What Is Average Homeowner Insurance Cost

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What Is Average Homeowner Insurance Cost

What Is Average Homeowner Insurance Cost

Insurance is a personalized service. The cost and coverage differ significantly depending on several specific criteria, such as the location, age, and cost of construction goods. Every state’s laws and natural disasters affect how much house insurance costs.

However, because so many variables affect premiums, figuring out the typical cost of homeowner insurance can be challenging. Here, we cover the aspects of determining these expenses and what to plan for when looking for insurance.

What Does Home Insurance Cover?

Basic forms of coverage are usually included in homeowner’s insurance policies:

Dwelling Protection & Other Structures Coverage: covers the cost of rebuilding or repairing your house and other structures, such as a garage or fence, if a covered risk causes damage to them.

Coverage for Personal Property: safeguards your personal belongings against harm or destruction resulting from a covered loss, including electronics, furniture, sporting goods, and apparel.

Loss of Use Coverage: assists in covering living costs if a covered incident forces you to temporarily vacate your home, including housing, food, and other essentials.

Personal Liability Coverage: assists in covering the cost of any claims for physical harm, property damage, or medical expenses, and offers legal defense if you are proven accountable.

Payments for Medical Care to Others: cover modest medical claims if a visitor is hurt on or on your property.

Other Basic Coverages: covers costs incurred following a covered occurrence to stop additional damage. For instance, covers the cost of debris removal following a fire or fire department service charges.

Average Homeowner Insurance Cost

Insurers’ average monthly premiums for homeowners insurance for a 12-month policy range from $999 ($83/month) to $1655 ($138/month) for plans that go into effect on or after April 1st, 2020. Many factors, such as geography, past claims history, policy limitations, and the features of your property, influence homeowners insurance prices, which explains the price range.

How much does home insurance cost the company?

You can see premium data for various coverage options from some of the biggest carriers by market share below, sourced by Quadrant Information Services.

Insurance company              Average annual rate              Average monthly rate
USAA                                        $1,076                                         $90
State Farm                               $1,461                                         $122
Erie                                           $1,138                                          $95
Chubb                                      $2,021                                        $168
Amica                                       $1,429                                          $119

Factors Affecting the Price of Homeowners Insurance:


An important factor influencing insurance rates is your geographic location. The risk associated with living in areas vulnerable to natural disasters like hurricanes, earthquakes, and wildfires sometimes results in higher premiums.

Home Features:

Your home’s age, size, and building materials all matter. Higher premiums may apply to older residences or homes built with more fragile materials.

Coverage Limits:

The level of coverage you select will have an impact on your premium. The cost of insurance goes up with higher coverage limits or extra endorsements for expensive goods.


Choosing a greater deductible usually results in reduced premiums, but it also increases your out-of-pocket expenses in the event of a claim.

Claims History:

If you have a history of filing claims, insurers may raise your rate because they believe you pose a greater risk.

Credit Score:

Your credit score affects your insurance price in several states. Costs may be greater for those with poorer credit ratings.

Safety Devices:

You may be able to receive premium reductions if you install smoke detectors, security systems, and other safety features.

Learn more about home insurance policies.


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