Homeowners Insurance Cost: 2022 State-by-State Averages
Written and checked with AI using the references below. This is not human expert review.
Quick answer
The national average homeowners insurance premium was $1,569 per year in 2022. State averages varied widely, from $893 per year in Oregon to $2,677 in Florida, so where you live matters a lot.
The National Average and What the Policy Covers
The national average homeowners insurance premium was $1,569 per year in 2022, according to the National Association of Insurance Commissioners (NAIC). This figure is based on the HO-3 policy, the most common type written in the United States. An HO-3 covers homes with one to four family units. It gives broad “all risks” protection on the building and named-peril coverage on personal property inside. Named-peril coverage means only the specific risks listed in the policy are covered.
The 2022 data is the latest available from the NAIC as of a May 2025 study. Premiums jumped 11.2 percent in 2022 alone compared to 2021, so if you are budgeting for a home purchase today, treat the $1,569 figure as a floor rather than a ceiling.
What does an HO-3 actually pay for? According to the Consumer Financial Protection Bureau (CFPB), homeowners insurance covers losses and damage from unexpected events such as fire or burglary. Earthquakes and floods are not covered by a standard policy, though separate coverage may be available. The policy also is not the same as mortgage insurance, which protects the lender, not you.
State-by-State Range: Where You Live Changes Everything
The national average does not tell the whole story. There is a wide gap between the cheapest and most expensive states. Treating the $1,569 figure as a universal budget line is a common mistake. Here are the ten most and ten least expensive states for 2022, sourced from NAIC data via the Insurance Information Institute (III).
| Most Expensive State | Average Annual Premium | Least Expensive State | Average Annual Premium |
|---|---|---|---|
| Florida | $2,677 | Oregon | $893 |
| Louisiana | $2,603 | Utah | $937 |
| Texas | $2,397 | Nevada | $948 |
| Oklahoma | $2,268 | Wisconsin | $957 |
| Colorado | $2,079 | Ohio | $995 |
| Rhode Island | $2,074 | Idaho | $1,002 |
| Mississippi | $1,907 | Arizona | $1,018 |
| Massachusetts | $1,871 | Michigan | $1,056 |
| Nebraska | $1,869 | Maine | $1,077 |
| Connecticut | $1,814 | Delaware | $1,103 |
Florida, Louisiana, and Texas sit at the top because they face frequent and severe weather events. Wind and hail accounted for the largest share of homeowners claims nationally (42.5 percent of losses in 2023), and coastal states bear a disproportionate share of that risk. Oklahoma and Colorado face significant hail exposure as well.
At the other end, states like Oregon, Utah, and Wisconsin have lower claim frequencies and less catastrophic weather exposure, which keeps premiums down. If you are comparing two potential home purchases in different states, the insurance cost difference can be significant.
How Premiums Have Grown Since 2013
The 2022 average of $1,569 is not an isolated data point. NAIC data shows a steady climb from $1,096 in 2013, with the pace accelerating sharply in recent years. The 2021 average was $1,411, meaning the 2022 jump of 11.2 percent added about $158 in a single year.
This trend matters for budgeting. If you are using a lender’s Loan Estimate to project your monthly payment, check the insurance figure carefully. The CFPB notes that the cost of homeowners insurance is listed on page one of your Loan Estimate in the “Projected Payments” section. Still, the CFPB recommends doing your own research and shopping separately for coverage.
What Drives Your Specific Premium
The state average is a starting point, not a quote. Several factors push your individual premium above or below that average.
- Claim risk in your area. Wind and hail, water damage and freezing, and fire and lightning together account for the vast majority of homeowners losses. In 2023, about one in 18 insured homes had a claim of any kind. Fire claims are rare (about one in 425 homes per year) but expensive, averaging $88,170 per claim over 2019 to 2023. Water damage claims are more frequent (about one in 60 homes) at an average of $15,400 per claim.
- Policy type. The NAIC averages above are for HO-3 policies. Condo policies (HO-6) and renters policies (HO-4) are separate products with different pricing. The 2022 national average for renters insurance was $171 per year, far below the homeowners figure.
- High-risk market status. If your home is in a coastal or wildfire-prone area and standard insurers decline to cover it, you may end up in a FAIR plan or state residual market. These programs exist to provide basic coverage but can be more expensive than the standard market.
- Lender-placed insurance. If you let your policy lapse, your mortgage lender can buy coverage on your behalf. This is called force-placed insurance. It may cover only the lender’s interest, not your belongings. It is also typically more expensive than a policy you shop for yourself.
