How much does homeowners insurance cost?
Ashburn, VA

How much does homeowners insurance cost?

Ashburn, VA

How much does homeowners insurance cost?

$1,800 – $3,200 average cost per year

Get free estimates for your project or view our cost guide below:

$1,800 – $3,200 average cost per year


Get free estimates for your project or view our cost guide below:
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Tara Farmer
Written by
Tara Farmer
Edited by
Jennifer Carlson
Fact-checked by
Kristen Cramer

Average home insurance cost

Home insurance costs $1,800 to $3,200 per year on average, but annual home insurance prices range from below $500 to more than $6,000, depending on your location, risk profile, and coverage levels. Homeowners insurance costs more for policies with high coverage limits, low deductibles, and full or guaranteed replacement cost coverage.

Average home insurance cost - Chart
Average home insurance cost - Chart
Average price of home insurance
National Average Cost $2,600
Minimum Cost $540
Maximum Cost $6,640
Average Range $1,800 to $3,200

  • Home insurance rates have been increasing steadily for the past decade, with a countrywide average increase of nearly 20% just in the last two years.

  • Some states are seeing an additional 30% to 60%+ increase in insurance prices this year, and many insurers are pulling out of high-risk states like Florida and California completely, further impacting rates in those states.

Get free estimates from home inspectors near you.

Home insurance costs by state

Homeowners insurance costs vary widely from state to state. Factors like risk of natural disasters, crime rates, cost of living, and state insurance regulations cause premiums to differ significantly across the U.S. The table below shows the average annual insurance rates for each state.

Home insurance rates by state
State Average annual rate Average monthly rate*
Alabama $2,020 – $3,485 $173 – $300
Alaska $1,015 – $2,130 $90 – $188
Arizona $1,470 – $2,220 $128 – $195
Arkansas $1,530 – $4,200 $133 – $360
California $1,195 – $1,835 $105 – $163
Colorado $2,460 – $3,670 $210 – $316
Connecticut $1,330 – $2,375 $116 – $208
Delaware $760 – $1,555 $68 – $140
District of Columbia $995 – $1,520 $88 – $137
Florida $1,965 – $4,200 $169 – $360
Georgia $1,315 – $3,020 $115 – $262
Hawaii $405 – $985 $39 – $92
Idaho $1,010 – $2,450 $89 – $214
Illinois $1,635 – $2,750 $141 – $239
Indiana $1,500 – $3,095 $130 – $268
Iowa $1,165 – $3,015 $102 – $261
Kansas $2,265 – $4,935 $194 – $421
Kentucky $1,570 – $3,700 $136 – $318
Louisiana $2,055 – $4,475 $176 – $383
Maine $895 – $1,755 $80 – $156
Maryland $1,300 – $1,890 $113 – $168
Massachusetts $1,260 – $2,270 $110 – $199
Michigan $1,220 – $2,605 $107 – $227
Minnesota $1,685 – $2,930 $145 – $254
Mississippi $1,255 – $3,925 $110 – $337
Missouri $1,490 – $3,835 $129 – $330
Montana $1,820 – $2,715 $157 – $236
Nebraska $2,550 – $4,890 $218 – $418
Nevada $935 – $1,790 $83 – $159
New Hampshire $800 – $1,550 $72 – $139
New Jersey $915 – $1,555 $81 – $140
New Mexico $1,335 – $2,925 $116 – $254
New York $1,340 – $2,570 $117 – $224
North Carolina $1,425 – $3,235 $124 – $280
North Dakota $1,475 – $3,135 $128 – $271
Ohio $1,140 – $2,265 $100 – $199
Oklahoma $2,275 – $5,835 $195 – $496
Oregon $950 – $2,195 $84 – $193
Pennsylvania $735 – $2,195 $66 – $193
Rhode Island $1,250 – $1,875 $109 – $166
South Carolina $1,205 – $3,040 $105 – $263
South Dakota $1,740 – $3,840 $150 – $330
Tennessee $1,970 – $3,105 $169 – $269
Texas $2,130 – $4,850 $183 – $414
Utah $865 – $1,755 $77 – $156
Vermont $680 – $1,540 $62 – $138
Virginia $1,150 – $2,245 $101 – $197
Washington $1,155 – $1,655 $101 – $148
West Virginia $915 – $2,535 $81 – $221
Wisconsin $845 – $2,025 $75 – $179
Wyoming $1,040 – $2,435 $92 – $213

*Paying monthly instead of annually typically costs $5 to $10 more per month.

