Home Home insurance Homeowners insurance basics Homeowners insurance basics Homeowners insurance pays to repair or rebuild your home and replace your belongings if they’re damaged by a covered event like a fire or storm. It also covers your legal and medical costs if someone gets hurt on your property. View Carriers Please enter valid zip Compare top carriers in your area Written by Alisha AmbreAlisha AmbreAlisha 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.VIEW FULL PROFILE | Reviewed by Nupur GambhirNupur GambhirEditor-in-ChiefNupur Gambhir is the editor-in-chief of Insure.com and a licensed life, health and disability insurance agent in New York with seven years of experience covering insurance. Her expertise has been featured in Bloomberg News, Forbes Advisor, CNET, Fortune, Slate, Real Simple, Lifehacker, The Balance, The Financial Gym and MSN. She holds a BA in Economics from The Ohio State University.VIEW FULL PROFILE | Expert insight from Brenda WellsBrenda WellsChair of the Department of Finance and Insurance at East Carolina University.“Your home is usually the biggest purchase you make and one of the largest assets you will own. It makes no sense to leave it unprotected, and part of good personal risk management is understanding the coverages you have bought.”Go to commentSee moreSee less | Updated onOctober 16, 2026 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. For a deeper dive into our process, see our complete methodology. 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. Homeowners insurance pays to repair or replace your house and belongings after a fire, storm or break-in, and it covers you if someone gets hurt on your property. Without it, you’d pay for those losses out of pocket. The average policy costs $2,765 a year, though where you live impacts how much you’ll actually pay. For example, Florida homeowners pay $8,471 a year on average, more than 11 times the $738 homeowners pay in Hawaii. You need enough dwelling coverage to rebuild your home from the ground up, which is often different from what your home would sell for. Your insurer usually sets your personal property and other structures coverage as a share of that number. Liability coverage works separately, and raising it above the standard $100,000 protects your savings if someone sues you after an injury on your property. What does homeowners insurance cover? Homeowners insurance covers your house, other structures on your property like a shed or detached garage, your belongings and your liability if someone gets hurt on your property. It also pays for a hotel and other extra costs if a fire, storm or other covered event forces you out of your home. Each part of your policy has its own limit, and your insurer sets most of them as a share of your dwelling coverage. CoverageWhat it pays forTypical limitDwellingYour house and anything attached to it, like a deckCost to rebuild your homeOther structuresDetached structures, like a shed or fence10% of dwelling coveragePersonal propertyYour belongings if they’re damaged or stolen50% to 70% of dwelling coverageLoss of useHotel, meals, and other costs while you can’t live at home20% to 30% of dwelling coveragePersonal liabilityInjuries or damage you cause to others$100,000, up to $500,000Medical paymentsMedical bills for guests hurt on your property, regardless of fault$1,000 to $5,000 Powered by: Home insurance calculator Get a quick estimate of home insurance rates based on your location. ZIP code Dwelling coverage Dwelling coverage pays for the rebuilding or repair of your physical home structure. Choose an amount that would cover the cost of rebuilding your home. $200K$300K $400K$600K$1M Liability coverage Covers the medical expenses of people who are hurt while in your home or on your property, as well as damage you caused to others' property. Also covers legal fees if you are sued by someone hurt in your home or on your property. Limits of $300,000 or $500,000 are recommended. $100K$300K Deductible The deductible is the amount you're responsible for paying out of pocket before your insurance begins to cover the remaining costs of a claim. $1,000 with 2% Hurricane deductible Standard ($2500)Standard ($1000)$2,500 with 2% Hurricane deductible$1,000 with 2% Hurricane deductible Average annual home insurance rates 33315 - Fort Lauderdale $12,845 Average rate Average rate $12,845/Yr Lowest rate $2,237/Yr Highest rate $33,477/Yr Rate by ZIP code in Florida Most expensive ZIP Least expensive ZIP Most expensive ZIP ZIP code City Average rate 33149 Key