Average homeowners insurance cost in Madison, Wisconsin

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The typical homeowners insurance premium in Madison comes out to $1,673 per year for $300,000 in dwelling coverage, $100,000 in liability, and a $1,000 deductible – $842 less than the national average of $2,515. If you’re looking for the lowest rate, Secura Insurance is the most affordable option in Madison, averaging $1,300 per year.

That figure, however, is just a starting point. Premiums in Madison can differ by hundreds and thousands of dollars between two homes on the same block, based on factors like:

Size of your home
Age of your home
Amount of coverage you need
Location
Your credit score

Ways to lower your home insurance in Madison

Compare at least three quotes before every renewal – different companies offer the same coverage at different prices
Raise your deductible from $1,000 to $2,500 to save 10% to 15%
Bundle home and auto for a 10% to 25% multi-policy discount
Ask about discounts for security systems, smart-home devices, and claims-free history
Improve your credit in states where insurers use it

Average homeowners insurance cost per month in Madison

On a monthly basis, homeowners in Madison pay an average of $139. That’s $9 more than the state average of $148 and $70 less than the national average.

One of the most effective things you can do to reduce that figure is to compare quotes from several different insurers before renewing.

A quick look at homeowners insurance costs in Madison

Homeowners insurance in Madison costs around $1,673 per year, but rates vary significantly based on coverage levels and insurer. Choosing the right coverage amount and comparing providers can help you find the best value for your needs.

Homeowners insurance costs $1,673 per year in Madison
At $1,300 per year, Secura Insurance offers the cheapest homeowners insurance in Madison
Your home insurance rates increase by $398 more annually if you increase your dwelling coverage from $200,000 to $300,000

Average homeowners insurance cost for a $200,000 house in Madison

For a home with $200,000 in dwelling coverage in Madison, the average annual premium is $1,275. Your actual rate may shift depending on local hazards, which includes areas with higher natural disaster exposure often see elevated rebuilding costs, which pushes premiums up.

Standard policies generally don’t cover flood or hurricane damage, since those events can trigger widespread losses across large regions simultaneously. If your home is in a high-risk zone, separate flood or windstorm coverage may be necessary for complete protection.

It’s also worth making sure your dwelling limit reflects what it would actually cost to rebuild your home today – not its current market value. Reviewing your coverage regularly, comparing quotes, and taking advantage of available discounts are all practical ways to keep your costs manageable.

A quick look at homeowners insurance costs in Madison

Home insurance in Madison averages around $1,673 per year, but what you actually pay depends on the coverage level you choose and which insurer you go with. Shopping around and selecting the right limits can make a meaningful difference in your annual cost.

Homeowners insurance costs $1,673 per year in Madison
At $1,300 per year, Secura Insurance offers the cheapest homeowners insurance in Madison
Your home insurance rates increase by $398 more annually if you increase your dwelling coverage from $200,000 to $300,000

Average homeowners insurance cost for a $300,000 house in Madison

Insuring a home at the $300,000 dwelling coverage level in Madison costs an average of $1,673 per year. Stepping up from $200,000 to $300,000 in coverage adds approximately $398 to your annual premium.

Higher limits cost more because the insurer takes on more potential exposure if a major loss occurs. But that added cost can be worthwhile because having adequate coverage means you’re far less likely to face a large out-of-pocket expense after a serious claim.

People also ask:

How much dwelling coverage do you need for your home?

You need enough dwelling coverage to fully rebuild your home at current construction costs, not its market value. According to the Insurance Information Institute (III), a nonprofit organization that provides data and insights on the insurance industry, most homeowners insurance policies cover personal belongings at about 50% to 70% of the dwelling coverage amount.

To estimate the right coverage, consider your home’s size, materials, and local rebuilding costs in Madison.

Is $300,000 enough homeowners insurance coverage?

$300,000 in homeowners insurance may be enough if it fully covers the cost to rebuild your home in Madison. In areas with higher construction and labor costs, however, that amount may not be enough to pay for a full rebuild after a major loss.

A $300,000 policy is enough only if it fully covers your home’s rebuilding cost, which can vary based on local construction prices in Madison. In higher-cost areas, this amount may fall short, so it’s important to compare your coverage limit with estimated rebuild costs rather than market value.