States with the cheapest home insurance

Hawaii is the cheapest state for home insurance, with some annual premiums below $500. However, those cheap rates are mainly because Hawaii's standard home policies exclude hurricane damage. Other states with home insurance rates well below the national average include:

  • Vermont

  • Pennsylvania

  • Delaware

  • New Hampshire

  • Wisconsin

  • Utah

  • Maine

  • New Jersey

  • West Virginia

States with the most expensive home insurance

Homes in states with severe weather risk are usually the most expensive to insure. Ten states with the highest average home insurance rates include:

  • Oklahoma

  • Kansas

  • Nebraska

  • Texas

  • Louisiana

  • Arkansas

  • Florida

  • Mississippi

  • South Dakota

  • Missouri

Homeowners insurance cost by company

In addition to where you live, the company you select can significantly impact your homeowners insurance premiums. Each insurer uses its own formulas to calculate risk and determine rates. The following table shows estimated annual premiums from some top home insurance providers:

Average annual home insurance cost by company
Company Average annual insurance rate*
Allstate $1,600 – $2,200
American Family $1,500 – $2,500
Auto-owners $1,400 – $2,000
Chubb $1,875 – $2,700
Erie $1,500 – $2,200
Farmers $2,000 – $2,800
Nationwide $1,500 – $3,000
Progressive $3,200 – $4,200
State Farm $1,450 – $2,200
Travelers $1,575 – $2,100
USAA $1,075 – $2,200

*Based on a $250,000 to $350,000 dwelling limit.

A house damaged by a falling tree
A house damaged by a falling tree

What does home insurance cover?

Home insurance provides critical financial protection for homeowners in the event of damage or loss to their home or property. Most standard policies include the following core coverages:

Homeowners insurance coverage types
Coverage type Typical coverage limit What it covers*
A - Dwelling $100,000 – $500,000 Repairs to the home's physical structure and attached structures (porch, deck, HVAC system, etc.)
B - Other structures 10% – 20% of dwelling limit Repairs to detached structures on the property, such as sheds, garages, and fences
C - Personal property 50% – 75% of dwelling limit Home contents (furniture, electronics, jewelry, clothing, etc.)
D - Loss of use 10% – 30% of dwelling limit Additional living expenses if the home is uninhabitable due to covered damage
E - Personal Liability $100,000 minimum Legal expenses for injury or property damage claims by others for damage that occurs at your home
F - Medical payments $1,000 – $5,000 Medical bills for guests hurt on your property, regardless of liability

*If damage is due to a covered disaster.

What isn't covered by homeowners insurance?

Coverage options and exclusions vary by insurance company and state, but most standard home insurance policies do not cover:

  • Flood or other water damage

  • Sinkhole damage

  • Earthquake or earth movement damage

  • Identity theft

  • Intentional property damage or neglect

  • Pest damage or infestations

  • Home maintenance for normal wear and tear

Get free estimates from home inspectors near you.

Adding optional coverage increases premiums but if you're in a high-risk area for certain hazards, the extra coverage could save you thousands later.

Home insurance cost estimator

Many elements influence the cost of homeowners insurance coverage. Some key factors that determine your risk profile and premium costs include:

  • Location: Where you live significantly impacts your risk of hazards like hurricanes, floods, wildfires, and crime. Homes in coastal regions, forested areas, and urban cities typically cost more to insure. Living close to fire-hydrants and emergency services may help reduce your rate.

  • Home age: Older homes typically cost more to insure since they are often costlier to repair.

  • Home type: Whether you're insuring a single-family home, townhome, or a condo in a multi-unit building impacts your rates. Condo insurance costs $400 to $700 per year on average.

  • Home size & value: The cost to rebuild your home determines your coverage limits and premiums. Rates are higher for large, expensive homes versus modest ones. Luxury features like a pool or hot tub, or a long list of expensive valuables also increase your premiums.

  • Credit score: Most states allow insurers to factor credit into your risk profile and pricing. Poor credit often means paying a much higher premium.

  • Claims history: Filing multiple claims will cause most insurers to raise your rates. Some insurers look back 5 to 7 years, and even just one claim can increase your rate.

  • Security features: Extras like security systems and fire sprinklers can lower your risk and reduce your rates.

Policy type

There are several types of home insurance policies, usually labeled HO-1 through HO-8 to designate the amount and type of coverage included.

HO-2 and HO-3 are the most common for homeowners. HO-1 polices cover only the basic dwelling for a short list of perils. HO-2 and HO-3 policies cover a longer list of perils and include personal property coverage, liability protection, and loss of use coverage.

  • The most common perils listed in a HO-1 policy are fire, lightning, internal and external explosion, windstorms, hail, smoke, vehicles, riots, and vandalism, and volcanic explosions.

  • HO-5 policies are more comprehensive and often required for specific homes that are expensive or historically significant.

Coverage limits

Higher coverage limits mean higher insurance premiums. However, the coverage you choose should be high enough to rebuild or replace your home or belongings after a covered loss. Many insurance companies require a dwelling limit of at least 80% of your home's replacement value.

Home insurance cost by dwelling coverage
Dwelling coverage limit Average annual cost*
$150,000 $900 – $1,200
$250,000 $1,700 – $2,200
$350,000 $2,300 – $2,900
$450,000 $2,700 – $3,500
$750,000 $4,400 – $5,400

*Liability insurance adds $15 to $65 per year, depending on the coverage limit.

