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The average annual premium for homeowners insurance in the U.S. is $2,748 per year.
Home insurance rates vary widely, but your location and the amount and type of coverage you carry tend to have the biggest impact. Other factors, like your claims history, credit score, or an older home, can also affect your premium.
Some insurance companies are more expensive than others, even when comparing similar homeowner profiles and coverage levels. Every insurer differs in how it calculates rates and the variety of insurance discounts it has on offer.
Bundling home and auto insurance is one of the most popular ways to save, but homeowners may also qualify for lower premiums through discounts for security systems, newer homes, or staying claims-free. See average costs from some top home insurance companies below.
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| Company | Avg. Annual Premium | Avg. Monthly Premium |
|---|---|---|
| Amica Mutual | $1,555 | $130 |
| AIG | $1,753 | $146 |
| State Farm | $2,269 | $189 |
| Chubb | $2,295 | $191 |
| USAA | $2,515 | $210 |
| Allstate | $2,669 | $222 |
| Nationwide | $2,762 | $230 |
| Farmers | $3,424 | $285 |
| American Family | $4,182 | $349 |
| Travelers | $8,365 | $697 |
Source: The Zebra
The Zebra’s Dynamic Insurance Rating Tool for home and auto insurance rates utilizes the latest ZIP code-level rate filings from across the U.S., sourced from Quadrant Information Services and S&P Global. These filings, typically updated annually or biennially by insurers, are verified through Quadrant’s QA process and then integrated into The Zebra’s estimator.
The displayed rates are based on a dynamic home and auto profile designed to reflect the content of the page. This profile is tailored to match specific factors such as age, location, and coverage level, which are adjusted based on the page content to show how these variables can impact premiums.
For a comprehensive understanding, see our detailed methodology.
Homeowners insurance costs vary widely depending on where you live. Insurers set rates based on how likely homeowners in a given area are to file claims, and some states carry more risk than others.
For example, premiums are often higher in places prone to natural disasters like hurricanes or wildfires.
The table below highlights just how much location matters: in some states, homeowners may pay around $60 per month, while in others, average costs can exceed $200 per month. Generally, the average for most states falls between the two.
This can be attributed to a number of factors, including local rebuilding costs, state insurance regulations, and the risk of natural disasters in the area.
At least some portion of each of these states is susceptible to tornadoes or damaging windstorms.
Source: The Zebra
Your coverage level, especially how much it would cost to fully rebuild your home, plays a major role in determining your homeowners insurance premium. This includes the main structure, detached buildings, and features like swimming pools. Higher dwelling limits and added protections can raise your premium, but they also provide more financial security.
Choosing replacement cost value (RCV) coverage typically costs more but pays to rebuild your home without depreciation, while actual cash value (ACV) coverage is usually cheaper but factors in wear and tear, which can reduce your payout after a claim. Learn more about RCV and ACV, and don't hesitate to ask your agent if you have questions about these, because it can be confusing.
| Coverage | Typical 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 E) | 20-30% of Coverage A |
| Medical Payments (Coverage E) | Varies |
| Personal Liability (Coverage F) | Varies |
Homeowners should keep in mind that your home’s replacement cost can change over time. Inflation, rising labor costs, and higher material prices can all increase what it would take to rebuild, especially after a natural disaster when demand spikes.
To help protect yourself, you may want to consider an extended replacement cost endorsement, which can increase your dwelling limit if rebuilding costs rise unexpectedly.
Replacement cost is influenced by factors like:
The table below shows how homeowners insurance costs rise as your dwelling coverage limit increases. Dwelling coverage is the amount your policy provides to rebuild your home, and it is not the same as your home’s market value.
For example, insuring a home with a $100,000 replacement cost averages $1,364 per year, while a $600,000 dwelling limit can cost nearly $5,000 per year. This is why having an accurate estimate of your rebuilding cost is so important when choosing coverage.
