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Jessa ClaeysEdited by
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Updated May 23, 2024
The average cost of homeowners insurance in the U.S. is $2,153 per year for $300,000 in dwelling coverage. However, your actual rates may vary depending on several factors.
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On this page
The right home insurance policy can help to financially safeguard what’s likely your largest investment: your home. As home insurance costs across the country continue to trend upward, homeowners may want to know more about why rates are changing, if they have adequate protection and what they can do to find the lowest home insurance premium. Bankrate's insurance editorial team understands that informed consumers are empowered to make smarter financial decisions.
Our team, which includes licensed insurance agents, has analyzed average home insurance cost data provided by Quadrant Information Services. We review rates from every state to help you understand where your premium falls compared to averages in your area and offer tips that may help you save money on your home insurance policy.
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On This Page
On This Page
- How much is home insurance?
- How much does home insurance cost in my state?
- How much does home insurance cost by company?
- Home insurance rating factors
- How to estimate the cost of home insurance
- Home insurance industry trends
- Frequently asked questions
- Methodology
How much is home insurance?
Based on rate data provided by Quadrant Information Services, the national average homeowners insurance cost is $2,153 per year — about $179 per month — for a policy with $300,000 in dwelling coverage. However, insurance is not one size fits all. Coverage and cost vary drastically based on several factors, including the age of a home, square footage, cost of building materials and location. Plus, insurance is regulated on a state, as opposed to a national level, so state laws can influence how much home insurance is. Natural disasters common to specific areas can also have a hand in determining premiums. And if you have a loan on your home, your financial lender can require you to carry a minimum amount of home insurance coverage. Depending on your mortgage lender and where you live, you may need flood insurance in addition to a home policy.
Key insights from Bankrate's 2024 home insurance rates analysis:
- On average, the most expensive states for homeowners insurance are Nebraska, Oklahoma and Kansas, while the least expensive states are Vermont, New Hampshire and Delaware.
- While inflation has slowed down, insurance rates are reactionary. The cost of home insurance is still increasing due to the impact inflation has had on the previous losses experienced by the insurance company, the elevated cost of building materials and the future risk posed by extreme weather.
- According to our research, Erie, Auto-Owners and USAA offer some of the lowest average home insurance rates for $300,000 in dwelling coverage.
- On average, homeowners with poor credit histories pay 192 percent more for home insurance than homeowners with excellent credit.
Why you can trust Bankrate
Experience is the key to our insight at Bankrate. Licensed agents are a part of our insurance editorial staff, using decades of combined industry knowledge to provide accurate and in-depth content on various insurance subjects. With access to proprietary premium data from Quadrant Information Services, we use our expertise to analyze and transcribe this data into meaningful insights for our readers. The insurance landscape can be confusing, but Bankrate is here with current and accurate information that may help you make effective coverage decisions.
46
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1.2M
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How much does home insurance cost in my state?
To get a better sense of what your home policy might cost, it could help to review average home insurance rates in your state. Some states may not face a high risk of natural disasters, while others have a cheaper cost of living that makes it more affordable to rebuild after a claim. Based on Bankrate’s analysis of average home insurance costs, policies with $300,000 in dwelling coverage can cost less than $1,500 per year, as seen in Vermont, New Hampshire and Delaware, but cost well over $4,000 a year in states like Oklahoma and Nebraska. Below is a breakdown of the average cost of homeowners insurance by state.
Learn more: How to estimate the cost of home insurance
Average home insurance cost by state
The average annual home insurance premium for a home with a dwelling coverage amount of $300,000.