Reimbursement method

Insurance rates vary based on the policy's reimbursement method. Guaranteed replacement cost adds 5% to 10% to your premiums and offers the best coverage after a covered loss, but not all insurance companies offer it.

  • Actual cash value (ACV) pays the depreciated value, which is typically less than the current cost to replace or rebuild.

  • Replacement cost value (RCV) pays the cost to rebuild at current prices, but the total amount is still subject to the policy's limits.

  • Extended replacement cost (ERC) pays a certain percentage guaranteed beyond the policy limit—usually 10% to 50% of the dwelling limit.

  • Guaranteed replacement cost (GRC) pays 100% of the cost to replace or rebuild.

Deductible

Insurance companies typically offer policies with $500, $1,000, $2,500, and $5,000 deductibles. Higher-deductible policies have lower premiums, and vice versa. Some states have added deductibles for major disasters like hurricanes or earthquakes. Choose a higher deductible if you're comfortable paying more out of pocket for repairs after a covered event.

Optional coverage

Adding extra coverage increases premiums but provides peace of mind, especially if your property is in a high-risk area with frequent damaging events not covered by a standard home insurance policy. While options depend on the state and the insurance provider, common add-ons include:

  • Earthquake, flood, or tornado insurance

  • Water or sewage backup coverage

  • Equipment breakdown coverage

  • Guaranteed or extended replacement cost coverage

  • Scheduled personal property coverage cover for especially valuable items

  • Equipment breakdown coverage

How to save on the cost of home insurance

Get free estimates from home inspectors near you.

While some factors are out of your control, there are ways to find savings and offset higher rates:

  • Increase deductibles: Raising your deductible from $500 to $1,000 can save up to 25%. Increasing it even more can result in an even larger discount.

  • Limit valuables: Lowering personal property coverage limits will typically lower premium costs.

  • Pay in full: Most insurance carriers offer a $5 to $10 per month discount if you pay up front with a single payment instead of monthly.

  • Add protection: Installing smoke detectors, security systems, and fire-resistant building materials can qualify for discounts.

  • Maintain good credit: Most insurers use credit scores as a factor in pricing. Keeping your score high reduces premiums.

  • Bundle policies: Combining home and auto coverage with one company often leads to a

    5% to 15% discount.

  • Compare annually: Rates and discounts fluctuate constantly. Shop around each year at renewal and make sure you note any home improvements that could lower your rate.

  • Look for discounts: Ask about discounts for retirees, professional organization membership, claim-free status, customer loyalty, and others.

Home insurance FAQs

Does homeowners insurance cover mold?

Homeowners insurance sometimes covers mold, if the mold damage was due to a covered event listed in the policy, such as a burst pipe or appliance malfunction that causes water damage. Most homeowners policies do not cover mold resulting from a gradual leak or seepage.

Is home insurance tax deductible?

Home insurance is typically not tax deductible unless it's rental property, where the premiums are considered a business expense. If you have a home-based business with dedicated office space, you may be able to deduct a percentage of your insurance premiums. Contact a tax professional to discuss your options.

How much home insurance do I need?

A good rule of thumb is to insure your home for 100% of the cost to completely rebuild or replace everything in the event of a total covered loss. A qualified insurance agent can help you estimate this reconstruction cost by factoring in materials, labor, demolition, permits, and more.

Who has the cheapest home insurance?

USAA generally offers the lowest rates but only for military members. Erie, Progressive, State Farm, and Travelers typically have competitive pricing, but rates vary by state and fluctuate constantly so these companies aren't always the cheapest. Get quotes from several companies to find the cheapest for your situation.

Why did my home insurance go up?

Common reasons for homeowners insurance rate hikes include filing a recent claim or negative changes to your credit score, inflation, higher reconstruction costs in your area, and general increases your insurer levies on all policyholders to maintain profitability.

Getting estimates from home insurance companies

Follow these tips to find a home insurance company and plan that best fits your specific situation:

  • Compare quotes with similar coverage limits and deductibles from at least 3 reputable insurance companies. Be sure to compare exclusions as well.

  • Check out insurance company reviews on HomeGuide and Google. Be on the lookout for trends of denied claims.

  • Ask about bundling with auto or life insurance.

  • See if you qualify for any discounts.

  • Ask about higher hurricane, wind, and liability deductibles if risks are lower where you live.

  • Read all the policy terms before signing anything.

Questions to ask a homeowners insurance agent

Here are some important questions to ask when purchasing home insurance:

  • What is the policy's reimbursement method—replacement cost or actual cash value?

  • What are the coverage limit and deductible options?

  • How much liability coverage does the policy include?

  • Does the policy have any additional deductibles?

  • What events are covered, and which ones are not covered?

  • Do you offer optional add-on coverage for exclusions, and how much are they?

  • What additional coverage do you recommend for my property?

  • What policy discounts do you offer?

  • What home renovations qualify for a discount?