How Much Does Homeowners Insurance Cost?

Reviews Report

• Latest benchmarks show the U.S. average homeowners premium sits in the low-to-mid $2,000s for a typical HO-3 policy in 2025, based on standardized quote datasets from Bankrate and Insurance.com, while the most recent audited averages from the NAIC (2022) are lower because they reflect earlier market conditions and a broad mix of coverages.
• Location is still the dominant driver of price: 2025 market snapshots consistently place Florida and Louisiana among the most expensive states, with elevated costs across the central severe convective storm corridor (Oklahoma, Texas, Kansas, Nebraska). Lower‑risk states such as Hawaii, Vermont, New Hampshire, Delaware and Utah tend to post the lowest averages. See the 2025 state tables from Bankrate and Insurance.com.
• Premiums have risen materially since 2021 due to higher catastrophe losses, reinsurance costs, and rebuild inflation. The BLS household insurance CPI shows sustained price increases into 2025 (BLS), while industry research documents rising loss severity and catastrophe impacts (LexisNexis U.S. Home Trends 2025).

One of the most asked questions is “how much is homeowners insurance?” A practical way to frame it in 2025: reputable quote-based datasets place a typical HO-3 policy’s national average in the low-to-mid $2,000s per year, whereas the latest audited average from the NAIC (2022) is lower because it reflects earlier conditions and mixes of coverage. Actual prices vary widely by state and profile — 2025 tables show considerably higher averages in catastrophe-exposed states (e.g., Florida/Louisiana) and lower averages in less hazard‑exposed states (e.g., Hawaii, Vermont, New Hampshire), per Bankrate and Insurance.com.

Many people look for ways to save money on home insurance. You can’t easily change geographic risk, but you can capture meaningful credits with mitigation and shopping. Insurers commonly discount for protective devices per the Insurance Information Institute (e.g., ~5% for basics like smoke alarms/deadbolts, and larger credits for centrally monitored burglar/fire systems). Newer programs increasingly recognize verified alarms and water‑loss mitigation: systems that support alarm verification standards such as TMA AVS‑01 and smart leak sensors/automatic shutoff valves align with insurer efforts to reduce non‑weather water losses, a major cost driver noted by LexisNexis. Bundling can also help; some carriers publicly advertise sizeable bundle savings (e.g., Allstate cites up to ~25% off auto when bundled with home — see Allstate discounts), which often translates into a lower combined bill for households that place home and auto together.

Average Homeowners Insurance Cost by State

For apples‑to‑apples, audited state comparisons use the NAIC’s 2022 average expenditures. To understand what consumers are paying now, consult 2025 state-by-state quote tables from Bankrate and Insurance.com, which generally show Florida and Louisiana as the most expensive and lower averages in states like Hawaii, Vermont, New Hampshire, Delaware and Utah. Recent loss and market dynamics (e.g., severe convective storms, wildfire/hurricane risk, and reinsurance) help explain elevated 2025 pricing; see LexisNexis U.S. Home Trends 2025 and the BLS CPI.

*Use two complementary views: (1) the latest audited averages from the NAIC (2022), and (2) current 2025 quoted averages by state from Bankrate and Insurance.com. Methods differ (coverage limits/deductibles), and premiums have generally increased since 2022 (see BLS CPI).

Top 5 Most Expensive States for Home Insurance

• Oklahoma: Consistently elevated due to hail/tornado risk; 2025 datasets place Florida and Louisiana at the very top nationally (often $3,000–$4,000+), with Oklahoma among other high-cost states in the storm belt — see state tables from Bankrate.
• Nebraska: High exposure to severe convective storms keeps averages elevated in 2025; rankings vary but remain in the upper tier per Insurance.com.
• Kansas: Among the storm‑belt states with higher 2025 averages; elevated hail/wind losses cited in LexisNexis research.
• Arkansas: Regional storm activity and rebuild‑cost inflation contribute to higher premiums relative to the national average in 2025.
• New Mexico: Wildfire/hail exposures drive localized increases; 2025 averages vary widely by ZIP code and coverage choices (see Bankrate).

Top 5 Cheapest States for Home Insurance

• Hawaii: Regularly among the lowest statewide averages in 2025 state tables.
• Utah: Typically below the national 2025 average based on quoted datasets.
• Delaware: Frequently on the low‑cost end in 2025 comparisons.
• Vermont: Often listed among the cheapest states in 2025 tables.
• Oregon: Generally below national averages in 2025; exact amounts depend on coverage profile. See Insurance.com and Bankrate.

Average Premium by Credit Tier 

Some insurance companies use customer credit history to predict the likelihood that you’ll file claims. Poor credit history typically corresponds to higher claims because of risk. In homeowners insurance, recent analyses show that policyholders with poor credit often pay roughly 50%–100% more than those with excellent credit for similar coverage, with large absolute gaps in catastrophe‑exposed regions where base premiums are higher (ValuePenguin; policy context from NAIC).

However, state rules differ. For homeowners insurance, Maryland and Oregon significantly restrict adverse use of credit (allowing favorable or neutral use with disclosures) — see Maryland Insurance Administration and Oregon statutes. Washington currently permits credit-based scoring in personal lines subject to consumer protections (news background; regulator status: Washington OIC). For auto insurance (distinct from home), California, Hawaii and Massachusetts prohibit use of credit information and Michigan bars use of “credit score” in rating (NAIC; NCSL; Michigan statute).

