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 you personally. Factors in price 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.
| 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 save money on homeowners insurance quotes
- Get home insurance quotes from multiple companies. Prices will vary for the same coverage.
- Buy your auto and homeowners insurance from the same insurer. This "bundling" discount is typically one of the better insurance discounts.
- Ask about discounts for smoke detectors, fire alarms or security systems.
- Discounts will vary by company but can also include price breaks for being a loyal customer, using automatic withdrawals for payments, not having home insurance claims, and being over age 55 and retired.
EverQuote can connect you with agents who can give you homeowners insurance quotes and personalized service by answering any questions you have.