According to Bankrate, the average cost of homeowners insurance in the United States in January 2025 stood at $2,181 a year for a policy with a $300,000 dwelling limit. This means that homeowners are paying an average of $182 each month.
This is just the national average. You may be paying significantly more or less. The cost of your homeowners insurance policy depends on multiple factors, including the age of your home, its square footage, your deductible and policy limits that you choose and, most importantly, where your home is located.
For instance, Bankrate found that Florida residents pay some of the steepest prices for homeowners insurance, with an average yearly policy cost of $5,376 as of January 2025. In Nebraska, that figure stands even higher at $5,401, the highest in Bankrate’s study.
The reason for the high costs in these states? Volatile weather. Florida is hit by more hurricanes than other states. In Nebraska, violent windstorms are common. To mitigate the risk of insuring in these states, companies charge higher policy rates to cover the costs of paying out for the increased number of claims.
In Vermont, the average cost of homeowners insurance is $794 each year as of January 2025, according to Bankrate. It is the lowest average in the country and 64% lower than the national average for homeowners insurance policy premiums.
Homeowners in Alaska and Delaware also pay less on average, with homeowners insurance policies averaging $868 in Alaska each year and $938 in Delaware, Bankrate reported in January 2025.
Weather-related natural disasters could cause property insurance rates to rise in several states. The New York Times reported in May 2024 that insurance providers in at least 18 states are raising homeowners insurance rates because of severe weather events.
Keeping Your Homeowners Insurance Costs Low
You might not be able to do much about the impact of natural disasters on insurance rates, but you can take steps to keep your homeowners insurance policy premium as affordable as possible.
Shop around. You do not have to stay with your current homeowners insurance provider. Instead, regularly shop around by requesting quotes from competing insurers. Ensure that you compare policies that have the same coverage amounts. You might find a policy providing the same protection at a lower cost.
Bundle. By taking out more than one policy with the same insurer, known as bundling, you will usually qualify for discounts. If you take out a homeowners and an auto insurance policy from the same company, that insurer might provide you with a discount on your policy premiums. You may then consider moving other coverage from another provider to your homeowners insurance provider to get a discount.
Boost your home’s security. You will often qualify for a discount if you install a home security system. Such a system reduces the chance that your home will be burglarized, also reducing the chance that you will file an insurance claim. If you are less of a risk, insurers will typically charge you less for your homeowners policy.
Install a weather-resistant roof. Installing a roof that is designed to be resistant to hail, extreme storms and other weather events can also lower your premium. Again, this is because you are less likely to file a claim if you take this protective measure.
Increase your deductible. Your deductible is the amount you pay out of pocket before your homeowners insurance coverage kicks in. If you have a deductible of $1,000 and your home suffers $6,000 in damage from a fire, you will pay the first $1,000 to replace your damaged or destroyed items while your insurer will pay the remaining $5,000. The higher your deductible, the lower your monthly premium. Just be sure that you can afford to pay your deductible when you file a claim. Unlike health insurance deductibles, keep in mind for budgeting purposes that a home insurance deductible is required for every claim, not just once per year.