The Average Cost of Home Insurance in 2020

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What's the average cost of homeowners insurance?

The average annual premium for homeowners insurance in the United States is $1,398 per year, or about $117 per month.

Among the myriad factors insurance providers take into account when pricing homeowners insurance rates, the location of your home along with its coverage level at replacement cost tends to be very important. While things like claims history, credit score and residing in an older home can definitely impact your premium, we found that premiums are most affected by location, coverage limits and which insurance company you choose.

Methodology: A 45-year-old homeowner with $250,000 dwelling coverage at replacement cost for a home constructed in 2004, $125,000 personal property limit, $25,000 for additional living expenses, $100,000 personal liability limit, and $1,000 deductible. Learn more about what homeowners insurance covers.

Navigate below to see national average rates for home insurance.

Table of contents — see average homeowners rates by:

 


 

Average home insurance premiums by state

What you pay for homeowners insurance coverage varies depending on where you live. Insurance companies set rates by analyzing the chances of a homeowner needing to file a claim — and statistically, certain states are riskier to reside in. Home insurance companies charge higher premiums for homeowners in locales susceptible to perils like natural disasters, crime and other hazards.

The table below shows how impactful location is when it comes to homeowners insurance; homeowners in some states pay as little as $50 a month, while others can average more than $200 a month.

ANNUAL AVERAGE HOMEOWNERS INSURANCE COST BY STATE
StateAverage Premium
Alabama$1,962
Alaska$989
Arizona$1,229
Arkansas$2,140
California$850
Colorado$2,277
Connecticut$1,215
Delaware$660
Florida$1,720
Georgia$1,466
Hawaii$370
Idaho$819
Illinois$1,231
Indiana$1,213
Iowa$1,428
Kansas$3,139
Kentucky$1,582
Louisiana$2,159
Maine$889
Maryland$1,006
Massachusetts$1,049
Michigan$940
Minnesota$1,561
Mississippi$2,131
Missouri$2,056
Montana$1,817
Nebraska$2,985
Nevada$801
New Hampshire$716
New Jersey$834
New Mexico$1,565
New York$1,016
North Carolina$1,430
North Dakota$1,853
Ohio$993
Oklahoma$3,497
Oregon$696
Pennsylvania$760
Rhode Island$1,157
South Carolina$1,679
South Dakota$1,965
Tennessee$1,697
Texas$2,558
Utah$705
Vermont$664
Virginia$915
Washington$899
Washington D.C.$875
West Virginia$1,191
Wisconsin$901
Wyoming$986


What are the cheapest states for home insurance?

Hawaii, Delaware, Vermont, Oregon and Utah.

What are the most expensive states for home insurance?

Oklahoma, Kansas, Nebraska, Texas and Colorado.

 


 

Average homeowners insurance costs by city

Insurers are interested in more than just which state you call home — they will price your premium right down to your specific ZIP code. For example, if underwriters determine that your home in New Orleans is too vulnerable to flood damage, they could charge a higher premium to make up for the potential risks, anticipating the financial blow should you need to file an insurance claim.

In many states, owning a home in the city could often be more expensive than living elsewhere in the state. Our data show homeowners in Miami, Boise and Detroit may pay more than double their respective states' average rates.

ANNUAL AVERAGE HOMEOWNERS INSURANCE PREMIUM BY CITY
CityAverage Premium% Difference from State Average
Anchorage, AK$837-15%
Birmingham, AL$1,791-9%
Phoenix, AZ$1,496+22%
Los Angeles, CA$992+17%
Sacramento, CA$812-4%
Denver, CO$2,726+20%
Miami, FL$3,812+122%
Atlanta, GA$1,477+1%
Honolulu, HI$366-1%
Boise, ID$3,750+358%
Chicago, IL$1,471+19%
Indianapolis, IN$1,322+9%
Wichita, KS$3,449+10%
Louisville, KY$1,446-9%
New Orleans, LA$3,423+59%
Boston, MA$1,181+13%
Baltimore, MD$1,276+27%
Detroit, MI$1,899+102%
Minneapolis, MN$1,766+13%
Kansas City, MO$2,217+8%
Raleigh, NC$1,061-26%
Omaha, NE$2,884-3%
Jersey City, NJ$923+11%
Albuquerque, NM$1,131-28%
Las Vegas, NV$865+8%
New York, NY$1,667+64%
Columbus, OH$9950%
Oklahoma City, OK$3,923+12%
Portland, OR$666-4%
Philadelphia, PA$1,216+60%
Nashville, TN$1,453-14%
Austin, TX$1,762-31%
Richmond, VA$934+2%
Seattle, WA$838-7%
Madison, WI$854-5%

 

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Average homeowners insurance cost by coverage level

The capital required to replace your home in its entirety — including any detached structures and outdoor features like swimming pools — is a critical factor in homeowners insurance pricing. Not only does it affect your rate, but an accurate assessment will also protect you from the unwelcome surprise of ending up under-insured following a catastrophic event.

