How much is homeowners insurance? January 2023 costs
The average cost of homeowners insurance in 2023 is $1,899 per year for a policy with $300,000 dwelling coverage. But your own rates will depend on your home's location, age, construction style, and several other factors.
By
Pat HowardPat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.&Kara McGinleyKara McGinleySenior Editor & Licensed Home Insurance ExpertKara McGinley is a former senior editor and licensed home insurance expert at Policygenius, where she specialized in homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Forbes Advisor, Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.
Edited by
Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
|
Reviewed by
Fabio Faschi, PLCS, SBCS, CLCSFabio Faschi, PLCS, SBCS, CLCSLicensed Property & Casualty Insurance ExpertFabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.
Updated|6 min read
Expert reviewedExpert reviewedThis article has been reviewed by a member of ourFinancial Review Council to ensure all sources, statistics, and claims meet the highest standard for accurate and unbiased advice.Learn more about oureditorial review process.
Inflation hasn't just increased the cost of groceries and utility bills — it's also caused home insurance prices to skyrocket. In fact, 90% of homeowners saw their home insurance premiums increase over the last year, according to a Policygenius analysis of policy renewals from May 2021 to May 2022. For homeowners whose rates went up, the average increase was $134. [1]
Over the last couple of years, the home insurance industry has had to deal with the compounding effects of rising construction costs, labor shortages, and record-high claim payouts due climate disasters. Because home insurance premiums are heavily influenced by home rebuild costs and natural disaster losses from prior years, insurers have had no choice but to file for rate increases in most states.
Where are home insurance rates rising the fastest?
States where home insurance prices are increasing the fastest
According to our Home Insurance Pricing Report, homeowners insurance costs are rising dramatically in many states throughout the U.S. Homeowners in Arkansas, Washington, and Colorado all saw their home insurance prices rise at more than double the rate of inflation from May 2021 to May 2022.
Here are the top five states that saw the biggest percentage increase in home insurance rates from May 2021 to May 2022.
State
Percentage increase
Arkansas
18.5%
Washington
18.1%
Colorado
17.5%
Texas
16.0%
Oregon
15.4%
Average rates in the 10 cities most at risk from climate change
Homeowners all over the country are feeling the effects of climate change — not only with the increase in severe weather, but with the cost of their home insurance policies.
In fact, several cities on our list of the 10 worst cities for climate change have an average home insurance rate significantly higher than the statewide average.
City
Average annual cost
Difference from state average (%)
Houston, TX
$3,143
2%
Miami, FL
$5,003
89%
Tampa, FL
$2,606
-1%
Jacksonville, FL
$1,884
-29%
Orlando, FL
$2,683
2%
New Orleans, LA
$3,983
47%
Los Angeles, CA
$2,021
29%
Memphis, TN
$3,191
26%
Riverside, CA
$1,654
6%
Virginia Beach, VA
$2,445
61%
However, there are several effective ways to keep home insurance costs down, such as looking into discounts or comparing quotes from multiple companies.
Compare rates and shop affordable home insurance today
Homeowners insurance costs an average of $1,899 per year, or around $158 a month, for a policy with $300,000 in dwelling coverage, according to Policygenius's analysis of home insurance rates in every U.S. state and ZIP code.
But keep in mind that this is just the national average and that your own home insurance rates could vary significantly based on where you live, how much coverage you need, and individual factors like your credit and claims history.
Methodology & why you can trust our rates
At Policygenius, our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy.
Our rates were determined by analyzing home insurance rates provided by Quadrant Information Services for over 120 insurance carriers from across the country in March 2022.
When analyzing costs for different coverage levels and risk factors, we changed just one variable at a time to ensure the rates we’re comparing are fair and representative of the factor at hand.
How we determined average home insurance rates
Policygenius analyzed home insurance rates provided by Quadrant Information Services in March 2022 for ZIP codes in all 50 states plus Washington, D.C., for a 40-year-old female homeowner with no claim history, good credit, a $1,000 deductible, and the following coverage limits:
Dwelling: $300,000
Other structures: $30,000
Personal property: $150,000
Loss of use: $60,000
Liability: $300,000
Medical: $1,000
All rates are based on the above coverage limits except where otherwise noted.
