Homeowners Insurance: What It Costs and What It Covers

Part of Your PITI

Lenders require homeowners insurance, and it is included in your monthly escrow payment. The national average is about $1,500/year ($125/month).

Cost by State

Insurance varies dramatically by location:
Most expensive: Oklahoma ($4,500+), Kansas ($3,800+), Nebraska ($3,500+) — tornado/hail risk
Least expensive: Vermont ($700), New Hampshire ($800), Maine ($900)

What It Covers

Standard policies cover: dwelling, other structures, personal property, liability, and additional living expenses. Flood and earthquake require separate policies.