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Key takeaways from our home insurance rates analysis
- Home insurance costs an average of $2,490 a year.
- Oklahoma, Nebraska and Kansas are the most expensive states for home insurance.
- Hawaii, Vermont and Delaware are the least expensive states for homeowners insurance.
- State Farm came in as the cheapest large home insurance company, with an average annual rate of $2,415. (USAA had even less expensive policies at $1,940 per year, but they're available only to the military community and some federal workers.)
- Key factors that affect your home insurance rate include your location, the size and age of your home, and your credit history (in most states).
Why trust NerdWallet
- Strict editorial guidelines to ensure fairness and accuracy in our coverage to help you choose the financial products that work best for you. See our criteria for evaluating homeowners insurance.
- More than 270 million rates analyzed by our team of specialists.
- More than 100 insurance companies analyzed in all 50 states and Washington D.C. (See our top picks.)
Homeowners insurance costs an average of $2,490 a year, or about $208 a month, according to NerdWallet’s analysis.
We analyzed pricing data from more than 100 insurance companies to find the average homeowners insurance cost in every state. Our sample policy was for a 40-year-old homeowner with good credit. The policy had $400,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.
Note that the rates included in this article are benchmarks. The exact cost of your homeowners insurance will depend on your location, the size of your house and how much coverage you need.
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Find average home insurance costs:
How much is home insurance in your state?
Average homeowners insurance rates vary widely, and where you live is a big factor in how much you pay. Hover over your state on the map below to see the average home insurance cost.
These are the most expensive states for homeowners insurance, on average.
- Oklahoma: $7,255 a year, or about $605 a month.
- Nebraska: $6,015 a year, or about $501 a month.
- Kansas: $5,455 a year, or about $455 a month.
- Arkansas: $4,955 a year, or about $413 a month.
- Texas: $4,915 a year, or about $410 a month.
Here are the cheapest states for homeowners insurance, on average.
- Hawaii: $900 a year, or about $75 a month.
- Vermont: $1,170 a year, or about $98 a month.
- Delaware: $1,365 a year, or about $114 a month.
- Alaska: $1,385 a year, or about $115 a month.
- New Jersey: $1,480 a year, or about $123 a month.
Here are annual and monthly average home insurance costs for all 50 states and Washington, D.C.
| State | Average annual cost | Average monthly cost |
|---|---|---|
| National average | $2,490 | $208 |
| $4,285 | $357 | |
| $1,385 | $115 | |
| $3,415 | $285 | |
| $4,955 | $413 | |
| $1,820 | $152 | |
| $3,910 | $326 | |
| $2,135 | $178 | |
| $1,365 | $114 | |
| $2,845 | $237 | |
| $3,225 | $269 | |
| $900 | $75 | |
| $2,195 | $183 | |
| $3,240 | $270 | |
| $2,985 | $249 | |
| $3,765 | $314 | |
| $5,455 | $455 | |
| $3,795 | $316 | |
| $2,020 | $168 | |
| $1,525 | $127 | |
| $2,375 | $198 | |
| $1,645 | $137 | |
| $2,415 | $201 | |
| $3,615 | $301 | |
| $4,445 | $370 | |
| $3,805 | $317 | |
| $3,765 | $314 | |
| $6,015 | $501 | |
| $1,635 | $136 | |
| $1,500 | $125 | |
| $1,480 | $123 | |
| $2,800 | $233 | |
| $1,710 | $143 | |
| $3,025 | $252 | |
| $3,510 | $293 | |
| $2,080 | $173 | |
| $7,255 | $605 | |
| $1,705 | $142 | |
| $1,720 | $143 | |
| $2,230 | $186 | |
| $3,205 | $267 | |
| $3,965 | $330 | |
| $4,220 | $352 | |
| $4,915 | $410 | |
| $1,810 | $151 | |
| $1,170 | $98 | |
| $2,265 | $189 | |
| $1,880 | $157 | |
| $1,645 | $137 | |
| $2,465 | $205 | |
| $2,175 | $181 | |
| $1,805 | $150 |
Why are some states so much more expensive?
Weather risk is one of the biggest factors that determines how much you pay for home insurance. States in the center of the U.S. are at high risk of tornadoes and hail, which can lead to pricey home insurance claims.
Meanwhile, home insurance is cheap in Hawaii in part because it doesn't cover wind damage from hurricanes. Hawaiians need to buy this coverage separately, which adds to their total insurance bill.
State laws also play a big role in how much you pay for your policy. Because insurance is regulated at the state level, it's easier for companies to raise their rates in some states than others.
How much is homeowners insurance in your city?
We analyzed prices in 20 of the largest metro areas in the U.S. to find the average homeowners insurance cost in each city. Of the cities in our list, these were the five most expensive, on average:
- Oklahoma City: $9,770 a year, or about $814 a month.
