Homeowners Insurance Premium

Home insurance premiums are based on many different factors, both personal and external. The Hartford offers customizable home insurance coverage options, so you can get the protection you need without breaking the bank.
Autor:
Lily DiGregorio
Lily DiGregorio,Staff copywriter
Lily DiGregorio
Staff copywriter specializing in auto and home insurance for The Hartford.
Actualizado: 01/12/2026
Tiempo de lectura: 4 minutos
homeowners protected by understanding Homeowners Insurance Premium
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Key Takeaways

  • Home insurance premiums are determined using many different factors, like where you live, your home’s building materials and deductible amounts.
  • The Hartford offers a number of ways for AARP members to save on their home insurance, like bundling coverage with their auto insurance to save nearly $1,000.**
  • You can choose to pay your homeowners insurance premium directly to your insurance company or by escrow.

What Is a Homeowners Insurance Premium?

A homeowners insurance premium is the amount you agree to pay to an insurance company for a home insurance policy. This is different than an insurance quote, which is an estimate of your premium that’s provided by your insurer before you purchase a policy.
 
Home insurance can provide peace of mind through financial protection. And while it’s important to understand what your policy covers, you should also know how much it costs and why. This knowledge can help make sure you’re getting the right coverage at the right price.
 

How Much Is the Average Homeowner Insurance Premium?

The average annual cost of homeowners insurance in the United States is $2,242 per year, or $187 per month.2 However, homeowners insurance rates can vary based on different factors. For example, the cost of your homeowners insurance policy may be higher or lower than the average based on your location, claims history and coverage limits.
 

How Are Homeowners Insurance Premiums Calculated?

Insurance companies consider many factors when determining homeowners insurance premiums, including your:
Where you live can impact how much you pay for home insurance. Different states may be more prone to certain natural disasters, which could increase homeowners insurance premiums. Within your state, there are also factors to keep in mind. For example, there may be certain high-risk areas that could impact your price. Or, if your home is located near a fire department, you may pay a lower premium because your insurer could see your home as being safer and easier to protect than other homes that aren’t located as close to a station.
Your home’s age, number of floors and square footage all influence the cost to rebuild your home after a covered loss, which may result in a higher premium. Other characteristics can also impact homeowners insurance premiums, like your home’s building materials and roof’s construction.
An insurance score is a rating that insurers use to calculate a policyholder’s risk and help them assess pricing. Insurance companies typically pull parts of your credit report to build an insurance score as well as other factors.
Adding more homeowners insurance coverages to your policy impacts your homeowners insurance premium based on the coverage amounts you select. However, you will have more protection if something happens. When determining how much coverage you need, consider your home’s value, potential risks and the overall amount of financial protection you need for peace of mind.
The amount you choose as your homeowners insurance deductible affects your policy costs. Having a higher deductible can lower your premium, but you’ll have to pay more out of pocket if you need to file a claim. Selecting a lower deductible could raise your premium.
Additional factors that may affect your home insurance cost include:
 
  • Claims history: The more claims you’ve submitted, the higher your premium may be.
  • Pets: Owning a pet, like a dog, could have an impact on your homeowners insurance cost.
 

How Do I Pay My Home Insurance Premium?

There are two ways you can pay your home insurance premium: direct and escrow.
 
  • Direct: Paying direct simply means you pay your insurance premium right to your homeowners insurance company either online or by phone.
  • Escrow: If you choose to pay via escrow, you’ll be making payments through your mortgage lender. Usually, they keep your monthly payment in an escrow account with a portion of that money going to your insurer for payment.
homeowner protected by understanding home insurance premiums

How Can I Lower My House Insurance Premium?

Many insurers offer discounts and benefits to help you save money on house insurance premiums.
With The Hartford, you can take advantage of exclusive AARP member benefits and homeowners insurance discounts, such as:
 
  • Bundle Home and Auto Insurance: Bundle your insurance to save time and money. If you combine your home and auto policies with The Hartford, you can save nearly $1,000.**
  • Home Security Discount: The Hartford rewards you for making the investment to protect your home. So, if you install devices like burglar alarms, you can qualify for a home security discount.
  • Fire Protection: If you install certain devices to help protect your home from fire damage, you can get a home insurance discount. This includes monitored fire alarms or sprinkler systems.
  • Claim-Free Discount: The longer you've been claims-free, the more you can save on your home insurance policy
There are additional ways you can lower your home insurance premium with AARP® Home Insurance from The Hartford,1 such as:
 
  • Choose higher deductibles to keep your payments down. Keep in mind you’ll have to pay more upfront if you need to file a claim.
  • Take advantage of benefits like Disappearing Property Deductible,‡‡ which reduces your deductible every year when you go three consecutive years without having an insurance loss.

Get a Homeowners Insurance Quote From The Hartford

As an insurance company you can trust, The Hartford has over 200 years of experience protecting homeowners and their properties. We’re here to help you make a home out of a house, with insurance premium that won’t break the bank. With AARP Home Insurance from The Hartford, you can get customizable coverage options at a price that fits your unique budget. Get a home insurance quote online today or call The Hartford at 877-422-2345.

Frequently Asked Questions About Homeowners Insurance Premiums

If you pay your home insurance premium directly to your insurance company, you can typically choose between a monthly premium or paying your policy in full. If you pay through an escrow account, your mortgage lender will likely require your premium to be included as part of your monthly mortgage payment. The mortgage company would then pay the full premium amount to your insurer on a yearly basis from an escrow account.
Yes, home insurance premiums can change based on things like your claims history or the current cost to rebuild your home.

Related Articles

 
 
2 Bankrate, “Average homeowners insurance cost in April 2025”
** Average annual savings are based on information reported by customers who switched to The Hartford’s newest rate plan between 9/1/24 and 8/31/25. Average auto insurance savings $597 and average home insurance savings $366. Your savings may vary. Rate differences for AARP members and non-members vary by state and AARP membership tenure. Auto/Home discount is available only to policyholders who have both their auto and home (or condo or renters) insurance through the AARP Auto & Home Insurance program from The Hartford. The Hartford does not write new business in all areas, including the states of CA and FL.
 
§ Availability of RecoverCare benefit and benefit levels vary by state. The Hartford RecoverCare Advantage® is a registered mark of The Hartford.
 
§§ Terms and conditions apply.
 
‡ Terms and conditions apply. Accident Forgiveness and the Disappearing Deductible are not available to CA policyholders.
 
‡‡ Terms and conditions apply. Availability varies by state.
 
‡‡‡ Based on one car and driver; individual rate/premium/savings will vary based on actual coverage selections and characteristics of vehicle(s)/driver(s).
 
Additional disclosures below.
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