Most and Least Expensive States for Home Insurance Rates


WRITTEN BY: Mark Romero

UPDATED: SEPTEMBER 22, 2022 | 1 MIN READ

Home insurance is necessary to protect your financial investments against disasters, accidents, and other unforeseen events.

However, factoring in the cost of it, along with the price of your new home, is important to ensure you make the best financial decisions for yourself.

The average homeowners insurance rates vary tremendously from one state to another. If you want to buy homeowners insurance, keep reading to learn which states with the most and least expensive rates. 

5 States With the Most Expensive Homeowners Insurance Rates

Homeowners insurance policies help protect your home in a disaster. The most common reasons to file a claim are fire or natural disasters (such as tornadoes or hurricanes).

Types of damages arising from a homeowners insurance policy include damage to your home, contents, and personal property. If you live in a state where the risk of natural disasters is high, your policy premiums will be higher than in an area with no risk.

Most Expensive States

Louisiana, a high-risk state for natural disasters, has the most expensive homeowners insurance. The average insurance premium is $1,968 a year. Most often, Louisiana homeowners are affected by floods.

Florida is the second state with the most expensive homeowners insurance in the country. The average insurance premium is $1,951 annually, and fires are the most common natural disasters.

Here are the rest of the top 5 states with expensive homeowners insurance:

  • Number three: Texas with an average annual homeowners insurance premium of $1,893
  • Number four: Oklahoma with an average annual homeowners insurance premium of $1,885
  • Number five: Kansas with an average homeowners insurance premium of  $1,584

Expensive Homes: Where They’re Most Costly to Insure

In some states, the price of insuring expensive homes is far more than average. By “expensive homes,” we’re talking about a home with a homeowners insurance policy with $500,000 in coverage.

The states where it is the most expensive to insure high-value homes are Lousianna and Florida, the number 2 and 3 states at highest risk for natural disasters. 

In Louisiana, insuring an expensive home costs an average of $4,427 per year. In Florida, it costs an average of $4,332.

Because Florida isn’t necessarily known for having the highest homeowner’s insurance rates, be aware of the high rates if you buy a large home in the state.

5 States With the Least Expensive Homeowner’s Insurance Rates

Homeowners insurance is necessary for any home, but it can be expensive. The good news is that you can get affordable homeowners insurance rates in a few states. These states have lower rates of natural disasters that affect homes, making their homeowners insurance premiums more affordable. 

Least Expensive: Hawaii

Hawaii is the least expensive state to buy homeowners insurance in the country. The average annual premium is $376, which is 71% lower than the national average. However, Hawaii is the most expensive state to live in, so don’t move here just for the low homeowners insurance premiums.

States with the Least Expensive Homeowner’s Insurance Rates 

Utah is the next state with the least expensive homeowners insurance rates. This state is relatively safe from natural disasters that affect the home, except for flooding in some regions. The average annual premium is $647 in Utah. That’s 51% lower than the national average.

Here are the rest of the five states with the least expensive homeowners insurance:

  • Number three: Delaware with an average homeowners insurance premium of $680
  • Number four: Vermont with an average homeowners insurance premium of $680
  • Number five: Oregon with an average homeowners insurance premium of $712

What Factors Determine Homeowner’s Insurance Rates?

When examining the states and how much their homeowners insurance premiums are, we’ve talked a lot about weather and its impact on rates. However, other factors contribute to your homeowners insurance rates. We’ve split them into two categories: factories out of your control and factors within your control. 

Factors out of your control that determine homeowners insurance rates 

Aside from weather and natural disasters, what other uncontrollable factors affect your premiums? Here’s one: Your fire risk and how easily firefighters and fire hydrants can access your home. You’ll likely see higher premiums if you’re far away from a fire station. 

Here’s another one: How old is your house? If you’ve purchased an older house, you’ll likely see higher insurance rates. Also, the construction and roof quality contribute to how high your premiums are.

If your home was constructed properly or wasn’t built with quality, durable materials, your homeowners rates will typically be higher.

Factors you control that determine homeowners insurance rates

One factor that you can’t necessarily control but can improve is your property’s crime risk. Living in a high-crime neighborhood makes it common to see higher homeowners insurance premiums. However, you can reduce this increase by installing safety systems in your home.

Another factor you can control: If you want to see lower insurance premiums, don’t opt for homes with pools or hot tubs. These increase insurance rates.

How to reduce your homeowners insurance rates

Here are some steps you can take to reduce your homeowners insurance premiums:

  • Bundle your insurance policies (home and auto) with one company.
  • Choose the best homeowners insurance for your home.
  • Ask for opportunities to save.
  • Work with an agent to find the best policy for you.
  • Improve your credit card score.
  • Increase your deductible – but you’ll pay more out of pocket if you file a claim. 
  • Renovate your home (although this would also cost money, it’ll help you avoid the need for repairs). For example, make your garage doors stronger when you update them.
  • Install additional safety measures, such as a security system, storm shutters, or a carbon monoxide detector. 
  • Pay your insurance off on time consistently. 
  • Replace water hoses.
  • If you’re installing new siding, choose a fire-resistant material.
  • Compare insurance rates – shop around.

FAQs

Why is Florida home insurance so high?

Here’s why Florida home insurance is so high:

  • Legislative changes
  • The state faces hurricanes often
  • Increased rates of insurance fraud

What states don’t require homeowner’s insurance?

No states require you to have homeowners insurance. However, banks require homeowners insurance as a condition of your mortgage. 

Is it possible not to have homeowner’s insurance?

Since banks require homeowners insurance, it’s impossible to avoid it when you have a mortgage. 

Why is homeowners insurance so expensive?

The majority of homeowners have seen their insurance rates increase. Homeowner’s insurance premiums have increased by 11.4% since 2017. But why? There are two factors: 

  • Climate change: Climate change increases the frequency and intensity of natural disasters. As the risks increase, so do homeowners insurance premiums.
  • Supply chain issues: The supply chain has been struggling for years now. These supply chain problems have increased the cost of lumber and other construction materials. Since your insurance company would have to pay more to repair your home, you have to pay higher insurance rates. 

How can I save money on homeowners insurance?

Here are a few ways you can save money on homeowners insurance premiums:

  • Do renovations on your home, and improve your siding, roofing, garage, and hoses.
  • Install safety measures. 
  • Compare insurance rates and shop around to find the best rate for you.

The most expensive states for homeowners insurance rates depend on various factors, including the cost of living, crime rate, age of the home, and even how well the neighborhood is built.

It can also be very dependent on the circumstances surrounding the insurance claim. The best way to receive quotes from companies is to start with online quote comparison.