How much does Homeowners insurance cost?

This will largely depend on factors such as where you live, how much your home and its contents are worth and whether it is exposed to the risk of any catastrophic perils. If you live in a high-risk area, you will most probably have to pay a high annual premium for your Homeowners insurance.

On average, it costs American home owners around $800 a year to protect their home and personal property from unexpected causes-of-loss. However, Homeowners insurance costs can vary between $400 and $1,400 depending on the state.

The money value of your home and property is, indeed, important but what matters most to insurance providers is how likely it is for your home to be damaged or destructed by natural disasters. Thus, home owners in states, such as Louisiana, California, Texas, and Mississippi very naturally pay some of the highest home insurance premiums. Conversely, Homeowners insurance in Wisconsin, Utah, Oregon, Iowa, etc. costs a few hundred dollars a year. The same applies to Homeowners 4, also referred to as renters insurance (see Table 1).

Table 1. Average premiums of Homeowners and Renters insurance by state.

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