What each output means
- Annual premium estimate. Your total yearly cost at these inputs. If your insurer’s figure sits well above it, shop two or three more carriers.
- Monthly premium. The annual figure divided by 12. This is the amount a lender collects into escrow each month.
- Rate per $1,000 of coverage. The normalized benchmark. Near $3.50 sits at the national average. Near $9 usually means high location risk, claims or weak credit is dragging the price up.
- vs national average ($2,490 a year). Instant context on whether your inputs price high or low against the 2026 national figure.
- Coverage breakdown. Typical policy limits that follow from your dwelling amount: personal property at 50%, other structures at 10% and loss of use at 20%.
Quick reference: deductible and premium
| Deductible | Typical premium impact |
|---|---|
| $500 | +15% vs baseline |
| $1,000 | Baseline |
| $2,500 | −18% vs baseline |
| $5,000 | −28% vs baseline |
How home insurance is priced
Homeowners insurance is based mainly on what it would cost to rebuild the home, not its market value. Location, the age of the home and roof, claims history, credit tier and the deductible then move the premium up or down. This calculator applies each of those factors so the estimate reflects your situation, not just your coverage amount.
The formula
Annual premium = (Dwelling coverage ÷ 1,000) × $3.50 base rate × location factor × deductible factor × home-age factor × credit factor × claims factor
Dwelling coverage itself comes from square feet × local rebuild cost per square foot. Enter your square footage and the tool works it out for you.
How this estimate is calculated — methodology
| Factor | Values |
|---|---|
| Location risk | Low 0.80× / Medium 1.00× / High 1.30× / Very high 1.80× |
| Deductible | $500 → 1.15× / $1,000 → 1.00× / $2,500 → 0.82× / $5,000 → 0.72× |
| Home age | ≤10 yrs 1.00× / 11–30 yrs 1.10× / 31–50 yrs 1.20× / 51+ yrs 1.35× |
| Credit tier | Excellent 0.85× / Good 1.00× / Fair 1.10× / Poor 1.25× |
| Claims (5 yrs) | 0 → 1.00× / 1 → 1.15× / 2 → 1.30× / 3+ → 1.50× |
Benchmarks: national average ≈ $2,490 a year for $400,000 of dwelling coverage (NerdWallet 2026 analysis of 100+ insurers); rebuild costs $150–$250 per square foot (NAHB); the $3.50 per $1,000 base is the industry shortcut rate. Choosing a state in the location field applies that state’s approximate average, rounded, in place of the generic risk tier. Estimates only — a licensed insurer gives the binding quote. Methodology reviewed: October 2026.
Worked example
A 2,000 square foot home with a rebuild cost of $175 per square foot needs about $350,000 of dwelling coverage. At a $1,000 deductible, medium location risk, a home under 10 years old, good credit and no claims, every factor is 1.00×, so the premium is 350 × $3.50 = $1,225 a year, or about $102 a month. Move the same house to a very high-risk area with one claim and the estimate becomes 350 × $3.50 × 1.80 × 1.15 = $2,536 a year.
How to use this calculator
Enter your dwelling coverage, or enter the square footage and rebuild cost per square foot and let the tool calculate it. Then choose the home’s age, your deductible, the location risk (or pick your state), your credit tier and the number of claims in the last five years. The homeowners insurance calculator returns an estimated premium per year and per month, the rate per $1,000 of coverage, how the figure compares with the national average, and the typical coverage breakdown. Treat it as a starting figure for your budget. Only an insurer can give you a quote.
Who should use this calculator
- First-time buyers. Estimate insurance before making an offer. The same-priced house can cost hundreds a month more or less in insurance depending on location, and that changes what you can afford.
- Homeowners at renewal. If this estimate lands well below your current premium, shopping three or more quotes is worth the hour.
- Anyone weighing a small claim. Model the five-year premium hit of adding a claim before you file. It often costs more than the claim pays out.
- Investors and landlords. Estimate operating costs before running cash-flow numbers. Note the tool uses owner-occupied HO-3 pricing; a landlord DP-3 policy is priced differently.
What the result means
The national average is about $2,490 a year in 2026 for $400,000 of dwelling coverage, which is about $207.50 a month. Premiums vary widely by state, so your estimate may sit well above or below that.
Dwelling coverage is the part of the policy that pays to rebuild the structure. The right amount is the cost to rebuild, which is often different from the price you paid. Market value includes the land, and land does not need to be rebuilt.