Biscayne $19,963 33154 Surfside $19,831 33140 Miami Beach $19,137 33141 Miami Beach $19,137 ZIP code City Average rate 34604 Spring Hill $4,762 34602 Brooksville $4,764 34661 Nobleton $4,770 34601 Brooksville $4,774 Methodology Insure.com commissioned Quadrant Information Systems to field home insurance rates from major insurers in each state for nearly all ZIP codes in the country for 10 coverage levels based on various dwelling and deductible limits. The homeowner profile is a 35-year-old married applicant with excellent insurance score; new business HO3 policy for house built in 2000 with frame construction and composition roof. Other Structures: 10%. Loss of Use defaulted: 10%. Guest Medical limit: $5,000. Deductible limit: $1,000. Personal property: 50% of dwelling coverage for replacement value Read more about our research standards and methodology. Types of homeowners insurance Most people buy an HO-3, the standard homeowners policy, but the right type for you depends on your home and your needs. Each type differs in what it covers, and how it covers it comes down to perils. A peril is anything that can damage your home, like fire, wind, or water. Policies cover perils in one of two ways: Named perils: Covers only the perils listed in the policy. If it’s not listed, it’s not covered. All perils (open perils): Covers everything unless the policy specifically excludes it. You’ll see a list of what’s not covered instead. HO-2: Broad form homeowners policy An HO-2 policy is a named perils home insurance policy. The policy type covers the house and contents against 16 perils, which are named in the policy. An HO-2 policy may be used when the home doesn’t qualify for an HO-3, but it’s not the most common choice. HO-3: Special form homeowners policy An HO-3 is the most widely used type of homeowners insurance and the standard policy most people buy. It uses both approaches to perils. Your home’s structure is covered on an all perils basis, so it’s protected from everything except what the policy specifically excludes, and it pays out at replacement cost. Your belongings are covered on a named perils basis, so only the perils listed in the policy apply. They’re paid at actual cash value unless you add replacement cost coverage. HO-4: Contents broad form renters insurance policy Renters insurance covers contents for 16 named perils and includes liability coverage. It is home insurance for renters and does not cover the structure itself; it covers only personal property. If you rent a home, this coverage will help you pay to replace your belongings after a fire or other covered loss. HO-5: Comprehensive form homeowners policy An HO-5 is generally offered for newer, high-end homes that are well maintained. It works a lot like an HO-3, except both your home and your belongings are covered on an all perils basis. That means your belongings are protected from everything the policy doesn’t specifically exclude, not just the perils it lists. An HO-5 may also include extras, like extended replacement cost, that you’d have to add to an HO-3 as an endorsement. HO-6: Unit owners form condominium insurance HO-6 insurance is for co-ops or condominiums. Specifically, an HO-6 insurance policy provides personal property coverage, liability coverage and coverage for some parts of the interior of a condo. Insurance provided by the homeowner’s association normally covers most of the actual structure. HO-8: Modified form An HO-8 covers the same perils as an HO-2 but pays only claims at actual cash value. This type of policy is generally used for older homes where the market value is considerably less than the cost to rebuild or for historic homes with difficult-to-replace features and construction materials. How much does homeowners insurance cost? Homeowners insurance costs an average of $2,765 a year, but state averages range from $738 in Hawaii to $8,471 in Florida. Weather risk explains most of that difference, since hurricanes, hail and tornadoes lead to more damage claims. Florida homeowners pay 54% more than homeowners in Nebraska, the next most expensive state. Nebraska, Colorado, Oklahoma, Kansas and Louisiana all average more than $5,100 a year, while Vermont, Maine and New Hampshire all average less than $1,350. Here’s how much home insurance costs in every state. StateAverage annual premiumAverage monthly premiumAlabama$3,716$310Alaska$1,492$124Arizona$2,397$200Arkansas$3,195$266California$1,653$138Colorado$5,511$459Connecticut$2,132$178Delaware$1,461$122Washington, D.C.