The average homeowners insurance policy costs about $2,450 a year in 2026, but your actual rate depends heavily on your state, home age, and coverage choices. Use the state-by-state breakdown below to see how your area compares, plus practical ways to bring your premium down.
July 14, 2026
The national average cost for homeowners insurance is estimated at about $2,450 per year in 2026, though actual premiums vary widely based on coverage limits, deductible choices, and location.
If you're a prospective homebuyer trying to calculate your future monthly housing budget, or a current homeowner holding a newly increased premium bill, you're likely asking: how much is home insurance? While the national average gives you an initial baseline, it's crucial to recognize that home insurance is one of the most hyper-localized financial products in the world.
Your actual premium will vary wildly depending on your ZIP code's specific weather exposure, the physical age and building materials of your house, and the personal coverage options you select. To truly understand how much does home insurance cost, we have to look past the broad national average and dive into the state-by-state data, market realities, and personal rating factors.
Because home insurance is so closely tied to localized weather risks, your state of residence is often the single most influential pricing factor.
States that experience hurricanes, wildfires, or hailstorms tend to have higher premiums because claims are more frequent and often more expensive. Local labor and material costs also impact rates, since insurance is designed to cover the cost of repairing or rebuilding a home after a loss.
Below is a comprehensive breakdown of the estimated average home insurance cost by state in 2026, calculated for a standard $350,000 dwelling coverage policy. This table allows you to quickly evaluate how much is home insurance in [state] across the country.
Note: The state averages below use a different coverage profile, so they're best read as directional comparisons rather than a direct match to the national figure.
State | Average Annual Premium | Average Monthly Cost |
Alabama | $2,668 | $222.33 |
Alaska | $1,096 | $91.33 |
Arizona | $2,101 | $175.08 |
Arkansas | $3,864 | $322.00 |
California | $1,628 | $135.67 |
Colorado | $3,846 | $320.50 |
Connecticut | $1,672 | $139.33 |
Delaware | $1,009 | $84.08 |
Florida | $2,120 | $176.67 |
Georgia | $2,009 | $167.42 |
Hawaii | $574 | $47.83 |
Idaho | $1,532 | $127.67 |
Illinois | $2,389 | $199.08 |
Indiana | $2,057 | $171.42 |
Iowa | $2,425 | $202.08 |
Kansas | $3,435 | $286.25 |
Kentucky | $2,934 | $244.50 |
Louisiana | $6,050 | $504.17 |
Maine | $1,191 | $99.25 |
Maryland | $1,795 | $149.58 |
Massachusetts | $1,379 | $114.92 |
Michigan | $2,439 | $203.25 |
Minnesota | $2,758 | $229.83 |
Mississippi | $2,784 | $232.00 |
Missouri | $3,472 | $289.33 |
Montana | $2,880 | $240.00 |
Nebraska | $5,923 | $493.58 |
Nevada | $1,080 | $90.00 |
New Hampshire | $1,169 | $97.42 |
New Jersey | $1,216 | $101.33 |
New Mexico | $1,746 | $145.50 |
New York | $1,367 | $113.92 |
North Carolina | $2,585 | $215.42 |
North Dakota | $2,691 | $224.25 |
Ohio | $1,651 | $137.58 |
Oklahoma | $4,720 | $393.33 |
Oregon | $1,112 | $92.67 |
Pennsylvania | $1,359 | $113.25 |
Rhode Island | $2,097 | $174.75 |
South Carolina | $1,751 | $145.92 |
South Dakota | $3,039 | $253.25 |
Tennessee | $2,431 | $202.58 |
Texas | $3,221 | $268.42 |
Utah | $1,421 | $118.42 |
Vermont | $915 | $76.25 |
Virginia | $1,408 | $117.33 |
Washington | $1,346 | $112.17 |
West Virginia | $1,281 | $106.75 |
Wisconsin | $1,430 | $119.17 |
Wyoming | $1,689 | $140.75 |
The geographic divergence in average home insurance rates is staggering.
