1. Florida
Projected annual cost by the end of 2026: $8,458 (+2%)
Average annual cost in 2025: $8,292
Typical dwelling coverage amount: $328,842
Florida remains the most expensive state for home insurance as a result of hurricanes, which can cause economic damages ranging in the hundreds of billions. The nine most expensive natural disasters on record in the U.S. have been hurricanes, according to Climate Central’s billion-dollar disaster database.[2]
Following hurricanes Helene and Milton in 2024, Floridians filed about 300,000 home insurance claims.[5] As insurers tried to recover losses, the average annual rate in Florida jumped 18% in 2025, to just under $8,300 per year, an increase of $1,252.
Some Florida homeowners may avoid more rate hikes in 2026. State insurance officials said the state-backed insurer of last resort, Citizens Property Insurance, will undergo an average rate decrease of 9%. The cut is the result, in part, of reduced financial exposure after moving many former policyholders to private insurers.[6]
2. Oklahoma
Projected annual cost by the end of 2026: $5,205 (+5%)
Average annual cost in 2025: $4,962
Typical dwelling coverage amount: $291,812
Oklahoma is likely to finish 2026 as the second most expensive state for home insurance, surpassing Louisiana. It’s a remarkable development for a state that doesn’t face the same hurricane risks as Gulf Coast states, and highlights the rising cost of severe convective storms.
These storms can bring rain, hail, lightning, straight-line winds, and tornadoes. In 2024, the last year with complete data, Oklahoma led the nation with 151 tornadoes and had the third-most hailstorms of any state (767).[7] Insurance costs in the state jumped 24% in 2025.
In 2026, legislators voted down a bill that would have given insurance regulators the power to reject rate increases before they’re implemented. The measure would have marked a departure from the state’s current “use-and-file” system that allows insurers to enact hikes before filing them with regulators.[8]
3. Louisiana
Projected annual cost by the end of 2026: $5,035 (+0%)
Average annual cost in 2025: $5,050
Typical dwelling coverage amount: $298,283
Louisiana’s geography makes it highly susceptible to hurricane damage, and the state’s high average premiums reflect that risk. Rates surged 39% in 2024 but were flat in 2025. They could dip slightly in 2026 as the state continues putting resources toward disaster mitigation.
In May, the governor signed a bill that requires insurers to disclose older rates in renewal notices and seeks to tamp down excessive increases.[9] The state also enacted a bill that creates a $10,000 state tax credit for homeowners who install specific storm-resistant roofs. That builds on top of the state’s existing Fortified Homes program, which also provides grants of up to $10,000 for certain roof upgrades.[10]
4. Nebraska
Projected annual cost by the end of 2026: $4,560 (+13%)
Average annual cost in 2025: $4,028
Typical dwelling coverage amount: $337,800
While natural disaster news tends to focus on the coasts, Nebraska is representative of the rising risks homeowners and insurers face in Great Plains states. High winds and hail are the main culprits.
In April 2025, Nebraska saw “softball-size” hailstones up to 4 inches in diameter, driven by winds up to 70 mph.[11] In April 2024, a powerful tornado swept through suburban Omaha and damaged hundreds of homes — one of 99 tornadoes recorded in the state that year.[7] [12]
High claim volume caused Nebraska insurers to spend $136 for every $100 they made in premiums in 2024.[13] To realign their rates with their financial risk, insurers raised premiums by an average of 25% in 2025. Insurify expects an additional 13% rate hike in 2026 as insurers adjust to evolving weather conditions.
5. Texas
Projected annual cost by the end of 2026: $4,529 (+3%)
Average annual cost in 2025: $4,380
Typical dwelling coverage amount: $326,004
Texas faces a full roster of natural disasters: hurricanes, wildfires, tornadoes, snowstorms, flooding, and hail, among others. Those threats have caused insurers to raise rates, with the average cost of home insurance increasing 14% in 2025, up to $4,380.
Although much of the state’s exposure is due to coastal hurricane vulnerability, Texas is also a hotspot for hail, which causes costly roof claims and repairs. In 2023 and 2024, Texas recorded over twice as many hail events as any other state.[7] And Texas averages more than 100 tornadoes per year.
