Short answer
How much homeowners insurance costs depends mostly on your state and ZIP code, the cost to rebuild your home, its age and roof, your deductible and your claims history. Prices vary so much that a national average tells you little about your own bill.
- The quickest way to see your price is to compare quotes for the same coverage from several insurers.
- Raising your deductible, bundling policies and asking about discounts can potentially lower the premium.
- Don't cut dwelling coverage below the cost to rebuild just to save money.
What decides your price
Insurers set prices based on how likely you are to file a claim and how much that claim could cost. The biggest factors are:
- Where you live. Your state, ZIP code and even distance to a fire hydrant matter. Areas with more hurricanes, hail, wildfire or severe storms usually cost more to insure.
- Cost to rebuild. Insurers price the cost to rebuild your house with similar materials, not its market value. Bigger homes and custom finishes cost more to rebuild.
- Age and condition. An older roof, old wiring or old plumbing raises risk. A new roof can make a real difference with some insurers.
- Your deductible. A higher deductible means you pay more of each claim yourself, which usually lowers the premium.
- Claims history. Recent claims on your policy, and sometimes on the house itself, can raise your price.
- Credit-based insurance score. In many states, insurers can use one. A few states limit or ban this.
- Extras. A pool, trampoline, certain dog breeds or a home business can change the price or what an insurer will cover.
What a policy covers
A standard homeowners policy is a bundle of coverages. Knowing the parts makes quotes easier to compare.
- Dwelling: the house itself and attached structures like a garage.
- Other structures: fences, sheds and detached garages.
- Personal property: your belongings, inside or sometimes outside the home.
- Loss of use: extra living costs, such as a rental, if a covered loss makes your home unlivable.
- Personal liability: if someone is hurt on your property or you damage someone else's property.
- Medical payments: small medical bills for guests hurt at your home, regardless of fault.
Two things standard policies usually leave out: flood and earthquake. Those need separate coverage. Many policies also limit coverage for wear and tear, mold, sewer backup and high-value items like jewelry unless you add an endorsement.
Also check how a policy pays. Replacement cost pays to replace what was damaged with new items of similar kind. Actual cash value subtracts depreciation, so you get less for older things.
Why premiums go up
Many homeowners see their bill rise even with no claims. Common reasons include:
- higher costs for building materials and labor, which raise the cost to rebuild,
- more frequent or costly weather damage in your region,
- higher costs for insurers themselves, which they pass on through rates approved by your state,
- automatic increases in your dwelling coverage to keep up with rebuilding costs,
- changes in your own profile, such as a new claim or an older roof.
If your renewal jumps, ask your insurer or agent exactly which factors changed. Then compare quotes for the same coverage before you accept it.
How to compare quotes in 6 steps
- Pull out your current policy. The declarations page lists your coverage amounts, deductible and endorsements. Use it as your baseline.
- Check your dwelling amount. Make sure it reflects the cost to rebuild. Your insurer or a local contractor can help estimate it.
- Get several quotes. Ask at least three insurers or an independent agent who can quote several companies, using the same coverage amounts and deductible each time.
- Compare more than price. Look at replacement cost vs. actual cash value, separate wind or hail deductibles, exclusions and the insurer's complaint record with your state insurance department.
- Ask about discounts. Common ones include bundling with auto, security systems, a new roof, claim-free history and paying in full.
- Switch carefully. Start the new policy before you cancel the old one so you are never without coverage, and tell your mortgage company if your escrow account pays the premium.
Ways to potentially lower your premium
- Raise your deductible, as long as you could pay it if something happens.
- Bundle home and auto with one insurer, but compare that against separate policies too.
- Improve the house: a new roof, updated wiring, storm shutters or monitored alarms may earn credits.
- Review your coverage yearly and remove extras you no longer need.
- Avoid small claims. Paying for minor damage yourself can help keep your record clean.
Never let the policy lapse to save money. If you have a mortgage, your lender can buy coverage for you and add the cost to your payment, and that coverage usually costs more and protects you less.
If you can't find coverage
In some high-risk areas, private insurers may decline to write new policies. If you have trouble, ask an independent agent to shop more companies, and ask about your state's FAIR plan or similar insurer of last resort. These plans often cost more and cover less, so many homeowners use them while they keep shopping. Your state insurance department can explain your options and handle complaints.
How we're paid: HomeownerPedia publishes free guides for homeowners. Some links on this site may lead to partners who pay us for referrals. We tell you on the page when that's the case. You decide whether to move forward. HomeownerPedia is not an insurance company or agent and does not sell insurance. Rates and coverage depend on the insurer and your situation.
Questions homeowners ask
What is the average cost of homeowners insurance?
It varies widely by state, ZIP code, home and coverage, so a national average tells you little about your own bill. Your state insurance department may publish average premiums for your state, and comparing quotes for the same coverage shows what you would actually pay.
Is homeowners insurance required?
No federal or state law requires it, but if you have a mortgage, your lender almost always requires it. Even without a mortgage, it protects what is likely your biggest asset.
Does homeowners insurance cover floods?
Standard homeowners policies usually do not cover flood damage. Flood coverage is sold separately, through the federal flood program or private insurers.
How much dwelling coverage do I need?
Enough to rebuild your home with similar materials at today's costs. That is different from the home's market value, which includes land. Your insurer or a local builder can help estimate it.
How often should I shop for homeowners insurance?
Reviewing your policy every year at renewal is a good habit, and comparing quotes makes sense whenever your premium rises noticeably or your home changes.
