Alyssa Lane
The cost of homeowners' insurance varies depending on a variety of factors, including location, the size of the home, the age of the property, and the coverage required. On average, homeowners' insurance costs $2,466 per year, or $206 per month, for a policy with a $300,000 dwelling limit. However, the National Association of Realtors reports that the average US homeowner paid $2,377 for homeowners insurance in 2024, which equates to just over $198 per month. The cost of homeowners' insurance is influenced by factors such as the home's location, the materials used in its construction, the coverage selections, and prior claims. Additionally, the age of the home and the homeowner's credit history can impact the cost of insurance, with older homes and poor credit histories resulting in higher insurance rates.
| Characteristics | Values |
|---|---|
| Average annual cost | $2,110 |
| Average monthly cost | $176 |
| Average annual cost (2024) | $2,377 |
| Average monthly cost (2024) | $198 |
| Average annual cost (July 2025) | $2,466 |
| Average monthly cost (July 2025) | $206 |
| Most expensive state | Oklahoma |
| Average annual cost in Oklahoma | $6,210 |
| Average monthly cost in Oklahoma | $518 |
| Least expensive state | Hawaii |
| Average annual cost in Hawaii | $610 |
| Average monthly cost in Hawaii | $51 |
| Cheapest city | San Jose, California |
| Average annual rate in San Jose | $1,090 |
| Factors influencing cost | Location, coverage, deductible, credit history, roof type, construction materials, home features, claim history, business use, liability, and more |
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What You'll Learn
The average cost of homeowners insurance is $176 a month
Homeowners insurance rates have been on an upward trajectory due to inflation, natural disasters, and the rising cost of repairing and rebuilding houses. The cost of building materials, influenced by inflation and supply chain issues, contributes to higher premiums. Carriers may also raise rates in areas prone to extreme weather, such as hurricanes or wildfires, as the risk of claims is higher.
Location plays a significant role in determining insurance rates. Homes in coastal regions, near woods, or in areas with high crime rates may face higher premiums due to increased risks. The construction materials and features of a home can also impact rates, as certain materials and designs may be more resistant to fires or wind damage, resulting in lower insurance costs.
The amount of coverage is another critical factor in the cost of homeowners insurance. The more coverage you need or opt for, the higher your premiums will be. Additionally, the size of your deductible, which is the amount you pay out of pocket before your insurance policy takes effect, affects your premiums. A higher deductible typically leads to lower premiums, while a lower deductible results in higher premiums.
It's important to note that rates are not solely dependent on these factors. Insurance companies consider various other aspects, including claim history, credit score, and business usage of the property. By understanding these factors and shopping around, homeowners can find a balance between adequate coverage and affordable premiums.
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The cost varies depending on location, with Oklahoma being the most expensive state
The cost of homeowners' insurance varies depending on location, with Oklahoma being the most expensive state. The average cost of homeowners' insurance in the US is $2,110 per year, or about $176 per month. However, in Oklahoma, the average cost is $6,210 per year, or about $518 per month. This is more than double the national average and significantly higher than other states. For example, Texas, the second most expensive state for homeowners' insurance, has an average annual cost of $4,585, or about $382 per month.
There are several factors that contribute to the high cost of homeowners' insurance in Oklahoma. One of the main reasons is the high frequency of natural disasters in the state, including hurricanes, hail storms, and tornadoes. These events can cause significant damage to homes, leading to costly insurance claims. Additionally, Oklahoma has experienced an increase in the cost of building materials due to inflation and supply chain issues, which has contributed to higher repair and replacement costs for homes.
The age of homes in Oklahoma is also a factor in the high insurance costs. Older homes tend to be more expensive to insure as they are typically built with older materials and construction styles that are less weather-resistant and more susceptible to damage. Basements, in particular, drive up the square footage and increase the overall cost of insurance.
The high cost of homeowners' insurance in Oklahoma has also been impacted by the departure of several insurance companies from the state. In recent years, a number of insurers have ceased doing business in Oklahoma due to the high frequency of catastrophic claims. This has resulted in a decrease in competition and an increase in rates for the remaining insurance providers.
It's important to note that homeowners' insurance rates can vary within a state as well. Factors such as the location of the home, the age and condition of the property, and the coverage and deductibles selected can all impact the cost of insurance. Additionally, features such as pools, basements, and "attractive nuisances" like trampolines or luxury features can increase the likelihood of injuries and claims, resulting in higher premiums.
While the cost of homeowners' insurance in Oklahoma is high, there are ways to reduce these costs. Homeowners can review their policies and claims history, update their coverage based on any renovations or changes, and prioritize renovations that impact their rates, such as installing a basement sump pump or updating wiring. Shopping around and comparing rates from different insurance providers can also help find more affordable options.
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The type of home you have will impact the price
The construction materials and features of your home can also affect insurance costs. Concrete block homes may be cheaper to insure than wood-frame houses as they are more resistant to fires and strong winds. The type of roof you have is another critical factor. Asphalt shingles, for instance, are less flammable and may result in lower insurance costs compared to cedar or wood-shake roofs. Hip roofs, which are more resistant to wind, may also help lower insurance costs compared to gable roofs, which are more prone to wind damage.