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| Dwelling | Avg. Annual Premium |
|---|---|
| 100000 | $1,364 |
| 200000 | $2,081 |
| 300000 | $2,802 |
| 400000 | $3,501 |
| 500000 | $4,217 |
| 600000 | $4,930 |
Source: The Zebra
“We usually ask clients to picture flipping their home upside down — everything that falls out is personal property. That gives us a rough starting point to estimate value, like $50,000 or $100,000 in coverage. That visual really helps them wrap their heads around what they might need.”
-Erica Alderate, Manager and Licensed Agent at The Zebra
The average monthly premium with a $1,000 deductible is $123 per month, while a $2,000 deductible costs about $109.
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 to see how deductibles can influence home insurance premiums and how they vary by company.
If the total to repair the issue is less than, or only slightly more than, your deductible amount, it's probably not worth filing a claim.
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| Company | $500 | $1,000 | $2,000 | $2,500 |
|---|---|---|---|---|
| Allstate | $2,805 | $2,669 | $2,506 | $2,453 |
| American Family | $4,218 | $4,182 | $4,069 | $4,023 |
| Amica Mutual | $1,653 | $1,555 | $1,429 | $1,368 |
| Farmers | $3,591 | $3,424 | $3,206 | $3,184 |
| Nationwide | $2,832 | $2,762 | $2,465 | $2,439 |
| State Farm | $2,381 | $2,269 | $2,105 | $2,053 |
| Travelers | $8,633 | $8,365 | $7,860 | $7,599 |
| USAA | $2,732 | $2,515 | $2,238 | $2,227 |
Source: The Zebra
Filing a claim can impact what you pay for homeowners insurance, especially if you’ve had multiple claims in a short period. Insurers view past claims as a sign of future risk, which can lead to higher premiums at renewal.
Even small claims (such as minor water damage or theft) may affect your rate, depending on the insurer and the type of loss. That’s why it can help to save claims for larger, more serious events. The table below shows the average increases after one and two home claims.
If you do file a claim, an adjuster determines the damage amount and what your coverage will apply to. It can be an unwelcome surprise if you don't fully understand your policy after a loss. It's important to review your homeowners policy every once in a while to be sure you've got protection for what you think you do.
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| Claims history | Avg. Annual Premium |
|---|---|
| No claims | $1,623 |
| 1 claim | $1,789 |
| 2 claims | $1,842 |
Source: The Zebra
Your home insurance coverage after a natural disaster depends on your location. Most natural disasters, hurricanes, floods, and earthquakes are not covered by homeowners insurance.
Standard homeowners insurance covers the basics, but some add-ons can provide valuable protection depending on where you live and what matters most to you.
These extras typically raise your premium, but they can help fill important gaps in coverage:
Flood or earthquake insurance: Often not included in a standard policy, but essential in higher-risk areas
Extended replacement cost coverage: Helps cover rebuilding costs if construction prices surge after a disaster
Scheduled personal property coverage: Adds protection for high-value items like jewelry, art, or collectibles
Water backup coverage: Covers damage from sewer or drain backups, which can be costly repairs
Ordinance or law coverage: Helps pay for required upgrades if your home must be rebuilt to meet new building codes
The right add-ons depend on your home, location, and budget, but choosing coverage that reflects your real-world risks can prevent expensive surprises later.
“If you’re buying an older home, I’d strongly recommend adding foundation coverage. Older properties are more likely to have issues like settling or cracking, and not every policy includes protection for that. It’s worth checking.”
-Johnny Hawkins, Manager and Licensed Agent at The Zebra
It’s easy to shop for homeowners insurance based on price, but the cheapest policy can cost you more later if it doesn’t provide enough protection.
Rather than trimming coverage, focus on smart ways to keep premiums manageable, like:
The best policy isn’t just affordable, it’s the one that protects you from the biggest financial hit if something goes wrong.
Our best piece of advice for saving money on homeowners' insurance is to shop around and compare multiple companies. Don't forget about smaller names you may not have heard of, either, like regional companies that may work through independent agents and brokerages.
The Zebra is not an insurance company. We publish data-backed, expert-reviewed resources to help consumers make more informed insurance decisions.