State | Average annual premium | Average monthly premium | Difference from national average |
---|---|---|---|
Alabama | Average annual premium $2,745 | Average monthly premium $229 | Difference from national average + $592 |
Alaska | Average annual premium $1,010 | Average monthly premium $84 | Difference from national average - $1,143 |
Arizona | Average annual premium $1,988 | Average monthly premium $166 | Difference from national average - $165 |
Arkansas | Average annual premium $3,056 | Average monthly premium $255 | Difference from national average + $903 |
California | Average annual premium $1,452 | Average monthly premium $121 | Difference from national average - $701 |
Colorado | Average annual premium $3,092 | Average monthly premium $258 | Difference from national average + $939 |
Connecticut | Average annual premium $1,655 | Average monthly premium $138 | Difference from national average - $498 |
Delaware | Average annual premium $966 | Average monthly premium $81 | Difference from national average - $1,187 |
Florida | Average annual premium $6,366 | Average monthly premium $530 | Difference from national average + $4,213 |
Georgia | Average annual premium $1,972 | Average monthly premium $164 | Difference from national average - $181 |
Hawaii | Average annual premium $1,134 | Average monthly premium $94 | Difference from national average - $1,019 |
Idaho | Average annual premium $1,309 | Average monthly premium $109 | Difference from national average - $844 |
Illinois | Average annual premium $2,186 | Average monthly premium $182 | Difference from national average + $33 |
Indiana | Average annual premium $1,645 | Average monthly premium $137 | Difference from national average - $508 |
Iowa | Average annual premium $2,005 | Average monthly premium $167 | Difference from national average - $148 |
Kansas | Average annual premium $4,103 | Average monthly premium $342 | Difference from national average + $1,950 |
Kentucky | Average annual premium $3,049 | Average monthly premium $254 | Difference from national average + $896 |
Louisiana | Average annual premium $6,140 | Average monthly premium $512 | Difference from national average + $3,987 |
Maine | Average annual premium $1,260 | Average monthly premium $105 | Difference from national average - $893 |
Maryland | Average annual premium $1,528 | Average monthly premium $127 | Difference from national average - $625 |
Massachusetts | Average annual premium $1,622 | Average monthly premium $135 | Difference from national average - $531 |
Michigan | Average annual premium $1,828 | Average monthly premium $152 | Difference from national average - $325 |
Minnesota | Average annual premium $2,476 | Average monthly premium $206 | Difference from national average + $323 |
Mississippi | Average annual premium $2,820 | Average monthly premium $235 | Difference from national average + $667 |
Missouri | Average annual premium $2,065 | Average monthly premium $172 | Difference from national average - $88 |
Montana | Average annual premium $2,521 | Average monthly premium $210 | Difference from national average + $368 |
Nebraska | Average annual premium $5,588 | Average monthly premium $466 | Difference from national average + $3,435 |
Nevada | Average annual premium $1,202 | Average monthly premium $100 | Difference from national average - $951 |
New Hampshire | Average annual premium $963 | Average monthly premium $80 | Difference from national average - $1,190 |
New Jersey | Average annual premium $1,112 | Average monthly premium $93 | Difference from national average - $1,041 |
New Mexico | Average annual premium $2,058 | Average monthly premium $172 | Difference from national average - $95 |
New York | Average annual premium $1,663 | Average monthly premium $139 | Difference from national average - $490 |
North Carolina | Average annual premium $2,776 | Average monthly premium $231 | Difference from national average + $623 |
North Dakota | Average annual premium $2,539 | Average monthly premium $212 | Difference from national average + $386 |
Ohio | Average annual premium $1,194 | Average monthly premium $100 | Difference from national average - $959 |
Oklahoma | Average annual premium $4,493 | Average monthly premium $374 | Difference from national average + $2,340 |
Oregon | Average annual premium $1,006 | Average monthly premium $84 | Difference from national average - $1,147 |
Pennsylvania | Average annual premium $1,149 | Average monthly premium $96 | Difference from national average - $1,004 |
Rhode Island | Average annual premium $1,961 | Average monthly premium $163 | Difference from national average - $192 |
South Carolina | Average annual premium $2,360 | Average monthly premium $197 | Difference from national average + $207 |
South Dakota | Average annual premium $2,583 | Average monthly premium $215 | Difference from national average + $430 |
Tennessee | Average annual premium $2,370 | Average monthly premium $197 | Difference from national average + $217 |
Texas | Average annual premium $3,773 | Average monthly premium $314 | Difference from national average + $1,620 |
Utah | Average annual premium $1,182 | Average monthly premium $98 | Difference from national average - $971 |
Vermont | Average annual premium $806 | Average monthly premium $67 | Difference from national average - $1,347 |
Virginia | Average annual premium $1,487 | Average monthly premium $124 | Difference from national average - $666 |
Washington | Average annual premium $1,350 | Average monthly premium $112 | Difference from national average - $803 |
West Virginia | Average annual premium $952 | Average monthly premium $79 | Difference from national average - $1,201 |
Wisconsin | Average annual premium $1,169 | Average monthly premium $97 | Difference from national average - $984 |
Wyoming | Average annual premium $1,352 | Average monthly premium $113 | Difference from national average - $801 |
District of Columbia | Average annual premium $1,377 | Average monthly premium $115 | Difference from national average - $776 |
*Based on policies with $300k dwelling coverage
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Rates refreshed as of May 2024
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What are the five cheapest states for homeowners insurance?
