Average home insurance cost: How much is home insurance in 2024?

How much is homeowners insurance?

While the national average for home insurance is $2,601 a year, home insurance rates will vary by a number of factors. The coverage limits you choose, as well as the location of your home, can push your rates up or down. Other factors, like the size, age, and construction type of your home will impact rates, as will features like a pool, hot tub or sauna.

Average home insurance cost by state

The cost of homeowners insurance will vary depending on the state you call home. Insurers will consider all of the risks in your area when setting a premium, including everything from severe weather to crime rates and local laws, which can lead to dramatically different averages between states.

Our analysts found that Oklahoma is the most expensive state for homeowners insurance, coming in at an average of $5,858 a year. Oklahoma is prone to severe weather including tornadoes, hailstorms and windstorms, which can do severe damage to homes. Severe weather risks will always push up the cost of insurance. 

On the other end of the spectrum is Hawaii, where the average homeowners policy runs $613 a year. While Hawaii is also prone to severe weather, including hurricanes, most standard homeowner policies in the Aloha State exclude coverage for hurricane damage. Removing that risk drops the cost of coverage dramatically. 

“One major factor in Hawaii is the fact that most standard homeowner insurance policies do not cover hurricane damage. Hurricane Iniki, which hit in 1992, did so much damage that the majority of insurers excluded hurricane damage from their coverage. Homeowners in Hawaii now have to purchase a separate hurricane damage policy,” says Michael Barry, chief communications officer at the Insurance Information Institute (Triple-I), an insurance industry research and education organization.

Take a look at the average home insurance rate in your state and how it compares below.

Get homeowners insurance rates in your ZIP code

What you will pay for home insurance depends on many factors, but you can get a loose estimate by comparing rates in your ZIP code. Using our home insurance calculator below, you can compare average home insurance rates by ZIP code at 10 different coverage levels.

Average home insurance cost by ZIP code

Insurance.com’s analysis found the highest homeowners insurance rates in ZIP code 27936, which is Frisco, North Carolina. Homeowner premiums in this ZIP code averaged a shocking $9,915 a year. 

ZIP codes in Nags Head, North Carolina, and Kill Devil Hills, North Carolina, rank second and third, respectively.

The cheapest ZIP code is in Honolulu, Hawaii, followed by Aiea, Hawaii.

You can also look at how much home insurance costs in your state on average to see how your ZIP code compares.

Average home insurance cost by company

Insurers consider various risk factors and use proprietary algorithms when setting a rate that can result in dramatically different premium quotes from company to company. 

While many of the factors insurers evaluate are the same — such as the square footage of your home and the age of your roof — each carrier weighs these factors differently, which leads to differences in premium quotes. This makes shopping around for coverage a pivotal part of the buying process — doing so enables you to find an insurer that offers the best rates for your profile. 

According to our data, Allstate has the lowest average annual premium at $2,098 annually, or $175 a month. Auto-Owners came in second with an average annual premium of $2,160, and State Farm rounded out the top three at $2,169.

Travelers is the most expensive insurer in our rankings with an average annual premium of $3,701, 76% more than Allstate. These numbers clearly show that shopping your coverage on a regular basis is the best way to make sure you are getting the cheapest rates.

Check the chart below to see the rates for major insurers. 

Average home insurance cost by coverage level

The amount of coverage you carry will impact how much you pay for homeowners coverage, as will the deductible you choose. The higher your deductible, the lower your premium.

Below are the nationwide average annual rates for homeowners insurance at several coverage levels, including homeowners insurance for a $200,000 house and home insurance for a $400,000 house, all with a $1,000 deductible.

How much is home insurance a month?

The average cost of home insurance per month is $217, based on our standard dwelling coverage of $300,000. How much you actually pay will depend on your profile and how much coverage you get. 

Below are the average monthly premiums for various coverage levels. 

Why are home insurance rates increasing in 2024?

Home insurance rates have increased across the country in the past few years, and continue to rise in 2024. There are a number of reasons for the increase, which usually isn't due to one homeowner but to larger trends that are affecting everyone.

