5 Most Expensive States for Homeowners Insurance
Reading time • 5 minutes
By Matic
The cost of homeowners insurance can be steep. Premiums for new policies increased by more than 17% in the first half of 2024, according to Matic data. Existing customers are also being hit hard. If you bought a policy in 2021, you’re likely paying 69% more today than you were at the start. Where you live plays a big role in how much you’ll pay for homeowners insurance, especially if you’re in a state that’s prone to extreme weather and natural disasters. Inflation has also bumped up building costs. In some cases, insurers are even withdrawing from certain markets.
So where does this leave homeowners? We sifted through the data* and put together this list of five most expensive states for homeowners insurance. If you live in one of these states, it could help you understand why your rates are as high as they are.
1. Florida
Average annual premium: $6,642
The Sunshine State is prone to extreme storms, including hurricanes. Weather and climate disasters are a major factor when it comes to homeowners insurance rates. According to government data, there were 28 such events nationwide in 2023 alone — and they resulted in at least $92.9 billion in damages. Florida was slammed with flooding events and one major hurricane that year. All in all, LexisNexis Risk Solutions reports that home insurance costs in Florida are up roughly 57% since 2015.
2. Louisiana
Average annual premium: $4,693
Louisiana is another Gulf Coast state that’s vulnerable to climate-driven storms and hurricanes. On average, a hurricane makes landfall or tracks over Louisiana once every three years — often leaving major devastation in its wake. That can wreak havoc for homeowners. According to one statewide survey, 17% of Louisiana policyholders said that their insurer canceled their policies in 2022. More than half of those who tried to get new policies had difficulty getting one, and many insurers either became insolvent or exited Louisiana altogether.
3. Nebraska
Average annual premium: $4,100
Nebraska residents are susceptible to extreme weather events like droughts, floods, freezing, storms and wildfires. Since the 1980s, the state has experienced 65 billion-dollar disasters, according to the National Oceanic and Atmospheric Administration (NOAA). Homeowners are feeling the effects. Matic data found that the average annual homeowners insurance premium in Nebraska is well over the national average, which the National Association of Realtors puts at $2,377 per year (or roughly $198 monthly).
4. Oklahoma
Average annual premium: $4,027
Over the last five years, twister-prone Oklahoma has experienced about five major weather events per year. (They don’t call it Tornado Alley for nothing.) The state is no stranger to serious damage — since the 1980s, there have been 114 billion-dollar weather events. That can spell trouble for the insurance industry. When insurers experience losses, they often raise premiums to make up for it. Homeowners in Oklahoma are feeling the pinch.
5. South Dakota
Average annual premium: $3,797
Homeowners insurance rates have been ticking upward in South Dakota. The Federal Reserve Bank of Minneapolis recently reported that over a seven-year period, South Dakota saw premiums grow by 41%. So what gives? Severe weather is a likely culprit. The state is prone to tornadoes, hail, and wind storms. Droughts can also increase the risk of wildfires. And as inflation took off, that likely increased building costs — and home insurance premiums.
5 most affordable states for homeowners insurance
The news isn’t all bad. The five states below have the lowest homeowners insurance premiums.
| State | Average annual premium |
|---|---|
| Hawaii | $749.00 |
| Nevada | $960.74 |
| Washington D.C. | $1,221.98 |
| Maine | $1,234.70 |
| Delaware | $1,423.16 |
How to reduce your homeowners insurance rate
Knowing which states have the highest and lowest rates is certainly helpful — but unless you’re willing to move, you might still be up against higher-than-average premiums. The bright spot is that it might be possible to reduce your rate. Consider these tips:
- Bundle your home and auto policies: Your insurer might offer you a lower rate if you do.
- Opt for a higher deductible: This should bring down your rate, but keep in mind that you could face higher out-of-pocket costs if you file a claim.
- Modify your coverage: It’s possible you’re paying for levels of coverage you don’t really need. Consider your home, risk tolerance, where you live, and what your needs are — then aim to strike the right balance to ensure you’re adequately covered.
- Look for discounts: Many insurers offer breaks to military families, veterans and seniors. You might also snag discounts by paying your annual premium in full or signing up for paperless billing.
- Make safety upgrades to your home: Finding ways to make your home safer could reduce your chances of filing a claim — and bring down your insurance rate. That might mean replacing a leaking roof, upgrading to storm-safe windows, or installing a security system.
- Shop around: A better rate might be waiting for you elsewhere. Gather some quotes and compare prices to see where you can get the best coverage for your money.
*Premium data by state is based on an average from a random sample of 7 million Matic quotes for homeowners insurance from Jan 1, 2024 through August 31, 2024.
Looking to save on your homeowners insurance?
Compare 40+ A-rated carriers and get a personalized quote in moments.
Get a Home Insurance Quote
