The average home insurance rate is currently $211 per month for $300,000 in dwelling coverage, according to Insurify data. Your home’s age, condition, and location affect insurance rates significantly. The coverage and deductible you choose will also influence what you pay month to month and out of pocket if you file a claim.

You might also need disaster coverage, like earthquake or wildfire insurance, if your home is in a vulnerable region. For example, if you live in a high-risk flood zone and have a federally backed mortgage, your lender will require you to purchase flood insurance.1 Even if you have a conventional mortgage, your lender will likely have specific requirements for insuring your home.

Learn about the average home insurance premiums for different groups and the factors that affect rates.

Average cost of home insurance by state

Homeowners insurance rates can vary widely by state and even by ZIP code. Severe weather risk and high property crime rates will raise regional premiums, but the local insurance market and state legislation can also affect rates.

For example, Florida’s exposure to multiple types of severe and damaging weather contributes to its high home insurance costs. Between 1980 and 2024, the state suffered 94 $1 billion-plus weather disasters, according to the National Centers for Environmental Information.

By contrast, Vermont — the cheapest U.S. state for home insurance — experienced 19 $1 billion-plus weather disasters during the same time period.

Here are the average annual home insurance premiums for each state for $300,000 in dwelling coverage, according to Insurify data.

Cheapest states for home insurance

Vermont has the cheapest average home insurance premiums in the U.S. It has some of the lowest property crime rates and fewer natural disasters.2 It’s not immune, though: Vermont has faced many significant flooding events, including three in the last year.

Here are the five cheapest states for a $300,000 homeowners insurance policy, along with their average annual premiums:

• Vermont: $936

• New Hampshire: $1,128

• Delaware: $1,212

• Alaska: $1,224

• Hawaii: $1,380

Fewer costly weather events and comparatively lower crime rates contribute to a state’s lower cost of home insurance.

Most expensive states for home insurance

The five most expensive states for homeowners insurance all have average costs that are well above the national average. They also share a high risk of damage from severe weather, like hurricanes and tornadoes, or from wildfire.

Here are the states with the highest annual costs for a home insurance policy with $300,000 in dwelling coverage:

• Florida: $5,640

• Louisiana: $5,136

• Oklahoma: $4,560

• Texas: $4,140

• North Carolina: $3,444

Why homeowners insurance rates are rising

Inflation and climate catastrophes contribute to rising homeowners insurance rates, according to Insurify’s home insurance report. Florida, Louisiana, and Oklahoma have the highest average home insurance rates in the U.S. and face increasingly frequent and severe weather. The 10 most expensive states are all prone to severe weather events, including hurricanes, tornadoes, and wildfires.

Insurance companies set rates based on risk, so if you’re in a vulnerable area, your premiums will be higher to reflect the increased likelihood you’ll file a claim. The rising cost of labor and repairs contributes to higher premiums because it’s become more expensive to fix the damage from accidents and weather events.

Average cost of home insurance in major U.S. cities

Home insurance varies widely by location and can be different even for cities within the same state. Weather risk, crime rates, and regional labor and repair costs can all affect your premium.3 The overall age of the city’s construction can also be a factor since your home’s age and condition influence your rates.

These are the average annual and monthly home insurance costs for some of the biggest cities in the U.S. These averages are for a policy with $300,000 in dwelling coverage and a $1,000 deductible.

Factors that affect home insurance rates

Factors affecting home insurance rates that your insurer may consider include:

Homeowners insurance costs by company

Insurance costs can even vary by company. Though insurers typically consider the same rating factors, each has its own way of assessing risk factors. Each company also has its unique policy roster to consider and may offer higher or lower rates depending on its risk portfolio.

Homeowners insurance companies compete with each other, which means you could get different products or services if you shop around. Comparing home insurance quotes is one of the best ways to save on premiums.

Cheapest companies for home insurance

These are the insurers with the cheapest average monthly home insurance rates for $300,000 of dwelling coverage.

