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The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Average homeowners insurance cost in November 2022
The average cost of homeowners insurance throughout the United States is $1,383 per year for a policy with $250,000 in dwelling coverage. However, your actual rates may vary depending on a variety of factors. Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Kenneth Chavis IV is a senior wealth manager who provides comprehensive financial planning, investment management and tax planning services to business owners, equity compensated executives, engineers, medical doctors and entertainers. Updated Nov 11, 2022 Book What to know first Menu List On this page Bankrate logo The Bankrate promise At Bankrate, we strive to help you make smarter financial decisions. To help readers understand how insurance affects their finances, we have licensed insurance professionals on staff who have spent a combined 47 years in the auto, home and life insurance industries. While we adhere to strict editorial integrity, his post may contain references to products from our partners. Here's an explanation for how we make money. Our content is backed by LLC Editorial Integrity
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Collapse Caret Up Key takeaways In 2022, the average homeowner spends $1,383 on homeowners insurance per year for a policy with $250,000 in dwelling coverage. On average, the most expensive states for homeowners insurance in 2022 are Oklahoma, Nebraska and Kansas, while the least expensive states are Hawaii, Utah and Vermont. Homeowners insurance costs are rising, likely due to inflation, supply chain disruptions and increased costs for materials and labor. Collapse On This Page
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Insurance rates are rising throughout the country, and is no exception. Supply chain issues, inflation and an increase in catastrophic losses throughout the country have made insurance carriers file for rate increases in nearly every state. Still, there are things you can do to help make home insurance affordable, whether that's adding missing discounts to your policy or shopping around. Bankrate's insurance editorial team, which includes four licensed agents with a combined 47 years of industry experience, closely monitors the national home insurance market so that we can provide the most accurate and timely information possible. We leveraged our industry experience, access to average premium data through Quadrant Information Services and common homeowner scenarios to help give an idea how much home insurance might cost. However, while our insight into average home insurance costs can be helpful, keep in mind that your rate will vary based on your own unique rating profile. See more This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Find a great rate on home insurance
Compare custom quotes from top carriers to start saving on your next policy. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Find a great rate on home insurance
Compare custom quotes from top carriers to start saving on your next policy. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Find a great rate on home insurance
Compare custom quotes from top carriers to start saving on your next policy. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form How much does homeowners insurance cost in general
If you're wondering "How much is home insurance?" Bankrate has the answer. The national average cost of home insurance is $1,383 per year for $250,000 in dwelling coverage. However, your homeowners insurance cost depends on several factors. Geographic location plays a significant role in premiums. Some areas of the country are more prone to natural disasters, for example, while other areas could have higher rebuilding costs. In addition, your coverage selections - like your dwelling limit - are a significant factor in determining your final house insurance cost.
Base profile Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit. Our base profile includes the following coverage limits: 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 Credit: Rates were calculated based on the following insurance credit tiers assigned to our homeowners: "poor, average, good (base), and excellent." Insurance credit tiers factor in your official credit scores but are not dependent on that variable alone. The following states do not allow credit to be a factor in determining home insurance rates: California, Maryland, Massachusetts. Various dwelling coverage limits Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit and the following coverage limits: Coverage A, Dwelling: $150,000, $350,000, $450,000, $750,000 Coverage B, Other Structures: $15,000, $35,000, $45,000, $75,000 Coverage C, Personal Property: $75,000, $175,000, $225,000, $375,000 Coverage D, Loss of Use: $30,000, $70,000, $90,000, $150,000 Coverage E, Liability: $300,000, $300,000, $300,000, $500,000 Coverage F, Medical Payments: $1,000 The homeowners also have a $1,000 deductible and a separate wind and hail deductible (if required). Depending on your dwelling coverage limit, you may need to have a higher deductible. These are sample rates and should be used for comparative purposes only. Your quotes will differ. How much does home insurance cost in my state
To get a better sense of what your home policy might cost, it could help to review average . Some states may not face high risk of natural disasters, for example, while others have a cheaper cost of living that makes it more affordable to rebuild after a claim. Based on Bankrate's analysis of average premiums across the country, home insurance with $250,000 in dwelling coverage can cost lower than $700 a year, as seen in Hawaii, Utah and Vermont, but cost over $2,000 a year in states like Louisiana, South Dakota and Arkansas. Below is a breakdown of the average cost of homeowners insurance by state. Average home insurance cost by state
The average annual home insurance premium for a home with a dwelling coverage amount of $250,000.