Some carriers may be represented by affiliates or subsidiaries. Rates provided are a sample of costs. Your actual quotes may differ.
How much does home insurance cost in your state?
The average price for homeowners insurance can differ by hundreds, even thousands of dollars depending on where you live. Hover over your state on the map below to see the average annual cost of home insurance for a home with $300,000 in dwelling coverage.
While home insurance prices are going up virtually everywhere, homeowners in areas of the country with a low risk of natural disasters — like Vermont and New Hampshire — likely haven't felt as much of an impact. Depending on where you live, you can expect to pay anywhere from $500 a year to over $4,000 a year — a $3,500 difference.
Below is the average cost of home insurance per month and annually by state, and how it compares to the national average.
The table below provides a look into the average cost of home insurance per month and annually in different cities across the U.S. and how each compares to its respective state's average.
Cities that face a high risk of tornadoes or hurricanes — such as Kansas City, Houston, and Miami — see higher typical home insurance costs than cities located in more mild climates.
Top 5 cheapest & most expensive states for homeowners insurance
The states with the cheapest typical home insurance costs in 2023 are Hawaii, Vermont, New Jersey, Oregon, and Utah. All of these states have average home insurance prices of under $1,000 a year for a home with $300,000 in dwelling coverage. However, the typical cost of homeowners insurance in Oregon is going up due to a brutal wildfire season.
On the flip side, the states with the most expensive average home insurance costs in 2023 are Oklahoma, Nebraska, Kansas, Texas, and Arkansas. One thing all of these states have in common? They're all located in Tornado Alley — a region of the country that sees frequent tornadoes and hailstorms throughout much of the year.
Here are the cheapest and most expensive states for homeowners insurance.
Top 5 most expensive states for home insurance
1. Oklahoma: $4,230 per year
2. Nebraska: $3,741 per year
3. Kansas: $3,094 per year
4. Texas: $3,027 per year
5. Arkansas: $2,924 per year
Top 5 cheapest states for home insurance
1. Hawaii: $486 per year
2. Vermont: $900 per year
3. New Jersey: $904 per year
4. Oregon: $905 per year
5. Utah: $923 per year
Cheapest ZIP code for home insurance in each state
Homeowners insurance prices don’t just depend on what state or city you live in — rates are calculated all the way down to your house’s ZIP code. If you live in a neighborhood that experiences frequent home break-ins or wildfires, you’ll likely see higher home insurance premiums.
Click here for the cheapest ZIP codes for home insurance in each state.
Check out the cheapest ZIP code for home insurance in your state
Home insurance costs vary from company to company, as every company has its own particular way of calculating rates and evaluating risk. Based on our analysis of the cheapest home insurance companies, we found that the price of homeowners insurance with Erie is the lowest, followed by Auto-Owners and USAA.
How much does home insurance cost by dwelling coverage amount?
Along with your location and the risk that comes with that, insurers will also factor in your home's replacement cost — aka the cost to rebuild from the ground up — when determining your rates. This amount is typically reflected in your policy's dwelling coverage limit — and generally speaking, the more of this coverage you have, the higher your premiums will be.
Here is the typical cost of homeowners insurance for five different levels of dwelling coverage, according to our analysis.
Dwelling coverage level
Average monthly cost
Average annual cost
$100,000
$79
$946
$200,000
$120
$1,442
$300,000
$158
$1,899
$400,000
$207
$2,481
$500,000
$256
$3,066
Your rates may be higher if you need extra coverage
These rates don’t tell the full story, as they don’t take into account coverage add-ons or separate policies you may need to purchase for protection against earthquakes, wildfires, hurricanes, or windstorms. For example, while rates are extremely low in Hawaii, this doesn’t factor in the cost of separate hurricane insurance you’ll be required to purchase if you have a mortgage.
And homeowners in Oregon who live in areas at high risk of wildfires may be denied coverage from a standard home insurance company altogether. In this case, you’d be forced to find coverage through a specialty insurer or the Oregon FAIR Plan, which are both typically more expensive.