The states with the least expensive average annual homeowners insurance premiums are Vermont, West Virginia, New Hampshire, Delaware and Oregon. So, how much should you budget for homeowners insurance in these locations? Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average.
- Vermont: $806 per year — 63 percent below national average
- West Virginia: $952 per year — 56 percent below national average
- New Hampshire: $963 per year — 55 percent below national average
- Delaware: $966 per year — 55 percent below national average
- Oregon: $1,006 per year — 53 percent below national average
*Rates are for $300,000 in dwelling coverage
What are the five most expensive states for homeowners insurance?
The states with the most expensive average annual home insurance premiums are Florida, Louisiana, Nebraska, Oklahoma and Mississippi. In each of these states, the average price of home insurance exceeds $2,800 per year, and in the two most expensive states — Florida and Louisiana — homeowners pay over $5,000 per year, on average. The higher rates are likely due to a higher risk of widespread home damage; many of these states are in an area of the country where tornado damage is relatively common. The average cost of homeowners insurance in these states is outlined below.
- Florida: $6,366 per year — 196 percent above national average
- Louisiana: $6,140 per year — 185 percent above national average
- Nebraska: $5,588 per year — 160 percent above national average
- Oklahoma: $4,493 per year — 109 percent above national average
- Kansas: $4,103 per year — 91 percent above national average
*Rates are for $300,000 in dwelling coverage
The threat of natural disasters plays a significant role in determining your home insurance cost: the more likely that damage is to occur, the more likely that insurance companies are to have to pay out claims. Think about it this way: after a severe weather event, it’s likely that many homeowners will file a claim for storm-related damage. To make sure there is enough money in reserve to handle a large volume of claims, insurers tend to charge more expensive rates to homeowners in high-risk weather areas. Knowing the weather-related risks associated with your state and ZIP code can help you make informed home insurance decisions.
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Average cost of home insurance by city
In addition to the state you live in, your individual city may also have an impact on your home insurance rates. Risk factors like weather damage and crime statistics vary by city, as do the costs for materials and labor. Below are the 25 largest cities in the U.S. by population and their average premiums, as provided by Quadrant Information Services. According to our research, Oklahoma City has the highest average annual premium on this list, at $5,235, while Portland, Oregon’s average annual premium is the lowest at $935.
City | Average annual rate | Average monthly rate | Percent difference from national average |
---|---|---|---|
Los Angeles, CA | $1,850 | $154 | 14 percent less |
Chicago, IL | $2,698 | $225 | 25 percent more |
Houston, TX | $4,973 | $414 | 131 percent more |
Phoenix, AZ | $2,369 | $197 | 10 percent more |
Dallas, TX | $3,613 | $301 | 68 percent more |
Austin, TX | $2,254 | $188 | 5 percent more |
Fort Worth, TX | $3,787 | $316 | 76 percent more |
Columbus, OH | $1,214 | $101 | 44 percent less |
Charlotte, NC | $1,723 | $144 | 20 percent less |
Indianapolis, IN | $1,815 | $151 | 16 percent less |
Seattle, WA | $1,329 | $111 | 38 percent less |
Denver, CO | $3,309 | $276 | 54 percent more |
Washington, D.C. | $1,377 | $115 | 36 percent less |
Nashville, TN | $2,287 | $191 | 6 percent more |
Detroit, MI | $3,453 | $288 | 60 percent more |
Las Vegas, NV | $1,292 | $108 | 40 percent less |
Oklahoma City, OK | $5,235 | $436 | 143 percent more |
Portland, OR | $935 | $78 | 57 percent less |
Memphis, TN | $3,183 | $265 | 48 percent more |
Baltimore, MD | $1,634 | $136 | 24 percent less |
*Rates are for $300,000 in dwelling coverage
Rates refreshed as of May 2024
Read our full methodology
Other location-specific rate factors
Geographic location typically impacts your insurance rates because every area of the country has a different risk level for potential damages. Some areas may have a higher risk of wind damage, for example, while other areas of the country often sustain damage from fires.