State Average monthly premium* Average annual premium* % difference from national average* $133 $1,597 +-15% $83 $1,001 -28% $101 $1,216 -12% $175 $2,104 +52% $90 $1,084 -22% $155 $1,863 +35% $101 $1,216 -12% $57 $681 -96% $137 $1,648 +19% $114 $1,373 -92% $32 $378 -73% $72 $858 -38% $115 $1,376 -1% $98 $1,180 -15% $108 $1,290 -7% $233 $2,800 +102% $152 $1,820 +32% $167 $2,009 +45% $79 $944 -32% $95 $1,136 -18% $106 $1,274 -8% $108 $1,292 -7% $157 $1,880 +36% $153 $1,840 +33% $137 $1,647 +19% $146 $1,752 +27% $237 $2,849 +106% $73 $874 -37% $61 $731 -47% $65 $775 -44% $162 $1,939 +40% $107 $1,289 -7% $110 $1,317 -5% $156 $1,872 +35% $93 $1,119 -19% $299 $3,593 +160% $59 $704 -49% $66 $786 -43% $102 $1,221 -12% $97 $1,165 -16% $170 $2,035 +47% $137 $1,644 +19% $155 $1,860 +34% $56 $668 -52% $56 $668 -52% $77 $924 -33% $75 $899 -35% $75 $897 -35% $91 $1,089 -21% $77 $928 -33% $75 $902 -35% The cheapest states for home insurance The most expensive states for home insurance What are the five cheapest states for homeowners insurance
The states with the least expensive average annual homeowners insurance premiums are Hawaii, Utah, Vermont, Delaware and Oregon. So, how much should you budget for homeowners insurance in these locations? These states have average premiums that are less than $1,000 per year, likely due to a relatively low risk of home damage from natural disasters like tornadoes, hurricanes and wildfires. Below, you can see the average cost of home insurance coverage in these states and how the prices compare to the national average. : $378 per year - 73% below national average : $668 per year - 52% below national average : $668 per year - 52% below national average : $681 per year - 51% below national average : $704 per year - 49% below national average *Rates are for $250,000 in dwelling coverage What are the five most expensive states for homeowners insurance
The states with the most expensive average annual home insurance premiums are Oklahoma, Nebraska, Kansas, Arkansas and South Dakota. In each of these states, the average price of home insurance exceeds $2,000 per year, and in the most expensive state - Oklahoma - homeowners pay well over $3,000 per year, on average. The higher rates are likely due to a higher risk of widespread home damage; many of these states are in the country's infamous "." The average cost of homeowners insurance in these states is outlined below. : $3,593 per year - 160% above national average : $2,849 per year - 106% above national average : $2,800 per year - 102% above national average : $2,104 per year - 52% above national average : $2,035 per year - 47% above national average Rates are for $250,000 in dwelling coverage The threat of natural disasters plays a significant role in determining your home insurance cost. The more likely that damage is to occur, the more likely that insurance companies are to have to pay out claims. This means that higher premiums must be charged for companies to have sufficient reserves to handle a large influx of claims. Knowing the risks associated with your state and ZIP code can help you make informed home insurance decisions. This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form Average cost of home insurance by city
In addition to the state you live in, your individual city may also have an impact on your home insurance rates. Risk factors like weather damage and crime statistics vary by city, as do the costs for materials and labor. Below are the 25 largest cities in the U.S. and their average premiums. City Average annual premium* Average monthly premium* Percent difference from national average $1,944 $162 +41% $1,385 $115 +0% $1,708 $142 +23% $1,991 $166 +44% Phoenix, AZ $1,427 $119 +3% $1,132 $94 -18% $1,464 $122 +6% $974 $81 -30% Dallas, TX $2,181 $182 +58% $867 $72 -37% $1,320 $110 -5% $2,291 $191 +66% $1,063 $89 -23% $1,139 $95 -18% Charlotte, NC $1,194 $100 -14% Indianapolis, IN $1,280 $107 -7% $1,033 $86 -25% Seattle, WA $879 $73 -36% Denver, CO $2,024 $169 +46% $897 $75 -35% Boston, MA $1,488 $124 +8% $1,119 $93 -19% Nashville, TN $1,554 $130 +12% $2,544 $212 +84% $924 $77 -33% *Rates are for $250,000 in dwelling coverage
Bankrate utilizes Quadrant Information Services to analyze 2022 rates for all ZIP codes and carriers in all 50 states and Washington, D.C. Rates are weighted based on the population density in each geographic region. Quoted rates are based on 40-year-old male and female homeowners with a clean claim history, good credit. Our base profile includes the following coverage limits: 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). These are sample rates and should be used for comparative purposes only. Your quotes will differ. How much does home insurance cost by company
Every insurance company has its own method for determining rates. Some factors that might affect the final premium might be the location and size of your home, claims history, and even credit scores in some states. Based on Bankrate's analysis of average premiums from carriers that write business in multiple locations for policies with $250,000 in dwelling coverage, the most expensive carriers were Amica, The Hartford and Chubb, while USAA and Auto-Owners had the . Top five least expensive companies for home insurance
: $959 per year - 31% below national average : $978 per year - 29% below national average : $995 per year - 28% below national average : $1,061 per year - 23% below national average : $1,075 per year - 22% below national average Rates are for $250,000 in dwelling coverage Compare rates from top home insurance companies across different coverage levels
This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage Bankrate See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Compare home insurance rates
Answer a few questions to see personalized rates from top carriers. Continue Powered by Coverage.com (NPN: 19966249) Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Quick Facts $382/year average savings through Bankrate 2 out of 3 homes are underinsured 1 out of every 20 insured homes makes a claim each year 100% of homes need insurance before getting a mortgage See more providers in Choose from insurers in Show More Mortgage Leaving so soon Your custom quotes are just minutes away
