Why buy homeowners insurance?
Your home may be your biggest investment. The purpose of home insurance is to help you recover financially after a disaster, whether it's a house fire, a natural disaster like a tornado, or even certain lawsuits against you.
You may need to buy homeowners insurance because it's required by your mortgage lender. But even if your house is paid off, home insurance is an important financial safety net.
How are homeowners insurance quotes calculated?
Home insurance quotes are based on details about the house, its location and your personal characteristics, such as past claims and credit. Factors in getting cheap home insurance include:
- The cost to rebuild the house (determined by size, construction type and local construction costs).
- The town's fire protection rating.
- Claims in the area (such as thefts or past natural disaster claims).
- Your credit (except in California, Massachusetts and Maryland).
- Your history of making home insurance claims.
- The coverage levels you choose, including coverage amounts for your possessions (called contents coverage) and liability (for claims against you).
What does homeowners insurance cover?
All standard homeowners policies cover at least the 16 problems, called "perils," shown below. The most common type of home insurance policy, called an HO-3 policy, goes beyond that to cover any problem except those specifically excluded.
How much will homeowners insurance cost?
The average cost of home insurance nationwide is $1,192 a year, according to the National Association of Insurance Commissioners. Oregon has the cheapest home insurance rates in the country, on average; Louisiana has the most expensive.
| State | Average annual home insurance cost |
|---|---|
| Alabama | $1,386 |
| Alaska | $974 |
| Arizona | $803 |
| Arkansas | $1,348 |
| California | $1,000 |
| Colorado | $1,446 |
| Connecticut | $1,445 |
| Delaware | $816 |
| District of Columbia | $1,225 |
| Florida | $1,918 |
| Georgia | $1,200 |
| Hawaii | $1,026 |
| Idaho | $703 |
| Illinois | $1,042 |
| Indiana | $1,003 |
| Iowa | $945 |
| Kansas | $1,548 |
| Kentucky | $1,085 |
| Louisiana | $1,967 |
| Maine | $866 |
| Maryland | $1,022 |
| Massachusetts | $1,451 |
| Michigan | $952 |
| Minnesota | $1,340 |
| Mississippi | $1,525 |
| Missouri | $1,280 |
| Montana | $1,130 |
| Nebraska | $1,402 |
| Nevada | $742 |
| New Hampshire | $965 |
| New Jersey | $1,174 |
| New Mexico | $996 |
| New York | $1,309 |
| North Carolina | $1,098 |
| North Dakota | $1,239 |
| Ohio | $850 |
| Oklahoma | $1,875 |
| Oregon | $659 |
| Pennsylvania | $927 |
| Rhode Island | $1,496 |
| South Carolina | $1,285 |
| South Dakota | $1,125 |
| Tennessee | $1,185 |
| Texas | $1,937 |
| Utah | $664 |
| Vermont | $898 |
| Virginia | $966 |
| Washington | $822 |
| West Virginia | $917 |
| Wisconsin | $762 |
| Wyoming | $1,120 |
| Source: National Association of Insurance Commissioners, 2018 rates | |
Learn about home insurance in your state |
How to get cheap home insurance
- Getting multiple quotes is a good way to find low cost home insurance. Prices will vary for the same coverage, so shopping around can pay off.
- Buy your auto and homeowners insurance from the same insurer. This "bundling" discount is typically one of the best ways to get cheaper home insurance.
- Ask your insurance agent about discounts for smoke detectors, fire alarms and security systems.
- Ask about price breaks for being a loyal customer, using automatic withdrawals for payments, not having home insurance claims, or being over age 55 and retired.
EverQuote can connect you with agents who can give you help you find affordable home insurance and give you personalized service.