Average homeowners insurance cost in Madison by company

When it comes to affordability, Secura Insurance leads the pack in Madison with an average annual rate of $1,300. Allstate and Auto-Owners round out the list of the most budget-friendly options available locally.

Premiums and policy terms vary considerably across insurers, so gathering multiple quotes gives you the clearest picture of what’s available in your market.

Home insurance company	Annual rate
Secura Insurance	$1,300
Allstate	$1,364
Auto-Owners	$1,385
Farmers	$1,551
West Bend Insurance Company	$1,750
Nationwide	$1,843
State Farm	$1,884
Acuity Insurance	$2,048
USAA*	$1,768

*USAA is only available to military community members and their families.

What factors affect homeowners insurance rates in Madison?

Insurance companies set premiums based on risk. Homes that are more likely to generate expensive claims usually cost more to insure. To calculate that risk, insurers look at factors related to your home, location, coverage, and financial profile.

The factors below usually have the biggest impact on your rate:

Size of your home. Your dwelling coverage needs to reflect what it would cost to rebuild your home, and that cost scales with size. A 3,500-square-foot home requires a higher coverage limit and carries a higher premium than a 1,500-square-foot home across the street. Insurers calculate rebuild cost using square footage, materials, and local labor rates, independent of your home’s market price.
Age of your home. Homes built decades ago often come with infrastructure that raises insurer concern: outdated wiring, aging pipes, and roofs past their prime. Compared to similar new construction, a home from 1925 with original electrical systems may cost 20% to 40% more to insure. If you’ve renovated major systems, flagging those updates with your insurer can help counteract the age surcharge.
Amount of coverage you need. The more coverage you carry, the higher your base premium. But your deductible is one lever you control directly. Raising it from $1,000 to $2,500 can lower your premium by 10% to 15%, and a $5,000 deductible can reduce it by over 20%. Just be realistic about what you could actually pay out of pocket if you needed to file a claim.
Location. Where your home sits matters enormously. Insurers analyze your ZIP code for storm and wildfire history, local crime rates, and the distance to the nearest fire station. Homes located more than 5 miles from fire services often face a premium bump, since longer response times mean greater potential for damage.
Your credit score. Most insurers rely on a credit-based insurance score when setting rates. The gap between poor and excellent credit can translate to a 50% or higher difference in premiums for the same policy. Three states have banned this practice for homeowners policies: California, Maryland, and Massachusetts.
Claims history. A history of claims, even on a previous home, can make your coverage more expensive or harder to obtain. Insurers may pull the CLUE report attached to your property’s address, meaning the previous owner’s claim history can factor into what you’re quoted today.

Frequently asked questions

Is homeowners insurance required in Madison?

Homeowners insurance is not legally required by law in Madison, but if you have a mortgage, your lender will almost certainly require it as a condition of your loan. Even if you own your home outright, going without coverage is a significant risk. A single major event like a fire or severe storm could cause hundreds of thousands in damage in repairs entirely out of pocket.

How much coverage do I need for my home?

You need enough dwelling coverage to fully rebuild your home from the ground up if it were completely destroyed. This isn’t the same as your home’s market value. It’s based on local construction costs, the size of your home, and the materials used.

A good starting point is to get a replacement cost estimate from your insurer or an independent appraiser. It’s also worth revisiting your coverage amount every few years, since construction costs can rise over time.

What does homeowners insurance not cover?

Standard homeowners insurance policies typically exclude damage from floods and earthquakes, two of the most costly natural disasters. If you live in an area prone to either, you’ll need separate policies to fill those gaps.

Other common exclusions include normal wear and tear, pest infestations, and sewer backups, though some of these can be added as optional riders. Always read your policy carefully so you know exactly what you’re protected against before you need to file a claim.

Methodology

In 2025, Insure.com, with the help of Quadrant Information Services, gathered data for homeowners insurance rates in Madison for $300,000 dwelling coverage, $100,000 liability coverage with a $1,000 deductible. The data presented are those with a good credit tier alignment.

Sources

Insurance Information Institute. How much homeowners insurance do you need? Accessed May 2025.

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Alisha Ambre

Alisha Ambre holds a Bachelor of Arts with honours in English Literature and Media Studies. She focuses on crafting clear, engaging content that makes complex information feel practical and approachable for everyday readers. When she’s not writing, she’s likely on the volleyball court or immersed in a good video game.