How Much Is Homeowners Insurance? Average December 2023 Rates

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Homeowners insurance costs an average of $1,820 a year, or about $152 a month, according to NerdWallet’s analysis. However, this is just a benchmark.

Our sample policy was for a 40-year-old homeowner with good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible. The cost of your homeowners insurance will depend on your location, the size of your house and how much coverage you need.

We’ve analyzed pricing data from more than 100 insurance companies to bring you the average homeowners insurance cost in every state and the largest U.S. cities.

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Where you live is a big factor in how much you’ll pay for homeowners insurance. Hover over your state on the map below to see the average home insurance cost.

Average homeowners insurance rates vary widely. Our analysis found that the average home insurance cost is less than $1,000 in some states, including Hawaii, Delaware and Vermont. Meanwhile, states such as Oklahoma, Nebraska and Texas have average annual rates above $3,000.

Here are annual and monthly average home insurance costs by state.

Here are the cheapest states for homeowners insurance:

  1. Hawaii: $490 a year, or about $41 a month, on average.

  2. Vermont: $815 a year, or about $68 a month, on average.

  3. New Hampshire: $865 a year, or about $72 a month, on average.

  4. Delaware: $875 a year, or about $73 a month, on average.

  5. Utah: $950 a year, or about $79 a month, on average.

  1. Oklahoma: $4,365 a year, or about $364 a month, on average.

  2. Texas: $3,875 a year, or about $323 a month, on average.

  3. Nebraska: $3,710 a year, or about $309 a month, on average.

  4. Arkansas: $3,020 a year, or about $252 a month, on average.

  5. Kansas: $2,955 a year, or about $246 a month, on average.

How much is homeowners insurance in your city?

We analyzed prices in 20 of the largest metropolitan areas in the U.S. to find the average homeowners insurance cost in each city. Houston had the most expensive average rate at $4,595 a year. Meanwhile, Las Vegas was the cheapest city on the list, with an average annual rate of $1,085.

Charlotte, North Carolina

Average homeowners insurance cost by company

We looked at average rates from some of the largest homeowners insurance companies in the U.S. by market share.

Erie came in as the cheapest on the list, with an average annual rate of $1,430. Meanwhile, Foremost was the most expensive, with an average annual rate of $2,590.

Here are average annual home insurance rates for some of the largest companies. Note that some may not offer homeowners insurance in your state. Click on each company’s name to read our review.

*USAA homeowners insurance is available only to active-duty military members, veterans and their families.

Average home insurance cost by dwelling coverage amount

One of the biggest factors in how much your homeowners policy costs is how much dwelling coverage you need. Dwelling coverage is the part of your policy that pays to rebuild the structure of your home if it’s damaged or destroyed.

If your house is large or has high-end features, it’ll cost more to rebuild and you’ll need more dwelling coverage. Below are average home insurance costs for four amounts of coverage.

Average annual insurance cost

Average homeowners insurance cost by claims history

If you have previous homeowners insurance claims, you’ll likely pay a higher rate. Here’s how filing a claim could affect your homeowners insurance costs.

Average annual insurance cost

Average homeowners insurance cost by home age

Older homes often cost more to insure because they typically don’t have the safety features that newer homes do, and repairs can be costly. See below to compare the average annual cost of insuring a new home versus an older home. (Coverage limits were the same for all three houses.)

Average annual insurance cost

What does a home insurance rate include?

Homeowners insurance policies typically include six standard types of coverage:

  • Dwelling. This pays for damage to your home from a covered event, such as a fire or windstorm.

  • Other structures. This covers structures on your property that aren’t attached to your house, such as a fence or shed.

  • Loss of use, or additional living expenses coverage. This pays for you to stay elsewhere when your home is uninhabitable because of covered damage.

  • Personal liability. This pays if you accidentally injure someone or damage their property.

  • Medical payments. This covers medical bills for anyone injured on your property, no matter who’s at fault.

How to reduce the cost of homeowners insurance

Insurers use a variety of factors to set homeowners insurance rates. For example, you might pay more if you live in a neighborhood with a high crime rate or an area prone to hurricanes. You’ll also have higher rates if you have a larger home that needs more coverage.

Did you know…

Inflation doesn’t just affect gas and food prices. Homeowners insurance rates are also going up because it has gotten more expensive to repair and rebuild houses after they’re damaged. That’s why you may see a higher homeowners premium at your next renewal, even if you haven’t filed any recent claims.

Some insurers will charge more for things like installing a swimming pool or having a dog breed they consider aggressive. (They see these scenarios as potential liability claims if someone gets hurt.)

Aside from selling your house or getting rid of your furry pal, there are many ways to reduce what you pay for homeowners insurance:

Shop around. Getting home insurance quotes annually is the best way to ensure you’re still getting the best possible deal. We recommend comparing rates from at least three companies. Make sure the coverage limits and deductibles are similar on all three policies to get a fair comparison.

If you’re not up for shopping around yourself, contact an independent agent or broker to get quotes on your behalf.

Raise your deductible. A higher home insurance deductible will mean a lower rate. Raising your deductible from $1,000 to $2,500 can save you 11% a year on average, according to NerdWallet’s rate analysis. Make sure you have enough cash tucked away to pay it if you need to file a claim.

  • Multiple policies. If you bundle your homeowners insurance with another policy, such as car insurance, you could get a discount. See the best home and auto bundles.

  • Safety and security devices. You could save money by equipping your home with fire alarms, deadbolts, security cameras and other security devices. Some companies also offer discounts for certain smart-home devices.

  • Claims-free. Many insurers offer a discount to homeowners who haven’t filed a claim recently, typically in the past three to five years.

Make renovations. Certain upgrades — such as updating an electrical or plumbing system — could lower homeowners insurance costs. Getting a new roof could also net you a discount, especially if it’s resistant to wind and/or hail.

Build your credit. In most states, insurers can use your credit-based insurance score (similar to your FICO score) to set rates. Because some studies have shown a correlation between poor credit and filing claims, those with a checkered credit history may pay more for homeowners insurance.

For example, the sample homeowner in our rate analysis has good credit and would pay $1,820 a year for insurance, on average. For the same house and coverage limits, a homeowner with poor credit would pay $3,525, on average — a 94% jump. Though it may take time, building your credit could save you a lot on homeowners insurance over the long run.

Using credit to set homeowners, renters, condo and mobile home insurance prices is not allowed in California, Maryland and Massachusetts.

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Find the best homeowners insurance in your state

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