Stephanie is a DC-based freelance writer specializing in personal finance. Her work covers insurance, loans, real estate investing, retirement, and more.
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.
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The cost of home insurance varies dramatically across the U.S., with labor expenses, materials costs, natural disasters, and other risks playing into total premiums. But no matter where you are in the country, there’s one reality all homeowners face: Home insurance premiums have risen to unprecedented levels and show no signs of stopping.
A combination of factors — including inflation, rising home prices, higher repair costs, and an influx of natural disasters and severe storms — are driving increases across the country.[1]
Here’s a look at how to find cheap home insurance in each state and how much you might pay for coverage.
Quick Facts
Average annual premiums vary by home value, coverage limit, and applicable insurance policy type.
Some states have higher average rates largely due to their greater risks of natural disasters.
You can lower your average cost of home insurance by adjusting the coverage amount, raising your deductible, qualifying for discounts, and more.
Home insurance rates by state
Home insurance costs vary widely depending on the details of your home, coverage options, and even your personal factors.
The national average cost of homeowners insurance is $2,377 for a home with $300,000 in dwelling coverage and $3,603 for a home with $500,000 in dwelling coverage, according to Insurify data.
Here, you can see how the average annual rates vary in different states across the country.
States with the most expensive home insurance rates
Homeowners insurance premiums have risen across the country in recent years, partially due to inflation and record-high home market values. Combined with the increased cost of building materials and labor, it simply costs more to repair or rebuild a home than ever before.
With that said, some states have seen an even sharper increase in average premiums, largely due to natural disasters and other risks specific to their location.
Here are the 10 most expensive states for home insurance premiums and how much homeowners pay per month for $300,000 in dwelling coverage in the following states:
Florida: $916
Louisiana: $530
Oklahoma: $454
Texas: $371
Mississippi: $359
Colorado: $339
Nebraska: $330
Alabama: $328
Kansas: $286
New Mexico: $280
States with the cheapest home insurance rates
Even if average home insurance costs have increased in the last few years, some states still offer affordable coverage for homeowners.
Here are the 10 states with the cheapest home insurance rates and how much homeowners in these states pay per month for $300,000 in dwelling coverage:
Vermont: $77
Alaska: $93
Hawaii: $96
Nevada: $94
District of Columbia: $100
Delaware: $101
New Hampshire: $102
Oregon: $103
New Jersey: $106
Maine: $110
Do you have to change your home insurance when you move states?
You’ll be required to purchase a new homeowners insurance policy when you move states and change homes. Depending on your insurer and its availability, you may be able to keep the same insurance company and type of coverage and just purchase a new policy to adequately protect your new home.
Some states may require special coverages for high-risk perils, while other coverages might just be a good idea. For example, homeowners in Florida may be required to buy hurricane insurance, while Texas property owners should consider their policy’s hail and wind damage protection.
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Other factors that affect your home insurance rates
Many factors besides your ZIP code play into how much homeowners insurance costs for your property. Some of these can result in higher premiums.
Common factors influencing your rates include the details of your home, such as its:
Condition (both of the home in general and individual aspects, like the roof)
Upgraded features (like taller doors and ceilings)
Any special features installed in your home (like a home security system, fire sprinklers, a roof type resistant to fire or high winds, etc.)
Proximity to safety services (a faster fire or police department response time, or even living closer to a fire hydrant, may lower your premiums)
Insurers will also consider your personalized policy factors. These are within your control and you can adjust them to affect your pricing. They include:
The type of insurance policy
Your policy’s coverage limits (the amount of coverage you choose for personal property, your dwelling, personal liability, and more)
Any added features/riders (such as water damage, hurricane coverage for homes in coastal areas, etc.)
The deductible you choose
Lastly, insurance companies will look at you, the homeowner. Important personal factors include your:
Age
Claims history
Credit history and credit-based insurance score
Any money-saving discount(s) you qualify for
The greater the risk you (and your house) pose to home insurance companies, the higher the price you’ll pay for coverage.
Home insurance rates by state FAQs
Want to know even more about homeowners insurance rates and how they vary by state? Here are some of the most frequently asked questions.
What state has the highest home insurance rates?
The highest average home insurance rates are in Florida, where it’ll cost you an average of $10,996 per year to buy $300,000 in dwelling coverage. This high cost is likely due to the risk of major hurricanes in addition to other standard perils.
Which state has the cheapest home insurance rates?
The cheapest home insurance rates are in Vermont, with an annual average of just $918 annually for $300,000 in dwelling protection.
What is the national average rate for home insurance?
The average cost of homeowners insurance is $2,377 per year for $300,000 in dwelling coverage. This includes all states and averages all types of homeowners insurance coverage.
Does home insurance cover flood damage?
Most home insurance policies exclude flood damage.[3] If you live in a flood plain, your insurance company or mortgage lender may require you to purchase separate flood insurance coverage.
Even if flood insurance isn’t mandatory for your home, buying a separate flood policy or a flood insurance rider can help better protect your home from unexpected water intrusion.
Is home insurance required in my state?
Homeowners insurance coverage isn’t required at the federal or state level. But if you still have a mortgage loan on your home, your lender will likely require you to maintain adequate coverage on the property until you pay off your mortgage. If you fail to purchase home insurance, your insurer may purchase a force-placed policy at your expense.
Sources
NY Times. "Home Insurance Rates in America are Wildly Distorted. Here's Why.."
Stephanie is a DC-based freelance writer and Certified Financial Education Instructor (CFEI). She primarily covers personal finance topics such as insurance, loans, real estate investing, and retirement. Her work can be found on CBS, FOX Business, MSN, Yahoo! Finance, Business Insider, and more. When she isn't helping people plan for their financial futures, she is traveling, hiking with her kids, or writing for her own website, TomorrowsDollar.com. She can be reached on Twitter @stephcolestock
7+ years in business and financial services content
Chris is a seasoned writer/editor with past experience across myriad industries, including insurance, SAS, finance, Medicare, logistics, marketing/advertising, and many more.