Homeowners Insurance Calculator

The national average homeowners insurance premium is about $1,987/year or $166/month for $300,000 in dwelling coverage. However, rates vary dramatically by state — from under $60/month in Hawaii and Idaho to over $400/month in Florida and Texas. Your specific premium depends on home value, location, age, construction, and deductible.

A standard HO-3 policy covers: dwelling (the structure), personal property (your belongings), liability (if someone is injured on your property), and additional living expenses (if you're displaced by a covered loss). It covers fire, theft, wind, hail, and liability claims. It typically does NOT cover floods, earthquakes, or normal wear and tear.

HO-3 (Standard) covers your dwelling on an open-peril basis but personal property on a named-peril basis. HO-5 (Comprehensive) covers both dwelling and personal property on an open-peril basis — meaning everything is covered unless specifically excluded. HO-5 costs 20-30% more but provides broader protection, especially for high-value homes.

Insure your home for its full replacement cost — the amount it would cost to rebuild from scratch, not its market value or purchase price. A home worth $500,000 might only cost $300,000 to rebuild. Use a replacement cost estimator or consult a local contractor. Your mortgage lender typically requires coverage equal to your loan balance.

No — standard homeowners insurance does NOT cover flood damage. You need a separate flood insurance policy through the National Flood Insurance Program (NFIP) or a private flood insurer. Flood insurance is required if you have a federally backed mortgage in a high-risk flood zone. Even outside flood zones, 25% of flood claims come from moderate-to-low risk areas.

Your deductible is the amount you pay out of pocket before insurance kicks in. A higher deductible means lower premiums: raising from $500 to $1,000 saves about 10-15%, while raising to $2,500 saves 20-25%. Choose a deductible you can comfortably afford in an emergency. Some insurers offer percentage-based deductibles (1-5% of dwelling coverage) for wind/hail.

Key factors that increase your premium include: coastal or flood-prone location, older home (especially pre-1970), wood frame construction, swimming pool or trampoline, poor credit score, filing past claims, high coverage limits, low deductible, and high-risk area for crime or natural disasters. Some factors (like location) are beyond your control, but others (credit, claims history) can be improved.

Yes, but you'll pay more. Most states allow insurers to use credit-based insurance scores. Poor credit can increase your premium by 40-100% compared to excellent credit. However, you still have options: some insurers specialize in non-standard risks, and improving your credit over time will lower your rates. Shopping around is especially important with poor credit.