Home Insurance How much does homeowners insurance cost with a $2,500 deductible? For a homeowners insurance policy with $300,000 in dwelling coverage, $100,000 in liability coverage and a $2,500 deductible, the average annual rate is $2,338. View Carriers Please enter valid zip Compare top carriers in your area Written by Sarah Sharkey Sarah Sharkey Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor. Reviewed by Nupur Gambhir Nupur Gambhir Nupur Gambhir is a content editor and licensed life, health, and disability insurance expert. She has extensive experience bringing brands to life and has built award-nominated campaigns for travel and tech. Her insurance expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Financial Gym, and the end-of-life planning service. Posted on: September 24, 2024 Why you can trust Insure.com Quality Verified At Insure.com, we are committed to providing the timely, accurate and expert information consumers need to make smart insurance decisions. All our content is written and reviewed by industry professionals and insurance experts. Our team carefully vets our rate data to ensure we only provide reliable and up-to-date insurance pricing. We follow the highest editorial standards. Our content is based solely on objective research and data gathering. We maintain strict editorial independence to ensure unbiased coverage of the insurance industry. Most homeowners carry a homeowners insurance policy to protect one of their largest assets. Although it’s critical to carry this protection from your home, the cost of homeowners insurance can take a big bite out of your budget. A $2,500 deductible typically results in lower premiums. The average annual cost of a homeowners insurance policy with $300,000 in dwelling coverage and $100,000 in liability coverage is $2,338. But this also means you’ll need to be prepared to cover that amount if you need to file a claim. One way to impact your homeowners insurance costs is by adjusting your deductible. Generally, a higher deductible will lead to lower insurance premiums. However, it’s important to choose a deductible that you can comfortably afford to pay out of pocket in the event of a claim. Balancing the monthly savings with your ability to cover potential expenses is key to finding the right deductible for your budget and needs. How much does homeowners insurance cost with a $2,500 deductible? The average annual cost of a homeowners insurance policy with $300,000 in dwelling coverage and $100,000 in liability coverage with a $2,500 deductible is $2,338. However, the average annual premium varies dramatically from state to state. For example, Hawaiian homeowners pay the lowest average annual premium of $570. On the other end of the spectrum, Nebraskan homeowners pay the highest average annual premium of $5,266. The table below shows the average annual premiums in your state for a policy with $300,000 in dwelling coverage with a $2,500 deductible. State Average annual premium for $2,500 deductible Alaska$1,395Alabama$2,541Arkansas$3,653Arizona$1,843California$1,107Colorado$3,548Connecticut$2,062Washington, D.C.$1,055Delaware$1,070Florida$2,410Georgia$2,142Hawaii$570Iowa$2,089Idaho$1,569Illinois$2,517Indiana$2,503Kansas$4,878Kentucky$2,552Louisiana$3,220Massachusetts$1,721Maryland$2,000Maine$1,198Michigan$2,834Minnesota$2,161Missouri$2,734Mississippi$3,875Montana$3,124North Carolina$2,073North Dakota$2,684Nebraska$5,266New Hampshire$1,044New Jersey$1,155New Mexico$2,116Nevada$1,256New York$2,108Ohio$1,843Oklahoma$4,483Oregon$1,249Pennsylvania$1,921Rhode Island$1,439South Carolina$2,250South Dakota$3,311Tennessee$2,528Texas$4,351Utah$1,272Virginia$1,822Vermont$1,017Washington$1,381Wisconsin$1,307West Virginia$1,484Wyoming$1,577 Comparing costs with different deductible options When comparing insurance policies with different deductibles attached, a higher deductible tends to mean a lower premium. That’s because if you have to file a claim, you’ll pay more when you have a higher deductible. In turn, the insurer will have to pay less toward the claim. The table below highlights how different deductible amounts impact premiums. Dwelling coverageLiability coverageAverage annual premium for $2,500 deductible Average annual premium for $5,000 deductible$300,000$100,000$2,338$2,080 What are the advantages and disadvantages of having a high deductible? As with every financial decision, there are advantages and disadvantages to choosing a higher deductible. We explore both sides of the equation below. Pros Lower premiums. The obvious advantage is that a higher