Return to form How much does home insurance cost by coverage amount
Dwelling coverage is crucial when it comes to home insurance. This is because this is the amount that will be paid out to rebuild your home if it has experienced a covered total loss. A higher dwelling coverage typically results in higher annual premium, but it's still possible to find competitive premiums from different home insurance carriers. Dwelling coverage limit Average annual premium Average monthly premium $150,000 $980 $82 $250,000 $1,383 $115 $350,000 $1,887 $157 $450,000 $2,351 $196 $750,000 $3,414 $285 What s the sweet spot in terms of coverage
The answer to this will depend on a number of elements, but most importantly, you should factor in where you live. Location directly affects the reconstruction and labor costs of rebuilding your home. If you're unsure what details of your home's characteristics you will need to provide to an insurance company for a quote, speaking with a local contractor or local insurance agent may be able to help you. Caret Down $250K dwelling coverage $350K dwelling coverage $450K dwelling coverage Insurance company Average annual premium Average monthly premium Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,300 Average monthly premium $108 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,105 Average monthly premium $92 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,851 Average monthly premium $238 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,763 Average monthly premium $147 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $959 Average monthly premium $80 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,617 Average monthly premium $135 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,955 Average monthly premium $163 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,075 Average monthly premium $90 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,360 Average monthly premium $113 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,202 Average monthly premium $100 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $978 Average monthly premium $82 Powered by Coverage.com (NPN: 19966249) This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Insurance company Average annual premium Average monthly premium Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,817 Average monthly premium $151 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,427 Average monthly premium $119 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $4,204 Average monthly premium $350 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,454 Average monthly premium $205 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,347 Average monthly premium $112 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,240 Average monthly premium $187 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,214 Average monthly premium $185 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,504 Average monthly premium $125 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,725 Average monthly premium $144 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,660 Average monthly premium $138 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,243 Average monthly premium $104 Powered by Coverage.com (NPN: 19966249) This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way. Insurance company Average annual premium Average monthly premium Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,259 Average monthly premium $188 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,711 Average monthly premium $143 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $5,261 Average monthly premium $438 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $3,045 Average monthly premium $254 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,697 Average monthly premium $141 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,845 Average monthly premium $237 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,601 Average monthly premium $217 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,869 Average monthly premium $156 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,143 Average monthly premium $179 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $2,063 Average monthly premium $172 Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Bankrate Scores primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. Average annual premium $1,480 Average monthly premium $123 Powered by Coverage.com (NPN: 19966249) This advertisement is powered by Coverage.com, LLC, a licensed insurance producer (NPN: 19966249) and a corporate affiliate of Bankrate. The offers and links that appear on this advertisement are from companies that compensate Coverage.com in different ways. The compensation received and other factors, such as your location, may impact what offers and links appear, and how, where and in what order they appear. While we seek to provide a wide range of offers, we do not include every product or service that may be available. Our goal is to keep information accurate and timely, but some information may not be current. Your actual offer from an advertiser may be different from the offer on this advertisement. All offers are subject to additional terms and conditions. Coverage.com, LLC is a licensed insurance producer (NPN: 19966249). Coverage.com services are only available in . Coverage.com may not offer insurance coverage in all states or scenarios. All insurance products are governed by the terms in the applicable insurance policy, and all related decisions (such as approval for coverage, premiums, commissions and fees) and policy obligations are the sole responsibility of the underwriting insurer. The information on this site does not modify any insurance policy terms in any way.