- Houston: $7,855 a year, or about $655 a month.
- Fort Worth: $7,460 a year, or about $622 a month.
- Denver: $6,315 a year, or about $526 a month.
- Dallas: $5,890 a year, or about $491 a month.
Below are the five cheapest cities in our list, on average:
- San Jose: $1,475 a year, or about $123 a month.
- Seattle: $1,690 a year, or about $141 a month.
- San Francisco: $1,715 a year, or about $143 a month.
- San Diego: $1,770 a year, or about $148 a month.
- Columbus: $2,065 a year, or about $172 a month.
Check out the full alphabetical list below.
| City | Average annual cost | Average monthly cost |
|---|---|---|
| Austin | $3,405 | $284 |
| Charlotte | $2,255 | $188 |
| Chicago | $3,745 | $312 |
| Columbus | $2,065 | $172 |
| Dallas | $5,890 | $491 |
| Denver | $6,315 | $526 |
| Fort Worth | $7,460 | $622 |
| Houston | $7,855 | $655 |
| Jacksonville | $2,555 | $213 |
| Los Angeles | $2,265 | $189 |
| Minneapolis | $4,540 | $378 |
| New York | $3,350 | $279 |
| Oklahoma City | $9,770 | $814 |
| Philadelphia | $2,405 | $200 |
| Phoenix | $4,250 | $354 |
| San Antonio | $3,530 | $294 |
| San Diego | $1,770 | $148 |
| San Francisco | $1,715 | $143 |
| San Jose, California | $1,475 | $123 |
| Seattle | $1,690 | $141 |
Is homeowners insurance more expensive in urban or rural areas?
Higher crime rates can push insurance rates up for city homeowners because they’re more likely to file claims for theft and vandalism. Major metro areas often have a higher cost of living. That makes rebuilding after a claim more expensive.
However, rural homeowners may also pay a premium if they live far away from the nearest fire department. With less access to fire hydrants and emergency vehicles, a home may be more likely to burn down than one in an urban area with more services.
Average homeowners insurance cost by company
We found the average annual rates for some of the largest homeowners insurance companies in the U.S. by market share. USAA offered the cheapest rates, but its policies are available only to the military community. State Farm had the next most affordable rates. Click on each company’s name to read our review.
Keep in mind that smaller regional insurers may offer lower rates in your area, and that not all large insurers serve every state.
| Company | Average annual cost | Average monthly cost |
|---|---|---|
| $2,415 | $201 | |
| $2,710 | $226 | |
| $2,715 | $226 | |
| $3,250 | $271 | |
| $3,345 | $279 | |
| $4,235 | $353 | |
| USAA* | $1,940 | $162 |
| *USAA membership is open only to active military, veterans, some federal employees and their families. | ||
Average home insurance cost by coverage amount
One of the biggest factors in how much your homeowners policy costs is how much dwelling coverage you need. Dwelling coverage pays to rebuild the structure of your home if it’s damaged or destroyed. The amount you need is based on how much rebuilding would cost — not how much you paid for the house.
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 various coverage limits.
| Dwelling coverage amount | Average annual cost | Average monthly cost |
|---|---|---|
| $200,000 | $1,480 | $123 |
| $300,000 | $1,975 | $165 |
| $400,000 | $2,490 | $208 |
| $500,000 | $3,005 | $250 |
| $600,000 | $3,510 | $293 |
| $700,000 | $3,995 | $333 |
| $800,000 | $4,445 | $370 |
Average homeowners insurance cost by home age
Older homes often cost more to insure than new ones. That's 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 both houses.
| Year home was built | Average annual cost | Average monthly cost |
|---|---|---|
| 1984 | $2,490 | $208 |
| 2025 | $1,425 | $119 |
Average homeowners insurance cost by deductible
A home insurance deductible is the amount of a claim you pay before your insurance kicks in. A higher deductible usually leads to a lower home insurance rate.
| $1,000 deductible | $2,500 deductible | Difference |
|---|---|---|
| $2,490 | $2,260 | -9% |
Average homeowners insurance cost by claims history
If you have previous home insurance claims, insurers may see you as a higher risk and raise your rates. Here’s how filing a claim could affect your homeowners insurance cost.
| No claims | 1 claim | Difference |
|---|---|---|
| $2,490 | $2,750 | 10% |
Average homeowners insurance cost by credit
Homeowners with poor credit often pay more for home insurance because insurers see them as a higher risk for filing claims. Read more about the impact of credit scores on home insurance rates.
Using credit to set homeowners, renters, condo and mobile home insurance prices is not allowed in California, Maryland and Massachusetts.
| Good credit | Poor credit | Difference |
|---|---|---|
| $2,490 | $4,290 | 72% |
Other factors that impact the cost of home insurance
Your home insurance premiums may also be affected by these factors:
- Your neighborhood. Being closer to a fire station can lower your premiums. Conversely, living in a neighborhood with higher crime rates may increase them.
