If you’re like most Americans, your home is your most valuable asset and biggest expense. Your total housing costs include mortgage payments, property taxes, and homeowners insurance. With rising property values and higher interest rates in 2025, homeowners insurance cost is a noteworthy concern.
The average home insurance cost can vary depending on how it’s calculated, but most reliable estimates fall between $2,500 and $3,500 per year. To choose the best policy for your home and family, it's important to understand average rates and what factors affect pricing. This guide covers just that, with a rundown of national and state averages, key drivers of cost, and recent trends.
2025 National Average Homeowners Insurance Cost
The national average homeowners insurance cost in 2025 is approximately $2,801 annually or roughly $233 monthly. Compared to 2024, this is a relatively significant increase in premiums of 11.4%. Current costs highlight a longstanding trend, with an over 40% increase since 2020.
Homeowners Insurance Cost by State
Location is one of the primary factors that determine home insurance rates, which vary substantially across different states. Each region has a unique set of risk factors, including natural disasters and crime rates. Insurance companies also must adjust premiums based on local laws and regulations and average replacement costs.
Here’s a breakdown of average house insurance costs by state:
| State | Average Annual Cost |
|---|---|
| Alabama | $2,961 |
| Alaska | $940 |
| Arizona | $2,337 |
| Arkansas | $3,103 |
| California | $1,633 |
| Colorado | $3,409 |
| Connecticut | $1,676 |
| Delaware | $966 |
| Florida | $5,728 |
| Georgia | $1,980 |
| Hawaii | $1,296 |
| Idaho | $1,392 |
| Illinois | $2,174 |
| Indiana | $1,663 |
| Iowa | $2,362 |
| Kansas | $4,414 |
| Kentucky | $3,643 |
| Louisiana | $6,184 |
| Maine | $1,218 |
| Maryland | $1,645 |
| Massachusetts | $1,698 |
| Michigan | $2,351 |
| Minnesota | $2,808 |
| Mississippi | $3,468 |
| Missouri | $2,441 |
| Montana | $2,798 |
| Nebraska | $6,366 |
| Nevada | $1,073 |
| New Hampshire | $1,040 |
| New Jersey | $1,208 |
| New Mexico | $2,222 |
| New York | $1,874 |
| North Carolina | $2,352 |
| North Dakota | $2,786 |
| Ohio | $1,395 |
| Oklahoma | $4,623 |
| Oregon | $1,068 |
| Pennsylvania | $1,251 |
| Rhode Island | $2,349 |
| South Carolina | $2,590 |
| South Dakota | $3,112 |
| Tennessee | $2,636 |
| Texas | $4,085 |
| Utah | $1,276 |
| Vermont | $831 |
| Virginia | $1,674 |
| Washington | $1,517 |
| West Virginia | $1,040 |
| Wisconsin | $1,288 |
| Wyoming | $1,306 |
| District of Columbia | $1,498 |
Key Factors That Influence Homeowners Insurance Costs
How much you pay for home insurance is determined by how risky it is for home insurance companies to provide coverage. The biggest drivers of cost include the size and value of your home, coverage options and deductibles, and locational factors like geography and natural disaster risks.
Other key factors that impact cost include macroeconomic and market conditions, your claims history, and your credit score (in some states).
Home Value and Replacement Cost
Your home’s size and value are key determinants of home insurance rates because they impact how much your insurance company would have to spend to repair or rebuild your home after a loss. This is your replacement cost, and it doesn’t always line up with market value.
Bigger homes and high-end building materials cost more to restore after a covered loss, which drives up home insurance costs. If your house is on the older side, it may also cost more to insure due to the possibility of outdated plumbing or wiring.
Coverage Levels and Deductibles
The types and levels of coverage on your policy and your deductibles can have a major impact on how much you pay.
Standard home insurance coverage typically includes:
- Property: covers your house and personal belongings
- Liability: covers certain types of injuries or property damage for which you or a household member is responsible
- Medical payments to others: covers minor injuries to guests on your property
- Loss of use: covers reimbursements if your home becomes temporarily uninhabitable due to a covered loss
Lower deductibles (the amount you pay out of pocket after a loss before insurance kicks in) can drive up the cost of home insurance. If you opt for umbrella insurance or get higher coverage limits for dwelling and personal property coverage, you may also face higher premiums.
Location and Risk Factors
If you live in an area that’s prone to natural disasters like hurricanes, wildfires, or flooding, you’ll probably face higher premiums. High-crime areas and homes further from emergency services also tend to yield higher rates. While you may not be able to completely eliminate these risks, anything you do to improve the safety and security of your home can help reduce your insurance burden.
How Claims History and Credit Score Affect Premiums
Insurance costs are based on a risk-benefit analysis performed by your insurer. If you’ve filed claims in the past on your current home or another property, you’ll be seen as more of a risk to insure and you’ll likely face higher premiums.
Your credit score can also affect your rates, although some states have bans or restrictions on how insurance companies can use credit to set rates. California, Maryland, and Massachusetts all have bans on this practice.
Tips to Lower Your Homeowners Insurance Cost
Fortunately, your homeowners insurance rates aren’t completely out of your control. There are several ways you may be able to lower your premiums or take advantage of discounts, including the following:
- Bundle your home and auto insurance.
- Add safety features to your home, such as security systems, smoke detectors, carbon monoxide alarms, and storm shutters.
- Increase your deductible.
- Shop around for policies.
- Improve your credit score.
- Upgrade home features, like your roof, electrical system, or plumbing.
- Update your policy regularly.
Find Customized Homeowners Insurance Quotes
Homeowners insurance is a necessity. You need to make sure you have the coverage you need, but you shouldn't have to overpay on premiums.
That’s where EverQuote comes in. We help homeowners across the country compare auto insurance and home insurance quotes side-by-side. Simply input some basic information and you’ll see comprehensive estimates from top providers.