How Much Is Homeowners Insurance? Average 2025 Rates

Homeowners insurance costs an average of $2,110 a year, or about $176 a month, according to NerdWallet’s analysis.

We analyzed pricing data from more than 100 insurance companies to bring you the average homeowners insurance cost in every state and the largest U.S. cities. Our sample policy was for a 40-year-old homeowner with good credit, $300,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible.

Note that the rates included in this article are benchmarks. The exact cost of your homeowners insurance will depend on your location, the size of your house and how much coverage you need.

Average homeowners insurance rates vary widely, and where you live is a big factor in how much you’ll pay for homeowners insurance. Hover over your state on the map below to see the average home insurance cost.

These are the most expensive states for homeowners insurance.

1. Oklahoma: $6,210 a year, or about $518 a month, on average.

2. Texas: $4,585 a year, or about $382 a month, on average.

3. Nebraska: $4,505 a year, or about $375 a month, on average.

4. Colorado: $4,175 a year, or about $348 a month, on average.

5. Kansas: $3,735 a year, or about $311 a month, on average.

Here are the cheapest states for homeowners insurance.

1. Hawaii: $610 a year, or about $51 a month, on average.

2. Vermont: $950 a year, or about $79 a month, on average.

3. Delaware: $1,025 a year, or about $85 a month, on average.

4. Alaska: $1,035 a year, or about $86 a month, on average.

5. Maine: $1,180 a year, or about $98 a month, on average.

Here are annual and monthly average home insurance costs for all 50 states and Washington, D.C.

We analyzed prices in 20 of the largest metropolitan areas in the U.S. to find the average homeowners insurance cost in each city. Houston had the most expensive average rate at $6,370 a year. Meanwhile, San Jose, California, was the cheapest city on the list, with an average annual rate of $1,090.

We found the average annual rates for some of the largest homeowners insurance companies in the U.S. by market share. Note that some may not offer homeowners insurance in your state. Click on each company’s name to read our review.

One of the biggest factors in how much your homeowners policy costs is how much dwelling coverage you need. Dwelling coverage is the part of your policy that pays to rebuild the structure of your home if it’s damaged or destroyed.

If your house is large or has high-end features, it’ll cost more to rebuild and you’ll need more dwelling coverage. Below are average home insurance costs for four amounts of coverage.

Older homes often cost more to insure than new ones because they typically don’t have the safety features that newer homes do, and repairs can be costly. See below to compare the average annual cost of insuring a new home versus an older home. (Coverage limits were the same for all three houses.)

A home insurance deductible is the amount of a claim you pay before your insurance kicks in. Typically, a higher deductible leads to a lower home insurance rate.

If you have previous homeowners insurance claims, insurers may see you as a higher risk and increase your premiums as a result. Here’s how filing a claim could affect your homeowners insurance costs.

Studies have shown that people with poor credit are more likely to file claims, so in most states, homeowners with poor credit are likely to pay more for home insurance. Read more about the impact of credit scores on home insurance rates.

(Note that using credit to set homeowners insurance prices is not allowed in California, Maryland or Massachusetts.) 

Your home insurance premiums will also be affected by these factors:

• Your location. Being closer to a fire station can lower your premiums, while living in a neighborhood with higher crime rates may increase them.

• Your risk of natural disasters. If you live in an area that’s vulnerable to wildfire, tornadoes or hurricanes, home insurance may be more expensive.

• Extra features. Swimming pools and trampolines may be fun for the family, but some insurers see them as potential liability claims and may charge more to insure your home as a result.

• Your dog. Some insurers may charge extra for animal liability coverage, while others won’t cover breeds they consider to be higher risk or dogs with a history of aggression. Read more about dogs and home insurance.

Getting home insurance quotes annually is the best way to ensure you’re still getting the best possible deal. We recommend comparing rates from at least three companies. Make sure the coverage limits and deductibles are similar on all three policies to get a fair comparison. Read our guide on how to shop for homeowners insurance.

If you’re not up for shopping around yourself, contact an independent agent or broker to get quotes on your behalf.

A higher deductible will mean a lower rate. Raising your deductible from $1,000 to $2,500 can save you about 12% a year on average, according to NerdWallet’s rate analysis. Make sure you have enough cash tucked away to pay it if you need to file a claim.

• Multiple policies. If you bundle your homeowners insurance with another policy, such as car insurance, you could get a discount. See the best home and auto bundles.

• Claims-free. Many insurers offer a discount to homeowners who haven’t filed a claim recently, typically in the past three to five years.

Certain renovations — such as updating an electrical or plumbing system — could lower homeowners insurance costs. Getting a new roof could also net you a discount, especially if it’s resistant to wind and/or hail.

In most states, insurers can use your credit-based insurance score (similar to your FICO score) to set rates. Because some studies have shown a correlation between poor credit and filing claims, those with a checkered credit history may pay more for homeowners insurance. Though it may take time, building your credit could save you a lot on homeowners insurance over the long run.