The age of your home can also impact insurance rates. Older homes are more likely to have ageing construction materials that could lead to damage to key components such as electrical and plumbing. Additionally, the presence of certain features, such as a swimming pool, hot tub, or wood-burning stove, can increase insurance rates due to the higher risk of accidents or fire claims.
The amount of coverage you need will also influence the cost of insurance. The more coverage you want or need, the higher your premiums will typically be. It is important to balance your coverage needs with the affordability of your premiums. You should also consider the deductible amount, which is the portion you pay out of pocket before your insurance policy kicks in. A higher deductible typically results in lower premiums, and vice versa.
Finally, it is worth noting that insurance rates can vary across different insurance providers. Shopping around and comparing rates can help you find the best price for your specific situation. Additionally, some carriers offer discounts, such as when you bundle multiple types of insurance with a single carrier.
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The amount of coverage you want will affect the price
The type of coverage you choose will also impact the cost. For example, if you live in an older home, you will likely pay a higher premium. Older homes are more likely to have ageing construction materials that could lead to damage to key components, and may need to be brought up to code in the event of a rebuild. You may want to consider adding ordinance or law coverage to your policy in this case.
The location of your home is another factor that will influence the cost of your insurance. Homes in areas that are prone to extreme weather, flooding, wildfires, or crime will be more expensive to insure. If you live in a coastal region, your insurance may be higher due to the increased risk of natural disasters. Crime rates in your ZIP code will also be considered by insurers, as they can determine how likely you are to file a theft claim.
The size and features of your home will also impact the cost of your insurance. The larger your home, the more it will cost to rebuild, and the more dwelling coverage you will need. If your home has high-end features, such as an in-ground swimming pool, this will also increase the replacement cost value of your home and your insurance costs.
Other factors that can influence the cost of your insurance include the type of construction materials used, your roof type, and any unique features of your home, such as architectural characteristics. Upgrading certain aspects of your home, such as the electrical system, may make you eligible for a cheaper premium. However, renovations such as finishing a basement or adding a swimming pool will likely increase your insurance costs.
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Discounts are available to reduce monthly premiums
Homeowners insurance costs vary widely, with the average US homeowner paying $2,377 per year, or $198 per month, according to the National Association of Realtors. However, monthly costs can range from as low as $51 to as high as $518. The location of your home is one of the biggest factors in determining the cost, with homes in areas prone to extreme weather, flooding, wildfires, or crime generally being more expensive to insure. For example, in 2025, the annual insurance cost in Oklahoma was $6,210, while in Hawaii, it was $610.
While many factors that go into calculating your rates are beyond your control, there are still steps you can take to reduce your monthly premiums. Here are some ways to lower your homeowners insurance costs:
- Bundles and multi-policy discounts: One way to reduce your premiums is to bundle your home insurance with other types of insurance, such as auto insurance, and purchase them from a single carrier.
- Higher deductibles: Increasing your deductible can lead to significant savings on your premiums. For example, raising your deductible from \$500 to \$1,000 can save you up to 25%. However, keep in mind that a higher deductible means you'll need to pay more out of pocket if you need to file a claim.
- Long-term policyholder discounts: Staying with the same insurance company for several years can make you eligible for loyalty discounts. Some insurers offer reductions of 5% for three to five years of loyalty and 10% for six or more years.
- Credit history: Establishing a solid credit history and maintaining a good credit score can help lower your insurance costs. Insurers use credit information to price homeowners insurance policies, so paying your bills on time and keeping your credit balances low can positively impact your premiums.
- Home features and construction: The construction materials and features of your home can affect your insurance costs. For example, concrete block homes may be cheaper to insure than wood frame houses due to their higher resistance to fires and strong winds. Similarly, hip roofs, which are more resistant to wind damage, may be cheaper to insure than gable roofs.
- Location and home systems: Choosing a home in a lower-risk area, such as one that is close to a fire hydrant or a professional fire department, can reduce your premiums. Additionally, having newer electrical, heating, and plumbing systems (less than 10 years old) can also lower your insurance costs.
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Frequently asked questions
The average monthly cost of homeowners insurance in the US varies depending on the source. According to Matic, the average US homeowner paid $198 per month in 2024. According to NerdWallet's 2025 analysis, the average cost is $176 per month. Bankrate puts the average at $206 per month as of July 2025.
Location is one of the biggest factors in determining the cost of homeowners insurance. Homes in areas prone to extreme weather, flooding, wildfires, or crime will be more expensive to insure. For example, in 2025, the average annual cost of homeowners insurance in Oklahoma was $6,210, or $518 per month, while in Hawaii, it was $610 per year or $51 per month.
The more coverage you want or need, the higher your premiums will be. The type of coverage you choose will also impact the cost. For example, insurance companies may charge higher rates if you run a business from your home or have a dog, due to the increased risk of liability claims.
In addition to location and coverage amount, the cost of homeowners insurance can be influenced by factors such as the age and size of your home, the type of construction and building materials, crime rates in your ZIP code, and your credit history. Premiums have also been increasing due to inflation and the rising cost of repairing and rebuilding houses.
