Chelsey Tucker graduated with a Bachelor of History degree from Metropolitan State University in 2019. She now writes about insurance with her specialty being life insurance and has been quoted on Help Smart Phone and MEL Magazine.

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Dan Walker graduated with a BS in Administrative Management in 2005 and has been working in his family’s insurance agency, FCI Agency, for 15 years. He is licensed as an agent to write property and casualty insurance, including home, auto, umbrella, and dwelling fire insurance. He’s also been featured on sites like

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Reviewed by Daniel Walker
Licensed Auto Insurance Agent

UPDATED: Mar 19, 2020

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Home Insurance Costs

Understanding how much homeowners insurance cost is important for many reasons. The monthly cost of home insurance is one that needs to be added into your budget because it is not an expense you can do without.

If your home is mortgaged then home insurance is required. If you own your home free and clear, then you still need home insurance to protect one of your biggest investments. Most home insurance policies are paid annually, but if you budget the amount monthly home insurance cost you can save for it accordingly.

The cost of home insurance per month can vary widely due to the location, property value, and the contents therein. The average home insurance payment is between $45 and $75 per month. Of course, rates can vary dramatically from one insurance provider to the next so be sure to use our free tool at the top of the page for comparing quotes for home insurance!

Determining the Cost of Home Insurance

There are different types of policies you can buy for different kinds of home insurance coverage. The more basic the policy, the less your premium and the cheaper the average homeowners insurance monthly payment will be.  However, that also means less coverage. Instead of determining which policy to buy based on your monthly budget, you should first determine what you need.

Figure out the square footage of your home, determine the value of your personal property, and review all of your options with your insurance agent can help you figure out how much is your home insurance. You should take all variables into consideration, including if you have a rare coin collection or you live in a known flood zone.

Once you determine the type of coverage you should buy, then you need to look at the cost of the premium. Since it is not a good idea to underinsure your home (and most lenders will not allow that to happen anyway), you should see what you can do to reduce your premium while still keeping the same coverage.

Changing your deductible from $500 to $1,000 can give you an annual savings of around $5o or even more. While saving $4 to $5 a month may not seem like much, it can add up substantially over the lifetime that you own the home, especially if you never have a claim. The difference in the deductible is only $500, so you have a return on the difference within the first 9 years that you do not have a claim.

Other ways to reduce the home insurance cost per month is with various discounts, such as burglar alarm discounts or multiple policy discounts. A security alarm can save you $35 on your annual home insurance, which is approximately the cost of one month of alarm monitoring service. Multiple policy discounts are big savers for people, so giving your car insurance to the same company that handles your home insurance will provide you with double benefits. In addition to saving around $100 on you home insurance annually, you can save $100 annually on your car insurance, too.

Your home insurance can be paid monthly or yearly, but usually are set up as yearly payments. Installment payments usually come with an admin fee that could cost you around $2 per month or $24 a year. Usually the cost of the admin fee is not warranted since house insurance per year coverage tends to be around $600 per year or $50 per month. It is more beneficial to put aside the monthly budget for your home insurance and pay it all at once at the time it is due. Some people have an escrow account that handles this for them.

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Home Insurance and Escrow Accounts

Escrow & Home Insurance

If your home was purchased through a lender and you still have a mortgage, then you may also have an escrow account. When most people hear the word escrow the first thing that comes to mind is the escrow process that is used when buying a home – however, that escrow process can also be used for homeowners insurance. Not every lender requires an escrow account and some lenders will let you purchase an opt-out option so that you can take care of your own insurance and property taxes.

If you are good at creating a budget and placing the money safely aside for that reason, then you may not need an escrow account. Most people don’t mind the escrow account because then they do not need to worry about paying the bills that the escrow typically handles.

Escrow accounts are set up by the lender to pay your home insurance and your property taxes. Most home insurance is due annually while property taxes are usually paid twice per year. If you forget to pay your insurance or your property taxes, there can be some hefty fees and some potentially serious consequences, such as losing your home.

In order to ensure this does not happen, most lenders will handle the escrow for you for no charge. This does not mean that they pay those bills for you; rather it means they pay them on your behalf. They include estimated escrow amounts in your monthly mortgage payment and they fund your account accordingly.

For example, if you have a mortgage payment of $1,500 and you have an escrow account, then your breakdown may be $1,000 interest, $200 principal, and $300 escrow. The $300 will go into your escrow account and when it is time to pay your property taxes or your home insurance, the lender (your mortgage company) will take the money out of the escrow account and pay it to the appropriate parties on your behalf.

It is always a good idea to confirm that these very important payments are made. If you are paying escrow in your monthly mortgage, then you should not make direct payments for these bills yourself, lest they will be paid in duplicate.

How Much Does Home Insurance Cost?

While most home owners and condo owners are either obligated to buy home insurance or just understand the necessity for it, many renters do not think about home insurance. However, renter’s insurance is important for a couple of reasons. It is true that when you are renting you do not financially own the building in which you reside, yet you do own all of your personal property stored within your living quarters as well as any storage facility included in your rent.

how much is home insurance a month

Whether you rent a house or an apartment, you need to have insurance to protect you financially from fire, theft, or even unexpected perils such as riots, water damage, or lightning strikes. Renters insurance can even provide you coverage if your personal property gets smoke damage due to a neighboring fire.

In addition to buying renters insurance as financial protection for your personal property, renters insurance also gives your personal liability protection. This is especially beneficial in the event someone falls down in your apartment while visiting there and gets injured. Personal liability can assist with injured parties’ medical bills and related lawsuits that may arise. Note, personal liability is not medical insurance for the insured and is only a benefit as financial protection on your behalf.

Renters insurance is relatively inexpensive considering without it you could have severe financial loss. Your clothing, electronics, furniture, and jewelry should all be taken into consideration when purchasing renters insurance. To determine how much should homeowner’s insurance cost based on your situation the best option is to compare quotes below with the free quote comparison tool. Typically the cost of renters insurance is less than $100 per year, with additional insurance riders available when necessary. For example, if you have an exotic fur collection or extremely valuable jewelry, you may want to increase your insurance coverage beyond the standard policy.

Getting Better Than Average Home Insurance Rates

The annual cost of your home insurance will depend on the type of coverage you purchase as well as the amount of coverage. Additional policies will add to the premium, but discounts can reduce the overall cost.

Once you know how much your home insurance premium costs, you can divide it by 12 to calculate the cost per month.

Why settle for average homeowners insurance rates? To get home insurance quotes now, enter your zip code in the free online quote tool!