, Other Structures: $35,000
  • Coverage C, Personal Property: $175,000
  • Coverage D, Loss of Use: $70,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

$450,000 dwelling coverage profile:

  • Coverage A, Dwelling: $450,000
  • Coverage B, Other Structures: $45,000
  • Coverage C, Personal Property: $225,000
  • Coverage D, Loss of Use: $90,000
  • Coverage E, Liability: $300,000
  • Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible (unless indicated otherwise) and a separate wind and hail deductible (if required).

These are sample rates and should be used for comparative purposes only. Your quotes will differ.

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