Bankrate Scores are calculated on a five-point scale and primarily reflect a weighted rank of industry-standard ratings for financial strength and customer experience in addition to analysis of quoted annual premiums from Quadrant Information Services, spanning all 50 states and Washington, D.C. We know it is important for homeowners to be confident their financial protection covers the likeliest risks, is priced competitively and provided by a financially strong property insurer with a history of positive customer support and exceptional claims-paying ability. In our evaluation, third-party ratings from , , , and Moodys had a significant impact on the companies' Bankrate Scores. Our top picks for "best for" reflect a combination of Bankrate Scores and availability of coverage to homeowners across the country, in addition to the specific qualities associated with each insurer. Each homeowners insurance company sets its rates, which means that the average home insurance cost will vary from carrier to carrier even within the same state and ZIP code (in states where ZIP code is allowed as a rating metric). Obtaining home insurance quotes from multiple insurance providers could help you find the coverage you need for a lower price. Comparing multiple companies might help you decide which carrier can offer you the coverage and price that best fits your needs. Learn more: Other types of home insurance costs
Home insurance cost by credit tier
In some states, your credit score could be used as an insurance rating factor. Credit scores can be an indicator of risk, as studies show that those with lower credit scores tend to file more claims compared to those with higher credit scores. For this reason, is more expensive compared to those with average, good and excellent credit scores. Not all states factor in credit scores, however. California, Maryland and Massachusetts do not allow the use of credit scores for insurance rating purposes. Dwelling coverage amount Poor Credit Average Credit Good Credit Excellent Credit $250,000 $2,180 $1,400 $1,383 $1,232 Home insurance cost by claims history
IAccidents can happen to even the most responsible homeowner. If your home was damaged by an event covered by your policy, like wind or fire, has been robbed, or someone sues you, your home insurance policy could step in to cover the damages. However, a surcharge could be added to your policy at renewal. Type of claim Average dollar amount of claim paid out* Average annual premium after a claim Wind $12,000 $1,571 Liability $31,000 $1,758 Theft $5,000 $1,773 Fire $80,000 $1,783 *Based on Experian's estimates of based on claim type for $250,000 in dwelling coverage Home insurance cost by home age
The age of your home is also a factor that home insurance companies consider when determining your premium. Older homes might be more expensive to build back after a loss, especially to bring up to code to modern safety and building codes. Below is a look at how much an average home insurance policy might cost depending on the age of a home. Date home was built Average annual premium 1959 $1,749 1982 $1,749 1992 $1,748 2010 $1,643 2020 $1,172 What does home insurance cover
Every homeowners insurance policy provides specific protections which help guard against substantial financial loss due to fire, storms, theft, vandalism and legal liability. The most common home insurance coverage types include: , equal to your home's rebuilding cost: This pays for covered damages, up to your dwelling coverage limit, that affect your home's primary structure and attached structures such as carports or garages. This coverage is typically set at . , usually 10–20% of your dwelling coverage limit: This coverage provides property damage protection for structures not attached to your home, such as a detached garage, driveway, fences or shed. , usually 50–75% of your dwelling limit: This protects the contents of your home, including clothing, furniture and electronics. Within your personal property coverage, you may have additional limits. For example, you may only have 10% of your personal property coverage for items stored at other locations, and you may have a cap on coverage for certain items, like fine art and jewelry. You may have the option to choose between replacement cost coverage or actual cash value coverage. Replacement cost policies are typically more expensive than policies. , usually between $100,000 and $500,000: This pays for medical expenses or damage to others' property if you are legally liable for injuries on your property, incidents that happen away from your property or damage to others' property. It also covers legal fees if a lawsuit is brought against you by the injured party. Medical payments coverage, usually between $1,000 and $5,000: This covers the medical expenses for someone outside your household who is injured on your property, regardless of fault. , usually between 10–30% of your dwelling coverage: This provides coverage for additional living expenses should you need to temporarily stay elsewhere while your home is being repaired after a covered claim. Not every contains the same components. If you are unsure what your policy covers, talk to your agent or insurance company for clarification. What affects my homeowners insurance rate
