How much is homeowners insurance?
Homeowners insurance costs about $2,500 a year on average in the U.S. — roughly $208 a month — for $400,000 of dwelling coverage. Your rate varies enormously by state, from around $650 in Hawaii to over $7,000 in Florida.
Cost breakdown
| Option | Price | Notes |
|---|---|---|
| National average | ~$2,500/yr | About $208/month for typical coverage. |
| $250,000 dwelling coverage | ~$1,430/yr | Lower coverage limit, lower premium. |
| $400,000 dwelling coverage | ~$2,490/yr | Roughly the national average home. |
| $500,000 dwelling coverage | ~$4,400/yr | Higher rebuild value costs more to insure. |
| Cheapest state (Hawaii) | ~$650/yr | Low disaster risk keeps rates down. |
| Most expensive (Florida) | ~$7,100/yr | Hurricane exposure drives premiums up. |
What drives your premium
Location is the biggest factor by far. Homes in areas prone to hurricanes, wildfires, hail, or flooding cost far more to insure — which is why Florida and Oklahoma run several times higher than Hawaii.
After location, your premium depends on the rebuild cost of your home (dwelling coverage), your deductible, your claims history, the age and condition of your roof, and in most states your credit-based insurance score.
Why rates have jumped
Premiums have climbed sharply in recent years because rebuilding costs (materials and labor) rose, and insurers paid out more for severe weather. In high-risk states, some carriers have pulled back entirely, leaving fewer options and higher prices.
Even if you haven't filed a claim, you may see increases at renewal simply because of conditions in your region's market.
How to lower the cost
The fastest lever is your deductible — raising it from $1,000 to $2,500 or more cuts the premium, as long as you can cover that amount if you file a claim.
Bundling home and auto with one insurer, adding security and water-leak sensors, upgrading an old roof, and shopping quotes from at least three carriers each year are the most reliable ways to bring the number down.
Frequently asked questions
- Why is homeowners insurance so expensive now?
- Higher rebuilding costs and more frequent severe-weather payouts pushed premiums up nationwide. In disaster-prone states, some insurers left the market, reducing competition and raising prices further.
- Is homeowners insurance required?
- It's not required by law, but virtually every mortgage lender requires it as a condition of the loan. If you own your home outright, it's optional but strongly recommended.
- How can I lower my premium?
- Raise your deductible, bundle with auto insurance, improve your roof and security, maintain good credit where it's allowed, and compare quotes from at least three insurers annually.
Researched and edited by Calvin Lauderdale, Lead Researcher & Editor. Figures on this page were verified against the sources above as of June 23, 2026.