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Average Homeowners Insurance Cost

Average Cost of Homeowners Insurance

The average cost of homeowners insurance in the United States is $1,290 per year or $108 per month. Homeowners insurance is a critical coverage that virtually all homeowners need to have, with over 85% of homeowners carrying this insurance, according to the National Association of Insurance Commissioners (NAIC). 

This insurance coverage provides protection for the cost to rebuild a home in the event it is damaged by a covered peril such as a fire or windstorm, as well as protection for damage to a homeowner’s personal property. Homeowners insurance also provides personal liability protection in the event that a homeowner is sued for causing property damage or bodily injury. Homeowners insurance is often a required coverage when homeowners have an outstanding mortgage.

Average Cost of Homeowners Insurance by State

The cost of homeowners insurance varies widely depending upon the state. While our analysis found that the average cost of homeowners insurance was $1,290 nationwide, the average cost was as high as $1,987 in Louisiana, the most expensive state, to as low as $706 in Oregon, the least expensive state.

StateAverage Monthly CostAverage Annual CostDifference from National Average
Alabama$117 $1,409 9%
Arkansas$118 $1,419 10%
California$89 $1,073 -17%
Colorado$135 $1,616 25%
Connecticut$125 $1,494 16%
District of Columbia$105 $1,264 -2%
Florida$163 $1,960 52%
Georgia$109 $1,313 2%
Hawaii$95 $1,140 -12%
Illinois$92 $1,103 -14%
Indiana$86 $1,030 -20%
Kansas$135 $1,617 25%
Kentucky$96 $1,152 -11%
Louisiana$166 $1,987 54%
Maryland$89 $1,071 -17%
Massachusetts$129 $1,543 20%
Minnesota$117 $1,400 9%
Mississippi$132 $1,578 22%
Missouri$115 $1,383 7%
Montana$103 $1,237 -4%
Nebraska$131 $1,569 22%
New Hampshire$82$984-24%
New Jersey$101 $1,209 -6%
New Mexico$90 $1,075 -17%
New York$110 $1,321 2%
North Carolina$92 $1,103 -14%
North Dakota$108 $1,293 0%
Oklahoma$162 $1,944 51%
Rhode Island$136 $1,630 26%
South Carolina$107 $1,284 0%
South Dakota$107 $1,280 -1%
Tennessee$103 $1,232 -4%
Texas$163 $1,955 52%
Virginia$86 $1,026 -20%
West Virginia$81$970-25%
Wyoming$99 $1,187 -8%

Numerous factors affect the cost of homeowners insurance in various states. Among the most important factors are the impacts of weather and natural disasters such as windstorms, hurricanes, wildfires, snow and hail storms, and other weather factors. Additionally, the effects of crime, the cost of housing construction, and the tort system of legal liability in each state also influence the premiums paid by homeowners. Importantly, earthquake and flood damage is excluded from most homeowners insurance policies, so these factors tend to have minimal influence on the premiums paid for homeowners insurance policies.

Most Expensive States for Homeowners Insurance

The most expensive states for homeowners insurance were states in the South, with the top four all being Southern states. The rest of the top 10 most expensive states were a mix of Midwestern and Northeastern states. Colorado, a western state, also made the top 10.

The top five most expensive states for homeowners insurance are:

  1. Louisiana, with an average annual cost of $1,987
  2. Florida, with an average annual cost of $1,960
  3. Texas, with an average annual cost of $1,955
  4. Oklahoma, with an average annual cost of $1,944
  5. Rhode Island, with an average annual cost of $1,630

The top three most expensive states for homeowners insurance are Louisiana, Florida, and Texas. These three states are some of the most vulnerable states to hurricane and wind damage, with hurricanes coming from the Atlantic Ocean and the Gulf of Mexico on an annual basis. These hurricanes are leaving billions of dollars in damages in their wake, and homeowners are paying the costs in their higher insurance premiums.

Least Expensive States for Homeowners Insurance

Western states dominated the list of least expensive states for homeowners insurance, taking the top four spots, and six of the top 10. Other states in the top 10 were two Midwestern states, and two Northeastern states. 

  1. Oregon, with an average annual cost of $706 
  2. Utah, with an average annual cost of $730
  3. Idaho, with an average annual cost of $772 
  4. Nevada, with an average annual cost of $776 
  5. Wisconsin, with an average annual cost of $814

Western states had lower insurance premiums due to reduced exposure to hurricanes, tornadoes, and other expensive perils. Although the risk of wildfires has increased in these states recently, the majority of housing in these states is not located in wildfire zones.

Average Cost of Homeowners Insurance by City

The table below includes the average cost of homeowners insurance in 25 of the most populated cities in the United States. Among these cities, the highest homeowners insurance premiums are paid by residents of Oklahoma City, Oklahoma, with annual premiums averaging $2,795. Homeowners in Seattle, Washington paid the lowest average annual premiums, with costs averaging $555 in the city.

CityAverage Monthly CostAverage Annual Cost
Austin, Texas$78$934
Boston, Massachusetts$89$1,062
Charlotte, North Carolina$85$1,020
Chicago, Illinois$66$792
Columbus, Ohio$66$789
Dallas, Texas$148$1,780
Denver, Colorado$127$1,523
Detroit, Michigan$130$1,560
El Paso, Texas$58$693
Fort Worth, Texas$160$1,916
Houston, Texas$149$1,792
Indianapolis, Indiana$70$834
Jacksonville, Florida$72$864
Los Angeles, California$57$682
Nashville, Tennessee$91$1,094
New York, New York$68$813
Oklahoma City, Oklahoma$233$2,795
Philadelphia, Pennsylvania$79$948
Phoenix, Arizona$68$811
San Antonio, Texas$84$1,009
San Diego, California$50$604
San Francisco, California$51$608
San Jose, California$49$584
Seattle, Washington$46$555
Washington, D.C.$48$572

What’s covered by homeowners insurance, and what’s not?

Homeowners insurance provides several forms of important financial protection for homeowners. These include coverage for the building itself, a homeowner’s personal property, liability coverage for the homeowner, and other costs that a homeowner may incur in the event of a loss. 

It’s important to understand that homeowners insurance generally does not cover the value of the land underneath a home. This is important for homeowners in places where land makes up a large portion of the value of a home, such as in California. Additionally, there are many exclusions from homeowners insurance policies, the most notable being earthquakes and floods. 

The following are some of the key coverages included in almost all homeowners insurance policies:

What determines the cost of homeowners insurance?

A number of factors can influence the cost of homeowners insurance. It’s important for homeowners to understand what coverage they need and also to compare quotes from multiple insurance companies to get the best value for their money. Some of the most important variables that can affect premium costs paid by homeowners include:


To determine the average cost of homeowners insurance in the United States, AdvisorSmith used data published by the National Association of Insurance Commissioners (NAIC), which publishes data annually on coverages, pricing, and other trends in the insurance market. The NAIC data was taken from the 2020 NAIC Dwelling Fire, Homeowners Owner Occupied, and Homeowners Tenant and Condominium/Cooperative Unit Owner’s Insurance Report, which uses industry data from 2018.

In addition to the NAIC data, AdvisorSmith used homeowners insurance quotes from a variety of homeowners insurance companies in cities around the country. We gathered quotes for HO-3 coverage, which is the most common type of coverage for homeowners insurance in the United States. This coverage is sometimes called “all-risk” or “open-perils” coverage, as it generally covers all risks to a home that are not specifically excluded in the insurance policy.

Our average quote costs were based upon the most common type of housing in the United States, which are 3-bedroom, 2-bathroom single-family homes between 1,500 and 2,000 square feet. 

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