How Much Is Homeowners Insurance? Average Costs in 2026

The short answer: what homeowners insurance costs in 2026

The most quoted 2026 benchmark comes from NerdWallet: its average is $2,490 a year, or about $208 a month, for $400,000 of dwelling coverage, $300,000 of liability coverage and a $1,000 deductible,

A second benchmark lands close by. Insurance.com puts the national average at $2,872 a year, or about $239 a month, for $300,000 of dwelling and liability cover with a $1,000 deductible. The gap is not a mistake: a $400,000 limit costs more than a $300,000 one, and the studies use different insurer panels.

The official regulator figure is older. The NAIC reported an average HO-3 premium of $1,569 for 2022, the latest year in its May 2025 report. Premiums have risen sharply since then, so use the 2026 benchmarks for budgeting.

Why the average is not your price

Location moves the price more than almost anything else. On the NerdWallet figures, the most expensive states are Oklahoma at $7,255 a year, Nebraska at $6,015 and Kansas at $5,455, while the cheapest are Vermont at $1,170 and Delaware at $1,365. Hawaii looks cheapest at $900, but standard policies there exclude hurricane wind damage, bought separately.

The pattern is mostly about weather. States in Tornado Alley face frequent hail and tornado claims, while coastal states face hurricanes. Insurance.com puts Florida top at $8,471 a year and Hawaii bottom at $738 on its $300,000 benchmark. Within one state the price can double between an inland town and a storm-exposed coast, so a state average is a starting point, never a quote.

How much coverage you need

Dwelling coverage (Coverage A) pays to repair or rebuild your home after a covered event. You need the rebuild cost, not the price you paid or its market value: land is not rebuilt, so the two numbers often differ.

The premium climbs with the limit: $200,000 of cover averages $1,480 a year, $300,000 averages $1,975 and $400,000 averages $2,490, roughly $500 more per extra $100,000. Insure for the full rebuild cost, Personal property cover (usually 50% to 70% of the dwelling limit) protects belongings, while liability cover (commonly $300,000) pays if someone is hurt on your property.

What a standard policy covers, and what it does not

A standard HO-3 policy, the most common form for owner-occupied homes, covers the dwelling against most risks except those specifically excluded, and personal property against named perils such as fire, theft and vandalism. Hazard insurance is the part of the policy that covers damage to the structure itself from these named hazards.

Standard policies exclude flood damage everywhere, plus earthquakes, wear and tear and pest damage unless you add an endorsement. In a flood zone: our guide to how much flood insurance costs in Florida shows what separate flood cover typically adds. Whether you must carry cover at all is a separate question, answered in our guide on whether you have to have homeowners insurance.

What drives your premium

Location and weather risk come first, as the state figures show. Age and condition come next: a newly built home averages $1,425 a year against $2,490 for one built in 1984.

Your deductible is the amount you pay out of pocket on a claim before the insurer pays. Claims history counts too: one wind claim lifted the sample premium from $2,490 to $2,750, about 10%. Credit matters in most states too: the same policy cost $4,290 a year with poor credit versus $2,490 with good credit. California, Maryland and Massachusetts do not allow credit to be used this way.

How your deductible changes the price

Raising your deductible is the simplest lever you control, but it only saves money if you can afford to pay the higher amount after a loss. NerdWallet found that raising the deductible from $1,000 to $2,500 saves about 9% a year on average.

Worked example, labelled illustrative: take the NerdWallet benchmark premium of $2,490 a year with a $1,000 deductible. A 9% saving works out as $2,490 x 0.09 = $224.10 a year, about $18.68 a month. The trade-off: a claim costs you $1,500 more out of pocket, so only do it if you hold that much in an emergency fund. Coastal wind deductibles are often 1% to 5% of the dwelling limit: 2% on a $300,000 home means $6,000 out of pocket first.

How to lower the cost and compare quotes

Get quotes from at least three insurers using the same dwelling limit, deductible and liability limit, so prices are genuinely comparable. An independent agent can search for you where insurers are withdrawing, such as Florida and California.

Bundling home and auto cover with the same insurer usually earns a discount, as do smoke alarms, burglar alarms and smart-home leak detectors. Avoid small claims you could pay yourself: one claim adds about 10%. Do not pick on price alone: check the dwelling limit matches your rebuild cost, the deductible is one you could pay, and belongings are covered at replacement cost, not actual cash value. Re-shop at each renewal: insurers re-price yearly.

This article is general information only, not financial advice.