Ask ten homeowners how much homeowners insurance is, and you will get ten different answers—because the real answer depends on your state, your house, and your deductible. The national average is about $2,490 a year in 2026, but that single number hides an 8x gap between the cheapest and priciest states. Here are 7 proven facts that show what you will actually pay, and why.
How much is homeowners insurance in 2026?
The quick answer: $2,490 per year — about $207.50 per month — for $400,000 of dwelling coverage, according to NerdWallet’s 2026 analysis of more than 100 insurers.
These figures assume a standard sample policy: a 40-year-old homeowner with good credit, $400,000 in dwelling coverage, $300,000 in liability coverage, and a $1,000 deductible. Your price will differ, but this is the benchmark every other number in this article is measured against.
Fact 1: The National Average Is $2,490 a Year
That $2,490 figure is the most-cited benchmark in the industry, and it is worth knowing exactly what it buys: full replacement-cost coverage on a typical American home, before state adjustments. Other analyses land nearby but use different methods—the Zebra’s 2026 report puts the average at $2,966, and Insurify projects roughly $3,057 by the end of 2026. The direction is consistent: the benchmark keeps moving up.
Fact 2: Your State Can Multiply That by 8
Here is where averages get misleading. The same $400,000 of coverage costs $7,255 a year in Oklahoma and $900 a year in Hawaii—a ratio of 8.06x. That is not a typo: location alone can multiply your premium eightfold. Everything below explains why.
Fact 3: The 5 Most Expensive States in 2026
| State | Average annual premium | Per month |
|---|---|---|
| Oklahoma | $7,255 | $604.58 |
| Nebraska | $6,015 | $501.25 |
| Kansas | $5,455 | $454.58 |
| Arkansas | $4,955 | $412.92 |
| Texas | $4,915 | $409.58 |
The pattern is tornado alley plus hail country: frequent, severe weather claims get priced into every policy in the region. (Source: NerdWallet 2026 analysis, $400,000 dwelling coverage.)
Fact 4: The 5 Cheapest States in 2026
| State | Average annual premium | Per month |
|---|---|---|
| Hawaii | $900 | $75.00 |
| Vermont | $1,170 | $97.50 |
| Delaware | $1,365 | $113.75 |
| Alaska | $1,385 | $115.42 |
| New Jersey | $1,480 | $123.33 |
Hawaii’s number comes with an asterisk: standard Hawaiian policies typically exclude hurricane coverage, which is sold separately—so the headline figure is not the whole story. Still, concrete construction, strict building codes, and state regulation keep base rates low.
Fact 5: Cost per $1,000 of Coverage Tells the Real Story
Annual premiums are hard to compare because coverage amounts differ. Normalize to cost per $1,000 of dwelling coverage, and the gap becomes crystal clear:
- Oklahoma: $7,255 ÷ 400 = $18.14 per $1,000
- Hawaii: $900 ÷ 400 = $2.25 per $1,000
Nobody in the industry publishes this normalized view, but it is the fairest way to compare what insurers actually charge for each dollar of protection. When you get quotes, divide by your coverage in thousands—it instantly shows whether a quote is expensive or just covering a bigger house.
Fact 6: Why the Same House Costs 8x More
Three forces create the Oklahoma–Hawaii gap:
- Weather exposure. Oklahoma sits in tornado alley with frequent hail; insurers pay out constantly, and every homeowner shares that cost. Hawaii’s main peril—hurricanes—is largely excluded from standard policies.
- Construction and codes. Concrete and strict codes (Hawaii) cost less to insure than wood-frame homes in storm zones.
- State regulation. How each state oversees rate filings changes how fast insurers can raise prices—which is also why some states see sudden jumps after years of suppressed rates.
Fact 7: Premiums Are Still Climbing in 2026
The trend is up almost everywhere. Insurify projects a 4% national increase in 2026 to about $3,057, with California facing a 16% jump—the largest of any state—as insurers catch up on wildfire losses. Only five states (Hawaii, Massachusetts, Maine, Louisiana, Rhode Island) are seeing slight decreases of 0–2%.
Behind the increases: pricier building materials and labor (watch the trend yourself on Google Finance), more extreme weather, and years of insurers losing money in high-risk states. None of this is reversing soon.
What This Means for Your Monthly Mortgage Payment
Lenders collect insurance through escrow, so the premium lands directly in your monthly payment (PITI). The state gap in monthly terms:
- Oklahoma: $604.58/month added to PITI
- National average: $207.50/month
- Hawaii: $75.00/month
That $530-a-month swing between extremes is bigger than many car payments—and buyers routinely forget it when budgeting. Before you commit to a house, run your own numbers through a home insurance calculator with your state’s rates so the escrow figure never surprises you.
How to Lower Your Number
You cannot change your state, but you can change your price:
- Raise your deductible. Going from $500 to $1,000 saves up to 25%, according to the Insurance Information Institute—keep the deductible in emergency savings.
- Shop at every renewal. Set a Google Alert for “[your state] homeowners insurance rate increase” so you know when to compare quotes.
- Bundle and discount. Home-plus-auto bundling commonly saves 10–15%; alarms, storm shutters, and a new roof earn further discounts.
- Right-size your coverage. Ensure rebuild cost, not market value—land needs no insurance.
What is the average homeowners insurance cost per month?
About $208 per month nationally ($2,490 per year, per NerdWallet’s 2026 analysis). The state spread runs from roughly $75/month in Hawaii to about $605/month in Oklahoma.
Which state has the cheapest homeowners insurance?
Hawaii, at about $900 per year (~$75/month). Note that standard Hawaiian policies typically exclude hurricane coverage, which must be bought separately.
Why is homeowners insurance so expensive in Oklahoma?
Oklahoma sits in tornado alley: frequent tornado and hail claims drive the $7,255 average premium—about 8 times Hawaii’s. Every policyholder in the state shares that weather risk.
Will home insurance rates go up in 2026?
On average, yes. Insurify projects a 4% national increase to roughly $3,057, with California facing a 16% jump. Five states (Hawaii, Massachusetts, Maine, Louisiana, Rhode Island) are seeing slight 0–2% decreases.
How much is homeowners insurance on a $300,000 house?
Roughly 75% of the $400,000-dwelling benchmark—about $1,868 per year before state adjustments. Your state’s multiplier (Fact 2) moves that number far more than the house price does.
Does a higher deductible really lower my premium?
Yes—raising your deductible from $500 to $1,000 saves up to 25%, per the Insurance Information Institute. Just keep the full deductible amount in emergency savings.
Final Thoughts
Homeowners insurance in 2026 averages $2,490 a year nationally, but your state writes most of the story—anywhere from $75 to $605 a month. Know your state’s position, normalize quotes to cost per $1,000 of coverage, and shop the number that actually lands in your escrow payment.
Disclaimer: Premium figures in this article are industry averages for education and budgeting only—not quotes. Actual premiums vary by insurer, home, and risk factors. Confirm your coverage and price with a licensed insurance agent.