Homeowners Insurance Cost by State (2026)

What homeowners insurance costs

Homeowners insurance is a package policy that pays to repair or rebuild your home, replace your belongings, and defend you if someone is hurt on your property. If you have a mortgage, your lender almost always requires it, and the premium is usually rolled into your monthly escrow payment.

Bankrate's 2026 analysis puts the national average at $2,424 per year — about $202 a month — for a policy with $300,000 in dwelling coverage^[1]. NerdWallet's separate estimate lands close to that range but uses a different benchmark: it headlines $2,490 a year for a policy with $400,000 in dwelling coverage^[2]. The takeaway is the same in both cases — the "average" is only a starting point, and the dwelling amount you insure is one of the biggest levers on your price.

The averages hide enormous spread. Vermont homeowners pay about $69 a month on average, while Nebraska homeowners pay about $549 a month for the same $300,000 benchmark^[1]. The table below shows the five cheapest and five most expensive states.

Why the price swings by state

The single biggest driver is weather risk. The most expensive states sit in tornado and hurricane country — Nebraska, Kansas, and Oklahoma see frequent severe convective storms, while Florida and Louisiana face hurricane wind and flooding exposure^[1]. When a disaster hits a region, many homeowners file claims at once, so insurers price that concentrated risk into premiums.

Convective storms alone caused more than $50 billion in U.S. insured losses in 2025, the third consecutive year above that mark, according to the Insurance Information Institute's director of corporate communications^[1]. That's why several Midwest states are seeing substantial rate increases even as the national pace of increases cools.

Rebuilding cost is the other half of the equation. Where labor and materials are more expensive, or where homes are more exposed to wind, fire, or hail, the same coverage simply costs more to provide. That's why state averages can differ by a factor of eight even though the coverage benchmark is identical.

What a standard policy covers

A standard homeowners policy bundles four core protections, according to the Insurance Information Institute^[3]:

• Dwelling coverage — pays to repair or rebuild the structure of your home after a covered loss, plus detached structures (a garage or shed), typically up to about 10% of your dwelling limit.
• Personal property — covers your belongings if they're stolen or destroyed by a covered event, generally 50–70% of your dwelling limit.
• Liability — covers lawsuits for injury or property damage you or your family cause to others, and pays for your legal defense. Limits usually start around $100,000.
• Additional living expenses (ALE) — pays for hotel bills, meals, and other extra costs if you can't live at home while it's being rebuilt.

Two big things are not covered by a standard policy: flood and earthquake damage^[3]. Flood coverage is typically bought separately through the National Flood Insurance Program or a private insurer, and earthquake coverage is a standalone policy or endorsement in most states.

How much dwelling coverage you need

Insure the house to rebuild it, not to what you paid for it. The market value of a home includes the land, which doesn't need rebuilding, and the sale price can be far from what local contractors would charge to reconstruct the structure from scratch.

For most policies, choose replacement cost coverage rather than actual cash value. Replacement cost pays what it costs to rebuild today; actual cash value subtracts depreciation, which can leave you short after a total loss. The dwelling limit should reflect current local construction costs, not your mortgage balance.

A quick sanity check: if you know your home is roughly 2,000 square feet and local rebuild costs run $150–$200 per square foot, you're looking at a $300,000–$400,000 dwelling limit — right around the benchmark the averages above are based on^[1].

How to lower your premium

Premiums vary by hundreds of dollars between insurers for the same home, so shopping is the fastest way to save. Bankrate's company-level data shows a spread of over $1,500 a year between the lowest and highest average rates for the same $300,000 benchmark^[1].

Beyond shopping around, the most reliable levers are a higher deductible, bundling home and auto with one insurer, and keeping your credit in good shape — Bankrate found homeowners with poor credit pay an average of 137% more than those with excellent credit^[1]. Discounts for a new roof, security systems, and a claim-free history can trim the bill further.

FAQ

Do I need flood insurance separately?

Usually yes. A standard homeowners policy excludes flood damage, so if you're in or near a flood zone — or your lender requires it — you'll buy a separate policy through the National Flood Insurance Program or a private insurer^[3]. Earthquake coverage works the same way.

How much dwelling coverage do I need?

Enough to rebuild your home at today's construction prices, which is often different from both the market value and your mortgage balance. Use replacement cost coverage and size the limit to local rebuild costs per square foot.

Does my credit score affect my home insurance?

In most states, yes. Insurers use credit-based insurance scores to price risk, and the effect is large — homeowners with poor credit pay roughly 137% more on average than those with excellent credit^[1].