There are several factors that influence the cost of homeowners insurance.

• The age of your home and the age of the roof and other detached structures.
• Location of your home—prone to natural disasters, safe neighborhood, flood zone.
• Replacement cost to rebuild.
• Deductible and coverage limits.

And while new construction often costs more than older homes, the age of the roof and detached structures can outweigh the cost of repair and replacement. As of late 2025/early 2026, the median sales price of a single-family home is $400,000 to $415,000. The cost of your home and belongings heavily impacts the cost of your policy.

According to NerdWallet, home insurance costs an average of $2,110 annually—and that’s based on $300,000 worth of dwelling coverage. Oklahoma, Texas, and Nebraska have reportedly some of the highest home insurance premiums in the country due to their location. Those states make up “Tornado Alley” exposing homes in this area to severe weather such as: high winds, tornadoes, and hailstorms. The cheapest states for homeowners insurance are Hawaii, Vermont, Delaware, Alaska, and Maine.

When purchasing homeowners insurance, it’s imperative that you get at least three quotes so you can find the policy that’s right for you. Having multiple quotes will give you the opportunity to compare costs for dwelling coverage to determine if a specific insurer provides lower coverage for high-end features. Many insurance providers give you the opportunity to get a quote online with the option of speaking to an agent if you have detailed questions.

Some companies offer discounts if you pay your premium in full upfront or if you buy more than one policy and bundle. While opting for a higher deductible will also save you money, it’s important to consider if that’s a wise financial option. When the unexpected occurs, you don’t want to exhaust your emergency fund or dip into savings to pay for a high deductible. But, it’s important to remember, if you’re ever unhappy with your homeowner insurance policy, you can seek out other options without any risk.