$1,558$130Florida$8,471$706Georgia$2,301$192Hawaii$738$62Idaho$2,412$201Illinois$2,802$233Indiana$2,869$239Iowa$3,148$262Kansas$5,289$441Kentucky$4,471$373Louisiana$5,185$432Maine$1,299$108Maryland$2,242$187Massachusetts$2,112$176Michigan$3,071$256Minnesota$3,333$278Mississippi$2,602$217Missouri$3,783$315Montana$3,221$268Nebraska$5,513$459Nevada$1,876$156New Hampshire$1,324$110New Jersey$1,449$121New Mexico$3,497$291New York$1,844$154North Carolina$3,799$317North Dakota$2,846$237Ohio$2,109$176Oklahoma$5,378$448Oregon$1,647$137Pennsylvania$1,434$120Rhode Island$2,379$198South Carolina$2,870$239South Dakota$3,740$312Tennessee$3,198$266Texas$4,582$382Utah$1,771$148Vermont$1,017$85Virginia$1,939$162Washington$1,766$147West Virginia$1,961$163Wisconsin$1,836$153Wyoming$2,075$173 Powered by: What to read next Your guide to home insurance deductibles How to find a homeowners insurance policy How having a roommate impacts your homeowners insurance coverage Additional living expenses (ALE) coverage: What it covers and how to use it Home insurance inspection checklist How to switch home insurance Working from home: The remote worker's guide to insurance Does homeowners insurance cover theft? 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Location matters most, since insurers price in local risks like storms, wildfires, and crime rates. Location: Where you live affects your rate more than almost anything else. Insurers price in local risks like hurricanes, wildfires, hail, and even local crime rates. Home size and age: Bigger homes cost more to rebuild, so they typically cost more to insure. Older homes can also cost more if their wiring, plumbing, or roof are outdated. Construction materials: What your home is built with, like brick versus wood, affects how it holds up to fire, wind, and other damage, which affects your rate. Extra features: Things like a swimming pool or trampoline can raise your rate since they add liability risk. Credit history: In most states, insurers can use your credit score to help set your rate. “Credit score also matters, as it has generally been shown that lower credit scores are correlated with higher frequency and severity of insurance claims,” says Brenda Wells, chair of the Department of Finance and Insurance at East Carolina University. Claims history: If you or the home has a history of filed claims, insurers may charge more since past claims can predict future risk. What homeowners insurance doesn’t cover Homeowners insurance does not cover floods, earthquakes, or damage from normal wear and tear. It also will not pay for damage you cause on purpose, or losses related to running a business out of your home. Some of these can be covered by buying a separate policy or adding an endorsement to your existing one. Here’s a quick look at what’s covered and what’s not. Peril or issueCovered by standard policyFire✓Windstorm and hail✓Theft✓Lightning strikes✓Liability for injuries on your property✓Falling objects, like a tree limb✓Flooding✗Earthquakes✗Mold✗Water or sewer backup✗Normal wear and tear✗Intentional damage✗Pest or animal damage✗Home-based business losses✗ (need business insurance for this) Powered by: How much homeowners insurance coverage do you need? You need enough dwelling coverage to fully rebuild your home if it were destroyed, not just to match its market value. Your other coverage amounts, like personal property and liability, are usually calculated as a percentage of your dwelling coverage, so getting that number right is the most important step. Get a rebuild cost estimate. Ask your agent or insurer to calculate the actual cost to rebuild your home, not its market value. Market value includes the land, which does not need to be rebuilt if your home is destroyed. Check your personal property coverage. This is usually 50 percent to 70 percent of your dwelling coverage. If you own a lot of valuable stuff, you may need more. Look at coverage limits for valuables. Items like jewelry, art, and electronics often have low built-in limits, sometimes just a few thousand dollars. If yours are worth more, consider adding a rider or endorsement. Review your liability limits. If you have significant assets or savings, consider raising your liability coverage to protect yourself if someone sues you after an injury on your property. Consider extra policies for excluded risks. If you live in a flood- or earthquake-prone area, you likely need a separate policy since standard homeowners insurance does not cover these. Re-check your coverage every year. Home values, rebuilding costs, and your belongings change over