Compare rates and shop affordable home insurance today
How much is homeowners insurance by deductible amount?
Your deductible is the amount you’re required to pay out of pocket on each claim before your insurance kicks in to cover the rest. Most insurance companies give you the option of choosing a deductible of anywhere from $500 to $2,500, although this will vary by insurer.
Electing for a higher deductible is one to lower your home insurance rates, but it also means you'll have to pay more out of pocket when you file a claim.
Here’s the average annual home insurance rate by deductible level from five different companies.
Company
$500 deductible
$1,000 deductible
$2,000 deductible
Allstate
$1,776
$1,596
$1,104
ASI Progressive
$2,750
$2,618
$1,365
Auto-owners
$1,171
$1,283
$1,010
Erie
$1,446
$1,346
$1,259
State Farm
$2,327
$2,039
$1,551
Average homeowners insurance cost by claims history
Homeowners insurance companies consider many factors when calculating your homeowners insurance rates, and one of them is how at risk you are for filing a claim. In general, the more claims you've filed in the past, the higher your home insurance rates will be since companies view you as at greater risk of filing another claim.
Here’s the average cost of home insurance by claims history.
The average price of home insurance is typically more expensive for older homes versus new homes. This is because insurance companies consider older homes at greater risk of damage, meaning you're more likely to file a claim. As you can see in the table below, new homes have an average annual rate that's roughly $800 cheaper than homes that are 100 years old.
Here’s the average cost of homeowners insurance for five different home ages.
A standard homeowners insurance policy is made up of six different coverages that protect your home, belongings, and assets in the event of storm damage, natural disasters, theft, or accidental injuries for which you're liable. Click here for a breakdown of each coverage.
Typically set at 20% of your dwelling coverage limit, but you may be able to increase your limit depending on your insurer
Covers hotel stays, restaurant bills, dry-cleaning, and pet boarding expenses if you’re unable to stay in your home while it’s being repaired after a covered loss
More liability coverage doesn't necessarily mean higher rates
Covers medical and legal expenses if someone is injured or their property is damaged and you're found legally responsible
-Most insurers offer $100,000 to $500,000 in liability coverage
While where you live is one of the biggest factors home insurance companies take into consideration when nailing down your the cost of your home insurance, some lesser-known variables like your credit score and even your profession could influence how much you pay.
Location. Homes in high-risk tornado, flood, wildfire, or hurricane zones will see higher rates than those in more mild climates. Likewise, living in a city with more cases of vandalism and theft than out in the country could also cost you. Insurers even take into account your proximity to a fire station when determining your rates.
Age of home and roof. Houses with old aluminum wiring, outdated plumbing, or roofs that haven’t been replaced in over 15 years will likely see higher rates — if you can get coverage at all. This is due to the increased risk of filing a claim that comes with living in older or historic homes. If you have a roof in bad condition or one that’s over 20-years-old, you’ll likely see higher rates.
Pools and attractive nuisances. Insurers consider pools, tree houses, and trampolines to be “attractive nuisances,” meaning they might tempt people onto your property, raising the risk that someone will be injured — and increasing your rates.
Your risk profile
Claims history. If you filed a claim in the past few years or live in an area with a high number of claims, you’ll see higher premiums to match the risk.
Credit history. Most states allow insurance companies to check your credit history. A higher credit score means lower rates, and vice versa.
Aggressive dog breeds. Some insurers exclude coverage or raise rates if you own a big dog, like Rottweilers and pit bulls, because you’re statistically at a higher risk for filing a personal liability claim if your dog were to injure someone.
Policy details
Coverage limits. How much you opt for dwelling coverage and any extra coverage add-ons is directly tied to your insurance premiums. Higher coverage limits and more specialized coverage add-ons equals higher rates.
Deductible. Policy deductibles are the amount you pay out of pocket for every claim you file before your insurance company kicks in to cover the rest. You can typically choose a deductible between $500 and $2,000. Low-deductible policies spell higher premiums, and vice versa.
Discounts you qualify for. Homeowners insurance companies offer discounted rates for everything from bundling your home and auto policies, to working in a certain profession (like for educators or civil servants), to paying your premiums up front for the year.