- Weather-related risks: Standard homeowners policies generally do not cover flood damage or damage from earthquakes. In fact, some insurance companies do not cover homes in flood zones at all. Other insurance companies sell private flood insurance or offer earthquake coverage in standalone policies or endorsem*nts for these types of disasters.
- Fire risk: According to the Triple-I, structure fires caused around $10.5 billion worth of residential home damage in 2022, the most recent year with available data. Insurance companies assign homeowners premiums based on proximity to a fire station and fire hydrants because rapid emergency response often minimizes damage.
- Property crime risk: Neighborhoods prone to frequent crime may cause your home to be considered high-risk, which can negatively impact your insurance rates. Depending on the discounts available with your insurance carrier, installing additional safety features in your home, such as deadbolts and a security alarm system, may help you offset the higher premium.
How much does home insurance cost by company?
Home insurance is a multi-faceted product with many factors influencing your policy premium. Aside from location, claim history, square footage and several other rating factors, the amount of coverage you purchase and the company you choose may also impact the price of your policy. While $300,000 in dwelling coverage may be appropriate for some homeowners, it could be insufficient or too high for others. Some home insurance companies may use the age of your roof as a strong rating factor while others are more concerned with your home's proximity to the fire department.
Based on Bankrate’s analysis of policies with $300,000 in dwelling coverage, the most expensive carriers were Farmers, Chubb, and Allstate while Erie and USAA had the cheapest average home premiums for this coverage amount. Below you’ll find premium data provided by Quadrant Information Services for different coverage selections from some of the largest carriers by market share.
Insurance company | Average annual rate | Average monthly rate |
---|---|---|
USAA | $1,431 | $119 |
State Farm | $1,795 | $150 |
Erie | $1,578 | $132 |
Chubb | $3,593 | $299 |
Amica | $1,863 | $155 |
American Family | $1,594 | $133 |
Nationwide | $1,662 | $139 |
Allstate | $1,917 | $160 |
Farmers | $2,510 | $209 |
Travelers | $2,312 | $193 |
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Insurance company | Average annual rate | Average monthly rate |
---|---|---|
USAA | $1,590 | $132 |
State Farm | $1,983 | $165 |
Erie | $1,782 | $148 |
Chubb | $3,823 | $319 |
Amica | $2,056 | $171 |
American Family | $1,746 | $145 |
Nationwide | $1,852 | $154 |
Allstate | $2,151 | $179 |
Farmers | $2,891 | $241 |
Travelers | $2,649 | $221 |
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Insurance company | Average annual rate | Average monthly rate |
---|---|---|
USAA | $1,905 | $159 |
State Farm | $2,398 | $200 |
Erie | $2,198 | $183 |
Chubb | $4,206 | $350 |
Amica | $2,455 | $205 |
American Family | $2,040 | $170 |
Nationwide | $2,239 | $187 |
Allstate | $2,410 | $201 |
Farmers | $3,635 | $303 |
Travelers | $3,350 | $279 |
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Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of May 2024
Read our full methodology
Top five least expensive companies for home insurance
- Erie: $1,578 per year — 27 percent less than the national average
- USAA: $1,431 per year — 34 percent less than the national average
- Auto-Owners: $1,406 per year — 35 percent less than the national average
- Nationwide: $1,662 per year —23 percent less than the national average
- Travelers: $2,312 per year — 7 percent more than the national average
*Rates are for $300,000 in dwelling coverage
Our industry experts weigh in
What are some indicators that it’s a good time to shop around for a new home insurance policy?
“It may be a good time to shop around if you are questioning your premium costs, are unhappy with your insurer’s service or you simply know you may be able to get the same coverage at a lower cost with a different insurer due to a discount like bundling or some other factor.”
Home insurance rating factors
The purpose of insurance is to transfer the bulk of a financial risk to another entity (an insurance provider), making a potential loss more manageable for the policyholder. Factors that increase or decrease the amount of risk the insurance company assumes can heavily influence insurance premiums. Understanding the most influential factors that impact your home insurance rates may help you save money when purchasing a new home or starting a policy with a new insurance provider.
Average home insurance cost by dwelling coverage amount
Dwelling insurance — also known as coverage A — is the limit your insurance company will pay to repair or rebuild your home when damaged by a covered peril. Having the appropriate level of coverage may help financially protect one of your biggest financial assets. If you have a mortgage on your home, your financial lender may have certain minimum dwelling coverage requirements you must fulfill as a condition of your loan.