1. The cost of materials has gone up. Construction materials are more expensive, driven by inflation and disrupted supply chains during the COVID-19 pandemic.
2. Increased severe weather and wildfires. Intense hurricanes, more frequent severe storms including hail, tornadoes and intense wildfires have all meant more claims, bigger claims and huge losses for insurance companies.
3. Companies pulling out of high-risk areas. In states like California and Florida, many insurance companies have pulled back or entirely out of the market. That leaves other carriers to pick up the slack; risk is less widely spread and rates go up to make up for that risk.
4. Past rate increases that didn't cover losses. Insurance companies must file rate increases with the state, and generally determine those increases based on past losses and anticipated losses for the coming year. However, increases in costs in recent years led to an imbalance; the actual losses were bigger than projected. Insurance companies are now trying to balance that out with larger increases across the nation.

How are homeowners insurance rates calculated?

Insurers consider a variety of factors when setting a premium. Here are some of the biggest factors influencing the cost of homeowners insurance:

• Your home’s location: Insurers will look at the specific risk factors in that area, including weather, crime and claim rates as well as other factors. 
• Your home’s value: Bear in mind that the value used by insurance companies isn’t the same as your home’s market value. Insurers look at the cost of rebuilding the home, not its resale value.
• Cost to rebuild: Insurers may have to pay to rebuild your home if it is destroyed. Higher rebuilding costs will lead to a higher premium.
• Construction costs: Local construction costs, including labor, building materials availability, price and building regulations all affect rates.
• Your home’s age: Older homes may have more risks, such as outdated wiring, plumbing and mechanicals. 
• Risk exposure: Risk exposure on your property, for instance, from a swimming pool, trampoline, guest house or aggressive breed of dog can lead to higher rates.
• Fire protection: Your neighborhood’s fire protection rating, which looks at how close your home is to a fire station, is also a factor.
• Claim history: Your personal and neighborhood claim history, as well as the previous homeowner’s claim history will all be considered, claims tend to raise rates.
• Insurance score: Your insurance score is based, in part, on your credit history. Only three states don’t allow this – Massachusetts, Hawaii, and California; Maryland doesn’t use credit for home rates but does for auto rates.

For more information on how home insurance rates are determined, review some of the main factors affecting your home insurance rate. You can also use the home insurance calculator below to see what average rates are in your neighborhood.

Methodology

Insurance.com compared homeowners insurance rates in 2023 provided by Quadrant Data Solutions for dwelling coverage ranging from $200,000 to $1,000,000 with liability limits of $100,000 and $300,000 and a deductible of $1,000 for all available ZIP codes. ZIP codes were ranked based on the average rates for dwelling coverage of $300,000, liability coverage of $300,000, and a $1,000 deductible and included all credit ratings. Content was updated in 2024.

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Does home insurance cover natural disasters, and how much does that affect my premium?

Home insurance covers many natural disasters, although flooding and earthquakes are excluded. In some areas, windstorm coverage is also separate. Your homeowners insurance premium is influenced by the risk of covered natural disasters in your area. The higher the risk, the higher the premiums.

What is the average home insurance deductible, and how does it affect premiums?

There is no average home insurance deductible, although $500 or $1,000 are common. The higher the deductible, the lower your premiums.

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Frequently asked questions: Average home insurance cost

Why did my home insurance go up?

Home insurance rates go up for a lot of reasons. Numerous claims in your area and an increased risk of severe weather or wildfires can push up the cost of coverage. Local factors such as increases in building costs or updated building codes can result in a higher premium. Your personal risk factors can also increase your rates. For example, if you file a claim or put in a pool or trampoline, your rates are likely to increase. If you don’t know why your rates went up, call your insurance company for an explanation.

What is the 80% rule in homeowners insurance?

The 80% rule, or 80/20 rule, states that if you have not insured your home for at least 80% of its replacement cost, the insurance company may reduce claim payouts accordingly. This rule doesn't apply to total loss claims.

How much should home insurance go up each year?

There's no set amount for home insurance increases, as many factors are involved. In many states, wildfires and natural disasters related to climate change are pushing up rates more dramatically than in the past. Regardless of whether your risk factors have changed you can expect an annual increase as the cost of rebuilding your home increases over time.

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In case you missed it

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Average homeowners insurance rates by state in 2024

September 20, 2024

How is home insurance calculated?

May 13, 2024

Factors that affect homeowners insurance premiums