How to reduce the cost of homeowners insurance
Along with bundling your insurance policies, not filing many claims, and ditching high-risk items like trampolines, you can also lower your homeowners insurance premiums through some of the following techniques.
Security and safety devices
How much you can save: Up to 15% off your premiums
Wind mitigation features
How much you can save: Up to 55% off the wind portion of your policy
Bundle home and auto insurance
How much you can save: Policygenius saved customers an average of $1,250 per year over what they were paying for home and auto insurance
Re-shop your home insurance
How much you can save: We save customers an average of $455 per year when they use Policygenius to re-shop their home insurance policy.
5 additional ways to reduce home insurance costs
Here are a few additional ways you can lower the cost of home insurance.
Improve your credit score. Making a conscious effort to pay down your credit card debt, make payments on time, and avoid opening up new accounts will help your overall financial health — and give you lower home insurance rates to boot.
Increase your deductible. As we mentioned earlier, opting for a higher deductible can help you pay lower premiums each month. Just make sure you have enough in savings to cover the higher out-of-pocket costs.
Downsize your coverage. Only one in 10 homeowners review or update their homeowners insurance policy every five years, according to a study by the National Association Insurance Commissioners. [2] But we recommend reviewing your coverage annually. Did you pass down your prized heirloom to a grandchild or sell off a bunch of personal belongings? Then you might not need as much personal property coverage. Getting rid of coverage you don't absolutely need can help lower your home insurance bill.
Think twice before filing a small claim. Since your claims history directly impacts the cost of your home insurance, avoid filing a claim for smaller incidents that wouldn’t cost you too much to just pay yourself out of pocket.
Reconsider liability risks. Trampolines, tree houses, and other “attractive nuisances” are a liability risk and having one on your property can result in higher premiums. If your kid moved off to college and you don't have any use for these structures anymore, consider removing them and you may just see lower rates.
How do I estimate the replacement cost of my home?
You can estimate the replacement cost of your home a few different ways — from reaching out to a licensed Policygenius agent to hiring a licensed appraiser to come to your home to using an online home insurance calculator. Knowing your house’s square footage, roof style, and construction style, as well as the local construction costs in your area, will help you estimate how much it would cost to rebuild your home from the ground up.
How much is home insurance per month?
The average monthly home insurance cost is around $158, according to our analysis of 2022 rate data. But how much you pay will vary based on where you live, the age and size of your home, your coverage limits, and other factors.
Does bundling home insurance save you money?
Yes, bundling your home insurance with your auto or motorcycle insurance is one of the best ways to save. Companies will reward you with savings for keeping all of your policies with them — and this can also make paying bills and filing claims easier.
Why did my home insurance premiums go up?
Your home insurance rates can increase for a number of reasons, including if your credit score took a hit, you filed a lot of claims in the past year, or you made renovations to your home that increased your coverage requirements.
How much should home insurance cost?
The typical cost of homeowners insurance in the U.S. is $1,899 per year for a policy with $300,000 in dwelling coverage, but the price of your own home insurance policy will depend on your location, the age and size of your home, your credit score, and several other factors.
References
Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.
Pat Howard is a managing editor and licensed home insurance expert at Policygenius, where he specializes in homeowners insurance. His work and expertise has been featured in MarketWatch, Real Simple, Fox Business, VentureBeat, This Old House, Investopedia, Fatherly, Lifehacker, Better Homes & Garden, Property Casualty 360, and elsewhere.
Kara McGinley is a former senior editor and licensed home insurance expert at Policygenius, where she specialized in homeowners and renters insurance. As a journalist and as an insurance expert, her work and insights have been featured in Forbes Advisor, Kiplinger, Lifehacker, MSN, WRAL.com, and elsewhere.
Jennifer Gimbel is a senior managing editor and home insurance expert at Policygenius, where she oversees our homeowners insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
Fabio Faschi is a licensed property and casualty insurance agent. His expertise on home and auto insurance has been featured on Forbes, Consumer Affairs, Realtor.com, Apartment Therapy, SFGATE, Bankrate, and Lifehacker.
