Average cost of home insurance by state
Homeowners insurance rates can vary widely by state and even by ZIP code. Severe weather risk and high property crime rates will raise regional premiums, but the local insurance market and state legislation can also affect rates.
For example, Florida’s exposure to multiple types of severe and damaging weather contributes to its high home insurance costs. Between 1980 and 2024, the state suffered 94 $1 billion-plus weather disasters, according to the National Centers for Environmental Information.
By contrast, Vermont — the cheapest U.S. state for home insurance — experienced 19 $1 billion-plus weather disasters during the same time period.
Here are the average annual home insurance premiums for each state for $300,000 in dwelling coverage, according to Insurify data.
Cheapest states for home insurance
Vermont has the cheapest average home insurance premiums in the U.S. It has some of the lowest property crime rates and fewer natural disasters.2 It’s not immune, though: Vermont has faced many significant flooding events, including three in the last year.
Here are the five cheapest states for a $300,000 homeowners insurance policy, along with their average annual premiums:
Vermont: $936
New Hampshire: $1,128
Delaware: $1,212
Alaska: $1,224
Hawaii: $1,380
Fewer costly weather events and comparatively lower crime rates contribute to a state’s lower cost of home insurance.
Most expensive states for home insurance
The five most expensive states for homeowners insurance all have average costs that are well above the national average. They also share a high risk of damage from severe weather, like hurricanes and tornadoes, or from wildfire.
Here are the states with the highest annual costs for a home insurance policy with $300,000 in dwelling coverage:
Florida: $5,640
Louisiana: $5,136
Oklahoma: $4,560
Texas: $4,140
North Carolina: $3,444
Why homeowners insurance rates are rising
Inflation and climate catastrophes contribute to rising homeowners insurance rates, according to Insurify’s home insurance report. Florida, Louisiana, and Oklahoma have the highest average home insurance rates in the U.S. and face increasingly frequent and severe weather. The 10 most expensive states are all prone to severe weather events, including hurricanes, tornadoes, and wildfires.
Insurance companies set rates based on risk, so if you’re in a vulnerable area, your premiums will be higher to reflect the increased likelihood you’ll file a claim. The rising cost of labor and repairs contributes to higher premiums because it’s become more expensive to fix the damage from accidents and weather events.
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