How much is home insurance?
Although the national average cost of home insurance is $2,601 a year, home insurance rates vary by coverage level and location. Other factors about your home, like its size, age, construction type, and features like a pool, can impact your rates.
Home insurance cost by state
The most expensive state for home insurance is Oklahoma at $5,858 a year, and the cheapest state for home insurance is Hawaii at $613 a year. States where natural disasters are more common tend to have higher rates. But there’s a good reason home insurance is so cheap in Hawaii despite the risks there.
“One major factor in Hawaii is the fact that most standard homeowner insurance policies do not cover hurricane damage. Hurricane Iniki, which hit in 1992, did so much damage that the majority of insurers excluded hurricane damage from their coverage. Homeowners in Hawaii now have to purchase a separate hurricane damage policy,” says Michael Barry, chief communications officer at the Insurance Information Institute.
Take a look at the average home insurance rates in your state and how it compares below.
Average home insurance cost by coverage level
Here are the nationwide average annual rates for homeowners insurance at several coverage levels, including homeowners insurance for a $200,000 house and home insurance for a $400,000 house, all with a $1,000 deductible.
Get home insurance rates in your ZIP code
What you will pay for home insurance depends on many factors, but you can get a loose estimate by comparing rates in your ZIP code. Using our home insurance calculator below, you can compare average home insurance rates by ZIP code at 10 coverage levels.
Average home insurance cost by ZIP code
Insurance.com’s analysis found the highest homeowners insurance rates in ZIP code 27936, Frisco, North Carolina.
ZIP codes in Weatherford, Oklahoma, and Hubert, North Carolina, rank second and third, respectively.
The cheapest ZIP code is in Honolulu, Hawaii followed by Sunnyvale, California.
You can also look at how much home insurance costs in your state on average to see how your ZIP compares.
We looked at home insurance estimates by ZIP code across the country to find the highest average rate for home insurance in each state and the least expensive average rate for home insurance.
The most expensive locations by ZIP code
Here are the top 20 most expensive ZIP codes in the U.S. for home insurance and the cities where they’re located.
The least expensive ZIP codes for home insurance
These are the top 20 least expensive ZIP codes for home insurance in the U.S. and the cities where they’re located.
How much is home insurance a month?
On average, home insurance costs about $217 per month, based on our standard dwelling coverage of $300,000, but the price depends on the coverage level.
How are homeowners insurance rates calculated?
The biggest factors influencing the cost of homeowners insurance are:
- Your home’s location. Allows the insurance company to look at the risk factors in that area.
- Your home’s value. Bear in mind that the value used by insurance companies isn’t the same as the market value.
- Cost to rebuild. The cost to rebuild your home if it were destroyed.
- Construction costs. Local construction costs, including building materials availability and price, and building regulations all affect rates.
- Your home’s age. Older homes may have more risks, such as outdated wiring.
- Risk exposure. Risk exposure on your property, for instance, from a swimming pool, trampoline, guest house, or aggressive dog breed.
- Fire protection. Your neighborhood’s fire protection rating )how close your home is to a fire station.)
- Claim history. Your personal and neighborhood claims history, as well as the previous homeowner’s claim history
- Insurance score. Your insurance score is based, in part, on your credit score (only three states don’t allow this – Massachusetts, Hawaii, and California; Maryland doesn’t use credit for home rates but does for auto rates)
For more information on how home insurance rates are determined, review some of the main factors affecting your home insurance rate. You can also use the home insurance calculator below to see what average rates are in your neighborhood.
Best home insurance companies
With every type of insurance coverage, the cheapest policy isn’t always the wisest choice. You want a financially healthy insurance company that has a good reputation for service.
Insurance.com’s ranking provides an in-depth look at the best home insurance companies in 2024 based on several factors. Insurance.com ranked the major insurance companies for average price and AM Best rating based on a customer survey performed by our sister site, Insure.com. Here are the results of that analysis.
While USAA is rated highly, it’s not ranked because of its military eligibility requirements. Of course, the best homeowners insurance company for you will depend on personal factors. That’s why it’s best to compare policies and quotes for your specific needs before you choose a company.
Methodology
Insurance.com compared homeowners insurance rates in 2023 provided by Quadrant Data Solutions for dwelling coverage ranging from $200,000 to $600,000 with liability limits of $100,000 and $300,000 and a deductible of $1,000 for all available ZIP codes. ZIP codes were ranked based on the average rates for dwelling coverage of $300,000, liability coverage of $300,000, and a $1,000 deductible and included all credit ratings. The content was updated in 2024.
