2026-05-15 · home, personal, costs

Updated: 2026-09-10

By InsuraFAQ Editorial Team · Reviewed for accuracy

Homeowner reviewing a homeowners insurance policy on a laptop at a kitchen table

How Much Does Homeowners Insurance Cost?

Homeowners insurance premiums vary by location, the home, coverage and deductible. As a historical reference, the National Association of Insurance Commissioners (NAIC) reported an average annual premium of $1,475 for HO-3 policies with $300,000 to $324,999 in insurance in 2023. That is not a current quote; compare policies with equivalent limits and deductibles for your home.

At a glance

Historical benchmark: $1,475 per year for HO-3 policies with $300,000–$324,999 in insurance in NAIC’s 2023 countrywide data. This is not a current quote; premiums depend on your home and policy.

Biggest factors: location, dwelling rebuild cost, deductible, claims history, and credit-based insurance score (where allowed).

Ways to compare costs: ask about deductibles and discounts, and compare quotes for equivalent coverage.

Common exclusions: standard policies generally exclude flood and earthquake damage; ask about separate coverage or endorsements.

Key takeaways

The NAIC’s 2023 countrywide average for HO-3 policies in the $300,000–$324,999 insurance range was $1,475 per year; current quotes can differ substantially.
Location and exposure to hazards are among the factors that can affect cost.
A higher deductible or available discounts may lower a premium; compare quotes for equivalent coverage.
Standard HO-3 policies generally exclude flood and earthquake damage; ask about separate coverage or endorsements.

Average homeowners insurance cost per month

The NAIC’s 2023 homeowners report shows historical annual averages by policy form and amount of insurance. These figures are not current quotes: the NAIC notes that averages reflect differences in coverage, deductibles, hazards, and other factors.

HO-3 amount of insurance	2023 countrywide average annual premium
$150,000–$199,999	$1,192
$250,000–$274,999	$1,350
$300,000–$324,999	$1,475
$400,000–$449,999	$1,679
$500,000–$599,999	$1,973

Source: NAIC, 2023 Homeowners Report, Table 4. Data are from 2023, not current prices; averages are not quotes.

Your dwelling coverage should reflect the full cost to rebuild your home, not its market value or purchase price. See our guide on replacement cost vs. actual cash value for more on why this matters.

What affects homeowners insurance cost

Several factors determine what you will pay. Understanding them helps you anticipate your rate and identify opportunities to save.

Location and natural disaster risk. Exposure to hurricanes, tornadoes, hail, or wildfires can affect premiums, as can proximity to a fire station, hydrant, or coastline.
Dwelling replacement cost. The estimated cost to rebuild affects the amount of coverage you need and can affect your premium.
Age and construction of the home. The age and condition of roofing, plumbing, and electrical systems can affect eligibility and pricing; ask about any available discounts.
Deductible amount. Choosing a higher deductible can lower your annual premium, depending on the policy. Deductible options vary by policy and insurer.
Coverage limits and endorsements. Endorsements and higher limits can affect your premium; compare quotes for the coverage you need.
Claims history. A claims history can affect pricing or eligibility; rules and insurer practices vary.
Credit-based insurance score. Insurers may consider a credit-based insurance score where state law permits. Ask how your insurer uses it.
Protective devices. Burglar alarms, smoke detectors, deadbolt locks, and fire sprinklers may qualify for a discount, depending on the insurer.

Rebuilding costs can change over time. Review your dwelling limit at renewal and ask your insurer how it estimates the cost to rebuild. For more pricing context, see our insurance cost drivers guide.

Homeowners insurance cost by state

Premiums vary by state and by individual property. Weather exposure, construction costs, coverage choices and deductibles can all affect the price. The NAIC’s historical report includes state-level averages, but differences in the policies and homes included mean those averages are not quotes for a particular home. Compare current quotes for your address and the coverage you need.

If you have a mortgage, your lender’s specific home insurance requirements may also drive your minimum coverage amount — see the state home insurance minimums hub for related lender and state-requirement context.

For more on how location and home factors affect pricing, see what impacts your home insurance rate.

How to lower your homeowners insurance cost

You have more control over your premium than you might think. Here are practical ways to reduce what you pay without sacrificing essential coverage.

Raise your deductible. A higher deductible may lower your premium, but means paying more out of pocket after a covered loss.
Bundle with auto insurance. Ask whether combining homeowners and auto policies qualifies for a discount. See our how to compare insurance quotes guide for tips on bundling.
Improve home security. Installing a monitored alarm system, smoke detectors, deadbolts, and water leak sensors can qualify you for discounts.
Maintain your roof. A newer roof in good condition reduces your risk profile. Ask your insurer whether your roof qualifies for a discount.
Shop and compare quotes. Rates vary widely between insurers for the same home. Get at least three quotes every two to three years.
Ask about discounts. Ask which discounts are available and what conditions apply.
Improve your credit. Where credit-based insurance scoring is allowed, ask how your insurer uses it and check your credit information for errors.