How Insurance Fits Into Your Housing Budget
The BLS Consumer Expenditure Survey for 2024 found that average annual household spending was $78,535, with housing accounting for $26,266 per year (33.4 percent of total spending). Homeowners insurance is one component of that housing total, alongside mortgage payments, property taxes, and maintenance.
At the 2022 national average of $1,569 per year, homeowners insurance represents about 6 percent of the $26,266 average housing spend. In a high-cost state like Florida ($2,677 per year), that share rises to about 10 percent of the same housing budget. This is worth knowing before you sign a purchase agreement, because insurance is a fixed expense that recurs every year regardless of how much you use your home.
When building a monthly budget, add your annual premium and divide by 12 to get the monthly cost. If your lender escrows insurance, that amount is already folded into your mortgage payment, but you should still verify the figure matches what you shopped for independently. For a broader look at fitting this into your overall spending plan, a monthly budget framework can help you see where insurance sits relative to other fixed costs.
Escrow, Lender Requirements, and Force-Placed Insurance
If you have a mortgage, your lender will require proof of homeowners insurance. Most lenders collect the premium through an escrow account, bundling it into your monthly mortgage payment. The lender holds the insurance portion and pays the insurer when the bill is due. This arrangement means you may not write a separate check for insurance, but the cost is real and affects your total monthly housing payment.
The CFPB warns that if you fail to maintain coverage, your lender can purchase force-placed insurance and charge you for it. That policy may protect only the lender’s financial interest in the property. Your personal belongings and liability would not be covered. Force-placed insurance is also typically more expensive than coverage you arrange yourself. Shopping for your own policy before closing, and keeping it current, avoids this outcome.
High-Risk Markets and FAIR Plans
Some homeowners cannot get coverage from standard insurers because of location risk, such as coastal flood zones or wildfire corridors. FAIR (Fair Access to Insurance Requirements) plans and state beach and windstorm plans exist to fill that gap. FAIR plans are state-run programs that offer coverage when private insurers won’t. The number of FAIR plan policies nationally grew to over 2.6 million in 2024. That growth shows how hard it has become to get standard coverage in high-risk areas.
If you are buying in a coastal or disaster-prone area, ask your insurance agent whether the property is insurable in the standard market before you make an offer. This is a cost that belongs in your pre-purchase budget review, not a surprise after closing.
Frequently asked questions
Is the $1,569 national average still accurate for 2024 or 2025?
The $1,569 figure is from 2022 NAIC data, the latest available as of a May 2025 study. Premiums rose 11.2 percent in 2022 alone, continuing a multi-year upward trend from $1,096 in 2013. Actual 2024 or 2025 premiums are likely higher. Get a current quote from at least two or three insurers rather than relying on the 2022 average for your budget.
Does homeowners insurance cover flood or earthquake damage?
No. Standard homeowners insurance does not cover flood or earthquake damage. Separate flood and earthquake policies are available but cost extra. If your home is in a flood zone, your lender may require flood coverage in addition to a standard homeowners policy.
What is the difference between homeowners insurance and mortgage insurance?
Homeowners insurance protects your property and belongings from damage or loss. Mortgage insurance protects the lender if you default on your loan. They are separate products with separate costs. The CFPB explicitly notes that homeowners insurance is not the same as mortgage insurance. Both may appear in your monthly escrow payment, so check your Loan Estimate to see each line item.
Which type of claim is most likely to hit my home?
Wind and hail is the most frequent cause of homeowners losses, accounting for 42.5 percent of claims in 2023. About one in 35 insured homes has a wind or hail claim each year. Water damage and freezing is second most common, affecting about one in 60 homes annually. Fire and lightning claims are much rarer but tend to cost far more per incident.
How can I tell if my escrow payment matches my insurance premium?
Check your mortgage statement to see how much your lender collects each month for insurance. Then look at your actual policy premium for the year. Divide the annual premium by 12 and compare it to what your lender collects. If the numbers do not match, contact your lender to ask about the difference.
Sources
- Facts + Statistics: Homeowners and renters insurance - Triple-I® · iii.org
- What is homeowner's insurance? Why is homeowner's insurance required? · Consumer Financial Protection Bureau (consumerfinance.gov)
- CE home · Bureau of Labor Statistics (bls.gov)
Written by AI; checked through automated evidence and editorial review. References retrieved October 11, 2026.
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