It is also important to note that other parts of your insurance policy, such as other structures, personal property and loss of use — typically listed as coverage B, C and D, respectively — are based on percentages of the dwelling coverage. For example, if you have $200,000 worth of insurance for dwelling coverage, you probably have $20,000 or 10 percent of coverage A allotted for other structures coverage. Depending on your state, you may also have separate deductibles for wind or other storm damage. That additional deductible will also likely be calculated as a percentage of your dwelling coverage.
While selecting lower coverage limits may save you some money on your policy premium, it may undercut the coverage you need throughout the rest of your policy. The proprietary rate data below highlights how dwelling coverage limits affect average homeowners premiums.
Learn more:How much home insurance do you need?
Dwelling coverage limit | Average annual rate | Average monthly rate |
---|---|---|
$150,000 | Average annual rate $1,293 | Average monthly rate $108 |
$300,000 | Average annual rate $2,153 | Average monthly rate $179 |
$350,000 | Average annual rate $2,447 | Average monthly rate $204 |
$450,000 | Average annual rate $3,034 | Average monthly rate $253 |
$750,000 | Average annual rate $4,758 | Average monthly rate $396 |
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of May 2024
Read our full methodology
Average home insurance cost by credit rating
In most states, your credit history could be used as an insurance rating factor. Depending on where you live, home insurance companies will generally review your credit history when you apply for a quote. This is because credit history can be an indicator of risk — studies show that those with lower credit scores tend to file more claims compared to those with higher credit scores. As a result, home insurance for people with bad credit is generally more expensive compared to those with average, good and excellent credit scores. If you own your home with a partner, their credit history may also impact your rates.
Not all states factor in credit, however. California, Hawaii, Maryland and Massachusetts do not allow the use of credit for insurance rating purposes.
Credit Type | Average annual rate for $300,000 coverage |
---|---|
Poor Credit | Average annual rate for $300,000 coverage $5,309 |
Average Credit | Average annual rate for $300,000 coverage $2,383 |
Good Credit | Average annual rate for $300,000 coverage $2,153 |
Excellent Credit | Average annual rate for $300,000 coverage $1,818 |
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of May 2024
Read our full methodology
Does marital status impact home insurance rates?
For both home and auto insurance, carriers usually place shoppers who are married or in a recognized domestic partnership in a lower-risk group. This is because married couples tend to file fewer claims. Therefore, may receive slightly lower premiums.
However, if your spouse has other personal rating factors that may negatively impact your rates, like a poor credit history, owning and insuring a home together may increase your premium. If homeowners divorce and update their policies, their insurance rates may change for several reasons, including individual rating factors and the change in marital status itself. If the change in marital status impacts the premium, it will likely happen at the next renewal.
Average home insurance cost by claims history
Damaging events can happen to even the most responsible homeowner. If your home was damaged by an event covered by your policy, like wind, fire or theft, or someone sues you for injuries sustained at your residence, your home insurance policy could step in to cover the damages. However, a surcharge could be added to your policy at renewal.
Type of claim | Average dollar amount of claim paid out* | Average annual rate after a claim |
---|---|---|
Wind | $11,650 | $2,238 |
Liability | $30,324 | $2,267 |
Theft | $4,415 | $2,271 |
Fire | $77,340 | $2,272 |
*Based on the Insurance Information Institute’s (Triple-I) estimates of average home claim payouts. Average rates based on a claim filed on a home insurance policy with $300,000 in dwelling coverage.
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of May 2024
Read our full methodology
Average home insurance cost by deductible amount
Your deductible is another factor that can impact the cost of your home insurance. Generally, the higher your deductible, the lower your rate. When you set a high deductible, you take on some of the risk that would otherwise be transferred to your homeowners insurance company. In turn, your carrier will usually offer you a cheaper premium.
A high deductible usually means higher out-of-pocket expenses in the event of a covered claim, so choosing a deductible you can comfortably pay with no warning is essential. While selecting a high deductible can be a valid cost-saving measure for some homeowners, others might experience financial hardship if they need to file a claim and can’t afford their deductible. Additionally, your lender may issue maximum deductible limits under the terms of your loan.