- Your risk of natural disasters. If you live in an area that’s vulnerable to wildfire, tornadoes or hurricanes, home insurance may be more expensive.
- Extra features. Swimming pools and trampolines may be fun for the family, but to an insurer, they're risky. If someone drowns in your pool, for instance, it could turn into a costly liability claim. Your carrier may charge more to insure your home as a result.
- Your dog. Some insurers may charge extra for animal liability coverage. Others won't cover breeds they consider to be higher risk or dogs with a history of aggression. Read more about pet liability insurance.
Why is home insurance getting more expensive?
If your home insurance premiums have gone up in recent years, you’re not alone. A majority of U.S. homeowners (54%) report that their insurance premiums have increased in the past 12 months, according to a 2025 NerdWallet survey of more than 1,300 U.S. homeowners, conducted online by The Harris Poll. Rates have been on the rise for several years due to inflation and natural disasters.
Inflation doesn't just affect gas and food prices. It's also 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.
Home insurance rates are rising most quickly in places where disasters are growing more common. These include wildfires in the West, hail in the Midwest and hurricanes in the Southeast. There were 27 disasters that each caused at least $1 billion of damage in 2024, the most recent year for which data is available. See how to protect your home from climate change.
How to reduce the cost of homeowners insurance
Shop around
Getting home insurance quotes annually is the best way to ensure you’re still paying the lowest possible price. We recommend comparing rates from at least three companies. Make sure the coverage limits and deductibles are similar on all policies to get a fair comparison.
If you're not up for shopping around yourself, ask an independent agent or broker to get quotes on your behalf. Read our guide on how to shop for homeowners insurance.
Raise your deductible
A higher deductible will mean a lower rate. Raising your deductible from $1,000 to $2,500 can save you about 9% 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.
Ask about discounts
Most insurers offer a variety of discounts. One of the most common is a bundling discount for buying both home and car insurance together. (See the best home and auto bundles.) You may also be able to save if you haven't filed a claim recently or you have certain smart-home devices in your home. Paying annually instead of monthly can earn you a discount from some insurers, too.
Upgrade your home
Certain renovations could lower homeowners insurance costs. For example, getting a new roof could net you a discount, especially if it’s resistant to wind and hail. You may also be able to save by updating your electrical or plumbing system.
Build your credit
In most states, insurers can use your credit-based insurance score (similar to your FICO score) to set rates. Though it may take time, building your credit could save you a lot on homeowners insurance over the long run.
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Methodology
Homeowners insurance rates methodology
To find the average cost of homeowners insurance, NerdWallet calculated the median rate for 40-year-old homeowners from a variety of insurance companies across the U.S. We looked at rates in every ZIP code across all 50 states and Washington, D.C. All rates are rounded to the nearest $5.
Sample homeowners were nonsmokers with good credit living in a single-family, two-story home built in 1984. They had a $1,000 deductible and the following coverage limits:
- $400,000 in dwelling coverage.
- $40,000 in other structures coverage.
- $200,000 in personal property coverage.
- $80,000 in loss of use coverage.
- $300,000 in liability coverage.
- $1,000 in medical payments coverage.
We made minor changes to the sample policy in cases where rates for the above coverage limits or deductibles weren’t available.
We used the same assumptions for all other homeowner profiles, with the following exceptions:
- For homeowners with a claims history, we added a single wind damage claim.
- To see the effect of changing your deductible, we raised the deductible from $1,000 to $2,500.
- For homeowners with newer homes, we changed the year the house was built to 2024.
- We changed the credit tier from “good” to “poor” as reported to the insurer to see rates for homeowners with poor credit. In states where credit isn’t taken into account, we only used rates for “good” credit.
- To see the effect of changing your dwelling coverage amount, we changed the limit to $200,000, $300,000, $500,000, $600,000, $700,000 or $800,000. This also changed some of the other coverage limits that were tied to the dwelling coverage amount. For example, the other structures coverage limit is typically 10% of the dwelling coverage amount, so our sample policy with $200,000 of dwelling coverage had $20,000 of other structures coverage.
These are sample rates generated through Quadrant Information Services. Your own rates will be different.
Survey methodology
This survey was conducted online within the United States by The Harris Poll on behalf of NerdWallet from April 10-14, 2025, among 1,337 U.S. adults ages 18 and older who own a home. The sampling precision of Harris online polls is measured by using a Bayesian credible interval. For this study, the sample data is accurate to within +/- 3.2 percentage points using a 95% confidence level. This credible interval will be wider among subsets of the surveyed population of interest. For complete survey methodology, including weighting variables and subgroup sample sizes, please contact [email protected].
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- 1. National Oceanic and Atmospheric Administration. Billion-Dollar Weather and Climate Disasters. Accessed May 6, 2026.