The replacement cost of your home is the cornerstone of a homeowners insurance policy. It will help to determine the other levels of coverage as a percentage of the dwelling limit.

 

CoverageTypical Coverage Limit
Dwelling (Coverage A)Replacement cost
Other Structures (Coverage B)10% of Coverage A
Personal Property (Coverage C)50% of Coverage A
Loss of Use (Coverage D)20-30% of Coverage A
Medical Payments (Coverage E)Varies
Personal Liability (Coverage F)Varies

 

Homeowners should be mindful of the fact that inflation can cause fluctuations in a home’s replacement cost. In addition, the costs of labor and construction can rise — especially when demand for both goes up after a natural disaster. Consider adding an extended replacement cost endorsement that guarantees or extends your dwelling limit in these situations. Learn more about how to calculate the replacement cost of your home.

Annual Home Insurance Cost by Dwelling Limit.png

The average premium to insure a home with a replacement cost of $250,000 is $120 per month, while a $400,000 dwelling limit costs about $177 a month. See more information on insuring high-value properties.

ANNUAL HOME INSURANCE RATES BY COVERAGE LEVEL
Dwelling LimitOther Structures LimitPersonal Property LimitAdditional Living Expenses LimitAverage Premium
$100,000$10,000$50,000$10,000$771
$250,000$25,000$125,000$25,000$1,442
$400,000$40,000$200,000$40,000$2,123

 


 

Average home insurance rates by deductible

The average monthly premium with a $1,000 deductible is $116 per month, while a $2,000 deductible costs about $104. A higher deductible — your portion of financial responsibility in a claim — will lower your rate because of the inverse relationship deductibles have with premiums. Choosing to pay a higher portion if you need to file a claim equals less money your insurance company will have to pay out, thus resulting in a lower rate.

Consult the table below to see how deductibles can influence home insurance premiums.

ANNUAL HOME INSURANCE RATES BY DEDUCTIBLE
DeductibleAverage Premium% Difference
$500$1,520-
$1,000$1,394-8%
$1,500$1,330-5%
$2,000$1,243-7%
$5,000$1,075-14%

 


 

Average homeowners insurance cost by insurance company

Some insurance companies are more expensive than others, even when comparing similar homeowner profiles and coverage levels. See below average costs from some top home insurance companies.

Annual Home Insurance Cost by Insurance Company.png
ANNUAL HOME INSURANCE RATES BY INSURANCE COMPANY
Insurance CompanyAverage Premium
Allstate$1,394
American Family$1,724
Farmers$1,860
Liberty Mutual$1,414
Nationwide$1,426
Progressive$1,736
State Farm$1,464
Travelers$1,496
USAA$1,526

Every insurer differs in how it calculates rates and the variety of insurance discounts it has on offer. Bundling a home insurance policy with auto insurance for a multi-policy discount is a popular way to save on your premium. See more information on home insurance discounts.

What is the cheapest homeowners insurance company?

Based on The Zebra's research, the cheapest home insurance company is Allstate ($116 per month).

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Average home insurance cost FAQs

See answers to commonly asked questions regarding average home insurance below.

What is the average cost of homeowners insurance?

In the U.S., the average monthly premium is about $117 per month (or $1,398 annually), but rates vary based on factors such as your location, insured property and your profile as a homeowner.

How much does home insurance cost in my state?

Expect to pay more for insurance if your state of residence is prone to hazards like extreme weather and higher levels of crime. Insurance companies assess risks down to your specific ZIP code and charge accordingly. The most expensive states are Oklahoma, Kansas and Nebraska; the cheapest states are Hawaii, Delaware and Vermont.

Which home insurance companies offer the cheapest rates?

Our data showed that Allstate costs an average of $116 per month — on par with the national average — with Liberty Mutual coming in at a close second at $118 per month.

 



Additional resources

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Kristine Lee LinkedIn

Kristine is a licensed insurance agent and one of The Zebra’s in-house content strategists. With a background in copywriting, she covers the ins and outs of the home and car insurance industries. She has contributed to numerous publications focused on the nuances of insurance, including Automoblog, USInsuranceAgents.com, and BestCompany.com.