Average cost of homeowners insurance by dwelling coverage amount

Dwelling coverage is the part of an insurance policy that pays to rebuild your home. A lower dwelling coverage amount usually means cheaper rates, while a higher one means more expensive rates. It’s not the same as your home’s market value and depends on square footage, building materials, and how inflation is affecting labor and material costs.

Dwelling coverage is just one part of a home insurance policy, which also typically includes personal property, liability, other structures, loss of use, and other types of coverage.

This table shows the national average annual home insurance premium for different dwelling coverage amounts.

Average cost of condo insurance

Condo insurance, also called HO-6 coverage, is a type of homeowners insurance specifically for people who own and live in a condominium unit. Condo insurance covers a condo’s interior, some fixtures, your personal property, and your liability as a property owner. 

It doesn’t cover a building’s roof, exterior, or landscaping. A condominium association master policy covers those things.

Like a standard HO-3 homeowners insurance policy, condo policy premiums can vary based on location. Condos are susceptible to weather-related damage and property crimes just like single-family homes.

Here’s how much condo insurance costs for different levels of dwelling coverage.

Average cost of homeowners insurance by credit tier

Insurers typically review credit history to inform home insurance premiums. Insurance companies do a “soft” credit pull that won’t affect your credit score, so applying for multiple policies or switching insurers for a better rate won’t ding your credit score.4 

Insurers typically generate a credit-based insurance score, which can predict your likelihood of filing a claim and its cost, according to credit-reporting agency Experian.

Since credit history is just one of many factors affecting rates, the average rate difference between someone with excellent and poor credit is only about $300 per year, according to Insurify data. These are the national average annual home insurance premiums by credit tier.

How to get cheaper homeowners insurance

Home insurance costs are rising. The good news is that you can take action to keep your insurance costs on the lower side. Consider these strategies as you seek cheaper rates:

• Shop around. Every insurance company offers different premiums. As a homeowner, it’s a good idea to shop around to lock in the best rates.

• Increase your home insurance deductible. A higher deductible typically leads to a lower insurance premium. This could work for you if you can afford to pay more out of pocket when you file a claim.

• Bundle your insurance policies. If you need home insurance, you likely need other types of insurance, like life insurance or auto insurance. Consider bundling your policies through the same insurance company to snag a better rate on each.

• Ask for a discount. Many insurance companies offer discounts. Don’t be afraid to ask if you qualify for a discount on your homeowners insurance policy. You may qualify for something you weren’t aware existed.

• Work on your credit. In many states, insurers can consider your credit history when determining rates. Generally, better credit translates to lower insurance premiums. You can build your credit by paying bills on time and paying off credit cards.

• Limit your insurance coverage. Buying less liability insurance could help you lower your insurance costs. Still, try not to skimp on the dwelling coverage amount; otherwise, you could be in a tough situation if your home is destroyed and you need to file a claim.

What home insurance covers

The level of home insurance coverage you need varies based on your unique situation. For example, an older, more expensive home may be more likely to have structures and systems that break down and need repair. 

This table outlines some home insurance coverage options and potential coverage amounts.

What homeowners insurance doesn’t cover

Home insurance has some notable exclusions, so depending on your home’s age, condition, and location, you may want to consider buying additional coverage. Regardless, reading your policy is extremely important so you know what it includes and in which areas you may need to purchase more coverage.

Cause matters when it comes to what homeowners insurance covers. For example, water damage from a burst pipe is covered if you keep the home properly heated, but damage from a flood isn’t. These are some common home insurance coverage exceptions:

• Floods: You’ll need a separate policy to cover flood damage from severe weather.

• Earth movement: Standard home insurance policies don’t cover damage from landslides, mudslides, sinkholes, volcanic eruptions, and earthquakes.

• Pest damage: If rodents or insects chew on your home, your home insurance won’t cover the damage.

• Routine wear and tear or neglect: Insurers expect you to maintain your home, so homeowners insurance won’t cover damages like worn roofing and rotting boards.

• Expensive valuables: Your policy likely includes some personal property coverage, but if you have pricey items to insure, check your limits to confirm you have enough coverage.

Other types of home insurance coverage

You can buy certain additional coverages as an add-on through your home insurer, but for some things, you’ll need an entirely separate policy.