Home Insurance Costs by State: 2025 Complete Comparison Guide

Homeowners insurance premiums vary dramatically across the United States, with natural disaster risk being the biggest driver. Homeowners in Oklahoma pay nearly four times what homeowners in Vermont pay for similar coverage. This guide breaks down costs by state and explains what’s behind the differences.

National Overview

National average annual premium: $2,377 Cheapest state: Vermont ($855/year) Most expensive state: Oklahoma ($4,899/year)


Complete State-by-State Cost Rankings

Average Annual Homeowners Insurance Premiums

RankStateAnnual Premiumvs. National AvgPrimary Risk Factor
1Vermont$855-64%Low natural disaster risk
2New Hampshire$912-62%Minimal severe weather
3Maine$967-59%Low population density
4Wisconsin$1,023-57%Moderate weather risk
5Utah$1,078-55%Low humidity, fewer storms
6Oregon$1,089-54%Moderate fire risk
7Delaware$1,112-53%Small state, low exposure
8Idaho$1,134-52%Low population, few claims
9Washington$1,156-51%Earthquake excluded standard
10Ohio$1,178-50%Moderate weather
11Arizona$1,198-50%Low humidity
12Montana$1,223-49%Sparse population
13Pennsylvania$1,245-48%Moderate risk profile
14Wyoming$1,267-47%Low density
15Nevada$1,289-46%Desert climate
16California$1,312-45%Fire risk increasing
17New York$1,334-44%Moderate weather
18New Jersey$1,356-43%Coastal exposure
19Virginia$1,378-42%Moderate hurricane risk
20Michigan$1,398-41%Winter weather
21Indiana$1,423-40%Tornado alley fringe
22Illinois$1,456-39%Tornado/hail risk
23North Carolina$1,489-37%Hurricane exposure
24Maryland$1,512-36%Coastal/storm risk
25New Mexico$1,534-35%Fire risk
26Connecticut$1,567-34%Coastal storms
27Massachusetts$1,598-33%Nor’easters
28Alaska$1,623-32%Remote/logistics
29Tennessee$1,678-29%Tornado risk
30West Virginia$1,712-28%Flood risk
31Iowa$1,756-26%Hail/tornado
32Hawaii$1,789-25%Hurricane/volcano
33Rhode Island$1,823-23%Coastal exposure
34South Carolina$1,867-21%Hurricane risk
35Georgia$1,923-19%Storm/hail
36Missouri$1,978-17%Tornado alley
37Kentucky$2,034-14%Tornado risk
38Minnesota$2,089-12%Hail/winter storms
39North Dakota$2,145-10%Severe weather
40Arkansas$2,234-6%Tornado/storm
41South Dakota$2,312-3%Hail corridor
42Mississippi$2,456+3%Hurricane/tornado
43Alabama$2,567+8%Hurricane/tornado
44Texas$2,789+17%Hail/hurricane/tornado
45Kansas$2,934+23%Tornado alley core
46Florida$3,234+36%Hurricane capital
47Colorado$3,456+45%Catastrophic hail
48Nebraska$3,678+55%Severe hail storms
49Louisiana$4,234+78%Hurricane exposure
50Oklahoma$4,899+106%Tornado + hail epicenter

Based on $300,000 dwelling coverage, $100,000 liability. Actual rates vary by home characteristics and insurer.


Regional Analysis

Northeast (Lowest Average: $1,367)

StateAnnual PremiumKey Risk
Vermont$855Minimal
New Hampshire$912Minimal
Maine$967Winter weather
Pennsylvania$1,245Moderate
New York$1,334Coastal in NYC area
New Jersey$1,356Shore exposure
Connecticut$1,567Coastal storms
Massachusetts$1,598Nor’easters
Rhode Island$1,823Coastal

Southeast (Average: $2,178)

StateAnnual PremiumKey Risk
Virginia$1,378Hurricane fringe
North Carolina$1,489Hurricane
Tennessee$1,678Tornado
South Carolina$1,867Hurricane
Georgia$1,923Storm/hail
Mississippi$2,456Hurricane/tornado
Alabama$2,567Hurricane/tornado
Florida$3,234Hurricane
Louisiana$4,234Hurricane

