How Much Is Homeowners Insurance Per Year? (2024)

Explore the trends in homeowners insurance costs from 2001 to 2020, including factors influencing the steady increase in annual premiums and what to expect in the future.

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Average Homeowners Insurance per Year in U.S. (2001-2020)

Early 2000s: Average Yearly Home Insurance Cost

In 2001, the average yearly cost of homeowners insurance was $536. In the next few years, this price slowly went up to $593 in 2002 and then $668 by 2003. During these early years of the millennium, the housing market was stable yet growing, and there were few disasters. This led to moderate increases in insurance costs.

Mid-2000s to 2010: Steeper Climbs

By 2004, the average yearly home insurance cost of homeowners insurance had climbed to $729, and it kept rising sharply throughout the decade. By 2010, it reached an average of $909 per year. This increase was partly due to natural disasters like hurricanes and floods, which raised risks and claims. Also, a real estate boom before the 2008 financial crisis pushed up property values and, as a result, insurance premiums.

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2011 to 2020: Breaking the $1,000 Mark

After the recession, average homeowners insurance per year prices kept going up, surpassing $1,000 in 2012 with an average cost of $1,034. By 2015, this amount had increased to $1,173, and by 2020, the average annual premium had reached $1,311. This rise over the last decade was driven by more frequent high-cost natural disasters like wildfires and major hurricanes, as well as general inflation and higher home repair costs.

Future Outlook for Average Homeowners Insurance per Year

Going forward, homeowners should be ready for insurance costs to keep rising. This is because of climate change, rising home values, and possibly higher costs for materials and labor. It’s very important for homeowners to regularly check and compare insurance plans to make sure they're getting the best coverage at a good price.


Over the last twenty years, homeowners insurance has taken up a bigger portion of household budgets. This look back helps homeowners understand how much is homeowners insurance per year past trends and plan financially for the future. As the environment and economy change, the factors that influence insurance costs will also change, highlighting the importance of staying informed and aware for all homeowners.

Disclaimer: The information in this article about homeowners insurance costs is for general information only and not meant as specific advice. Please talk to a professional for advice tailored to your needs.

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