How Much Does Homeowners Insurance Usually Cost?

Homeowners insurance costs can differ widely based on factors like state, location and coverage; however there are some things that typically increase premiums.

Fire risk, property crime rates and past claims filing history are common factors that increase homeowners insurance premiums. Furthermore, an older house’s structure also plays a part in how much homeowners insurance costs.

Basic Coverage

Homeowners insurance protects both your home and personal possessions against damage from multiple perils, such as fire, theft and hurricanes. It typically also provides liability coverage should someone become injured on your property. The cost of homeowner’s insurance depends on several factors – where you live and size of home being two of them. Typically speaking, homes in states more susceptible to tornadoes or hurricanes typically pay higher premiums due to greater disaster-related risk.

Construction materials used to construct your house can also have an effect on premium costs, with wood-framed houses typically costing more to insure due to being more susceptible to fire damage. Furthermore, age is another factor; newer houses usually cost less as they haven’t seen as much wear and tear yet.

Dwelling coverage provides funds to rebuild or repair your home and any attached structures such as garages or decks, including garage doors or deck railings, as well as built-in appliances like furnaces. If a catastrophic event like hurricane or tornado strikes, such as losing power, then dwelling coverage might pay to reconstruct or replace everything inside it.

Your policy may include additional optional coverages beyond minimum dwelling coverage requirements, such as personal property coverage to replace stolen or damaged items and extra living expense coverage for expenses such as hotel room stays while your home remains uninhabitable.

Your claims history is another important consideration in the cost of homeowners insurance. If you file multiple claims, premiums could increase or coverage limits could decrease accordingly; thus it’s wise to carefully consider each claim you file before filing it if needed.

Inflation and your credit score can both have an effect on the cost of premiums, with those with poorer scores often paying more for homeowners insurance premiums than expected. There are ways you could try saving even with poor credit though; perhaps shopping around or choosing an insurer that offers both auto and home coverage at once might help to bring costs down.

Additional Coverage

Based on your home and insurance needs, add-on coverage may provide additional protection. This could include dwelling coverage to protect improvements such as adding a pool or burying utility lines; personal property coverage to safeguard valuable items like furniture and electronics; loss of use coverage that covers lodging expenses while you’re away; as well as loss of use protection that pays lodging expenses during absences from home. These extra features should be reviewed with an agent to make sure they meet both your needs and budget.

Your insurance rates depend not only on where and the amount of dwelling coverage you purchase, but also by state and even ZIP code. This is because some states are more vulnerable to natural disasters or higher repair costs than others; also depending on which material your house is constructed from it can alter premiums accordingly based on risk of fire damage or weather-related concerns; for instance wood framed structures usually cost more due to increased fire risks as well as being susceptible to strong winds weakening them more often than masonry or cement-framed houses.

Other factors that could sway your home insurance premiums include choosing a deductible (your share of claims) and your claims history. Filing claims in the past typically results in higher premiums; insurers believe you represent more risk and therefore increase losses over time.

Bundling policies with one carrier is also likely to bring down your rate as they often offer discounts when purchased together. Home insurers consider several factors when setting their rates; including age of home and amenities available as well as credit score when setting premiums; discounts may also apply for features like burglar alarms and security systems installed within homes; while good credit can often bring reduced premiums. The best way to assess home insurance costs is through getting an individual quote tailored specifically to you from an insurance provider.

Add-On Coverage

Your homeowner’s policy rates depend on the types and amounts of additional coverage available under its umbrella, including riders or endorsements to fill coverage gaps for things such as swimming pools and underground utilities, increase liability protection, or provide living expenses if a covered loss renders your home inhabitable.

No matter if you’re shopping around for additional coverage or just reviewing policy limits, comparing homeowners insurance quotes is always highly recommended. Your premium may depend on factors like where you live, dwelling coverage included within your policy and claims filed; as well as deductible level; increasing from $1,000 to $2,500 can save up to 12.17% annually according to NerdWallet’s rate analysis.

Location has the greatest effect on homeowners insurance premiums; states at higher risk for natural disasters tend to charge more. Hover your mouse over each state on the map below for an idea of what annual premiums look like for dwelling, personal property and liability coverage.

Along with your location, the construction and upkeep of your home can have an effect on how much homeowners insurance costs. Wood-framed structures tend to cost more than cement- or steel-framed ones due to being more susceptible to fire damage; similarly, homes built before mid-1970s may have higher premiums since they weren’t designed according to current building codes and standards.

inflation can also have a considerable effect on your homeowners insurance costs, with rising materials and labor costs leading to higher premiums for repairs following disaster. You could save money by bundling it with other policies from one provider (e.g. auto), which could cut overall costs up to 10% on average; but prioritising individual circumstances before making this decision.


Homeowner’s insurance is an essential expense, but it doesn’t need to break the bank. Requesting quotes from multiple insurers will give you an accurate idea of the costs involved with purchasing coverage, while existing clients often receive better offers than prospective ones. When selecting insurers, look for ones rated A+ by A.M. Best with strong customer satisfaction scores from J.D. Power.

Your location can have an effect on how much homeowners insurance costs; states prone to natural disasters such as hurricanes and tornadoes will likely see higher premiums, while homes in coastal regions are especially susceptible to high repair bills.

Claims history can also play a pivotal role in determining your premium. Filing claims increases risk to insurers, increasing chances of rate hikes or non-renewal. On the other hand, having no claims can save money over time.

Age and condition also play a role in your home insurance rates, with older houses that feature outdated wiring, plumbing, HVAC or roofing systems costing more to insure than newer properties with modernized systems. On the other hand, homes fitted with safety features such as smoke detectors, sprinkler systems or security alarms tend to enjoy lower premiums as insurers consider them less of a risk than others.

Your home insurance rates depend on several additional factors, such as your credit score and deductible amount. Poor credit is one of the primary causes of higher premiums than necessary; on average, having good credit could save over 12% annually according to NerdWallet’s home insurance rates analysis.

At times, increasing your deductible can help save money on home insurance policies. While having a higher deductible means paying more out-of-pocket when filing claims, this move could save hundreds or even thousands in annual rates and might even get you discounts from some carriers for bundling your auto and home policies together.