What homeowners insurance does and does not cover

A standard HO-3 homeowners policy covers four main areas:

Dwelling coverage. Pays to repair or rebuild your home’s structure if damaged by a covered event such as fire, wind, hail, or lightning.
Personal property coverage. Covers your belongings (furniture, electronics, clothing) if they are stolen or destroyed by a covered event. Note that high-value items like jewelry often have sublimits.
Liability coverage. Protects you if someone is injured on your property or if you accidentally damage someone else’s property. For information about higher liability limits, see our umbrella insurance cost guide.
Additional living expenses (ALE). Pays for temporary housing and extra costs if your home is uninhabitable after a covered loss.

Standard policies do not cover:

Flood damage. Flood coverage is usually purchased separately. Learn more in our flood insurance guide.
Earthquake damage. Earthquake coverage may require a separate policy or endorsement. See our earthquake insurance guide.
Maintenance issues. Maintenance and gradual wear are generally excluded; check your policy for mold and pest-related exclusions. For information about service contracts and their limitations, see our home warranty vs. home insurance guide.
Manufactured or mobile homes. A standard HO-3 doesn’t apply to factory-built housing on a chassis. Owners typically need an HO-7 or a dedicated mobile-home policy form — see our mobile and manufactured home insurance guide for how coverage and cost differ.

For a detailed breakdown, see what homeowners insurance does not cover.

Frequently asked questions

What is the annual cost of homeowners insurance?

For a historical benchmark, NAIC reported a $1,475 average annual premium in 2023 for HO-3 policies with $300,000–$324,999 in insurance. Your current premium depends on your location, home, coverage and deductible.

Is homeowners insurance required?

Homeowners insurance is generally not required by state law, but a mortgage lender may require coverage. Ask your lender about its requirements and make sure your limits reflect your needs. Even without a mortgage, going without insurance means you bear the full financial risk of a fire, storm, or liability lawsuit.

Does my credit score affect my homeowners insurance cost?

It can, where state law permits insurers to use a credit-based insurance score. The score is different from a standard credit score; ask your insurer how it is used and check your state’s rules.

Why did my homeowners insurance premium increase?

Premiums can rise even if you have not made a claim. Changes in rebuilding costs, local risks, coverage, deductibles, or an insurer’s rates can affect a renewal. Compare your old and new declarations pages and ask your insurer to explain the change. Compare other quotes using equivalent coverage.

Why did my homeowners insurance premium jump this year even though I didn’t file a claim?

A claim-free year does not guarantee a stable premium. Changes in local risk, rebuilding costs, coverage, or insurer rates may affect renewal prices. Ask for an explanation and compare equivalent coverage; see how to compare insurance quotes.

Is replacement cost or actual cash value coverage better?

Replacement cost coverage generally pays covered replacement costs without deducting depreciation, subject to policy limits and conditions. Actual cash value generally deducts depreciation. Compare policy terms and premiums before choosing. Read our full replacement cost vs. actual cash value comparison.

How often should I shop for homeowners insurance?

Review your policy and compare quotes at least every two to three years, or after any major life event such as a renovation, a new roof, or a significant change in your claims history. Loyalty does not always mean lower rates. For a seasonal coverage and savings review, work through our spring home insurance checklist before storm season.

How do I switch homeowners insurance without a coverage gap?

The safest sequence is to pick the new policy’s effective date, coordinate that date with your mortgage escrow so the lender’s escrow disbursement matches, bind the new policy in writing, confirm the mortgage lender is listed as lienholder on the new policy, and only then cancel the old one. Never cancel the old policy first — even a one-day lapse can trigger force-placed insurance from the lender, which can cost more and generally protects the lender rather than your belongings. When the timing is tight, overlapping the two policies by one day is safer than a same-day cutover. For the full step-by-step sequence, including how to handle any unused-premium refund and updated proof of coverage, see our switching insurance carriers without a coverage gap guide.

What happens if my homeowners insurance lapses for non-payment?

If your homeowners policy is cancelled for non-payment, the property is left without coverage. Your mortgage lender requires continuous coverage, so a lapse can trigger force-placed insurance, which can cost more and generally protects the lender rather than your belongings. Reinstatement rules and availability vary by insurer, policy, and state; ask your insurer immediately whether reinstatement is available and what it requires. If reinstatement is not available, shopping for a replacement policy is usually the next step. See our full insurance reinstatement guide for eligibility, timing, and the exact steps to restore coverage.

Next steps

Use our how much home insurance do I need guide to make sure your coverage limits are set correctly.
Compare carriers with our best homeowners insurance companies guide.
Check the homeowners insurance hub for a complete overview of policy types and coverage options.
Review what homeowners insurance does not cover to identify gaps in your protection.
Learn how to compare insurance quotes to get the best rate.