Lenders require homeowners insurance for the duration of the mortgage. Annual premiums vary widely by state and home type — averaging $1,500-$2,500 nationally but exceeding $5,000+ in disaster-prone states like Florida and Oklahoma.

Standard policies cover the dwelling, other structures, personal property, loss of use, and personal liability. Earthquake and flood insurance are usually separate.

Premiums are typically paid through escrow as part of the monthly mortgage payment.