Average Home Insurance Cost by State

Why do home insurance costs vary so much between states?

Home insurance costs vary dramatically by state due to several regional factors:

• Natural disaster risk: States in hurricane zones (Florida, Louisiana, Texas) or tornado alley (Oklahoma, Kansas) face much higher premiums
• Climate patterns: Hail-prone areas, wildfire zones, and flood-risk regions cost more to insure
• Construction costs: Urban and coastal areas with expensive labor and materials have higher rebuild costs
• State regulations: Insurance laws, building codes, and litigation environments affect pricing
• Population density: Dense urban areas may have higher crime rates leading to more theft claims

For example, Florida averages $3,150/year due to hurricane risk, while Hawaii averages just $900/year thanks to mild weather and strong building codes.

Which states have the highest home insurance premiums?

The states with the most expensive average home insurance premiums are:

1. Florida: $3,150/year - Hurricane risk and coastal exposure
2. Oklahoma: $2,700/year - Tornado alley with frequent severe storms
3. Louisiana: $2,625/year - Hurricane risk and high claim frequency
4. Texas: $2,625/year - Hail, tornadoes, and large home sizes
5. Mississippi: $2,400/year - Hurricane risk and high poverty rates

These states all face significant weather-related risks that result in frequent and costly insurance claims, driving up premiums for all homeowners in the region.

Which states have the cheapest home insurance rates?

The most affordable states for home insurance are:

1. Hawaii: $900/year - Mild climate, strong building codes, low crime
2. Oregon: $1,050/year - Moderate weather, competitive insurance market
3. Idaho: $1,050/year - Low population density, minimal disaster risk
4. Alaska: $1,050/year - Low population, remote locations
5. Utah: $1,125/year - Desert climate, low humidity, fewer weather events

These states benefit from minimal natural disaster risk, lower construction costs, and stable weather patterns that result in fewer insurance claims and lower premiums overall.

How can I lower my home insurance costs regardless of my state?

Even in expensive states, you can reduce premiums with these proven strategies:

• Bundle policies: Combine home and auto insurance for 15-25% discounts
• Increase deductible: Raising from $500 to $1,000 can save 10% annually
• Improve home security: Install monitored alarm systems, deadbolts, and cameras for up to 20% off
• Upgrade roof: New roofs (especially impact-resistant) can save 10-15%
• Maintain good credit: Better credit scores result in lower premiums in most states
• Stay claims-free: Avoid small claims and pay minor damages out of pocket
• Shop annually: Compare quotes from 3-5 insurers every year
• Ask about discounts: Loyalty, military, professional association, and retiree discounts

Learn more about available discounts →

Should I bundle home and auto insurance to save money?

Yes, bundling is one of the best ways to save. Most insurance companies offer significant multi-policy discounts when you purchase both home and auto insurance from them:

• Typical savings: 15-25% off both policies
• Simplified management: One company, one renewal date, one payment
• Better customer service: Dedicated agents and easier claims coordination
• Loyalty rewards: Additional discounts for long-term customers

Important consideration: While bundling usually saves money, it's still worth comparing quotes. Sometimes buying separate policies from different companies can be cheaper overall. Get quotes for:

• Bundled policies from 3-5 companies
• Separate home and auto policies from specialists
• Compare total annual costs to find the best deal

The key is shopping around annually and calculating your total insurance spend across all policies.

Does my state's average premium reflect what I'll actually pay?

Not necessarily. State averages provide helpful benchmarks, but your individual premium depends on many personal factors:

Example: In Texas (average $2,625/year), a new $250K home with security systems might pay $1,800/year, while an older $500K home with claims history could pay $4,000+. Use ourcalculator for a personalized estimate.