What determines the cost of homeowners insurance?

Along with the geographic location, age and condition of your home, here are other factors that affect homeowners insurance cost: catastrophe exposure (wind, hail, hurricane, wildfire), reinsurance costs passed through to primary rates, materials and labor inflation that raise rebuild costs, and the coverage limits and deductibles you select. Market indicators (e.g., the BLS household insurance CPI), insurer pricing trackers (Policygenius), and loss research (LexisNexis U.S. Home Trends 2025) point to continued upward pressure in many states.

Components of Home Insurance Policies

The average home insurance policy is made up of several parts. They are:

• Dwelling/Structures: The main part of the home insurance policy, it covers the repair or replacement of a home’s “four walls” or physical structures. Dwelling refers to anything attached to the home, such as a porch or garage. Structures refers to non-attached items such as a tool shed, gazebo, or free-standing carport. There is no standard dwelling limit because the amount depends on the value of the home.
• Personal property: This portion covers personal belongings such as furniture, clothes, appliances, keepsakes, and more. The standard coverage amount is typically 50% to 70% of the dwelling limit. 
• Personal liability: Personal liability is designed to protect the homeowner against legal issues due to injuries or damages that occurred to guests or third parties. It includes injuries if a pet bites someone, even if the bite happened off the property. LImits are typically $300,000 to $500,000 in coverage. However, the higher the coverage limit for personal liability, the higher the homeowners insurance cost.
• Additional living expenses: If a home burns down or cannot be occupied after a covered peril, additional living expenses coverage pays for the homeowner’s costs to live elsewhere while the home is repaired or rebuilt. Covered expenses include reasonable amounts for food, toiletries, and housing/hotel stays. The daily limit depends on the overall limit of a home insurance policy and can be adjusted higher or lower.
• Flood insurance: This type of coverage is excluded from most home insurance policies, so it has to be purchased as a separate policy, one of the most common ways of getting it is with FEMA or a private insurer could also offer it as an add-on. FEMA’s Risk Rating 2.0 continues to phase in property-specific pricing with annual caps on most renewal increases (generally up to 18%); see FEMA’s 2025 program update here.
• Earthquake insurance: Another coverage that is excluded from most policies, you can buy it as a rider to your main policy, making it more affordable than buying it separately. Not all homeowners insurance providers offer this option. In California, roughly about one in ten households carries quake insurance through the CEA or private carriers; see CEA statistics.

How to Lower Home Insurance Costs

To get the best rate on your home insurance, consider taking the following steps.

1. Tally the cost of your belongings/house contents to determine how much home insurance you need for personal property.
2. Collect information about your house, such as age it was built, square footage and other property information.
3. Install a home security system, deadbolt locks or smoke detectors to help lower your premiums. Insurers often provide credits of around 5% for basic devices and higher discounts for centrally monitored fire/burglar systems (III). Choose systems that support alarm verification (e.g., TMA AVS‑01) to reduce false alarms and improve response.
4. Collect quotes from several home insurance carriers using the information you collected. Start with your car insurance carrier — you may get the lowest rates when you bundle home and auto insurance. Some carriers publicly advertise large bundle savings on auto when paired with home (e.g., up to ~25% with Allstate — see Allstate), which can translate into a lower combined bill.
5. Compare prices from the quotes you collected to choose the best home insurance company.
6. Review a carrier’s discounts available to further reduce your premium. Beyond security devices, look for pay‑in‑full, autopay/paperless, and loyalty; for loss mitigation, consider smart leak sensors and an automatic water shutoff — a focus area for insurers given non‑weather water losses (LexisNexis).
7. Raise the deductible, keeping in mind to not go overboard — you may need to pay the amount out of pocket one day if you file a claim. In some states, separate hurricane/named‑storm or wind/hail percentage deductibles apply (III).
8. Prepay the annual premium or set automatic payments for a small, additional discount.

Home Insurance FAQ

Methodology

Reviews.com references two complementary data views for current, transparent comparisons: (1) the latest audited averages from the NAIC (2022), and (2) 2025 quote-based averages by state from reputable consumer research (e.g., Bankrate, Insurance.com). NAIC figures reflect insurer-reported expenditures and 2022 market conditions; quote datasets simulate standardized profiles and show today’s pricing levels. Do not compare the dollar values directly without labeling. Market context on price changes since 2022 is supported by the BLS household insurance CPI, Policygenius pricing tracker, and LexisNexis U.S. Home Trends 2025. Climate and catastrophe dynamics that shape premiums are documented by NOAA’s billion-dollar disasters and reinsurance market updates (e.g., WTW 1/1/2025 renewals), alongside availability/affordability discussions in FSOC’s 2024 Annual Report.

• Coverage A, Dwelling: $250,000
• Coverage B, Other Structures: $25,000
• Coverage C, Personal Property: $125,000
• Coverage D, Loss of Use: $50,000
• Coverage E, Liability: $300,000
• Coverage F, Medical Payments: $1,000

The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required). In coastal states, separate hurricane or named-storm deductibles may apply.

These are sample rates and should be used for comparative purposes only. Your quotes will differ, and premiums have generally increased since 2022 (see BLS CPI).