Home insurance calculator: Estimate costs (2024)

Answer a few questions to get a free estimate of your rates and coverage needs with our home insurance calculator.

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By

Pat HowardManaging Editor & Licensed Home Insurance ExpertPat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Edited by

Jennifer GimbelJennifer GimbelSenior Managing Editor & Home Insurance ExpertJennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.
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Reviewed by

Michael Reynolds, CSRIC®, AIF®, CFT-I™Michael Reynolds, CSRIC®, AIF®, CFT-I™Financial AdvisorMichael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

Updated|4 min read

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Calculate your home insurance costs

For an accurate estimate of how much coverage you need and how much it will cost, use our free homeowners insurance cost calculator.

Home Insurance Calculator

We don't sell your information to third parties.

Is there a formula to calculate homeowners insurance?

According to the Federal Reserve, the insurance premium for a home is roughly 0.35% of its market value. [1] Using this method, a home with a market value of $400,000 would have a home insurance premium of around $1,400.

Another quick way to estimate your home insurance coverage is by multiplying the square footage of your home by the average building cost per-square-foot in your area according to local contractors.

However, keep in mind that these methods will give you very rough estimates and we don't recommend using them when estimating your homeownership expenses.

Why you can trust Policygenius

As an online insurance marketplace, Policygenius works closely with homeowners all over the U.S. to help them find a home insurance policy that suits their needs — without bias or favor toward any one company. Our educational guides are written and fact-checked by licensed home insurance experts and reviewed by our Financial Review Council to ensure autonomy, expertise, and accuracy. Read our methodology below.

How to calculate home insurance

To calculate homeowners insurance, you need to consider two factors that greatly influence your premium: where you live and your susceptibility to extreme weather damage or other risks. Your premium is also based on factors that are specific to you and your property, such as your home’s estimated rebuild amount, its age and characteristics, your claims history and credit score, and how high of a policy deductible you choose.

1. Estimate your coverage amounts

Home insurance policies include coverages that protect everything from your personal belongings to liability, but dwelling coverage has by far the biggest impact on your insurance premiums. The more dwelling coverage you have, the higher your rates will be.

Other than dwelling, your insurance coverages have a mostly minimal impact on your insurance premiums, especially if you opt for the default coverage amounts. But it’s important to understand how each coverage is calculated and opt for higher limits if your situation calls for it.

Coverage

What it covers

Standard coverage limits

How to calculate coverage needs

Dwelling

Your home if it’s damaged or destroyed by a covered peril, such as a fire or windstorm

Based on your home's replacement cost

Determine how much it would cost to rebuild your home from the ground up at today’s prices using our replacement cost estimator

Other structures

Buildings on your property that aren’t directly attached to your home, such as garages, sheds, fences, and carports

Usually set at 10% of your dwelling coverage limit by default

Determine how much it would cost to rebuild any outdoor structures on your property

Personal property

Everything inside your home, such as furniture, clothing, kitchen appliances, and electronics

Usually set at 50% of your dwelling coverage limit by default

Take an inventory of your personal belongings and decide if you want them replaced at today’s prices (replacement cost value = more expensive) or with depreciation taken into account (actual cash value = cheaper)

Additional living expenses

Hotel stays, dining out, dry cleaning, and other additional living expenses when you’re unable to stay at your house after a covered loss

Usually set at 20% of your dwelling coverage limit by default

Consider the risk of your home being so badly damaged in a natural disaster that you need to move elsewhere while it’s being repaired, and set higher limits for the greater likelihood of this happening

Personal liability

Legal and medical expenses if you’re found legally responsible for injuring someone or damaging their property

Usually available from $100,000 to $1 million, though supplemental  umbrella insurance policies can offer higher coverage limits if needed

Determine the value of your assets, such as your house, car, personal possessions, 401k, stocks, retirement accounts, and liquid assets

Medical payments

Medical expenses if someone’s injured at your home, regardless of who’s at fault 

Usually set at $1,000 to $5,000

$5,000 is typically the highest amount of coverage offered for this

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Learn more >> How much home insurance do I need?

Estimate home insurance costs

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2. Consider your home’s location & other characteristics

After dwelling coverage limits, your home insurance rates are then primarily based on your home’s location and risk, such as its proximity to areas that see frequent wildfires, tornados, hurricanes, snow storms, or other natural disasters, as well as characteristics of it.

You’ll likely see higher rates for any of the following since you’re at greater risk of filling a claim:

  • Home in an area at high risk of natural disasters

  • Older home with an outdated roof, electrical, or plumbing system

  • Home constructed with obsolete materials

  • Home with a pool, trampoline, or even dogs

3. Check your credit score and claims history

Insurance companies consider homeowners with lower credit scores or multiple past claims to be riskier to insure compared to homeowners with good credit and a clean claims history. Even having one claim in the past few years or a credit score below 670 could mean higher home insurance premiums, so you’ll want to consider both of these factors when estimating your home insurance rates.

4. Choose a policy deductible

Your home insurance deductible is the amount you’re responsible for paying out of pocket on each claim before insurance kicks in to cover the remainder of the loss amount. A typical policy deductible comes in a flat fee that ranges anywhere from $500 to $2,000, but some companies offer deductible levels as high as $5,000. 

Picking a higher deductible can lower your premiums, but it also increases how much you need to pay when you file a claim. 

5. Get quotes from a home insurance marketplace

Get quotes through our online home insurance marketplace — all for free and with minimal information required. All that's required is a few brief details about you and your home, and we'll send you a side-by-side comparison of rate estimates from several insurance providers.

