Home insurance premium estimator

Home insurance premium — what drives the number

Home insurance pricing is more complex than most people realize. Two houses across the street from each other can have premiums that differ by 2–3× based on claims history, credit, roof age, and dozens of other factors. This calculator gives a rough estimate using state averages and key multipliers — it won't match your actual quote exactly, but it should be within 20–30% for most properties.

What a home insurance policy covers

A standard HO-3 policy (the most common single-family policy) has six coverages:

• Coverage A — Dwelling. Structure of the home. The key number; typically set to rebuild cost.
• Coverage B — Other structures. Detached garage, fences, sheds. Usually 10% of Coverage A.
• Coverage C — Personal property. Contents. Usually 50–70% of Coverage A.
• Coverage D — Loss of use. Hotel + food during repairs. Usually 20% of Coverage A.
• Coverage E — Liability. Injury to others on your property. Typically $300,000 default; bump to $500k if you have assets.
• Coverage F — Medical payments. Small payments for guest injuries regardless of fault. $1,000–$5,000 default.

Why state matters so much

Home insurance rates vary by state by a factor of 3–4× because of catastrophic risk:

• Florida & Louisiana — hurricane exposure. Average $3,000–$6,000 on a $350k home. Deductibles are usually separate for hurricanes at 2–5% of dwelling.
• Oklahoma & Kansas — hail and tornado. Average $2,500–$4,000.
• California — wildfire. Base rates are moderate, but high-risk zones add 30–100%+ and some properties can't get private coverage at all (fall back to the state FAIR plan).
• Colorado — hail and wildfire. Rising fast; average rate up 50% in 5 years.
• Midwest (WI, MI, OH) — lower rates ($900–$1,500) because of fewer catastrophic events.
• Pacific Northwest — historically lowest premiums. OR/WA/UT/ID in the $700–$1,200 range.

What drives your individual premium

• Dwelling coverage amount — biggest factor. $1 of premium per $100–$400 of coverage is typical.
• Location within state — coastal zones, fire zones, flood zones all add. Same city, different ZIP, different rate.
• Construction type — brick and masonry cost less to insure than wood frame in wildfire zones; vice versa in hurricane zones.
• Roof age — insurers increasingly refuse to renew policies on roofs 15+ years old.
• Claims history (CLUE report) — claims on the home (even from prior owners) stay on the CLUE report 7 years. Water claims are the worst.
• Credit-based insurance score — in most states, a large factor. "Excellent" to "poor" spread is often 50–80%.
• Deductible — higher deductible = lower premium. Standard is $1,000; many insurers cap at $2,500 or $5,000.
• Bundling with auto — 5–20% discount for same-carrier auto + home.

Replacement cost vs market value

Your policy should insure for replacement cost, not market value. A $500,000 home on a $200,000 lot has $300,000 of structure to insure. Insuring for the full $500,000 wastes premium on land you don't need to cover; insuring for only $250,000 leaves you short in a total loss.

Rebuild costs have surged in the post-COVID period — lumber, labor, materials all up 30–50%. Many homeowners still have policies with rebuild costs set at 2018–2020 prices. In a total loss, their insurance payout won't cover the actual rebuild. Most insurers now offer "guaranteed replacement cost" or "extended replacement cost" endorsements that add 25–50% of coverage if needed. Pay extra for this.

What's NOT covered by default

• Flood — separate NFIP or private flood policy needed. $300–$3,000+/yr depending on zone.
• Earthquake — separate policy in CA and other seismic zones. Often 1–2% of dwelling per year with a 10–15% deductible.
• Sewer backup — endorsement, $50–$100/yr. Cheap coverage for a common expensive claim.
• Mold — limited or excluded in most policies post-2005.
• Ordinance or law — rebuilding to updated code. Usually limited; endorsement recommended.

How to lower your premium legitimately

• Raise deductible to $2,500 or $5,000
• Bundle with auto
• Improve credit score
• Replace old roof (new roof = 10–30% discount in some markets)
• Add security and smart-home devices (small discounts)
• Shop every 2–3 years — rates diverge fast
• Don't file small claims — they stay on CLUE 7 years and raise premiums by more than the claim paid