How much is homeowners insurance? Average costs by state

Although the average cost of homeowners insurance for a policy with $300,000 worth of dwelling coverage comes in at $2,872 per year, this doesn’t mean you’ll be paying that.

Even if you have the same coverage, there are several factors that can mean your homeowners insurance policy could be thousands more or thousands less per year.

Whether you live in Florida – the most expensive state on average – or Hawaii – the cheapest – there are several considerations to consider before you buy coverage. These factors can literally mean thousands of dollars of difference per year.

So let’s explore the costs by state, as well as other factors you need to know.

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 2026) is highest in Florida, at $11,161 per year, and lowest in Hawaii, at $943 per year. Talk about a difference.

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*:

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

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

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

How much is homeowners insurance on a $200,000 house?

Although the national average for $200,000 in dwelling coverage is $2,156 per year, there are many factors that decide your ultimate cost.

Location is a big one. For example, the same coverage costs an average of $6,203 in Florida and $558 in Hawaii. You also can’t equate dwelling coverage with the market value or sales price of your home. Insurers typically base their estimate on replacement cost, which takes into account local construction and materials costs. This is the dwelling coverage limit in your policy and may be different than the market value.

How much is homeowners insurance for a $400,000 house?

It’s not possible to give a definitive answer to how much your homeowners insurance premiums will be for a $400,000 home.

For one thing, insurers base their price on replacement cost, not the price you paid for your home or what you could sell it for – its market value. In addition, location has a lot to do with it. For example, the average annual cost for a policy with $400,000 of dwelling coverage is $11,161 in Florida and $943 in Hawaii. That’s $7,582 more and $2,636 less, respectively, than the national average of $3,579.

How much is insurance on a $500,000 home?

Specific information is difficult to find for this amount, however it’s safe to say that the national annual average is somewhere between the annual premium for dwelling coverage of $400,000 and $600,000, which is $3,579 and $4,960, respectively.

But again, the actual annual premium varies on many factors, including the local cost of construction and labor to replace your home after a total loss, specific local hazard risks, and location. So, the cost of your homeowners insurance could literally be thousands of dollars more or less than the national average per year.

How to estimate your homeowners insurance cost

While the national and state averages give you good starting points, estimating the cost of homeowners insurance for your property demands a bit more work. To get a better idea of your potential cost, you can use an online insurance calculator or online quote, based on your property and needs. Here is some key information that informs your individual rate.

Estimate by home value

Your home’s market value isn’t always the amount it should be insured for. That’s because the dwelling coverage limit is generally the estimated cost of rebuilding your home after a covered total loss.

So, for example, your home might be worth $300,000 on the market, but because of lumber, labor, and other costs, it might be $350,000 to rebuild. So, you’d want dwelling coverage for that higher amount.

Your home’s size, building materials, and local construction costs all factor into your homeowners insurance estimate.

Estimate by monthly premium

If you want to know how much your homeowners insurance is per month, it’s an easy calculation. After estimating your annual premium, divide it by 12.

If you have a mortgage, there’s a good chance this amount will be added to your monthly mortgage principal and interest payment. So, in effect, the total – often along with amortized property tax payments – become what you call your monthly mortgage payment.

Information you need before comparing quotes

To get the most accurate quote, you’ll need certain information. Typically, here’s what you’ll be asked for:

• State, ZIP code, and property address
• Estimated home value and square footage
• Condition of electrical, plumbing, etc.
• Any recent major renovations or upgrades
• Approximate age of the home and roof
• Construction materials and roof type
• Desired deductible and coverage limits
• Information about recent insurance claims
• Available safety or security features

What homeowners insurance covers

Your homeowners insurance covers more than merely your home. Although coverage limits, deductibles, and coverage exclusions vary, here’s what you should typically expect.

Dwelling coverage

This helps pay to repair or completely rebuild your home after the home’s structure is damaged or destroyed by a covered event, like fire, wind, hail, or certain storms.

Your dwelling coverage limit should equal the estimated cost to rebuild your home, not necessarily its market value. Things like your home’s square footage, building materials, and local construction costs can affect this number.

Personal property coverage

Your belongings, such as furniture, clothing, electronics, and appliances are normally covered under your homeowners insurance policy.

Depending on the way the company calculates your coverage, this might be the replacement cost or the actual value of your items, accounting for depreciation. If you have high-value items, such as jewelry or collectibles, it may require special extra coverage.

Liability coverage

This is vital coverage. Personal liability coverage can help pay legal costs and judgments against you for any lawsuits or injury claims by other people injured on your property. The coverage will have a stated limit and anything more than that comes out of your pocket.

