The average American homeowner pays about $2,395 a year for home insurance, or roughly $200 a month, on a standardized policy with a $350,000 dwelling limit and a $1,000 deductible (LendingTree, updated June 2026). Where you live moves that number more than anything else: LendingTree’s quotes average $801 in Hawaii and $5,298 in Oklahoma, about 6.6 times as much (our arithmetic). Prices have climbed faster than inflation in every region of the country since 2018, according to a National Association of Insurance Commissioners (NAIC) report released on August 5, 2026. Here is what the data says, what is driving it, and the changes that can lower your bill.
What the Average Policy Costs
There is no single national number, because each source measures something different. Be careful comparing them.
| Source | What it measures | Figure |
|---|---|---|
| LendingTree (June 2026) | Quotes at a standard $350,000 dwelling, $100,000 liability, $1,000 deductible | $2,395 a year |
| NAIC data via the Insurance Information Institute | Average premium on policies actually sold, 2022 | $1,569 a year (up 11.2% from $1,411 in 2021) |
The NAIC figure is lower because it reflects the coverage people actually bought, including smaller homes and higher deductibles, and it is older. The LendingTree figure is a fresher quote for one defined house. Use the second to budget for a similar home today and the first as a reminder that your own premium depends on your coverage choices.
LendingTree’s state extremes show how much geography matters:
| State | Average annual premium (LendingTree, 2026) | Versus national average |
|---|---|---|
| Hawaii (lowest) | $801 | 66.6% below |
| United States | $2,395 | n/a |
| Oklahoma (highest) | $5,298 | 121.2% above |
Why Premiums Keep Rising
The NAIC’s August 2026 analysis covers 2018 to 2024. It found that average premium per policy rose in every NAIC region, with inflation-adjusted increases from 18.3% to 43.3%, which works out to average premium increases of 2.4% to 5.3% a year. The smallest rise was in the Northeast and the largest was in the West.
Insurers also pulled back. Over the same period company-initiated nonrenewal rates rose by between 96% and 216%, depending on region, and the NAIC noted that claims rose, particularly between 2021 and 2024. Fewer choices means less pressure on any single insurer to hold prices down.
Weather is a large part of the claims story. In the Insurance Information Institute’s summary of 2023 data, wind and hail made up 42.5% of property damage claims, water damage and freezing 22.6%, and fire and lightning 21.6%. About 5.3% of insured homes filed a claim that year.
LendingTree’s own analyst expects more increases in high-risk states but not a repeat of the largest jumps: “unless there’s a busy hurricane season or large wildfire outbreak, the extreme jumps we saw in 2023 and 2024 are less likely.” That is a forecast from one company’s expert, not a guarantee.
The Roof Is the Pressure Point
Roofs are where insurers and homeowners clash. Freddie Mac’s Bulletin 2026-C, dated March 18, 2026, says roofs on one-to-four-unit homes no longer have to be insured on a replacement cost basis, so a roof can be covered on an actual cash value basis. Fannie Mae made a matching change. As reported by Live Insurance News, which we could not check against a regulator source, that actual cash value approach pays what the roof is worth today after depreciation, not the cost of a new one.
That can lower your premium, but it moves risk onto you. On an older roof, an actual cash value payout after a hail storm could leave you paying thousands. Our roof replacement cost guide lists what a new roof runs, and roof repair vs replace helps you decide before an insurer decides for you.
Premium Is Not the Only Housing Cost That Moved
Insurance flows into your mortgage payment through escrow. As reported in search listings of a May 2026 CNBC article, which we could not open, about 65% of escrow accounts were projected to be short in 2026, with an average shortage of $2,157. If your lender spreads that over 12 months, our arithmetic puts it at about $180 more a month. Check your annual escrow statement the month it arrives instead of waiting for the payment to jump.
How to Spend Less
The Insurance Information Institute’s list of ways to lower homeowners costs includes several that have published numbers:
| Move | Typical effect (III) | On a $2,395 premium (our arithmetic) |
|---|---|---|
| Raise deductible from $500 to $1,000 | up to 25% | up to about $599 |
| Bundle home and auto | 5% to 15% | about $120 to $359 |
| Alarm or deadbolt discount | at least 5% | about $120 |
| Advanced security system | up to 15% to 20% | about $359 to $479 |
| Stay with one insurer 3 to 5 years | 5% | about $120 |
| Stay with one insurer 6+ years | up to 10% | up to about $240 |
These are ceilings from a trade source and do not stack neatly; ask each insurer what it actually offers. Other steps that cost little:
- Shop every renewal. The III says the same home can vary by hundreds of dollars between companies. LendingTree reports about 1 in 5 homeowners planned to switch insurers within a year.
- Raise the deductible only if you can pay it. Keep the difference in savings.
- Insure rebuilding cost, not market price. Land value does not need to be covered.
- Harden the home. Storm shutters, a reinforced roof and impact-resistant materials may earn discounts.
- Maintain it. Roof, gutters and plumbing are where many claims start; see our annual home maintenance budget and gutter replacement cost.
- Review coverage each year after big purchases, renovations or value changes.
The Bottom Line
Budget about $2,395 a year for a standard policy, far less in Hawaii and far more in Oklahoma. Premiums have been rising faster than inflation for years, insurers are dropping more policies, and the next increase is most likely to hit homes in storm and fire regions. The cheapest fix is a comparison quote at each renewal, a deductible you can afford and a roof in good shape. If you own an older home, the home maintenance budget guide shows how insurance fits with everything else the house costs.
FAQ
How much is homeowners insurance per month in 2026?
About $200 a month. LendingTree’s June 2026 average is $2,395 a year for a standardized $350,000 dwelling policy with a $1,000 deductible. Your own price depends heavily on state, roof age and coverage.
Why is homeowners insurance so expensive?
Claims have climbed, especially from wind, hail and water damage. The NAIC reported inflation-adjusted premium increases of 18.3% to 43.3% from 2018 to 2024, depending on region, alongside rising insurer nonrenewals.
Which state has the cheapest and most expensive home insurance?
In LendingTree’s 2026 analysis, Hawaii is lowest at $801 a year and Oklahoma is highest at $5,298. Those are quotes on a standard policy, so your actual price can differ.
Does a higher deductible really lower the premium?
Yes. The Insurance Information Institute says raising a deductible to $1,000 may save as much as 25%. Only do it if you could pay that amount out of pocket after a loss.
Can my insurer drop me even if I never file a claim?
Yes. The NAIC found company-initiated nonrenewals rising 96% to 216% by region between 2018 and 2024, and insurers did not renew about 2 million policies in 2024 as reported in search listings. If you get a nonrenewal notice, ask your agent what drove it and get quotes from other insurers before the policy ends.