Midwest (Average: $1,934)

StateAnnual PremiumKey Risk
Wisconsin$1,023Moderate
Ohio$1,178Moderate
Indiana$1,423Tornado fringe
Illinois$1,456Tornado/hail
Michigan$1,398Winter weather
Iowa$1,756Hail/tornado
Missouri$1,978Tornado alley
Minnesota$2,089Hail/winter
North Dakota$2,145Severe weather
South Dakota$2,312Hail corridor
Kansas$2,934Tornado alley
Nebraska$3,678Severe hail

West (Average: $1,289)

StateAnnual PremiumKey Risk
Utah$1,078Low risk
Oregon$1,089Wildfire
Idaho$1,134Low risk
Washington$1,156Earthquake (excluded)
Arizona$1,198Monsoon
Montana$1,223Sparse population
Wyoming$1,267Low risk
Nevada$1,289Desert/low risk
California$1,312Wildfire crisis
New Mexico$1,534Wildfire
Alaska$1,623Remote logistics
Hawaii$1,789Hurricane/volcano
Colorado$3,456Catastrophic hail

Southwest (Average: $2,874)

StateAnnual PremiumKey Risk
Texas$2,789Multi-peril
Oklahoma$4,899Tornado capital
Arkansas$2,234Tornado

What Drives Home Insurance Costs?

1. Natural Disaster Risk

Disaster TypeHighest-Risk StatesPremium Impact
HurricaneFL, LA, TX coast, NC, SC+50% to +150%
TornadoOK, KS, NE, TX panhandle+40% to +100%
HailCO, NE, TX, OK, KS+30% to +80%
WildfireCA, CO, OR, WA, AZ+20% to +50%
EarthquakeCA, WA, AK (separate policy)N/A (excluded)
FloodAll states (separate policy)N/A (excluded)

2. Construction Costs

RegionConstruction Cost IndexImpact
Northeast125+10-15% premiums
West Coast130+12-18% premiums
Midwest95-5-10% premiums
South92-8-12% premiums

3. Local Claims History

Insurers track claims at the ZIP code level:

FactorPremium Impact
High burglary rate+5% to +15%
Frequent water damage+10% to +25%
Fire department response time+5% to +20%
Claims frequency in neighborhood+10% to +30%

4. Age and Condition of Home

Home AgePremium ImpactReason
New (0-5 years)-10% to -20%Modern codes, materials
6-15 yearsBaselineStandard risk
16-30 years+5% to +15%Wear, older systems
30+ years+15% to +40%Higher maintenance, claims

5. Roof Condition

Roof Type/AgePremium Impact
New (0-5 years)-10% to -20%
Metal roof-10% to -25%
Impact-resistant shingles-10% to -35%
Tile/slate-5% to -15%
Wood shake+10% to +25%
Roof 15+ years+10% to +30%

Coverage Comparison: What’s Included?

Standard Homeowners Policy (HO-3)

CoverageTypical LimitsWhat’s Covered
Dwelling (Coverage A)Home valueStructure damage
Other Structures (B)10% of dwellingGarage, shed, fence
Personal Property (C)50-70% of dwellingBelongings
Loss of Use (D)20% of dwellingTemporary housing
Liability (E)$100K-$500KLawsuits, injuries
Medical Payments (F)$1K-$5KGuest injuries

What’s NOT Covered (Needs Separate Policy)

PerilSeparate Policy NeededAvg Annual Cost
FloodNFIP or private flood$700 - $3,000
EarthquakeEarthquake policy$800 - $5,000
Sewer backupEndorsement$50 - $200
Jewelry/valuablesFloater/rider$100 - $500

High-Risk State Profiles

Florida: The Hurricane State

FactorDetails
Avg premium$3,234/year
Citizens (state insurer)Insurer of last resort, 1.2M policies
Private marketMany withdrawing or limiting coverage
Roof requirementsMust meet current code for coverage
DeductiblesHurricane deductible 2-5% of dwelling

Florida-specific tips:

  • Roof certification can reduce premiums
  • Mitigation discounts for hurricane shutters, impact windows
  • Shop annually—market is volatile

