Average homeowners insurance cost in May 2024

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 $300,000 in dwelling coverage can cost less than $1500 per year, as seen in Vermont, New Hampshire 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 $300,000.

Average cost of home insurance by city

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 $300,000 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 $300,000 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.

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.

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.

Home insurance industry trends

The home insurance market has faced several challenges in recent years and with 2024 well underway, we are better able to see the ripple effects. Insurance is reactionary — it takes some time for insurance companies to recoup losses (in the form of increased premiums) caused by inflation, widescale extreme weather-related disasters and other complex challenges. 

Insurance companies must file for rate increases with the Department of Insurance in each state where they operate, and this can cause a lag between the cause of the rate increase and the actual rate increase itself. Inflation has slowed but the cost of building materials and labor is projected to remain elevated, meaning the cost to repair and rebuild homes might not decrease anytime soon.  

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 financially responsible for. 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