Home insurance is a crucial investment for protecting your property and belongings. The cost of home insurance in the US can vary significantly based on several factors, including location, the age and condition of your home, and the amount of coverage you need. Let’s dive into the details to help you understand what influences these costs and how you can make informed decisions.
Average Costs and Factors Affecting Home Insurance
The national average cost of homeowners insurance is approximately $1,915 per year, or about $160 per month, according to NerdWallet’s analysis 1. However, this figure can fluctuate based on various factors:
- Location: Where you live significantly impacts your insurance premiums. For instance, states like Oklahoma, Texas, and Nebraska have higher average costs due to frequent natural disasters such as tornadoes and wildfires. In contrast, Hawaii, Delaware, and Vermont enjoy lower rates due to fewer environmental risks1.
- Dwelling Coverage: The amount of coverage you need for your home’s structure is a primary factor in determining your premium. More extensive or high-end homes require higher coverage limits, leading to increased costs. For example, a home with $300,000 in dwelling coverage will have a different premium than one with $500,000 in coverage1.
- Home Age and Condition: Older homes often cost more to insure because they may lack modern safety features and can be more expensive to repair. A home built in 1955 might have an average annual insurance cost of $1,910, while a newer home built in 2023 could cost around $1,130 per year1.
- Credit Score: In most states, your credit history can influence your insurance rates. Homeowners with poor credit may pay higher premiums because studies have shown a correlation between poor credit and a higher likelihood of filing claims1.
- Deductible: Choosing a higher deductible can lower your premiums. For instance, increasing your deductible from $1,000 to $2,500 could save you about 13% annually1.
State-by-State Variations
Home insurance costs vary widely across the US. Here are some examples:
- Most Expensive States: Oklahoma tops the list with an average annual cost of $5,495, followed by Texas at $4,4001.
- Least Expensive States: Hawaii has the lowest average cost at $515 per year, followed by Delaware at $8601.
How to Save on Home Insurance
- Shop Around: Comparing quotes from multiple insurers can help you find the best deal. Make sure to compare policies with similar coverage limits and deductibles.
- Bundle Policies: Many insurers offer discounts if you bundle your home insurance with other policies, such as auto insurance.
- Improve Home Safety: Installing safety features like fire alarms, security systems, and impact-resistant roofing can lead to discounts.
- Maintain Good Credit: Improving your credit score can result in lower insurance premiums over time.
Personal Story: Eien’s Experience
Let me share a personal story to illustrate the importance of understanding home insurance costs. A few years ago, my friend Eien moved to a new state and was shocked by the difference in home insurance premiums. In his previous location, he paid around $1,200 annually for a similar level of coverage. However, in his new state, the quotes he received were nearly double that amount.
Eien quickly realized that the increased cost was due to the higher risk of natural disasters in his new location. He took proactive steps to mitigate these costs, such as installing a new roof and upgrading his home’s electrical system. These improvements not only made his home safer but also qualified him for significant discounts from his insurer.
Find State Insurance Rates
About the Data
The insurance rates provided are average annual and monthly costs for each state. This data is sourced from reliable insurance industry reports and was last updated in February 2025. Factors such as natural disaster risks, crime rates, and construction costs can significantly influence these rates.
| State | Average Annual Cost | Average Monthly Cost |
|---|---|---|
| National Average | $1,915 | $160 |
| Alabama | $3,140 | $262 |
| Alaska | $1,160 | $97 |
| Arizona | $2,135 | $178 |
| Arkansas | $3,355 | $280 |
| California | $1,250 | $104 |
| Colorado | $3,820 | $318 |
| Connecticut | $1,575 | $131 |
| Delaware | $860 | $72 |
| Florida | $2,625 | $219 |
| Georgia | $2,345 | $195 |
| Hawaii | $515 | $43 |
| Idaho | $1,510 | $126 |
| Illinois | $2,060 | $172 |
| Indiana | $1,975 | $165 |
| Iowa | $2,215 | $185 |
| Kansas | $3,570 | $298 |
| Kentucky | $2,190 | $183 |
| Louisiana | $2,240 | $187 |
| Maine | $1,075 | $90 |
| Maryland | $1,700 | $142 |
| Massachusetts | $1,545 | $129 |
| Michigan | $1,785 | $149 |
| Minnesota | $2,375 | $198 |
| Mississippi | $3,475 | $290 |
| Missouri | $2,905 | $242 |
| Montana | $2,605 | $217 |
| Nebraska | $4,135 | $345 |
| Nevada | $1,290 | $108 |
| New Hampshire | $1,000 | $83 |
| New Jersey | $1,150 | $96 |
| New Mexico | $1,595 | $133 |
| New York | $1,715 | $143 |
| North Carolina | $1,975 | $165 |
| North Dakota | $2,445 | $204 |
| Ohio | $1,390 | $116 |
| Oklahoma | $5,495 | $458 |
| Oregon | $1,255 | $105 |
| Pennsylvania | $1,410 | $118 |
| Rhode Island | $2,070 | $173 |
| South Carolina | $2,250 | $188 |
| South Dakota | $2,810 | $234 |
| Tennessee | $2,435 | $203 |
| Texas | $4,400 | $367 |
| Utah | $1,140 | $95 |
| Vermont | $870 | $73 |
| Virginia | $1,445 | $120 |
| Washington | $1,225 | $102 |
| Washington, D.C. | $1,190 | $99 |
| West Virginia | $1,600 | $133 |
| Wisconsin | $1,300 | $108 |
| Wyoming | $1,555 | $130 |
Understanding the factors that influence home insurance costs can help you make informed decisions and potentially save money. Whether you’re a new homeowner or looking to renew your policy, taking the time to compare quotes, improve your home’s safety features, and maintain good credit can lead to significant savings.
For more detailed information and personalized quotes, consider using online tools and consulting with insurance agents. Don’t forget to review your policy annually to ensure you’re getting the best coverage at the most competitive rate.
Stay informed and proactive to protect your home and finances effectively. If you have any questions or need further assistance, feel free to reach out. Happy homeownership!