California: Wildfire Crisis

FactorDetails
Avg premium$1,312/year (but varies wildly)
FAIR PlanState backup for uninsurable homes
High-risk areasPremiums can exceed $10,000/year
Non-renewalsThousands annually in fire zones

California-specific tips:

  • Defensible space can lower premiums
  • FAIR Plan + DIC policy for full coverage
  • Some insurers offer discounts for fire-resistant materials

Oklahoma/Kansas: Tornado Alley

FactorOklahomaKansas
Avg premium$4,899$2,934
Tornado riskExtremeVery High
Hail claimsHighest in nationTop 5
Wind deductibleCommon 1-2%Common 1-2%

Tornado alley tips:

  • Impact-resistant roofing = 10-35% discount
  • Storm shelters may qualify for discounts
  • Higher deductibles can significantly lower premiums

Colorado: Hail Capital

FactorDetails
Avg premium$3,456/year
Hail claimsAmong highest nationally
Front RangeHighest risk corridor
Roof replacementsFrequent from hail damage

How to Lower Your Home Insurance Costs

1. Bundle with Auto (Saves 10-25%)

Most insurers offer multi-policy discounts.

2. Increase Deductible (Saves 15-30%)

DeductibleAvg Annual Savings
$500 → $1,00015%
$1,000 → $2,50020%
$2,500 → $5,00025%

3. Improve Home Security (Saves 5-20%)

ImprovementDiscount
Burglar alarm (monitored)5-15%
Smoke/fire alarm (monitored)3-10%
Smart home devices3-8%
Deadbolt locks2-5%
Gated community5-10%

4. Upgrade Roof and Systems

UpgradeDiscount
New roof10-20%
Impact-resistant shingles10-35%
Updated electrical5-10%
Updated plumbing5-10%
Updated HVAC5-10%

5. Maintain Claims-Free Record

Claims-Free YearsDiscount
3 years5-10%
5 years10-20%
10+ years15-25%

6. Ask About All Discounts

Discount TypeTypical Savings
New home8-15%
Senior citizen (55+)5-10%
Non-smoker5-10%
Loyalty (3+ years)5-10%
Pay in full5-10%
Autopay/paperless3-5%

Cost by Coverage Amount

How Dwelling Coverage Affects Premium

Dwelling CoverageAvg Annual PremiumNotes
$150,000$1,423Smaller/older homes
$200,000$1,734Entry-level homes
$250,000$2,045Average homes
$300,000$2,377National avg dwelling
$400,000$2,989Above-average homes
$500,000$3,567Higher-value homes
$750,000$4,712Upscale homes
$1,000,000+$6,234+Luxury homes

Moving Between States: Premium Changes

MoveExpected Change
Vermont → Oklahoma+473%
Vermont → Florida+278%
California → Texas+113%
New York → Louisiana+217%
Oklahoma → Vermont-83%
Florida → Ohio-64%

Important: Update your policy immediately when moving. Coverage needs change with location, and your current policy may not transfer.


Flood Insurance: A Separate Consideration

Standard homeowners insurance excludes flood damage. If you’re in or near a flood zone, you need separate coverage:

NFIP (National Flood Insurance Program) Rates

ZoneRisk LevelAvg Annual Premium
A, AEHigh risk (100-year flood)$1,000 - $4,000
B, C, XModerate/low risk$400 - $1,000
V, VECoastal high risk$2,000 - $10,000+

Private flood insurance may offer better rates or higher limits in some areas.


Conclusion

Home insurance costs vary by over 400% between states, driven primarily by natural disaster risk. Tornado, hurricane, and hail exposure create the biggest premium differences.

Cheapest states: Vermont, New Hampshire, Maine, Wisconsin, Utah Most expensive states: Oklahoma, Louisiana, Florida, Nebraska, Colorado

Key takeaways:

  1. Disaster risk is the biggest cost driver
  2. Roof condition significantly impacts premiums
  3. Bundling and security discounts can save 20-40%
  4. Flood and earthquake need separate policies
  5. Shop around—rates vary significantly between insurers

Rates shown are state averages for illustrative purposes. Your actual premium depends on home value, location, construction type, claims history, and chosen coverage limits. Get quotes from multiple insurers for accurate pricing.