How Much Is Home Insurance?
Updated 26 March 2026
The national average is $2,285 per year ($190/month). Use our free estimator below to get a personalised figure based on your home and location.
Home Insurance Cost Estimator
Enter your home details for a personalised annual premium estimate
Estimate the cost to rebuild your home from scratch, not the market value
Older homes typically cost more to insure due to outdated systems and materials
Brick homes are generally cheaper to insure than wood frame
Each claim can raise your premium significantly for several years
In most states, insurers use credit-based insurance scores to set premiums
Estimated Annual Premium
$3,500
$292/month
State Average
$4,000
Texas annual average
vs. National Average
+53%
National average: $2,285/yr
Dwelling Coverage
$350,000
Recommended coverage limit
Personal Property
$175,000
50% of dwelling coverage
Coverage recommendations
- Dwelling (Coverage A)$350,000
- Personal property (Coverage C)$175,000
- Liability (Coverage E)$300,000
- Additional living expenses (Coverage D)20-30% of dwelling
This is an estimate based on industry averages and should not be treated as a formal quote. Always obtain actual quotes from licensed insurers for accurate pricing.
What Drives Home Insurance Costs?
Location is the biggest factor
Where your home sits determines your exposure to wind, hail, wildfire, flood, and extreme weather. Oklahoma and Texas homeowners pay nearly double the national average largely because of tornado and severe storm risk. Florida's average of $4,200 reflects hurricane exposure. Compare these to Idaho at $1,050.
Replacement cost vs market value
Your premium is based on what it costs to rebuild your home, not what it would sell for. In high-demand markets, your market value can be two or three times the replacement cost. Insuring for market value means you pay for coverage you will never need. Many online estimators use $100 to $200 per square foot as a starting point for replacement cost.
The claims penalty is real
Filing a claim can raise your premium at renewal by 20 to 40% and can stay on your record for three to five years. Some insurers will not renew at all after two claims. Before filing a small claim, compare the payout against the long-term premium increase. For minor damage under $2,000 to $3,000, paying out of pocket is often the better financial decision.
2026 Home Insurance Snapshot
$2,285/yr
National average
$190/month
Florida
Most expensive state
$4,200/yr avg
Idaho
Cheapest state
$1,050/yr avg
$1,000
Typical deductible
$500 to $2,500 range
Frequently Asked Questions
How much does home insurance cost on average?
The national average cost of home insurance in 2026 is $2,285 per year, which works out to approximately $190 per month. However, costs vary significantly by state. Oklahoma, Texas, Florida, and Louisiana are the most expensive states, averaging over $3,800 per year. Idaho, Oregon, and Vermont are the cheapest, averaging around $1,050 to $1,100 per year.
What factors affect how much I pay for home insurance?
The main factors are: your home's replacement cost (rebuilding value), your state and specific location (flood zones, tornado corridors, wildfire risk), the age and construction type of your home, your claims history over the last three to five years, your credit-based insurance score, the coverage limits and deductible you choose, and the insurer's own pricing model. Two identical homes in the same ZIP code can have different premiums from different insurers.
Is home insurance based on purchase price or replacement cost?
Home insurance is based on replacement cost, which is what it would cost to rebuild your home from the ground up using current materials and labour prices. This figure is often different from your purchase price or market value. Many homeowners are underinsured because they base their coverage on what they paid rather than what it would actually cost to rebuild.
Does credit score affect home insurance rates?
Yes, in most US states insurers use a credit-based insurance score to set premiums. Homeowners with excellent credit (750+) typically pay 15 to 25% less than those with good credit, while those with poor credit (below 580) can pay 40 to 60% more. California, Maryland, and Massachusetts prohibit insurers from using credit scores to set home insurance rates.
How can I lower my home insurance premium?
The most effective ways to reduce your premium are: bundle home and auto with the same insurer (typically 10 to 20% off), raise your deductible from $500 to $1,000 or $2,500 (saves 7 to 20%), install a monitored alarm system (saves 5 to 15%), add storm shutters or impact-resistant roofing in storm-prone areas (saves 5 to 15%), maintain a claims-free record, and shop quotes from at least three insurers at every renewal.
What does standard home insurance not cover?
Standard homeowners insurance (HO-3 policies) does not cover flood damage, earthquake damage, routine wear and tear, mould resulting from neglected maintenance, sewer backup unless you add a rider, home-based business equipment beyond minimal limits, or high-value items like jewellery and art above set limits. Separate flood insurance through the National Flood Insurance Program or private carriers, and earthquake insurance, must be purchased separately.