Home Insurance Costs by State—Here's What You Should Expect to Pay in 2025
House Beautiful June 25, 2025
Buyer
House Beautiful June 25, 2025
Buyer
Your home is likely your most valuable asset, which is why it’s important to protect it should a disaster strike. Home insurance policies typically cover losses from the unexpected, everything from a tree crashing through your roof during a storm, a break-in while you’re on vacation, rebuilding after a wildfire, or making repairs after your basement's been flooded. Depending on your policy, coverage can include everything from structural damage to your personal belongings as well as a temporary place to live while your home is under renovation.
If you’re in the home insurance quote-gathering stage (pro tip: aim for at least three to compare), having a ballpark idea of what coverage typically costs in your state can give you a solid starting point. Rates swing widely depending on where you live, how much your home is valued, the age and condition of your property, and how much coverage you need. If you have a mortgage, your lender may also weigh in on what coverage is required, like flood insurance in some areas. That’s why having a baseline understanding of average insurance costs—both nationwide and in your state—can be a smart starting point when it comes time to compare quotes.
The average cost of homeowners insurance in the U.S. is $2,341 a year, which shakes out to $195 a month, for a policy with a $300,000 dwelling limit, according to Bankrate, a financial services company.
Even though inflation has cooled off from its peak, BankRate notes that insurance rates are still playing catch-up. Home insurance costs continue to rise due to a combination of past inflation-driven losses, pricier building materials, as well as the growing risk of extreme weather events, which is making it difficult for some homeowners in hurricane and wildfire-prone areas to even get home insurance.
Ahead, check out our expert explainer on how much insurance rates cost, what influences them, and a breakdown of average premiums by state.
Your home’s value and where it is located are two of the biggest drivers in how much you’ll pay for homeowners insurance.
“If you live in an area that’s prone to certain natural disasters, like hurricanes or wildfires, you may have higher premiums than the same home in a location not prone to hurricanes,” says Peter Piotrowski, Chief Claims Officer at Hippo Home Insurance.
Here are the factors that influence homeowners' insurance premiums, according to Piotrowski:
In addition to gathering multiple quotes from insurance providers, it’s also smart to regularly shop around for homeowners insurance and compare quotes.
Homeowners should review their insurance policy annually at renewal time and any time they experience major life changes, Piotrowski says. Key moments to reassess coverage include renovating or adding onto the home, moving to a new home, and experiencing significant weather events that increase risk. If switching providers, homeowners should secure new coverage at least one month before their current policy expires to prevent a coverage gap.
A significant rate increase at renewal is also a good reason to review options, says Zachary Patten, agency principal at Oak Grove Insurance in Massachusetts.
Some of the most significant factors currently impacting insurance rates are weather-related events and economic conditions.
“It's not just major weather events, such as the California wildfires,” Patten says. “As rainstorms and windstorms become more frequent, more and more home insurance claims are filed.”
Economic conditions also impact insurance rates. As the cost of construction materials and labor increases, so does the cost of repairing or rebuilding a home, he says.
Looking to trim your homeowners insurance premium? Here are a few savvy strategies that could help you trim your premium.
According to BankRates’ June 2025 insurance analysis, the most expensive states for homeowners insurance are Nebraska, Florida, and Oklahoma. The least expensive states are Vermont, Alaska, and Delaware.
Here is a state-by-state breakdown of average annual premiums (AAP) and average monthly premiums (AMP) for home insurance by state, according to BankRate’s most recent June 2025 analysis:
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