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The Average Cost of Homeowners Insurance in 2020

The average cost of home insurance is $1,215 in the U.S., according to our study of all 50 states. Here’s how it breaks down.

home insurance rates heatmap

Our research of the average cost of homeowners insurance included more than 125,000 quotes from 121 companies for every ZIP code in the U.S. We saw average premiums as low as $55 per month and as high as $172 per month, with a national average of just over $101 per month. For information about where our numbers came from, check out the methodology.

Average cost of homeowners insurance by:

Average cost of homeowners insurance by state

We saw the average cost of home insurance range from $2,058 per year in Oklahoma to $663 in Oregon, with a nationwide average of $1,215 per year.

Average cost of home insurance by state
State Average annual premium Average monthly premium Difference from national average Rank
Alabama $1,351 $113 11% 14
Alaska $1,141 $95 -6% 28
Arizona $927 $77 -24% 39
Arkansas $1,292 $108 6% 18
California $1,684 $140 39% 6
Colorado $1,832 $153 51% 3
Connecticut $1,610 $134 33% 9
Delaware $760 $63 -37% 49
Florida $1,809 $151 49% 4
Georgia $1,157 $96 -5% 27
Hawaii $1,135 $95 -7% 29
Idaho $838 $70 -31% 43
Illinois $1,096 $91 -10% 30
Indiana $916 $76 -25% 41
Iowa $1,008 $84 -17% 34
Kansas $1,668 $139 37% 7
Kentucky $1,234 $103 2% 21
Louisiana $1,607 $134 32% 10
Maine $809 $67 -33% 45
Maryland $1,198 $100 -1% 24
Massachusetts $1,617 $135 33% 8
Michigan $968 $81 -20% 35
Minnesota $1,481 $123 22% 12
Mississippi $1,203 $100 -1% 23
Missouri $1,424 $119 17% 13
Montana $1,321 $110 9% 17
Nebraska $1,791 $149 47% 5
Nevada $836 $70 -31% 44
New Hampshire $917 $76 -25% 40
New Jersey $1,161 $97 -4% 26
New Mexico $1,180 $98 -3% 25
New York $1,243 $104 2% 19
North Carolina $1,049 $87 -14% 33
North Dakota $1,323 $110 9% 16
Ohio $872 $73 -28% 42
Oklahoma $2,058 $172 69% 1
Oregon $663 $55 -45% 50
Pennsylvania $945 $79 -22% 38
Rhode Island $1,489 $124 23% 11
South Carolina $1,328 $111 9% 15
South Dakota $1,241 $103 2% 20
Tennessee $1,233 $103 1% 22
Texas $1,954 $163 61% 2
Utah $783 $65 -36% 47
Vermont $771 $64 -37% 48
Virginia $1,051 $88 -13% 32
Washington $956 $80 -21% 37
West Virginia $958 $80 -21% 36
Wisconsin $786 $66 -35% 46
Wyoming $1,076 $90 -11% 31
U.S. average $1,215 $101 0%
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Insurance companies consider many factors in determining your rates, including the risk profile of your state. For example, homes in California are at higher risk of wildfire than those in New York due to the Golden State’s climate. The additional risk is reflected in California’s higher premiums.

The table above can help you get a sense of the average cost of home insurance across the country so you know what to expect when purchasing homeowners insurance. Find your state in our state guide for more information.

Homeowners insurance cost: cheapest states

The mild climate in Oregon contributes to its low home insurance premiums — the lowest in the country.

  1. Oregon: $663
  2. Delaware: $760
  3. Vermont: $771
  4. Utah: $783
  5. Wisconsin: $786

Homeowners insurance cost: most expensive states

Oklahoma's high tornado risk helps it at the top of our list as the state with the most expensive home insurance premiums.