Additional living expenses

If you cannot live in your home while it is being repaired or rebuilt after a covered event, additional living expenses coverage (ALE) helps pay for your costs. These include things like hotels, meals, and other needed living expenses. Again, these are subject to your policy’s ALE limits.

Extra coverage to consider

There are some losses that your standard homeowners policy doesn’t cover. For these, you may need a separate policy, which will include its own premiums and limits.

For example, damage from floods or earthquakes are often excluded in a standard policy. If you live in an area prone to either of these, you may need to buy a separate insurance policy.

If you have very valuable belongings, such as collectibles, fine art, or jewelry, its value might exceed your personal property coverage. You should consider insuring it separately.

Homeowners 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 it will cost to replace or repair. That means it probably needs more coverage. 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 (assuming everything else remains the same). That’s why it’s important to balance the level of protection you need with your budget.

Your location and disaster risk

As we’ve seen from the above charts, location is one of the biggest factors that influences the cost of your homeowners insurance. But the ultimate cost includes more factors than state and home size.

If you live in an area prone to hurricanes, wildfires, tornadoes, or other severe natural disasters, it typically will cost more for insurance due to the added risk. Additionally, local construction costs and the availability of providers play a role.

Your deductible

Your deductible is the amount you must pay out of pocket toward a covered loss before your insurance coverage kicks in.

Choosing a higher deductible amount generally lowers your annual premium. Choosing a lower one, typically means a higher annual premium.

Your home’s age, materials, and roof

When calculating your annual homeowners insurance premium, your home’s age, square footage, condition, and construction materials will be considered. Older homes may cost more to insure due to aging electrical, plumbing, roofs, and more.

Certain construction materials could raise your premiums because they cost more. A newer roof with quality materials could lower your premiums, while an aging roof in poor condition could raise them.

Your credit history

In some states, insurers are allowed to use your credit score and history to adjust their premiums.

If you live in one of these states and you have a low credit score or checkered credit history, it could mean higher premiums. If you have good credit, it could lower your premiums. However, this varies by insurer and their individual company policies.

Is the cost of homeowners insurance expected to rise?

According to Insurify, the annual cost of home insurance is projected to increase for the fifth straight year in a row. By the end of 2026, expect a 4% increase, to a national average of $3,057.

How to reduce the cost of your homeowners insurance

Fortunately, there are ways you can reduce the cost of your homeowners insurance, without moving to another state.

Compare insurance quotes

This is a must-do. Insurers use different pricing models and have varied policies, so the same property could qualify for different annual premiums depending on the insurance company.

You can request different quotes from several insurers, or you could use an independent insurance agent who can find the best quotes for you. Just make sure you compare apples to apples, meaning different quotes include comparable dwelling coverage, deductibles, and other protections. Depending on these factors, the lowest price might not be the best deal.

Raise your deductible

By raising your deductible, you are assuming a greater portion of risk, so often this can lower your insurance premium. But you should only do this if you’re comfortable with the potential out-of-pocket cost you could incur if a loss occurs.

Ask about discounts

Most insurers offer some form of discounts. For instance, a common practice is a discount for bundling home and auto insurance. Another potential discount is for installing security systems, or making certain safety improvements.

Some insurers also offer discounts for new roofs, customers with a claim-free history, or other attributes that lower their risk. The point is, you should always ask for a list of discounts a company offers.

Upgrade your home

Remember, insurance is all about risk and the potential for a big claim. So certain improvements you make to your home could be seen as lowering that risk and therefore result in a lower premium.

Such things as upgrading electrical, plumbing, or installing storm shutters are good examples. Also, as mentioned above, installing security systems could help.

Build your credit

In states where credit-based insurance pricing is allowed, maintaining a strong credit history is a good way to keep your premiums affordable.

If your credit isn’t stellar, take steps to better it. Clear up any blemishes or errors, pay down credit card debt, if possible, and make sure to pay all bills on time.

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. The cost to replace or repair your home is also a major factor. This is influenced by factors such as labor and construction materials costs.

Why did my insurance premium go up?

Homeowners insurance premiums can increase due to inflation, changes in coverage, a rise in claims, a rise in the cost of labor or construction, 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 annual cost of homeowners insurance as of September 2026 was $2,872, 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.

This article is for informational purposes only and is not intended to provide, and should not be relied on for, medical, legal, financial, investment, or tax advice. You should consult with a qualified professional for advice specific to your situation. Consumers should independently verify that any services, products, or programs referenced meet their needs and comply with applicable requirements.