Homeowners insurance is a required expense for any homeowner with a mortgage. Rates vary dramatically by state, home value, and risk factors. Here’s the complete breakdown.
Table of Contents
Average Home Insurance Cost by State (All 50 States)
Rank
State
Avg. Annual Premium
Avg. Monthly
Primary Risk Factors
1
Oklahoma
$5,720
$477
Tornadoes, hail, wind
2
Nebraska
$5,260
$438
Hail, tornadoes, severe storms
3
Kansas
$4,940
$412
Tornadoes, hail
4
Louisiana
$4,680
$390
Hurricanes, flooding
5
Texas
$4,360
$363
Hurricanes, hail, wind
6
Colorado
$4,180
$348
Hail, wildfires
7
Mississippi
$3,820
$318
Hurricanes, tornadoes
8
South Dakota
$3,640
$303
Hail, severe weather
9
Arkansas
$3,480
$290
Tornadoes, severe storms
10
Alabama
$3,340
$278
Hurricanes, tornadoes
11
Missouri
$3,180
$265
Tornadoes, hail
12
Montana
$3,060
$255
Wildfires, severe weather
13
Iowa
$2,920
$243
Hail, tornadoes
14
Minnesota
$2,840
$237
Hail, severe winter
15
North Dakota
$2,780
$232
Hail, severe weather
16
Florida
$2,720
$227
Hurricanes (excludes flood)
17
Kentucky
$2,640
$220
Severe storms
18
Georgia
$2,560
$213
Storms, hurricanes (coastal)
19
Wyoming
$2,480
$207
Wind, hail
20
Indiana
$2,420
$202
Tornadoes, storms
21
Michigan
$2,360
$197
Severe weather
22
South Carolina
$2,320
$193
Hurricanes (coastal)
23
Tennessee
$2,280
$190
Tornadoes, storms
24
Ohio
$2,220
$185
Storms, snow
25
Illinois
$2,180
$182
Hail, tornadoes
26
North Carolina
$2,140
$178
Hurricanes (coastal)
27
West Virginia
$2,080
$173
Flooding, storms
28
New Mexico
$2,040
$170
Wildfires, wind
29
Connecticut
$2,000
$167
Storms, aging homes
30
Pennsylvania
$1,960
$163
Storms, winter
31
New York
$1,920
$160
Storms, aging infrastructure
32
Virginia
$1,860
$155
Storms, hurricanes (coastal)
33
Arizona
$1,800
$150
Low risk
34
Idaho
$1,740
$145
Wildfires
35
Maryland
$1,680
$140
Storms
36
New Jersey
$1,640
$137
Coastal storms
37
Massachusetts
$1,580
$132
Coastal, aging homes
38
Alaska
$1,540
$128
Remote, cold
39
Nevada
$1,480
$123
Low risk
40
Wisconsin
$1,440
$120
Winter storms
41
California
$1,400
$117
Wildfires (varies greatly)
42
Washington
$1,360
$113
Low risk
43
Maine
$1,320
$110
Winter storms
44
Delaware
$1,280
$107
Low risk
45
Rhode Island
$1,240
$103
Moderate risk
46
Hawaii
$1,200
$100
Low risk (excludes volcano)
47
Oregon
$1,160
$97
Relatively low risk
48
Utah
$1,080
$90
Very low risk
49
New Hampshire
$980
$82
Low risk
50
Vermont
$920
$77
Low risk
What Affects Your Homeowners Insurance Premium
Factor
Impact
Location (natural disaster risk)
High — the biggest factor
Home replacement cost
Higher value = higher premium
Deductible chosen
Higher deductible = lower premium
Credit score
Better credit = lower premium (in most states)
Claims history
Previous claims increase premiums
Home age and condition
Older homes cost more to insure
Construction type
Wood frame costs more than brick
Roof age and material
Newer roof = lower premium
Distance to fire station
Closer = lower premium
Pool, trampoline, dog breed
Increase liability risk and premium
Security systems and smart home
Discounts for alarms, smoke detectors
Bundling with auto insurance
5-25% discount
Home Insurance by Home Value
Home Value
Annual Premium (National Avg.)
Monthly
$150,000
$1,380
$115
$200,000
$1,680
$140
$250,000
$1,980
$165
$300,000
$2,285
$190
$400,000
$2,880
$240
$500,000
$3,480
$290
$750,000
$4,680
$390
$1,000,000
$5,880
$490
What Homeowners Insurance Covers (and Doesn’t)
Covered
Coverage
What It Covers
Typical Limit
Dwelling (Coverage A)
Home structure damage
Full replacement cost
Other structures (B)
Detached garage, fence, shed
10% of dwelling
Personal property (C)
Belongings inside the home
50-70% of dwelling
Loss of use (D)
Hotel/living costs if displaced
20% of dwelling
Personal liability (E)
Lawsuits if someone is injured on your property
$100K-$500K
Medical payments (F)
Guest injuries (regardless of fault)
$1K-$5K
NOT Covered (Common Exclusions)
Exclusion
Separate Policy Needed
Flooding
NFIP flood insurance ($700-$3,000/year)
Earthquakes
Earthquake insurance ($800-$5,000/year)
Sewer backup
Endorsement ($40-$100/year)
Mold (most policies)
Sometimes available as endorsement
Wear and tear
Not insurable
Neglect/poor maintenance
Not insurable
Intentional damage
Not insurable
How to Save on Home Insurance
Strategy
Potential Savings
Shop around annually
15-30%
Bundle with auto insurance
5-25%
Raise deductible ($500 → $2,500)
10-25%
Improve credit score
10-30%
Install security system
5-15%
Update roof
5-20%
Ask about all discounts
Varies
Go claims-free for 3-5 years
10-20%
Review coverage annually
Avoid over-insuring
Deductible Comparison
Deductible
Annual Premium (Typical)
Annual Savings vs. $500
$500
$2,500
—
$1,000
$2,250
$250
$1,500
$2,100
$400
$2,500
$1,900
$600
$5,000
$1,700
$800
Break-even analysis: A $2,500 deductible saves $600/year over a $500 deductible. If you go 3+ years without a claim, the savings exceed the higher out-of-pocket risk.
Insurance Crisis in Select States
Several states face insurance availability challenges:
State
Issue
Florida
Insurers leaving due to hurricane risk; premiums rising 30-50%
California
Wildfire risk causing non-renewals; state FAIR plan as last resort
Louisiana
Post-hurricane Ida insurer insolvencies; rates doubling
Texas
Hail and hurricane losses; consistent premium increases
Colorado
Wildfire and hail; increasing non-renewals in mountain areas
If your private insurer cancels your policy, check your state’s FAIR Plan (Fair Access to Insurance Requirements) — a state-backed insurer of last resort.
