How Much is Homeowners Insurance?

As a homeowner, you take steps to preserve the value of your house. Homeowners insurance helps protect you against financial loss. It can help make you whole again if your property suffers damage or theft. If you're looking to buy a house, you should consider how much is homeowners' insurance.   

Overview: Average Home Insurance Costs

Home insurance costs can vary considerably, even with the same coverage. The average cost may differ based on where you live, the condition of your home and even what type of dog you have. Plus, states have their own rules for home insurance rates. 

Cheapest States for Homeowners Insurance

Below are the states that charge the least for homeowners' insurance. Rates are for $300,000 in dwelling coverage.

Most Expensive States for Homeowners Insurance

States with a higher incidence of weather-related damage typically charge higher homeowners’ premiums. Rates are for $300,000 in dwelling coverage.

Average Homeowners Insurance Rates by City

Below is a list of home insurance rates by city. We calculated the average premiums on $300,000 in dwelling coverage. 

Average Homeowners Insurance Rates by Company 

Rates vary by company. Below are the average home insurance rates based on $300,000 in dwelling coverage. 

What Affects Your Home Insurance Rates?

How much you pay for homeowners’ insurance usually depends on where you live and the value of your home. In addition, several other factors could affect home insurance rates. 

Coverage Amount

What you pay for homeowners’ insurance is affected by how much coverage you carry. The more coverage you have, the greater the risk the insurance company bears in the event of a claim. Your homeowner’s insurance will cost more as a result. 

Premium vs. Deductible 

Your policy deductible is the amount of money you pay out of pocket before your insurance coverage kicks in. The higher your deductible, the lower your premiums. 

Physical Location of Your Home

Your home's location greatly affects the cost of insurance. For example, if your home is in a neighborhood that's prone to natural disasters, such as fires or hurricanes, your premiums will be higher.

Similarly, homes located in cities typically cost more than those built in the suburbs or rural areas. Premiums are usually higher for homes that cost more money.

Age and Condition of Your Home

A home that is newly constructed or in better condition usually has fewer claims filed. Since insurance companies often base their cost of coverage on the frequency of claims filed, you might pay lower premiums on a newer home or one in better condition. 

Credit History 

Insurance companies may look at your credit history when setting home insurance rates. Insurers expect homeowners with lower credit scores to be more likely to file a claim than those with higher scores. So, your premiums may be higher when you have a lower credit score. 

Marital Status 

Insurance companies often view married couples as stable and less likely to file a claim. As such, your marital status could affect your home insurance rates. 

Claims History

You buy insurance to protect your assets in the event of a loss. If you file a claim every few years, you probably won't see much change in your premiums. The insurance company may bump up your premiums to help cover their losses if you have a history of filing several claims a year.

Breed of Your Dog

Some dog breeds are deemed to be more dangerous and have a higher incidence of claims. Insurance companies could refuse to extend coverage or may charge you a higher home premium based on the breed of your dog. 

What Does Home Insurance Cover?

Homeowners’ insurance offers a myriad of coverage to protect you from loss. 

Dwelling Protection

Homeowner’s insurance pays to repair, replace or rebuild your home after a covered incident, such as fire or weather. Dwelling coverage may also include damage caused by theft or vandalism.

Other Structures Protection

Many homeowners have detached structures on their property. Your policy may cover a garage, shed, fence or outdoor kitchen. You may need additional liability coverage for recreational items like swimming pools or trampolines.

Personal Property Insurance

Personal property coverage is necessary to replace the contents of your home, such as furniture, appliances and clothing. Check your policy to ensure you're covered if you have specialty or high-ticket items in your home, like jewelry or artwork. If not, you may need to add coverage.

Loss-of-Use Insurance

Loss-of-use coverage covers living expenses, such as hotel fees or meals, if you can't live in your home while it's being repaired or rebuilt. 

Liability Insurance 

Liability insurance gives you financial protection if someone gets hurt on your property. If you are sued, your policy may reimburse you for medical expenses and legal fees. 

How to Reduce Your Homeowners Insurance Cost

Like any other large purchase, it's a good idea to shop around for home insurance to get the best price and coverage for your financial situation. Here are a few ways to reduce your homeowner's insurance cost, such as:

• Bundle coverage: Some insurance companies discount premiums when you move your car, life or other policies over. You could save money on your homeowner's insurance premiums when you bundle coverage.
• Add features: You might get a discount if you add such safety features as a home security system or cameras. A new roof or an upgraded plumbing system could also land you a discount. 
• Raise your deductible: Insurance companies pay less in claims when your deductible is higher. So, your carrier may lower your premiums.  

Compare the Best Homeowners Insurance from Benzinga’s Top Providers

Best for Ratings, Price and Comparison: Lemonade

Lemonade is an online provider that has taken the market by storm, offering insurtech that works well for the tech-savvy consumer. You can get started in about 90 seconds, claims can be paid in as little as 3 minutes, and you can get coverage for: theft (whether inside or outside your home), perils (fire, water damage, storm damage) and extra living expenses.  

Lemonade Home is available in the following states: Arizona, Colorado, Connecticut, District Of Columbia, Georgia, Illinois, Indiana, Iowa, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Jersey, New York, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Tennessee, Texas, Virginia, Washington and Wisconsin.

Best for Those With No Recent Claims: Allstate

Allstate is a stalwart in the industry that offers homeowners insurance coverage for theft, fire and smoke, windstorm or hail, falling objects and frozen plumbing. Remember that you will need special policies to cover events like floods or earthquakes, but there are discounts for bundling and more.

Best for Access to Vetted Companies: Progressive

Progressive homeowners insurance is unique in that you can compare their prices with other carriers on their website. You can get homeowners coverage for wind, fires, lightning, theft and more. You can also make property and liability claims against the policy. There are also bundling options and discounts for security systems.

Best for the Diminishing Deductible Option: American Family

American Family offers customized policies that can cover damage from storms, fires, theft, and it also covers personal property, temporary living expenses, and liability claims. The carrier also allows you to protect other aspects of your like with like equipment breakdown insurance, sump pump and water backup insurance, siding protection and credit theft/monitoring coverage.

Best for Those in Disaster-Prone Areas: Farmers

Farmers offers 3 policy tiers so that you can choose what works best for you. Every tier is flexible, and you will see benefits like: declining deductibles, claims-free discount, claim forgiveness and cosmetic damage. You can also seek out other coverages for your home, items inside, riders, etc.

Best for Rental Properties and Landlords: Honeycomb Insurance

Honeycomb Insurance works very well for those own or manage rental properties or large developments, condo associations and/or single and multi-family units. These are places where obtaining insurance can be difficult or even forgotten. The platform leverages AI to ensure that you get the best price, cut out the paperwork and get the customer care you need. You can bind coverage quickly after submitting your online application, and licensed agents are available to work with you.

Honeycomb is available in OH, MI, IL, WI, TX, CA, AZ, PA, GA, NJ, UT & MA.

Hold Onto More of Your Money by Shopping Around for Home Insurance

Home insurance policies aren’t one-size-fits-all. Premiums vary based on where you live, the age of your home and even your credit score. Depending on your financial situation, you may need to add or drop coverage to keep your premiums affordable. Shopping around for a home insurance policy can help you get the coverage you need at a price that fits your budget. 

Frequently Asked Questions