Homeowners insurance is essential — and expensive. The average cost for a policy with a $300,000 dwelling coverage limit rose in 2024, landing at $2,377 per year, according to Insurify data. If you live in a state with high risks from severe weather, like Florida, your annual home insurance premium can be much higher than the national average.
Comparing quotes from multiple companies could help you find the most affordable coverage for your needs. But keep in mind that the company with the cheapest rates may not be the best option for you.
Here’s what you need to know to find cheap home insurance.
Cheapest home insurance quotes in 2025
Your exact premium will depend on factors like your home’s size, location, and age. It may also be possible to find cheaper coverage through regional insurance companies like Vermont Mutual, which has the lowest rates of any insurer, according to Insurify data, but is only available in seven U.S. states. Regional insurers vary in size and aren’t available in every state.
The following table shows the average annual premium for $300,000 in dwelling coverage from top, widely available (operating in more than 26 states) home insurance companies.
Cheapest home insurance by dwelling coverage
Higher dwelling coverage limits result in higher premiums. But it’s important to consider the value of your home and your location’s risk when determining how much coverage you need. Generally, your dwelling coverage amount should be equal to at least 80% of your home’s replacement cost.
It’s also important to note that the cheapest insurer for your desired dwelling coverage limit can vary.
Cheapest home insurance by state
Vermont has the lowest average annual home insurance rate for a policy with a $300,000 dwelling coverage limit: $936, according to Insurify data. Hawaii and Alaska are the second- and third-cheapest states, with average annual premiums of $1,380 and $1,224, respectively.
Florida is the most expensive state for home insurance, with an average annual premium of $5,640. The state’s exposure to severe coastal weather results in a higher number of claims and a high cost of claims, which pushes home insurance costs higher.
Flood-prone Louisiana has the second-highest home insurance costs in the country. The average annual premium for $300,000 of dwelling coverage in Louisiana is $5,136 per month, according to Insurify data.
Rates differ so drastically between states for various reasons. Many states, like Florida, Oklahoma, and Louisiana, are much more prone to severe weather than others, resulting in more expensive premiums. Things like the cost of materials, location, and labor costs can also affect your home insurance premiums.
Always compare quotes from multiple insurance companies before buying a policy. The table below shows the cheapest insurers in every state, and the cheapest monthly rates for a $300,000 dwelling coverage limit.
How to get cheaper home insurance
You can get cheaper home insurance in a number of ways. Consider the following tips when you’re looking to cut your home insurance costs:
Cheapest home insurance for new construction: AIG
AIG is the cheapest home insurance company for new construction, with an average annual premium of $756 for $300,000 in dwelling coverage. Newer homes tend to be cheaper to insure than older homes since they’re less likely to have issues that require claim payouts.
Cheapest home insurance for old homes: AIG
Older homes can be more expensive to insure for multiple reasons. They can be more likely to have issues that will require insurance payouts.1 And they may be built with construction materials or architectural details that are more costly to repair or replace.
The following table shows average annual premiums for older homes from some of the cheapest insurers.
Cheapest home insurance for bad credit: AIG
In most states, home insurance companies can consider your credit history when establishing rates. Insurers don’t look at your actual credit score. Instead, they use credit information to generate credit-based insurance scores and predict your likelihood of filing a claim.2
Here are average annual premiums for $300,000 in dwelling coverage for policyholders with poor credit.
Cheapest home insurance for high deductible: American Family
Home insurance policies typically have one or more deductibles, an amount you’ll have to pay out of pocket toward a covered loss before your insurance kicks in. Because a higher deductible is your way of sharing more risk with the insurer, the higher your deductible, the lower your premium will generally be.
But before buying a high-deductible policy, make sure you can afford to pay it out of pocket in the event of a claim.
The following table shows average annual premiums for a policy with $1 million in dwelling coverage and a $10,000 deductible.
Cheapest home insurance for bundling home and auto insurance: AIG
Bundling home and auto insurance is one of the best ways to save money on a policy.3 Discounts can range from 10% to 25% — or even more — depending on the insurance company. Bundling may result in savings on one or both policies you buy with the same company.
Here are premiums from top insurers for bundling a $300,000 home insurance policy with an auto insurance policy from the same insurer.
Cheapest home insurance for high-value homes: American Family
Your home’s value directly affects how much you’ll pay to insure it each year. Generally, homes with higher values cost more to repair or rebuild and often contain luxury items or features that are costly to replace.
Insurers typically consider a home with a value of $750,000 or more to be a high-value home, although some companies may set the threshold at $1 million or more. Here are average annual premiums for a $1 million home insurance policy from top insurers.
What factors affect the cost of home insurance?
Many different factors affect the cost of home insurance, such as:
The size of your home: The larger your home, the more it’ll cost to replace. Insurers consider this when setting your rate.
Local building costs: Your premiums could increase if you live in an area where building supplies and labor are expensive, which drives up repair costs.
Your credit history: Insurance companies consider your credit when setting rates and usually offer lower rates to homeowners with better credit.
The age of your home: Older homes come with unique and often expensive repair needs. Having an older home can lead to increased premiums, as insurers will compensate for the increased cost of materials required to repair the home.
Location: Factors specific to your location can affect how likely you are to file a claim, like severe weather frequency, natural disasters, and crime rates. Insurers consider these factors when determining how likely you are to file a claim and how much those claims will cost.