Homeowners insurance premium by coverage amount
The amount of dwelling coverage (Coverage A) you carry — what it would cost to rebuild your home — is one of the biggest levers on a homeowners premium. NAIC reports premiums by dwelling-coverage band, and the average rises steadily as the band increases. The table below indexes a typical premium to the $1,569 national average (NAIC 2022) at roughly $200k–$300k of coverage, then scales it. These are illustrative estimates, not quotes.
Source: NAIC Homeowners Insurance Report (2022 data, latest available). Data as of June 2026.
Estimated premium by dwelling coverage (national)
| Dwelling coverage (Coverage A) | Scaling factor | Estimated annual premium |
|---|---|---|
| Under $50,000 | x0.42 | $659 |
| $50,000 to $74,999 | x0.52 | $816 |
| $75,000 to $99,999 | x0.62 | $973 |
| $100,000 to $124,999 | x0.71 | $1,114 |
| $125,000 to $149,999 | x0.79 | $1,240 |
| $150,000 to $174,999 | x0.87 | $1,365 |
| $175,000 to $199,999 | x0.94 | $1,475 |
| $200,000 to $299,999 | x1 | $1,569 |
| $300,000 to $399,999 | x1.28 | $2,008 |
| $400,000 to $499,999 | x1.56 | $2,448 |
| $500,000 and over | x2 | $3,138 |
Source: Indexed to the NAIC 2022 national average ($1,569) with a coverage-scaling factor. Data as of June 2026.
The $200,000–$299,999 band is the index point (factor x1.0 = the national average). Factors are an approximation of how premium rises with rebuilding cost, documented on the methodology page - they are not published NAIC band dollar figures. Use the premium estimator to combine a coverage amount with your state's average.
Why coverage amount matters more than you think
Premium scales roughly with rebuilding cost because the insurer's maximum payout scales with it. Carrying too little dwelling coverage saves a little premium but risks a coinsurance penalty — if you insure below ~80% of replacement cost, the insurer can reduce a partial-loss payment proportionally. The right number is your home's replacement cost, not its market value or your mortgage balance.
Frequently asked questions
Does homeowners insurance cost more for a bigger house?
Yes. The amount of dwelling coverage (Coverage A) - what it would cost to rebuild your home - is one of the biggest premium levers. NAIC groups policies into dwelling-coverage bands, and average premiums rise steadily as the band increases. A $500,000+ rebuild typically costs roughly twice the premium of a $200,000-$300,000 home, all else equal.
How much dwelling coverage do I need?
Enough to fully rebuild your home at current local construction costs - the replacement cost, not the market value or your mortgage balance. Land is not insured. Under-insuring can trigger a coinsurance penalty at claim time. See our replacement cost guide for how to estimate it.
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Last updated: 2026-06-20