The most expensive states—Louisiana ($6,050), Nebraska ($5,923), Oklahoma ($4,720), and Arkansas ($3,864)—are plagued by severe, frequent weather risks. Hurricanes along the Gulf Coast, severe tornadoes and hail across the Great Plains, and other extreme weather events drive up claim volumes, forcing insurers to raise premiums to cover their risks.
However, weather events can have varying impacts on homeowners insurance premiums in the same state, city, or even ZIP code.
Most homeowners assume that their insurance rates are driven solely by weather. The reality is that two homes can experience the same storm, but if one area has been consistently producing larger claim payouts, that area will likely get the higher rates.
Conversely, the cheapest states—such as Hawaii ($574), Vermont ($915), and Delaware ($1,009)—benefit from mild climates, lower risk of catastrophic natural disasters, and more stable, predictable local insurance markets.
Insurance underwriters evaluate a wide range of factors to calculate the specific level of risk your home presents. These factors generally fall into four key categories:
This is about more than just your state. Insurers look at your exact ZIP code. They analyze your neighborhood’s proximity to coastlines or known wildfire zones, the local crime rate, and your home’s distance to the nearest fire station and fire hydrant.
Choosing higher dwelling coverage limits or adding optional riders (such as water backup coverage) will raise your premium. On the flip side, choosing a higher out-of-pocket deductible will lower your monthly or annual costs.
Your past insurance claims history can affect your current pricing, as insurers view past claimants as more likely to file future claims. Additionally, having certain dog breeds (classified as liability risks) or features like a swimming pool can increase your premium. In most states, insurers also use your credit-based insurance score to price your policy.
If you have noticed your premiums climbing over the last few years, you are experiencing a broader market shift. Homeowners insurance has become more expensive nationwide due to two main macroeconomic factors:
Climate risks are no longer confined to the coasts. Severe convective storms, unexpected freeze events, convective windstorms, wildfires, and flash floods are causing massive, billion-dollar payouts across the country. Insurers must raise premiums across the board to remain solvent.
The cost to rebuild a home has risen dramatically. High inflation has driven up the cost of raw building materials (like lumber, concrete, and roofing shingles) and skilled construction labor.
Because home insurance pays to rebuild your home rather than matching its current real estate market value, insurers must collect higher premiums to cover these inflated reconstruction bills.
While you can't control inflation or the weather in your state, you're not entirely powerless against rising premiums. Here are five practical ways to lower your costs:
Understanding the factors that influence your home insurance cost is the first step toward regaining control of your housing budget. While the estimated national average of $2,450 per year serves as a useful benchmark, your home’s specific features and location will ultimately dictate your final price.
The best way to combat rising rates in 2026 is to remain an active consumer. By upgrading your home's defenses, adjusting your deductible, and comparing customized quotes from multiple competitive insurers, you can find reliable, comprehensive protection for your home without overpaying. Use BestMoney's comparison tools today to secure the best rates for your property.
Is home insurance required by law?
No state law requires homeowners to carry insurance. However, if you have a mortgage on your home, your lender will strictly mandate that you maintain an active homeowners policy to protect their financial investment in your property.
Does my credit score affect my home insurance rate?
Yes, in the vast majority of states, insurance companies use a credit-based insurance score to help determine your premium. However, states like California, Maryland, and Massachusetts have banned the use of credit scores in home insurance pricing.
How much coverage do I actually need?
You need enough Dwelling Coverage to cover the full cost of rebuilding your home from scratch if it were completely destroyed. This "reconstruction cost" is entirely separate from your home’s real estate market value, as it is based purely on local labor and building material costs.
Elizabeth Rivelli is a business finance and insurance expert at BestMoney.com with over five years of experience covering car, home, life, and health insurance. She has contributed to major outlets such as Investopedia, Forbes, CNN Underscored, U.S. News & World Report, and Bankrate. Elizabeth also partners with insurance companies to provide readers with practical insights into industry trends.
