How much is homeowners insurance?

In 2024, the typical homeowner paid $3,303 for homeowners insurance, according to the Consumer Federation of America. However, the cost of homeowners insurance can vary by your location, home value, coverage level, claims history, and more. 

Homeowners insurance can protect you from losses and damages to your home and belongings, as well as liability for accidents or injuries that occur on your property. Commonly covered risks include fire, theft, vandalism, and certain natural disasters.

Average cost of homeowners insurance by state

According to Insurance.com, the average cost of homeowners insurance on a $400,000 house (roughly the median U.S. home sales price in Q2 2025) is highest in Oklahoma, at $7,008 per year, and lowest in Hawaii, at $792 per year.

Below is the average cost of homeowners insurance on a $400,000 house by state, according to an Insurance.com survey on field home insurance rates from major insurers in each state*:

Top 5 states with the lowest premiums

Here are the top five least expensive states overall for homeowners insurance:

Top 5 states with the highest premiums

Here are the top five most expensive states overall for homeowners insurance:

Average cost of homeowners insurance by dwelling coverage

Here’s the average cost of homeowners insurance by dwelling coverage limit*:

Top 5 homeowners insurance companies by cost

Homeowner insurance costs can also vary by company. Here are the top five homeowners insurance companies ranked by lowest cost*:

What causes homeowners insurance to increase?

Now that you know the average cost of homeowners insurance, here are reasons it could rise: 

If you submit a claim

Filing a homeowners insurance claim can lead to higher premiums since it signals to insurers that you or your property may present a higher risk of future claims. 

However, whether your premium will increase (and by how much) will depend on the claim type, the severity of any damage, and your claims history. For example, theft claims often cause rates to rise, whereas claims for weather events or natural disasters may not. 

Furthermore, state-specific regulations can also affect how claims impact your premiums.

If you build an addition

Adding square footage to your home, such as a new bedroom or bathroom, can also raise your insurance costs. This is because the larger (and more valuable) your home is, the more coverage it requires. To ensure you and your home are properly insured, always review your homeowners insurance policy after completing a renovation or addition.

If costs rise

Homeowners insurance premiums often rise annually to keep up with inflation and the rising costs of building materials and appliances. After all, insurers must adjust premiums to keep up with market costs and ensure they can cover replacement expenses.

If you add more coverage

Of course, getting additional coverage will raise your premium (all else equal). That’s why it’s important to balance the level of protection you need with your budget.

Is the cost of homeowners insurance expected to rise?

According to Insurify, the annual cost of home insurance is projected to increase 8% by the end of 2025 to a national average of $3,520.

How to reduce the cost of your homeowners insurance

You can lower the cost of your homeowners insurance in the following ways:

• Improve your credit score.
• Install safety devices (smoke detectors, security systems, etc.).
• Compare insurance quotes.
• Bundle home and auto insurance.
• Increase your deductible.

FAQ about homeowners insurance

Here are answers to frequently asked questions regarding homeowners insurance costs:

What determines the cost of your homeowners insurance?

The cost of your homeowners insurance is influenced by various factors, including property type, coverage details, location, and the age and condition of your home.

Why did my insurance premium go up?

Homeowners insurance premiums can increase due to inflation, changes in coverage, a rise in claims, or adding square footage to your home.

Is homeowners insurance paid monthly or yearly?

You can pay your homeowners insurance monthly or yearly, and sometimes quarterly or semiannually, depending on your insurer and other factors.

The bottom line: The cost of homeowners insurance depends on your situation

Homeowners insurance can protect your home, belongings, and finances from unexpected losses. While the average cost of homeowners insurance in 2024 was $3,303, your actual rate will depend on factors like your location, coverage level, and claims history. 

Since premiums continue to rise nationwide, now is a great time to review your options and secure the right protection for your home. Interested in moving or refinancing your home, too? Take the next step by starting a mortgage application today!