Insuring your home is a gamble for an insurance company. Like how cars' risks are determined on , certain types of houses - and houses located in certain areas - create a higher likelihood that the company will have to pay claims. Average home insurance rates vary based on several rating factors. Understanding the most significant might help to guide you when shopping for a home. Home characteristics
Every home is different, which means insurance companies rate each home on a case-by-case basis. Your home's specific characteristics will play a role in determining how much you pay for homeowners insurance. Year built: Older houses often cost more to insure because repair costs may be higher than they would for newer homes. Repairing or replacing features such as custom molding, plaster walls and wood floors could require specialists, making these features more expensive to repair in the event of a . Roof condition: The age and condition of a play a role in homeowners insurance rates. Older roofs may not withstand windstorms or hail damage as well as newer roofs. Likewise, roof materials can affect your homeowners insurance rate. Some types of roofing material may be more resistant to damage, which could lower your premium, and other types may be more expensive to repair or replace, which could increase your premium. Construction quality: Many homeowners policies do not cover the expense of bringing a home up to the current building code following a claim. Insurance companies typically offer an optional "ordinance or law endorsement," which can help pay for expenses related to code upgrades made during covered repairs. Special features: Features such as hot tubs and can make a home more appealing, but they can also increase homeowners insurance premiums if they raise repair and replacement costs and add liability risks. Homes with recreational features such as a pool, sauna or hot tub might need higher liability coverage in case a guest sustains an injury. Location characteristics
Geographic location typically impacts your insurance rates because every area of the country has a different risk level for potential damages. Some areas may have a higher risk of wind damage, for example, while other areas of the country often sustain damage from fires. Weather-related risks: Standard homeowners policies generally do not cover flood damage or damage from earthquakes. In fact, some insurance companies do not cover homes in flood zones at all. Other insurance companies sell private or offer in separate policies or endorsements to protect against these types of disasters. Fire risk: According to the Insurance Information Institute (Triple-I), caused over $12 billion worth of property damage in 2020, the most recent year with available data. Insurance companies rate homeowners premiums based on proximity to a fire station and fire hydrants because rapid emergency response often minimizes damage. Property crime risk: If you live in a high-crime neighborhood, your insurance rates might be impacted. You may be able to help offset this cost to your premiums by installing additional safety features in your home, such as deadbolts and a security alarm system. Learn more: Recent news: The home insurance market has faced a number of challenges in 2022. Bankrate stays current on inflation, severe weather and complex challenges, and unfortunately, in at least two states, the home insurance markets have been especially volatile. Inflation and its effect on homeowners insurance inflation is causing the cost of home repairs to increase, which means . This helps companies ensure they have enough money in their claims reserves to pay out higher losses. due to widespread roofing scams and fraudulent lawsuits. These issues place a financial strain on insurance companies, which is causing many companies to pause business, pull out of the market or go insolvent. A worse-than-average 2022 hurricane season is causing and insurance carriers operating in the state. In coastal states like Florida and Louisiana, some initial estimates have put the full cost of Hurricane Ian's damage at $41 to $70 billion. How to reduce the cost of homeowners insurance
Homeowners insurance is a good way to shield your finances from sudden misfortune, in many cases, but it can have a large impact on your budget. Thankfully, there are ways to , which could help you get the valuable protection you need at a price that works with your wallet. If you need to lower your home insurance bill, consider taking the following steps: : Many insurance carriers also offer auto insurance. If you buy your homeowners insurance coverage with the same company that handles your auto policy, you could save on your premiums. : Shopping around and reviewing homeowners insurance quotes from three or more companies could help you find the coverage you need at the most competitive price. : In addition to bundling discounts, many companies offer other ways to save, including claims-free discounts, home alarm system discounts and loyalty discounts. If you're not sure if you qualify, a company representative may be able to help you identify savings opportunities. Choose appropriate : Understanding which type of home insurance is right for you, which optional coverage types you need and what policy limits are best for your situation could help you prevent over- or under-insuring your home. Improve your : Most states take your credit into consideration when you purchase