How much is homeowners insurance

What factors affect homeowners insurance cost?

You bought a new house and are trying to get a handle on your monthly expenses, one of the most important being your homeowners insurance. Determining the average cost of homeowners insurance depends on a wide variety of factors. For instance, did you know that owning a specific breed of dog can impact your homeowners insurance cost? Let’s take a look at some of the factors that determine how your homeowners insurance is calculated – and what you can expect.

Let’s take a look at some of the factors that determine how your homeowners insurance is calculated – and what you can expect.

  1. Insurance and claims history

    The following are some of the factors that may be taken into account when determining your homeowners premium:
    • Credit history
    • Insurance score
    • Gaps in coverage
    • Amount of homeowners claims
    • Frequency of homeowners claims
  2. Qualities of your new house

    • Age of the home – Older models may be more expensive to insure because they often aren’t updated to local building codes.
    • Type of structure – The primary material used (such as brick or stone), as well as roof type (such as composite shingle or slate), are taken into consideration.
    • Security and safety features – Having the latest alarm systems and smoke detectors installed could result in a lower premium. Other devices that could help reduce payments include deadbolt locks, fire extinguishers, and sprinkler systems.
  3. The location of your home

    One of the biggest impacts on your homeowners insurance cost is where you live. If you reside in an area prone to hurricanes or earthquakes, for instance, you generally will need additional coverage – which will likely impact your rate.

    In addition to your region, the physical location of your house matters, too. Being close to a police or fire station are contributing factors, as well as living in a neighborhood that experiences a high number of burglaries.

Average cost of homeowners insurance by state

Average insurance rates vary by state because of factors such as population density (and associated property values) and catastrophe risk. Here are the average home insurance rates by state:

State Average Annual Cost
Alabama $1,116
Alaska $1,002
Arizona $966
Arkansas $1,091
California $966
Colorado $994
Connecticut $1,058
Delaware $1,172
District of Columbia $1,047
Florida $1,117
Georgia $1,137
Hawaii $977
Idaho $966
Illinois $924
Indiana $906
Iowa $918
Kansas $908
Kentucky $1,106
Louisiana $1,108
Maine $989
Maryland $1,212
Massachusetts $1,031
Michigan $919
Minnesota $951
Mississippi $1,099
Missouri $897
Montana $948
Nebraska $907
Nevada $933
New Hampshire $1,049
New Jersey $1,052
New Mexico $949
New York $952
North Carolina $1,118
North Dakota $906
Ohio $895
Oklahoma $1,114
Oregon $950
Pennsylvania $1,003
Rhode Island $982
South Carolina $1,126
South Dakota $898
Tennessee $1,118
Texas $1,140
Utah $1,025
Vermont $1,004
Virginia $1,181
Washington $986
West Virginia $1,101
Wisconsin $903
Wyoming $966


States with expensive vs cheap homeowners insurance

Cheapest states to own a home

  1. Ohio

    Ohio is the least expensive state in the country to insure a home in according to updated 2021 numbers, with an average annual premium of $895.1
  2. Missouri

    Low end home values2 and a low population density3 put Missouri at the second least expensive state in the country to insure a home, with an average annual premium of $897.4
  3. South Dakota

    A population density of only 167 people per square mile5 helps South Dakota clock in at the third least expensive state to insure a home, with an average annual premium of $898.6

Most expensive states to own a home

  1. Maryland

    Maryland sports the highest home insurance premiums of any state in 2021, with an average annual rate of $1,212.
  2. Virginia

    The second highest home insurance premiums are in Virginia, with average annual premiums of $1,181.
  3. Delaware

    “The First State” checks in at third for most expensive states to insure a home in, with average annual rates of $1,172.7

Budgeting for the monthly cost of home insurance

Insurance is designed to save you money in the event of misfortune, but it’s still a monthly expense that must be built into your budget. Comfortably making these monthly payments entails creating a spending plan and sticking to it, ideally with the help of an expense tracking plan alongside it.8 It’s important to remember that you can take your insurance rate into your own hands, however. Improving your home security, modernizing your heating, plumbing and cooling systems, and checking for any additional discounts you may qualify for are all ways to drop your monthly home insurance rate.

Remember, dependable homeowners insurance shouldn’t have to strain your budget. There are plenty of opportunities to save, such as bundling your auto and homeowners policies. Take a look at some of the insurance discounts Nationwide has to offer.

1, Accessed October 2021.

2, Accessed October 2021.

3, Accessed October 2021.

4, Accessed October 2021.

5, Accessed October 2021

6, Accessed October 2021.

7, Accessed October 2021.

8, Accessed October 2021.

The information included is designed for informational purposes only. It is not legal, tax, financial or any other sort of advice, nor is it a substitute for such advice. The information may not apply to your specific situation. We have tried to make sure the information is accurate, but it could be outdated or even inaccurate in parts. It is the reader’s responsibility to comply with any applicable local, state, or federal regulations. Nationwide Mutual Insurance Company, its affiliates and their employees make no warranties about the information nor guarantee of results, and they assume no liability in connection with the information provided. Nationwide, Nationwide is on your side, and the Nationwide N and Eagle are services marks of Nationwide Mutual Insurance Company. 2021 Nationwide.