The Basics of Home Insurance Costs

Find out everything there is to know about what drives the costs of home insurance.

Your home faces countless hazards—fires, frozen pipes, the neighbor kid hurling a ball through your bay window. These calamities don’t strike every day, thank goodness, but when the unexpected does happen, it’s nice to know you’re insured.

But how much will this peace of mind cost you? In the U.S., the average home insurance costs about $1,200 per year. According to Zillow, you can expect to pay roughly $35 per month for every $100,000 of your home’s value, though your exact cost will depend on your unique situation.

Insurance cost variables

There are a variety of factors that make your homeowners insurance cost go up or down. These include:

  • Coverage levels. You’ll pay more, of course, for comprehensive coverage than for a skimpier policy. And any add-ons, like earthquake coverage, will raise your homeowners insurance quote.
  • Your location. Home insurance rates vary from state to state. Your cost will also be higher if you live in a region that’s more prone to risks such as crime or natural disasters such as earthquakes, flooding, or wildfires.
  • Your home’s condition. If you own a century-old house with a mansard roof or a midcentury modern pad, you’re living in style! But know that you might need to pay more for home insurance if your abode’s innards—pipes, electrical wiring, and such—are outdated.
  • Your home’s value. If you have a large, custom-built house done up with Brazilian walnut floors and Murano chandeliers, you’ll pay more for home coverage than someone with a more modest home.
  • Your claims history. If you—or the previous homeowner—have filed claims in the past, your insurer will expect that pattern to continue, which could raise your rate.
  • Safety elements. You may nab a discount if you’ve got a security system to deter thieves. Some insurers also offer a better deal if you’ve installed a sprinkler system, storm shutters, or other features.
  • Bundling. Need home and auto coverage? Bundle your home and car insurance with the same insurer and you’re likely to score a discount.

The availability, qualifications, and amounts of coverages, costs and discounts may vary from state to state and there may be coverages and discounts not listed here. In addition, other terms, conditions, and exclusions not described above may apply, and total savings may vary depending on the coverages purchased. For more information regarding your eligibility for certain coverages and savings opportunities, please contact your AAA agent. Insurance products in California offered by AAA Northern California Insurance Agency, License #0175868, in Nevada by AAA Nevada, and in Utah by AAA Utah. Insurance provided by CSAA Insurance Group, a AAA insurer.