What is the average price of home insurance?

While each state’s average price of home insurance ranges from $780 - $2,437, the national average is $1,411 (iii.org, 2021).* Insurers consider several factors when determining each customer's premiums. Ultimately, these details help insurance companies calculate customers’ claim risks.

Your home’s location, condition and age affect insurance rates. Your credit history and the discounts applied to your account also impact prices.

The following article provides the average price of homeowners insurance by state, details affecting prices and tips to lower your home insurance costs.

What affects home insurance prices?

While not exhaustive, insurers use many of these coverage-related data to determine your homeowners insurance rates.

Personal details

• Claim history: Fewer insurance claims typically indicate lower future claim risks, resulting in lower premiums.
• Credit history: High personal and insurance credit scores typically indicate lower claim risks, leading to lower insurance premiums.
• Coverage gaps: Lapses in coverage usually result in increased home insurance premiums.
• Marital status: Data suggest married couples file fewer claims, leading to lower homeowners insurance premiums.

Home insurance savings tip: Improving your credit score may reduce your home insurance prices.

Insurance details

• Coverages: Adding endorsements like home appliance coverage typically increases home insurance premiums.
• Deductibles: Selecting higher deductibles may help shrink insurance premiums.
• Discounts: Signing up for savings programs like AutoPay or Paperless Billing may help reduce home insurance rates.
• Limits: Sticking with base home coverage limits, such as those in a standard home insurance policy, may help maintain lower home insurance premiums.
• Payments: Making annual payments versus biannual or monthly payments may lower home insurance costs.

Home insurance savings tip: Work with your insurance agent to find qualifying savings programs, such as our loyalty and bundling discounts.

Home details

• Age: Older homes are typically more prone to damage, increasing your insurance claim risks.
• Condition: Homes with recent upgrades, such as new wiring, typically yield lower insurance premiums.
• Construction: Homes made from materials that combat local environmental threats, such as brick versus wood in a wildfire-prone area, may be less risky to insure.
• Features: Pools, hot tubs and trampolines typically increase accident-related insurance claims, impacting insurance costs.
• Location: Crime rates, proximity to fire stations and disaster risks such as flooding or wildfires may significantly impact insurance premiums.
• Safety features: Security systems, water leak detectors and smart home systems may lower insurance premiums.

Home insurance savings tip: If you have a home security system, you may qualify for our Safe, Secure, Smart home discount. Contact your agent for details.

Average home insurance costs

Standard home insurance price averages vary by premium payment and state, among other listed factors. However, the following details may help you decide which is best.

Average monthly versus yearly home insurance costs

Insurers typically offer customers insurance discounts for paying annually instead of monthly. If you can manage higher upfront costs, paying your premiums in one lump sum may provide added savings.

With qualifying savings programs, you may be able to lower your home insurance premiums. The following are more American Family Insurance discounts to discuss with your agent.

• Age of Home discount
• Bundling discounts 
• Diminishing Deductible coverage 
• Full Pay discount
• Generational discount
• Renovated Home discount

Get a home insurance quote

Contact a local American Family agent for your custom homeowners insurance quote. They can help you get the coverage you need with qualifying discounts and savings programs.

For more home information, visit our home insurance FAQ resources.

This article is for informational purposes only and based on information that is widely available. This information does not, and is not intended to, constitute legal or financial advice. You should contact a professional for advice specific to your situation.

The information on this webpage represents only a brief description of coverages, is not part of your policy, and is not a promise or guarantee of coverage. If there is any conflict between this information and your policy, the provisions of the policy will prevail. Insurance policy terms and conditions may apply. Coverage features and limits vary by state and may be subject to change. Some products are not available in every state. Discount availability and eligibility vary by state and policy terms. (Discounts apply to auto and property policies.) Please check with your agent and read the policy for exact details on coverages and exclusions. We are not responsible for the content of any third-party sites that may be linked in this article.

*“Archived Tables.” III, https://www.iii.org/table-archive/21407. Accessed 21 Jan. 2025.