time. Review your policy annually or after any major purchase or renovation to make sure you are still fully covered. What other coverage do you need for your home? Homeowners insurance doesn’t cover everything, so you may need to add coverage through an endorsement or a separate policy. These are the most common gaps to consider: Flood insurance: Homeowners policies don’t cover flood damage. Your lender may require it if your home is in a special flood hazard area, and some areas require it by law. You can buy it through the National Flood Insurance Program (NFIP) via home insurance companies nationwide, or through a private flood insurer. Earthquake insurance: If you live in an earthquake-prone area, you can add it as an endorsement or buy a separate policy. In California, most coverage is sold through the California Earthquake Authority. Windstorm insurance: Most homeowners policies cover wind damage, but in some areas, especially hurricane-prone coastal ones, you may need separate windstorm coverage. Umbrella insurance: A separate policy that adds liability coverage beyond what your home and auto policies offer. It’s worth considering if you have significant assets and could face a large lawsuit after a major loss. What our expert says Brenda WellsChair of the Department of Finance and Insurance at East Carolina University. “Your home is usually the biggest purchase you make and one of the largest assets you will own. It makes no sense to leave it unprotected, and part of good personal risk management is understanding the coverages you have bought.” Frequently asked questions Am I required to get homeowners insurance? You are not legally required to purchase homeowners insurance. But if you have a mortgage, the lender will likely require you to carry a home insurance policy. Even if you don’t have a mortgage, having home insurance is always a good idea. “Your home is usually the biggest purchase you make and one of the largest assets you will own. It makes no sense to leave it unprotected, and part of good personal risk management is understanding the coverages you have bought,” says Brenda Wells, chair of the Department of Finance and Insurance at East Carolina University. What is the average cost of homeowners insurance? The average cost is $2,765 a year, or $230 a month, for $300,000 in dwelling coverage with a $1,000 deductible. Your actual rate depends on your state, home size, and other factors. Does homeowners insurance cover flooding? No, standard homeowners insurance does not cover flood damage. You need a separate flood insurance policy, which you can buy through the National Flood Insurance Program or a private insurer. What is the difference between actual cash value and replacement cost? Actual cash value pays you what an item is worth today, after accounting for wear and age. Replacement cost pays what it costs to buy that item new, right now. This is important for when you want to file a home insurance claim. Replacement cost usually means a bigger payout, but it can also mean a higher premium. How can I lower my homeowners insurance rate? You can lower your rate by raising your deductible, bundling your home and auto insurance, improving your home’s security, or comparing quotes from multiple insurers before you buy. 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. In case you missed it What is HO-6 condo insurance and how much does it cost? Average homeowners insurance cost by ZIP code What is dwelling coverage and how much do you need? 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What to pack and what insurance covers 1/1 Related Articles Homeowners insurance calculator: Estimate the cost of getting homeowners insurance By Alisha Ambre $400K home insurance cost calculator By Alisha Ambre Renters insurance calculator: How much renters insurance costs by state and city By Alisha Ambre Condo insurance calculator: Estimate how much condo insurance will cost you By Alisha Ambre Will your home insurance actually rebuild your house after a wildfire? By Maryalene LaPonsie Do you have an emergency go-bag? What to pack and what insurance covers By Maryalene LaPonsie On this page What does homeowners insurance cover?Types of homeowners insuranceHow much does homeowners insurance cost?What factors affect your homeowners insurance premium?What homeowners insurance doesn't coverHow much homeowners insurance coverage do you need?What other coverage do you need for your home?What our expert saysFrequently asked questions ZIP Code Please enter valid ZIP See rates 1-833-708-6021