The house insurance average cost is a statistic about the country, and the cost of house insurance for your address is a decision a carrier makes about your roof, your rebuild cost and your weather. The Insurance Information Institute's NAIC-based figure puts the average US homeowners premium at $1,411 for 2021, and the average renters premium at $170; both are national averages that no single household pays, and the rate pages on this site show what carriers actually file where you live. The two are related the way a national average rent relates to your lease: it tells you the scale, not the payment. This page explains how the house insurance cost average is built and what to check instead.
How the home insurance cost average is built
Insurers report premiums written and policies in force to state regulators, the NAIC compiles them and the III republishes the national figure. It includes every state, every house type and every coverage level, which is why the average house insurance costs quoted in one place rarely match the figure from another year or another source: the mix changes and so does the year.
What is in the price and what is not
The premium pays for the dwelling, other structures, personal property, loss of use and liability at the limits you chose, less the deductible you chose. It does not pay for flood or earthquake, which are separate policies, and it does not pay for maintenance. FEMA's FloodSmart notes that almost one-third of NFIP flood claims come from outside high-risk flood areas, and a standard homeowners or renters policy does not cover flood at all.
Why a claim-free year still costs the same
Premiums are priced across everyone the carrier insures. The III reports that 5.5 percent of insured homes had a claim in 2022, so most policy years end with nothing paid out and the price is paid for the year something is. Your own claim-free years lower your price over time through claims-free discounts, but the average price for house insurance reflects the losses the pool expects, not yours.
The figure to compare instead
The filed rates on this site for your state, by coverage level and situation, are the average for houses like yours. Compare those, then get quotes on identical dwelling limits and deductibles, so every price is for the same policy on the same house.
Questions people ask about house insurance average cost
What is the average cost of house insurance?
The III's NAIC-based national average is $1,411 a year for 2021. Your own price is set by rebuild cost, roof age, perils and deductible.
Does the house insurance cost average include flood insurance?
No. Flood is bought separately through the NFIP or a private carrier, and most of the country needs it more than it thinks.
Why does my quote differ from the average price for house insurance?
Because the average mixes every state and house. The filed rates for your state on this site are the closer comparison.