Homeowners insurance has been the most volatile line item in a mortgage budget since 2020. Florida and California premiums have more than doubled in many ZIPs. Texas, Oklahoma, and Colorado (hail and wildfire) are close behind. Getting a real quote before you buy is no longer optional — it can make or break affordability.
Worked example: $425,000 home (wood-frame, age 20, central region), $2,500 deductible, 740+ credit. Base premium ~$1,600/year = $133/mo. Same home in Florida or coastal Texas: $4,500-$7,500/year. Same home in coastal California fire zone: $3,500-$6,000.
What drives your premium
- Location. Coastal, wildfire, tornado, and freeze zones cost 2-5x more.
- Construction. Masonry and newer construction cost less than wood-frame older homes.
- Credit score. 740+ vs 650 can be 20-40% premium difference.
- Deductible. Raising from $1,000 to $2,500 saves 10-15%; to $5,000 saves 25%+.
- Claims history. Any prior claim in the last 5 years raises premiums; two claims can make you non-renewable.
- Coverage amount. Based on rebuild cost, not market value. Make sure your dwelling coverage matches actual replacement cost.
Don't over- or under-insure
Dwelling coverage should equal the cost to rebuild from scratch, not the home's market value. In a dense metro where land is 50% of value, rebuild cost is half the purchase price. Over-insuring inflates premium; under-insuring creates a co-insurance penalty at claim time.