Texas is a file-and-use state, meaning insurers can impose rate increases before regulators review and approve them. In 2025, lawmakers considered a bill that would have partially altered this system so insurers would need prior approval before raising rates over 10% on home and auto insurance. However, that bill didn’t pass.[14]
6. Colorado
Projected annual cost by the end of 2026: $4,164 (+4%)
Average annual cost in 2025: $3,996
Typical dwelling coverage amount: $324,724
Colorado homeowners have faced some of the nation’s steepest rate hikes in recent years, though Insurify projects a more moderate increase in 2026. Since 2023, the average cost of home insurance has increased 55% as insurers try to recover losses from extreme weather.
Insurers paid out more money in claims than they made in premiums in 2023.[15] Hail-producing convective storms are the biggest factor in rising premiums. Depending on the county, hail accounts for 26% to 54% of homeowner premiums. Wildfire risk represents 1% to 25% of premiums, according to the Division of Insurance.[16] Of the state’s five largest fires on record, four have taken place since 2020.[17]
7. Alabama
Projected annual cost by the end of 2026: $3,979 (+1%)
Average annual cost in 2025: $3,928
Typical dwelling coverage amount: $329,117
Alabama remains one of the most expensive states for home insurance, with severe storms and high winds taking a toll on homeowners and insurers. Alabama sees an average of about 75 tornadoes each year.
In mid-February 2025, a strong storm traveled through the Southeast, spawning tornadoes in Alabama, Tennessee, and Mississippi and causing $1.6 billion in damages.[2] On average, homeowners saw rates rise 15% in 2025 but face a milder 1% increase in 2026, according to Insurify projections.
8. Mississippi
Projected annual cost by the end of 2026: $3,833 (+2%)
Average annual cost in 2025: $3,743
Typical dwelling coverage amount: $320,702
Mississippi homeowners have to keep an eye on hurricanes, tornadoes, and flooding. Despite these threats, the state has seen its average insurance costs fall 11% since the end of 2023. In that time, it has gone from the second most expensive state for home insurance coverage to eighth.
But Mississippi’s position on the Gulf Coast still puts it in danger of landfalling hurricanes, which can quickly upend a state’s insurance market. Additionally, Mississippi is the only Gulf Coast state without an active hurricane mitigation program for homeowners, after legislators pulled funding for an early version of a grant system for hurricane-related roof upgrades.[18]
9. Minnesota
Projected annual cost by the end of 2026: $3,654 (+4%)
Average annual cost in 2025: $3,530
Typical dwelling coverage amount: $407,360
Minnesota home insurers have raised rates an average of 64% in the past two years, the largest increase of any state. Since the end of 2023, Minnesota has gone from the 21st most expensive state for home insurance to the ninth most expensive.
The increases come as insurers lost money in 2022 and 2023, including spending $158 for every $100 made in premiums in 2022. That year was the costliest ever year for Minnesota storms, with over $6 billion in damage from hail and winds. In 2023, a hailstorm in the Twin Cities area caused another $1 billion in property damage.[19]
More recently, Minnesota insurers had a much-improved financial year in 2024, so homeowners might dodge another significant rate hike in 2026.
10. Illinois
Projected annual cost by the end of 2026: $3,559 (+5%)
Average annual cost in 2025: $3,380
Typical dwelling coverage amount: $416,267
Illinois is one of many Midwest states where storm activity is driving higher home insurance costs. In the summer of 2023, several rounds of storms generated hail 3 inches in diameter, with windstorms gusting at over 70 mph.[20] That year, home insurance companies operating in the state spent nearly as much money on claims as they made in premiums ($97 spent for every $100 in premiums).
The following year, Illinois recorded 131 tornadoes, well above average and the second most of any state behind Oklahoma. Overall, the average cost of home insurance in Illinois is up 47% compared to 2023.
Citing extreme weather, the state’s largest home insurer, State Farm, raised rates by 27% in summer 2025. In response, Illinois lawmakers are considering legislation that would require insurers to reimburse consumers if regulators deem that their rate increases are excessive.[21] Currently, the state has no authority to approve or deny rate changes. Illinois is a “use-and-file” state, meaning insurers can implement rate changes before filing them with regulators.[22]
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