More examples
Dwelling coverage at an example rebuild cost of $175 per square foot, with every other factor at baseline:
| Home size | Dwelling coverage | Baseline premium |
|---|---|---|
| 1,500 sq ft | $262,500 | $919 a year |
| 2,000 sq ft | $350,000 | $1,225 a year |
| 2,500 sq ft | $437,500 | $1,531 a year |
Rebuild cost depends heavily on where you live. Standard new builds run roughly $150 to $250 per square foot. For a 2,000 square foot home that is a range of $300,000 to $500,000, so it is worth getting a local figure from your insurer or a builder.
Tips to lower your result
- Bundle home and auto. Most insurers take 10–25% off, and some bundles reach 40%.
- Raise the deductible to the highest amount you could cover from savings tomorrow.
- Install protective devices. Smoke alarms (about 6% off), burglar alarms (8%) and sprinklers (10%) all earn credits.
- Stay claims-free for three to five years and avoid filing small claims.
- Improve your credit tier where your state allows credit-based pricing.
- Ask about mitigation credits. Florida wind mitigation can save $900 or more a year; wildfire and Firewise discounts exist in western states.
What changes the result
- Rebuild cost. A larger home or higher local building costs mean more coverage and a higher premium.
- Deductible. A higher deductible lowers the premium. A lower one raises it.
- Location. Areas with more storm, fire or theft claims cost more to insure.
- Home and roof age. An older home usually means a higher premium.
- Claims history and credit. Both can move the price up or down.
Common mistakes
- Insuring the home for its market value or purchase price instead of its rebuild cost.
- Assuming the policy covers flood or earthquake damage. It does not.
- Picking a deductible you could not pay after a loss.
- Keeping the same coverage after an addition or a major renovation.
- Comparing quotes with different coverage amounts or deductibles.
Related guides
- Home Insurance Calculator: 5 Proven Ways to Estimate Your Premium
- Homeowners Insurance Cost Guide: 7 Proven Facts for 2026
- 7 Proven Ways to Get Cheap Homeowners Insurance in 2026
- How to Estimate Your Home Rebuild Cost: 5 Proven Easy Ways
- Homeowners Insurance Coverage Guide: 7 Proven Facts for 2026
- How to Pick the Right Home Insurance Deductible in 2026
Related calculators
If your home is at risk of flooding, price a separate policy with the flood insurance cost estimator. Check local building costs with the cost to build a house calculator, and add the premium to your other bills in the cost of homeownership calculator.
Frequently asked questions
What is a home insurance calculator?
A home insurance calculator estimates your annual homeowners premium from the rating factors insurers use: dwelling coverage (rebuild cost), home age, deductible, location risk, credit tier and claims history.
Does home insurance cover floods or earthquakes?
No. Standard homeowners policies exclude both. Each needs a separate policy.
How does the deductible affect my premium?
A higher deductible lowers the premium. Raising a $500 deductible to $1,000 can save up to 25%, according to the Insurance Information Institute.
Is home insurance required by law?
Not by law, but mortgage lenders require it for as long as you carry the loan.
How much does homeowners insurance cost on average?
About $2,490 a year in 2026 for $400,000 of dwelling coverage (about $207.50 a month), per NerdWallet’s analysis of 100+ insurers. Costs vary widely by state.
Why is rebuild cost different from market value?
Market value includes the land and reflects local demand. Rebuild cost covers only labor and materials. Land cannot burn down, so it needs no insurance.
How do I find my rebuild cost per square foot?
Ask your insurer or a local builder. Standard construction typically runs $150 to $250 per square foot, but the figure is highly regional.
Does my credit score affect my home insurance premium?
In most states, yes. Excellent credit can shave roughly 15% off while poor credit can add 25% or more. California, Maryland and Massachusetts prohibit credit-based pricing.
How much do claims raise my premium?
Each claim in the last five years typically adds about 15%, and three or more claims can raise rates by 50% or more. Small claims often cost more in premium hikes than they pay out.
What is replacement cost vs actual cash value?
Replacement cost pays to rebuild or replace at today’s prices with no deduction for age. Actual cash value pays the depreciated value. A 10-year-old roof worth $8,000 new might fetch only $3,500.
How can I lower my premium without cutting coverage?
Bundle home and auto, raise your deductible, install safety devices, stay claims-free and shop three or more quotes at renewal. None of these reduce your coverage.
What is the 80% rule in homeowners insurance?
Insure at least 80% of your home’s rebuild cost or partial claims get reduced. On a $350,000 rebuild, carry at least $280,000 of dwelling coverage.
Also known as: homeowners insurance calculator, home insurance estimator, house insurance calculator, property insurance calculator, HO-3 premium estimator.