To provide a baseline, below you’ll find average rates for some of the most common home insurance deductible amounts:
Deductible amount | Average annual rate for $300,000 in dwelling coverage |
---|---|
$1,500 | Average annual rate for $300,000 in dwelling coverage $2,104 |
$2,000 | Average annual rate for $300,000 in dwelling coverage $1,982 |
$5,000 | Average annual rate for $300,000 in dwelling coverage $1,781 |
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of May 2024
Read our full methodology
Average home insurance cost by home age
The age of your home is also a factor that home insurance companies consider when determining your premium. Older homes might be more expensive to build back after a loss, especially if you need to bring them up to modern safety and building codes. Below is a look at how much an average home insurance policy might cost depending on the age of a home.
Date home was built | Average annual rate |
---|---|
1959 | Average annual rate $2,661 |
1982 | Average annual rate $2,686 |
1992 | Average annual rate $2,679 |
2010 | Average annual rate $2,456 |
2020 | Average annual rate $1,857 |
*Rates are for $300,000 in dwelling coverage.
Home insurance rates are known to fluctuate frequently, but you can rely on Bankrate to offer you the latest options available.
Rates refreshed as of May 2024
Read our full methodology
Average home insurance cost by home characteristics
Every home is different, which means insurance companies rate each home on a case-by-case basis. Your home’s specific characteristics will play a role in determining how much you pay for homeowners insurance.
- Roof condition: The age and condition of a home's roof impact the cost of home insurance rates. Insurance companies can charge more for a home with an older roof since it is more susceptible to windstorms and hail damage than a newer one. Some providers have age restrictions and only offer insurance to homeowners with roofs under a certain age, usually between 15 and 20 years old or newer. Roofs beyond 20 years old can typically qualify for actual cash value coverage, which is more affordable but has a lower claim payout.
- Construction materials: Roofs and exterior walls constructed of materials with higher fire ratings or are more wind resistant, like metal roofs or brick structures, may qualify the policy for additional discounts. On the other hand, special features, like a cedar shingle roof, marble tile or antique woodwork can have higher replacement value due to the cost of materials, availability and the skilled labor needed for repairs.
- Increased liability concerns: Attractive nuances features like swimming pools, trampolines and even playground equipment can increase your liability as a homeowner. If you have any of these features, your insurance company can raise your rate to account for the additional risk and require additional safety measures, such as a fence with a lock. Certain dog breeds can also be a liability risk that results in a higher premium. Some insurance providers require dogs to complete a certified training course to lower the risk of a dog bite lawsuit.
How to estimate the cost of insurance
Ultimately, the goal of home insurance is to help you rebuild your home and replace your personal property after a covered claim. The best way to estimate your home insurance cost is by getting an accurate account of how much coverage you need in the event of a total loss and evaluating your level of risk. To calculate how much coverage you need, you will need the following information:
- Estimate the replacement cost value (RCV) of your home
- Estimate the replacement cost of any detached structures on your property, such as sheds, fences and garages
- Estimate the cost to replace your personal property. This includes any items not permanently attached to your home, from clothing and furniture to appliances and electronics
Next, take a look at what additional risk can impact your home. These risks can take the form of liability concerns or potential physical hazards. Reviewing coverage concerns with your agent, along with estimates of the values noted above, will help you get an accurate estimate of homeowners insurance from multiple carriers.
Keep in mind
Here are some talking points you can keep in mind when speaking with your agent. Having specific questions ready ahead of time will help your agent quickly identify the appropriate endorsem*nts and liability limits.
- Do you have a dog?
- Do you have a swimming pool, trampoline or any other attractive nuisance on your property?
- Do you frequently entertain guests in your home?
- Do you have a home-based business?
- Do you have any personal items or collections that need special coverage, such as jewelry, art, furs or valuable stamps?
- Do you live in a moderate- to high-risk area prone to floods, earthquakes or wildfires?
Related content:
What does homeowners insurance cover?Previously Read
How to save on homeowners insurancePreviously Read
Home insurance industry trends
Generally, home and auto insurance premiums have been increasing post-pandemic, partly due to inflation. As building material prices and labor costs continue to rise, home insurance carriers must raise premiums to cover increased claims expenses.