  1. Oklahoma: $2,058
  2. Texas: $1,954
  3. Colorado: $1,832
  4. Florida: $1,809
  5. Nebraska: $1,791

Average cost of homeowners insurance by coverage amount

The cost of homeowners insurance changes based on how much coverage you choose. We analyzed more than 77,000 quotes for 26 different dwelling coverage amounts, which is the amount your house's structure is insured for. We used dwelling coverages ranging from $75,000 to $700,000 to find the average cost. Here are some selected values:

Average cost of homeowners insurance by dwelling coverage
Dwelling coverage Average annual premium Average monthly premium
$150,000 $939 $78
$200,000 $1,095 $91
$250,000 $1,251 $104
$300,000 $1,420 $118
$350,000 $1,588 $132
$400,000 $1,776 $148
$450,000 $1,973 $164
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Increasing dwelling coverage increases premiums because the insurance company must be prepared to pay out a larger sum in case of a loss. Keep in mind, your dwelling amount is the cost to rebuild your home, not your home’s market value. You can think of it as the value of your home minus its location. Your dwelling amount depends on your home's materials, size and local labor costs.

Our study found that the relationship between average premium and dwelling coverage is linear. That means adding $50,000 of dwelling coverage will be about twice as expensive as adding $25,000 of coverage.

average cost of homeowners insurance by dwelling coverage

Based on this rate of increase, you'll pay about an extra $36 for every additional $10,000 of dwelling coverage.

Average cost of homeowners insurance by deductible

Your deductible is the amount of money you pay out of pocket after a loss and before your homeowners insurance kicks in. So, if your insurance company approves a claim for $5,500 and you have a $1,000 deductible, you’ll pay $1,000 out of pocket and your insurance will cover the remaining $4,500.

The typical cost of homeowners insurance is $1,215 when using median and average values for all variables. However, you’ll almost always have the option to customize your policy to better fit your needs, such as raising or lowering your deductible.

Average cost of homeowners insurance by deductible
Deductible Average annual premium Average monthly premium
$500 $1,346 $112
$1,000 $1,219 $102
$1,500 $1,178 $98
$2,000 $1,080 $90
Note: Average rates are based on non-binding estimates provided by Quadrant Information Services. Your rates may vary.

Based on our figures, increasing your deductible from $1,000 (a common amount) to $2,000 can save you $139 a year. In order for that $1,000 deductible savings to make sense, you’d have to go a little over seven years without a claim to warrant saving the $139 a year ($1,000 divided by $139 dollars a year).

How to save on homeowners insurance

There are a handful of ways to reduce your home insurance premiums. Here are our top four.

Switch companies

Our favorite way to save money on homeowners insurance is by switching carriers. Trying to shrink your insurance premium with your current company can only go so far. By switching companies, you could possibly save hundreds of dollars.

Insurance companies want new customers, so they often attract them with new customer discounts and lower rates. That means you can take advantage of insurance companies competing for your business. It’s why we always recommend shopping around and getting multiple quotes.

Bundle multiple policies

Some companies, like Allstate, advertise 25% savings if you bundle your home and auto insurance. There are other advantages to bundling besides saving a few bucks. For example, having all of your accounts with a single company can make your bills easier to manage, as you can go to one place to pay them.

Increase your deductible

Based on the previous chart, increasing your deductible from $500 to $2,000 can save you more than $250. If you choose to change your deductible, make sure you have enough cash on hand to be able to pay it in case you suffer a loss and must file a claim.

Upgrade your home’s materials

Insurance companies factor in your home’s materials when setting your premiums. For example, if your home is built from materials that are particularly fire prone, or you have structurally weak windows, you may see higher premiums.

Upgrading your roof and windows or reinforcing your home’s structure can be great ways to lower your home insurance premiums. While these can be expensive upgrades, they are often still a good idea. Not only can these improvements lower your insurance bill, but they can reduce the chance you’ll need to file a claim.

For more ideas on how to reduce your insurance bill, see our article on how to save on homeowners insurance.

What does homeowners insurance cover?

There are six basic coverages in a standard home insurance policy, which is called an HO-3 policy:

  • Dwelling coverage (Coverage A)
  • Other structures coverage (Coverage B)
  • Personal property coverage (Coverage C)
  • Loss of use (Coverage D)
  • Personal liability (Coverage E)
  • Medical payments to others (coverage F)

There are limits for all six coverages, meaning your insurance company will only pay out claims up to a certain amount. Other structures, personal property and loss of use limits are frequently defined in relation to the dwelling amount, although that isn’t always the case.

