Shuman Roy is an entrepreneur, business owner, and musician. He started RoysNoys, LLC in 2013 as a music production and education service company. He also offers small business consulting and advisory services to help businesses get from start-up mode to turn-key operations. Shuman earned his M.B.A from the Stern School of Business in 2001 and has an undergraduate degree from Manhattan College in ...

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Joel Ohman is the CEO of a private equity-backed digital media company. He is a CERTIFIED FINANCIAL PLANNER™, author, angel investor, and serial entrepreneur who loves creating new things, whether books or businesses. He has also previously served as the founder and resident CFP® of a national insurance agency, Real Time Health Quotes. He has an MBA from the University of South Florida. Joel...

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Reviewed by Joel Ohman
Founder, CFP® Joel Ohman

UPDATED: Feb 28, 2022

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If you’re wondering how much homeowner’s insurance costs, you’ve come to the right place.

The average cost of homeowner’s insurance has been rising steadily over the past decade, according to data from the National Association of Insurance Commissioners (NAIC).

In fact, the average homeowner’s insurance premium, which was just $508 in the year 2000, increased to $1,192 at last glance (2016 data).

That’s nearly a 135% jump in the cost of homeowner’s insurance, not welcome news for already struggling homeowners.

What is the average cost of homeowners insurance?

average cost of homeowners insurance

As you can see from the chart above from the Insurance Information Institute, average homeowners insurance premiums have risen pretty consistently over the years.

And it didn’t stop in 2010 or beyond that – it just kept rising and will likely continue to increase.

The good news is the year-over-year increases seemed to slow down in recent years, though because of recent major weather-related events like wildfires, they’re probably going to jump yet again.

Part of the rise in homeowner’s insurance costs can be attributed to the many damages (and subsequent insurance claims) related to catastrophes like Hurricane Katrina and other major storms.

The unhealthy (opinion) rise in home prices over the past several years also contributed to the rise in homeowners insurance costs, as larger and more expensive homes obviously cost more to insure.

Add to that the large number of vacant homes on the market, which reduces the volume of homeowners insurance written and raises costs for the fewer policies sold, and you can see why prices have been rising.

(How are homeowners insurance rates determined?)

However, the cost of homeowner’s insurance varies greatly throughout the country, and from company to company (and also by types of homeowner’s insurance and coverage limits).

It can also change fairly frequently, based on a number of market forces, and may even be cheaper now than what you paid for it a year or two ago (home sizes are getting smaller!).

Your homeowners insurance carrier will also likely take some personal factors into account when setting your monthly premium, such as your age, credit score, marital status, and claims history.

That’s why it’s always wise to shop your homeowners insurance rate with an independent agent to ensure you’re always getting the best deal.

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What is the most expensive state for homeowners insurance?

In 2016 (the most recent data available), the average cost of homeowners insurance was highest in Louisiana with a whopping annual premium of $1,967, followed by Texas at $1,937 and Florida at $1,918.

The national average annual cost of a homeowners policy of $1,192 in 2016. Take a look at the list below to see the other states that rank most expensive for homeowners insurance.

  1. Louisiana ($1,967)
  2. Texas ($1,937)
  3. Florida ($1,918)
  4. Oklahoma ($1,875)
  5. Kansas ($1,548)
  6. Mississippi ($1,525)
  7. Rhode Island ($1,496)
  8. Connecticut ($1,455)
  9. Massachusetts ($1,451)
  10. Colorado ($1,446)

What is the cheapest state for homeowners insurance?

The cheapest states to get homeowners insurance were Oregon at $659, Utah at $664, and Idaho at $703.

  1. Oregon ($659)
  2. Utah ($664)
  3. Idaho ($703)
  4. Nevada ($742)
  5. Wisconsin ($762)
  6. Arizona ($803)
  7. Delaware ($816)
  8. Washington ($822)
  9. Ohio ($850)
  10. Maine ($866)

This should definitely be a consideration if you’re thinking about buying real estate, as the cost of homeowners insurance can greatly alter your monthly housing payment.

In some extreme scenarios, the cost of homeowners might even rival the cost of the monthly mortgage payment itself.

Factor in the annual property taxes and you might struggle to make ends meet each month.

How can you reduce your homeowners insurance cost?

The average homeowner’s policy has increased by more than $1,000 in the past decade. The increase is due to rising costs for property damage and liability coverage as well as inflation-related increases in deductibles and other expenses.

But there are ways that you can save money on your home insurance without sacrificing protection or quality service. One of the best ways to save money is to ask about insurance discounts.

Your provider may offer discounts for having certain safety features in your house, such as a burglar alarm or smoke detector.

Many companies also offer bundling discounts to those who choose to purchase both homeowners insurance and auto insurance or other types of insurance coverages.

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What’s the bottom line?

The cost of homeowners insurance is affected by a variety of factors including location, size of house, age of building, type of coverage purchased, etc. It’s important to compare quotes from multiple insurance companies and talk to an insurance agent before making any decisions.

Read more: Top 10 homeowners insurance companies.