insurance. Homeowners with lower credit scores have a higher statistical likelihood of filing claims and, as such, usually pay higher rates. Improving your credit could lower your premium over time. Work with an : Working with any licensed insurance professional can be helpful, but independent insurance agents may have a significant impact on your home insurance cost. Independent agents work with numerous companies, which allows them to provide a single touchpoint for you while taking over the legwork of shopping your account. : Some home renovations, like getting a new roof or replacing old, out-of-date electrical or plumbing systems, can help lower your premium. These projects could reduce the risk of home damage, which, in turn, may save you money on insurance. Increase your : Your deductible is the amount of a claim you are willing to pay out of pocket. Most homeowners insurance policies have a minimum $1,000 deductible, although $500 deductibles may be an option with some companies. The higher your deductible, the lower your premium, but the more you'll pay out of pocket if you file a claim. Learn more: Frequently asked questions
Home insurance premiums can change for a number of reasons. If you change your coverage, like adding an endorsement or increasing a coverage limit, your premium will likely change. Endorsements can cost anywhere from a few dozen dollars to hundreds of dollars per year, depending on the coverage type and limits you buy. If you during your policy term, you could see an increase in your premium at your renewal. Depending on the severity of your claim, the cause of the damage and the underlying factors on your policy, you may see anywhere from a modest to a substantial increase in premium after a claim. You may see premium increases at your policy renewal even when you haven't changed your coverage. Insurance companies often adjust your coverage limits to keep pace with inflation, which helps to ensure your home is still properly covered when things get more expensive. This can increase your premium. Your company may also have filed a rate change with your state's Department of Insurance, which could then affect the price you pay for coverage.
Maybe. could be the easiest way to save money. and heating and cooling systems. A security system might also lower your home insurance costs. Local security alarms - the kind that ring only at your residence - may scare away burglars and vandals, leading to a decreased risk of severe theft. Monitored alarms, which ring at your residence and also alert authorities, often come with a larger discount. This is because by automatically altering the proper authorities, these alarms can lessen potential claim damage by getting emergency crews to your home as quickly as possible.
You could, but it's generally not recommended and certainly isn't the best financial strategy to save money. Lowering your coverage could lead to higher out-of-pocket costs or even denied claims if your home sustains damage. However, if you have add-on coverage options that you don't think apply to your situation, you may be able to remove those to save money. Just be sure to talk to a licensed insurance agent before making any changes to your home insurance.
In the U.S., home insurance costs an average of $1,383 per year for a policy with $250,000 in dwelling coverage. Keep in mind that your premium will vary based on where you live, your prior claims history, your home's features and more. While price is important, seeking out the cheapest home insurance you can find might not be the best shopping strategy. Comparing various companies' prices when you're reviewing quotes can be a great way to find the most competitive rate, but be sure you are also analyzing your coverage types and levels, discounts and endorsements. Learn more:
Probably. Most mortgages are set up with an , which means that the mortgage company collects a portion of your home insurance premiums (and your property taxes) in your monthly payment. These amounts will be saved in your escrow account and the mortgage company will then pay your home insurance and property taxes when they come due. Mortgage escrow accounts are very common. A more expensive home insurance policy will mean that your mortgage company needs to collect more money from you monthly, so your mortgage payment could be higher. However, keep in mind that the portion of your monthly mortgage payment that is earmarked for home insurance doesn't affect the principal or interest on your mortgage loan. Compare rates and save on home insurance today! Get quotes Close X Compare rates and save on home insurance today! Get quotes Close X Compare rates and save on home insurance today! Get quotes Close X Written by Cate Deventer Insurance Writer & Editor Cate Deventer is a writer, editor and insurance professional with over a decade of experience in the insurance industry as a licensed insurance agent. Mariah Posey is an auto and homeowners insurance writer and editor for Bankrate.com. She aims to make the insurance journey as convenient as possible by keeping the reader at the forefront of her mind in her work. Kenneth Chavis IV is a senior wealth manager who provides comprehensive financial planning, investment management and tax planning services to business owners, equity compensated executives, engineers, medical doctors and entertainers.