Standard coverage in HO-3 home insurance policy
Coverage What it covers Typical amount
Dwelling Your home’s structure Estimated cost of rebuilding your home
Other structures The other buildings and structures on your property, like garages or sheds 10% of dwelling
Personal property Your belongings 50% of dwelling
Loss of use Additional expenses if you’re unable to remain in your home 20% of dwelling
Personal liability The cost of legal defense and medical payments if you are sued for property damage or bodily injury $100,000
Medical payments to others Medical bills if a guest is injured on your property $5,000

Most homeowners insurance companies give you the opportunity to customize your policy to some degree. For example, if you need more personal liability protection or have expensive external structures on your property, you should consider increasing these limits.

For more information about standard coverages, check out our article on homeowners insurance basics.

Covered perils

The common homeowners insurance policy, the HO-3, is an open-peril policy. That means that it covers all damages except for specifically named exclusions. HO-3 policies usually cover damage from:

  • Fire
  • Lightning, windstorm and hail
  • Explosions
  • Theft
  • Frozen plumbing
  • Falling objects
  • Weight of snow and ice

There are notable exclusions to most homeowners insurance policies. HO-3 policies usually don’t cover:

  • Earthquake
  • Flood
  • Sinkholes

Your insurance company may have additional coverages or exclusions. Our list above shows common included and excluded perils, but we recommend discussing the specifics of your policy with your insurance agent.

Most common home insurance losses

Property damage makes up more than 98% of all homeowners insurance claims, with liability claims comprising just under 2%. Of property claims, wind, hail, fire and lightning are the most common.

most common home insurance losses Source: Insurance Services Office (ISO)

However the cost severity varies between these claims causes. While wind and hail claims make up the largest portion of claims, their average severity is $10,182. Liability claims are more infrequent but tend to be more expensive, an average of $26,085. Fire damage is by far the most severe type of claim, averaging more than $68,000 per claim.

Rate factors

Insurance companies consider many variables, or rate factors, when setting premiums. You can think about them in three buckets: the characteristics of your home, your location and your personal profile. Here are a few important ones:

Homeowners insurance rate factors
You Your home Your location
Claims history Value Climate
Age Age and material Local property crime rates
Household size Safety features Proximity to emergency services

Insurance companies track many of these factors themselves, such as crime rates and your home's value. But if someone moves in or out, or you upgrade a part of your home, we recommend letting your insurer know. Some factors may lower your rates and some may raise them, but either way, you and your insurer need to be on the same page before a disaster.

Methodology

Average cost by state calculation

We collected quotes from every ZIP code in all 50 states, for a total of 54,124 quotes. In every state, we used the respective median home value, median householder age and median home build year. 

In all cases, the following coverages were used:

  • Dwelling coverage: median home value in state
  • Other structures: 10% of dwelling
  • Personal property: 50% of dwelling
  • Loss of use: 20% of dwelling
  • $100,000 personal liability
  • $5,000 medical payments to others
  • $1,000 deductible

We used the largest companies in each respective state in order to reflect local homeowners insurance markets. While there are too many to provide a complete list, here are some of the most well-known providers among the ones we used:

  • State Farm
  • Allstate
  • Liberty Mutual
  • USAA
  • Farmers
  • Travelers
  • American Family
  • Erie Insurance

Average cost by home value calculation

We analyzed more than 71,000 quotes with dwelling coverage ranging from $75,000 to $700,000, in $25,000 increments, for the seven largest homeowners insurance companies in the U.S. to find the average for each dwelling amount.

Average cost by deductible calculation

We aggregated more than 11,000 quotes from the seven largest homeowners insurance companies in the U.S. using the following deductibles: $500, $1,000, $1,500 and $2,000. The dwelling coverage used was the median home value for the U.S. in 2020, $245,219.

Geographic, housing and demographic data

All data concerning geography, housing and demography was sourced from Standard & Poor's Financial Services.

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