deductible means lower insurance premiums. Depending on your situation, these savings could make a dramatic difference to your budget. Fewer claims for small repairs. If you opt for a larger deductible, you’ll essentially self-insure smaller issues, which eliminates the paperwork attached to a claim and likely will lead to fewer claims over the long term. Fewer claims mean lower insurance rates. Cons Higher out-of-pocket costs. If you need to file a claim, you’ll face higher costs. Delays. If you cannot pay the deductible immediately, you might not be able to begin repairs until you can find the cash. How deductibles impact homeowners insurance premiums When insurance companies determine premiums, the deductible you choose is one of the many factors considered. In general, homeowners who opt for a higher deductible will enjoy lower premiums. On the flip side, homeowners who choose a lower deductible often pay higher insurance premiums. Tips for choosing the right deductible amount Since your deductible has such a big impact on your premiums, it’s tempting to select the highest deductible option to tap into the lowest available rates. However, that could be an issue if you have to file a claim and can’t afford the deductible. Instead, it’s important to choose the deductible amount that best suits your situation. Below are some tips to help you choose the right deductible amount: Evaluate your savings. If you have to file a claim, you’ll need to pay your deductible right away. Choose a deductible that you can comfortably pay should the need arise. In other words, it’s important to have funds set aside to cover a deductible at any time. Weigh the options. Get multiple quotes to determine how much you might save by choosing a higher deductible. Weigh the savings against the need to have more cash available for potential claims. Compare price differences. After getting multiple quotes, you might realize that the price difference between a home insurance policy with a $500 deductible versus a $1,000 deductible isn’t too much for your situation. You might also find that one insurer can give you a policy with a lower deductible for the same or less than another company with a higher deductible. Final take Homeowners insurance is an unavoidable expense for most homeowners. When choosing your insurance policy, deciding on the right deductible for you matters. Although it might be tempting to go with either the lowest or highest deductible option, the right choice is usually more nuanced for homeowners. For example, someone with an ample emergency fund might opt for a higher deductible to lock in savings. But someone with fewer savings might prefer a lower deductible, even if that means higher premium payments. Weigh your options before moving forward. Once you’ve decided on a deductible, don’t forget to compare quotes across multiple insurance companies to find the most affordable option for your unique situation. Resources & Methodology Sources: Insurance Information Institute “12 Ways to lower your homeowners insurance costs.” Accessed September 2024. Insurance Information Institute “Homeowners insurance rates.” Accessed September 2024. Methodology The data provided is based on insurance policies from 2023 with $300,000 in dwelling coverage, $100,000 in liability coverage, and $2,500 deductible. Sarah SharkeyContributing Researcher | . .Sarah Sharkey is a personal finance writer with a master’s degree in management from the Hough School of Business at the University of Florida. She enjoys helping readers find money solutions that work. She has written for numerous personal-finance publications including Money Under 30 and The College Investor. In case you missed it What is HO-6 condo insurance and how much does it cost? Average homeowners insurance cost by ZIP code in 2024 What is dwelling coverage and how much do you need? 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By Ashlee Tilford Guide to additional living expenses coverage By Lena Borrelli Homeowners insurance for seniors: A comprehensive guide By Chris Kissell Home insurance claims: How to file and what you should know By Chris Kissell Is carpenter ant damage covered by homeowners insurance? By Ashlee Tilford On this page How much does homeowners insurance cost with a $2,500 deductible?Comparing costs with different deductible optionsWhat are the advantages and disadvantages of having a high deductible?How deductibles impact homeowners insurance premiumsTips for choosing the right deductible amountFinal takeResources & Methodology ZIP Code Please enter valid ZIP See rates