How Much Is Home Insurance?

by COUNTRY Financial

Wondering how much homeowners insurance costs? According to NerdWallet, home insurance is about $2,490 per year for $400,000 worth of dwelling coverage. but rates vary by state.¹

While homeowners insurance isn’t required by state law, most mortgage lenders require a homeowners insurance policy to protect your home.

What factors affect the cost of home insurance?

Many factors influence the average price of home insurance, and your premium may be higher or lower depending on your personal situation. Insurers determine how much home insurance costs based on:

• Location: Regional risk is one of the biggest drivers of home insurance cost. Homes located in areas prone to storms, high crime rates or higher construction costs generally have more expensive premiums. 
• Claims history: If you’ve filed several claims in the past, insurers may view you as a higher-risk policyholder, which can increase the cost of your homeowners insurance policy.
• Coverage types and limits: The more protection you add, the more your homeowners insurance will cost. Higher limits for dwelling coverage, personal property coverage and liability protection increase your premium because they cover larger potential losses.
• Home construction and characteristics: The size of your home, construction materials, roof age and unique structural features all influence how much home insurance costs. These details affect what it would take to repair or rebuild the home.
• Age of the home: Older homes often cost more to insure due to outdated wiring, older plumbing and aging building materials that increase risk.
• Safety and security features: Installing fire alarms, security systems, smart home sensors and other safety features may help lower the price of home insurance, since they reduce the chance or severity of a claim.

How much home insurance do I need?

How much home insurance you need depends on the amount of coverage you want, valuable belongings you own, your financial situation and more.

Here are the essential coverages included in most homeowners insurance policies:

• Dwelling coverage: Protects the physical structure of your home, including walls, roof, floors and built-in features. It’s vital to purchase the right amount—if your home is damaged or destroyed, dwelling coverage helps pay rebuilding costs.
• Personal property coverage: Covers your belongings, like furniture, clothing, electronics and more, if they’re lost, stolen, or damaged (by a covered event).
• Other structures coverage: Protects other buildings on your property aside from your main home, like sheds, detached garages, fences, gazebos and more.

Most policies also include personal liability coverage and additional living expenses, which help cover temporary housing costs if your home becomes uninhabitable.

Home insurance discounts

Many insurers offer home insurance discounts that can help reduce the cost of home insurance. Common discounts include:

• Multi-policy discounts when bundling home and auto
• Discounts for safety systems
• Claims‑free discounts
• Home renovation or roof upgrade discounts

Things like security systems and home upgrades reduce the risk of insuring your home, so insurance companies offer these discounts as incentives to install them.

Final thoughts

Understanding how homeowners insurance works and what affects its cost can help you make informed decisions when choosing a policy. Reviewing your dwelling coverage, personal property coverage, and other protections ensures you have the right amount of coverage for your home.

If you’d like to know more about how much home insurance costs, talk to your insurance agent today—they can help you determine how much coverage you need and answer any questions.

Updated 3-24-26