How we put this guide together: figures come from NerdWallet’s 2026 rate analysis (40-year-old homeowner with good credit, $400,000 dwelling, $300,000 liability, $1,000 deductible), Insurify’s October 2026 data and FEMA. We don’t sell insurance. Your own quote will differ. See our advertiser disclosure.
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NerdWallet’s May 2026 analysis puts the national average at $2,490 a year (about $208 a month) for $400,000 of dwelling coverage with a $1,000 deductible. Insurify’s October 2026 figure is $2,808 a year for $300,000 of dwelling cover; the two use different methods, so treat them as a range rather than a single “right” number.
The amount of dwelling coverage you need is the single biggest lever after location. In NerdWallet’s data, $200,000 of cover averaged $1,480 a year, $400,000 averaged $2,490 and $800,000 averaged $4,445. See the full breakdown in average home insurance cost by state.
Cheapest and most expensive states
| 10 cheapest states | Average a year | 10 most expensive | Average a year |
|---|---|---|---|
| Hawaii | $900 | Oklahoma | $7,255 |
| Vermont | $1,170 | Nebraska | $6,015 |
| Delaware | $1,365 | Kansas | $5,455 |
| Alaska | $1,385 | Arkansas | $4,955 |
| New Jersey | $1,480 | Texas | $4,915 |
| New Hampshire | $1,500 | Mississippi | $4,445 |
| Maine | $1,525 | Alabama | $4,285 |
| Nevada | $1,635 | Tennessee | $4,220 |
| Massachusetts | $1,645 | South Dakota | $3,965 |
| Washington, D.C. | $1,645 | Colorado | $3,910 |
Source: NerdWallet, May 2026 ($400,000 dwelling, $1,000 deductible). Every state is listed in our state-by-state guide.
Why premiums keep rising
- Rebuilding costs. Labor and materials cost more, so insurers raise dwelling limits and premiums at renewal even if you never claimed.
- Severe weather. NOAA counted 27 disasters in 2024 that each caused at least $1 billion in damage. Rates are rising fastest where wildfires (the West), hail (the Midwest) and hurricanes (the Southeast) are becoming more common, NerdWallet reports.
- What homeowners are seeing. In a 2026 NerdWallet survey, 34% of homeowners said their premium went up in the past 12 months, and 21% said severe weather had affected rates where they live.
What a standard policy covers
| Part of the policy | What it pays for | Typical amount |
|---|---|---|
| Dwelling | Repairing or rebuilding the house itself | Enough to rebuild, not the market price |
| Other structures | Detached garage, fences, sheds | Often 10% of dwelling |
| Personal property | Furniture, clothes, electronics | Often 50% of dwelling |
| Loss of use | Hotel and extra living costs while your home is repaired | Often 20% of dwelling |
| Personal liability | If you are sued for injuries or damage to others | $100,000–$500,000 |
| Medical payments | Small medical bills for guests hurt at your home | $1,000–$5,000 |
The percentages mirror NerdWallet’s sample policy ($400,000 dwelling with $40,000 other structures, $200,000 personal property and $80,000 loss of use). Your policy may set them differently.
What it usually doesn’t cover
Standard policies exclude flood and earthquake damage, wear and tear, and problems caused by poor maintenance such as slow leaks or pests. Flood cover is bought separately, often through FEMA’s National Flood Insurance Program. Our guide to what home insurance doesn’t cover explains the gaps and how to fill them.
Replacement cost vs. actual cash value
How your policy values a loss matters as much as the limit. Replacement cost pays what it costs to repair or replace damaged property with new items of similar quality. Actual cash value pays replacement cost minus depreciation, so a ten-year-old sofa or roof might be worth a fraction of its replacement price. Many policies use replacement cost for the house but actual cash value for belongings unless you upgrade, and some insurers now pay actual cash value for older roofs. Check both on your declarations page.
Home insurance for different homeowners
- First-time buyers: your lender will require proof of insurance before closing and usually collects the premium through escrow with your mortgage payment.
- Condo owners: you need an HO-6 condo policy, which covers your unit’s interior and belongings; the building’s structure is usually covered by the association’s master policy.
- Landlords: a rented-out home needs a landlord (dwelling fire) policy, not a standard homeowners policy.
- Older homes: old wiring, plumbing or roofs can raise premiums or limit which insurers will cover the home. Updates can bring the price down.
How a home insurance claim works
- Prevent further damage, for example by covering a broken window, and keep receipts.
- Photograph everything before you clean up or throw anything away.
- Report the claim to your insurer promptly; most policies require timely notice.
- Meet the adjuster, who inspects the damage and estimates the repair cost.
- Get paid, minus your deductible. With replacement cost cover, some insurers pay depreciation only after repairs are done.
Small claims can raise your premium at renewal, so weigh the payout against your deductible before filing.
Which companies tend to be cheapest
Among large national insurers, NerdWallet’s 2026 data found USAA cheapest at $1,940 a year (military families only), followed by State Farm ($2,415), Progressive ($2,580), Travelers ($2,710) and Allstate ($2,715). Smaller regional insurers are often cheaper still in their home states. Details are in our cheapest home insurance guide.
Savings tip: many insurers give their biggest discount for bundling home and auto. American Family advertises up to 40% and Amica and Country Financial up to 30%, according to NerdWallet. Get bundled and separate quotes and compare the totals.
Where the savings are
| Move | Why it helps |
|---|---|
| Compare three or more insurers | Prices for the same home vary widely, and regional companies can undercut national brands |
| Bundle home and auto | Bundle discounts of 10% to 40% at some insurers |
| Raise your deductible | A higher deductible lowers the premium, as long as you can pay it after a claim |
| Insure the rebuild cost, not the market price | Land isn’t at risk of burning down, so you don’t need to insure it |
| Upgrade the roof and add protective devices | Impact-resistant roofs, alarms and water-leak sensors can earn discounts |
We go through each of these in ways to lower your home insurance premium.
How to compare home insurance quotes
- Work out your rebuild cost, not your home’s sale price. Your current insurer or a local builder can help.
- Keep the coverage the same in every quote: dwelling, personal property, liability and deductible.
- Check the deductibles for wind, hail and hurricanes. In storm-prone areas these are often a percentage of your dwelling limit rather than a fixed dollar amount.
- Ask about replacement cost for your belongings, rather than actual cash value, which deducts depreciation.
- Check complaint records and financial strength before you switch.
Common questions
How much is homeowners insurance in 2026?
About $2,490 a year on average for $400,000 of dwelling coverage, according to NerdWallet’s May 2026 analysis. Insurify puts it at $2,808 a year for $300,000 of dwelling coverage.
Which state has the cheapest home insurance?
Hawaii had the lowest average in NerdWallet’s 2026 data at $900 a year, followed by Vermont ($1,170) and Delaware ($1,365). Oklahoma was the most expensive at $7,255.
Does homeowners insurance cover floods?
No. Standard policies exclude flood damage. You need a separate flood policy, often through FEMA’s National Flood Insurance Program or a private insurer.
Sources
- NerdWallet: Average homeowners insurance cost, 2026 (May 2026)
- NerdWallet: Cheapest home insurance, 2026 (Feb 2026)
- NerdWallet: Best home and auto insurance bundles (Sept 2026)
- Insurify: Average cost of homeowners insurance (Oct 2026)
- FloodSmart (FEMA National Flood Insurance Program)
Prices, discounts and rules change often and vary by state and driver. Figures were checked in October 2026; confirm details with the insurer or your state insurance department.