Also, according to Triple-I, the effects of climate change may directly impact home insurance costs. Damage from wildfires, tornadoes, hurricanes and floods costs more each year, causing some insurance companies to limit their coverage in high-risk areas or raise rates. The National Centers for Environmental Information recorded 60 natural disasters over the past three years that caused over $1 billion dollars in damage each. After adjusting for inflation, damage from billion-dollar disasters from the past three years averages out to $149.2 billion per year.
Recent news:
Bankrate's insurance editorial team closely tracks news events and industry trends in the insurance market. Here are some of our recent learnings:
Here are some of our key learnings:
- Although signs point to cooling inflation, the elevated cost of materials and labor has resulted in rising homeowners insurance rates. While not ideal, these rate increases help companies ensure they have enough money in their claims reserves to pay out higher losses.
- In an effort to stabilize the collapsing Florida homeowners insurance market, the state legislature passed Senate Bill 2-A in late 2022. Among many things, this bill focused on eliminating one-way attorney fees and the assignment of benefits that help perpetuate roofing scams. In another show of promise, a new home insurance carrier (Tailrow) has applied to do business in the state. Following Senate Bill 2-A, the Florida state legislature passed seven new insurance bills in the first half of 2023, focusing on insurer accountability.
- Hurricane risk is causing home insurance struggles for Louisiana homeowners and insurance carriers operating in the state. However, Louisiana passed a bill in early 2023 that resulted in an insurance incentive program. This program could bring more insurers to the state, motivate current Louisiana companies to take on more business and help depopulate the state’s insurer of last resort, Lousiana Citizens.
- Seven of the 12 largest home insurance companies in California have limited new policies in the state. State Farm and Allstate have paused writing new home insurance policies altogether, while Farmers has put a cap on the number of new home insurance policies they intend to write in the Golden State. The insurers have cited increased wildfire risk, the expensive reinsurance market and heightened rebuild costs as some primary motivators for the decision. In late 2023, Insurance Commissioner Ricardo Lara announced his Sustainable Insurance Strategy, a multi-pronged approach to incentivize insurers to begin writing policies in the state again, though the plan has been met with some resistance from consumer advocacy groups.
Frequently asked questions
Methodology
Bankrate utilizes Quadrant Information Services to analyze May 2024 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Quoted rates are based on married 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits:
- Coverage A, Dwelling: $150,000, $300,000, $350,000, $450,000, $750,000
- Coverage B, Other Structures: $15,000, $30,000, $35,000, $45,000, $75,000
- Coverage C, Personal Property: $75,000, $150,000, $175,000, $225,000, $375,000
- Coverage D, Loss of Use: $30,000, $60,000, $70,000, $90,000, $150,000
- Coverage E, Liability: $500,000
- Coverage F, Medical Payments: $1,000
The homeowners also have a $1,000 deductible, a $500 hail deductible and a 2 percent hurricane deductible (or the next closest deductible amounts that are available) where separate deductibles apply.
These are sample rates and should be used for comparative purposes only. Your quotes will differ.
Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: “poor, average, good (base) and excellent.” Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts.
Claims: Rates were calculated based on the following insurance claims assigned to our homeowners: “fire ($80,000 in losses), liability ($31,000 in losses), theft ($5,000 in losses) and wind ($12,000 in losses).”
Year built: Rates were calculated based on the following years built for homes and assigned to our homeowners: 1959, 1982, 1992, 2010, 2016 (base) and 2020.
Bankrate Scores
Our Bankrate Score considers variables our insurance editorial team determined impact policyholders’ experiences with an insurance company. These rating factors include a robust assessment of each company’s product availability, financial strength ratings, online capabilities and customer and claims support accessibility. Each factor was added to a category, and these categories were weighted in a tiered approach to analyze how companies perform in key customer-impacting categories.
5
Rating: 5 stars out of 5
Overall Score
Cost & ratings50%
Coverage & savings30%
Support20%
Each category was assigned a metric to determine performance, and the weighted sum adds up to a company’s total Bankrate Score — out of 5 points. Our scoring model provides a comprehensive view, indicating when companies excel across several key areas and highlighting where they fall short.
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Written by
Natalie Todoroff
Writer, Insurance
Read more from Natalie
Natalie Todoroff is an insurance writer for Bankrate, prior to which she wrote for a popular insurance comparison shopping app. She has a Bachelor of Arts in English and has written over 800 articles about insurance throughout her career.
Reviewed by Kenneth Chavis IV