Home insurance premiums continue to skyrocket in 2024

Our 2023 Policygenius Home Insurance Pricing Report found that 94% of policyholders faces a rate increase at renewal from May 20, 2022 to May 20, 2023.

During this time, the average quoted renewal premium was 21% higher nationally compared to the average of what homeowners were previously paying — roughly 9% higher than the 12% increase we reported in 2022.

Altogether, home insurance premiums increased 35% nationally from 2021 to 2023, with homeowners in Florida (68%), New Mexico (47%), Colorado (46%), Idaho (46%), and Texas (46%) facing the biggest average increases during that span.

And rate hikes aren’t ending any time soon. Wildfires out West, hurricanes in the South, and tornadoes in the heartland have all contributed to home insurance companies pulling out of many states and raising premiums in 2024 to counteract the outsized risk of homeowners filing claims.

We've already seen national insurers including State Farm, Allstate, Nationwide, and Farmers either pull out of states completely or reduce their exposure in high-risk areas, and we continue to see this more as hurricane and wildfire season approach.

Calculate your home insurance costs

We don't sell your information to third parties.

Estimate home insurance rates by coverage level

On average, home insurance premiums differ substantially based on how much dwelling coverage is in your policy. Here’s the average annual home insurance rate for five different levels of dwelling coverage.

Dwelling coverage

Average annual cost

$100,000

$946

$200,000

$1,442

$300,000

$1,754

$400,000

$2,481

$500,000

$3,066

Learn more >> Average homeowners insurance cost in 2024

Home insurance rate estimates by state

After all of this, you're probably wondering, How much should home insurance cost? Along with the price to rebuild your home, your home’s location plays a significant role in your home insurance premium. Here’s the average yearly home insurance rate in each state.

State

Average monthly cost

Average annual cost

Alabama

$165

$1,982

Alaska

$117

$1,398

Arizona

$147

$1,762

Arkansas

$244

$2,924

California

$120

$1,436

Colorado

$206

$2,472

Connecticut

$113

$1,359

Delaware

$77

$928

District of Columbia

$96

$1,154

Florida

$204

$2,442

Georgia

$163

$1,956

Hawaii

$41

$486

Idaho

$113

$1,352

Illinois

$148

$1,775

Indiana

$143

$1,719

Iowa

$143

$1,714

Kansas

$258

$3,094

Kentucky

$219

$2,622

Louisiana

$209

$2,507

Maine

$90

$1,076

Maryland

$131

$1,575

Massachusetts

$107

$1,285

Michigan

$129

$1,550

Minnesota

$161

$1,937

Mississippi

$221

$2,655

Missouri

$219

$2,627

Montana

$184

$2,213

Nebraska

$312

$3,741

Nevada

$101

$1,209

New Hampshire

$81

$967

New Jersey

$75

$904

New Mexico

$141

$1,686

New York

$95

$1,139

North Carolina

$132

$1,580

North Dakota

$158

$1,890

Ohio

$108

$1,297

Oklahoma

$353

$4,230

Oregon

$75

$905

Pennsylvania

$97

$1,162

Rhode Island

$113

$1,358

South Carolina

$141

$1,696

South Dakota

$202

$2,418

Tennessee

$187

$2,242

Texas

$252

$3,027

Utah

$77

$923

Vermont

$75

$900

Virginia

$111

$1,329

Washington

$101

$1,216

West Virginia

$122

$1,464

Wisconsin

$98

$1,177

Wyoming

$133

$1,599

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Methodology

To find the average annual premium by coverage level and for each state, Policygenius analyzed home insurance rates provided by Quadrant Information Services for over 30,000 ZIP codes in all 50 states plus Washington, D.C. Our sample quotes for each company and ZIP code were for a 40 year-old homeowner with no claims history, good credit, a $1,000 deductible, and the following coverage limits:

  • Dwelling: $300,000

  • Other structures: $30,000

  • Personal property: $150,000

  • Loss of use: $60,000

  • Liability: $300,000

  • Medical: $1,000

Given the fact that both population size and premium amounts can vary drastically depending on where you live, we assigned weights to each ZIP code based on its population of homeowners, according to U.S. Census Bureau data; and to companies based on their market share presence in each state, according to Quadrant Information Services. Once weights were assigned to each ZIP code and company, we were able to calculate our national average home insurance rate.

References

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Policygenius uses external sources, including government data, industry studies, and reputable news organizations to supplement proprietary marketplace data and internal expertise. Learn more about how we use and vet external sources as part of oureditorial standards.

  1. Federal Housing Finance Agency

    . "

    FHFA Staff Working Paper Series

    ." Accessed December 27, 2023.

Author

Pat Howard is a licensed insurance expert and managing editor at Policygenius. Pat has written extensively about the home insurance industry and his insights as a subject matter expert have appeared in several top tier publications, including The New York Times, The Wall Street Journal, CNBC, and Reuters. Pat has a bachelor's degree in journalism from Michigan State University.

Editor

Jennifer Gimbel is a senior managing editor at Policygenius, where she oversees all of our insurance coverage. Previously, she was the managing editor at Finder.com and a content strategist at Babble.com.

Expert reviewer

Michael Reynolds, CSRIC®, AIF®, CFT-I™, is a financial advisor, principal and founder of Elevation Financial, host of the weekly personal finance podcast Wealth Redefined®, and a member of the Financial Review Council at Policygenius.

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