Home Insurance Blog

Home insurance rates can vary tremendously from one state to the next.  A great deal of factors weigh on how much certain state residents pay for their insurance.  First let’s take a look at the average premiums for the 10 most expensive and 10 least expensive states for home insurance premiums:

Top Ten Most Expensive States for homeowners Insurance:

 As you can see in the table to the left, Texas home insurance carriers pay the highest premiums in the country at around $1,372/year.  Louisiana and Florida are not far behind paying $1,144 and $1083 on average, respectively. It should be no surprise that the top 3 most expensive states are Gulf coast states- the most exposed to Hurricane risks.  Florida and Texas also rank 2nd and 3rd in the top states for coastal population growth.  California home insurance carriers also pay extremely high rates due to earthquake risks
DATA SOURCE: National Association of Insurance Commissioners

Florida and Texas can also be found in the top 3 ranks of states with the most valuable coastal properties vulnerable to Hurricane damage.  Texas and Florida homeowners have seen the greatest percent increase in rates over the past few years- especially coastal residents. However, inland homeowners are paying the increases as well and much debate has come over whether they should have to pay in increases that reflect risks of coastal homeowners.

However, in times of financial instability in our country- it’s reassuring to also take a look at some of the homeowners who pay the least amount in home insurance premiums each year.

Top Ten Least Expensive States for Homeowners Insurance:

As you can see in the table to the left, Idaho homeowners insurance carriers pay the cheapest home insurance premiums in the U.S.  At only $457/year, they are paying about 1/3 of what Texas homeowners pay each year.  Utah, Oregon, Wisconsin and Delaware follow close behind, where homeowners all pay under $500/year for homeowners premiums.

 While it is difficult to say exactly why these states’ premiums are lower, some home insurance professionals believe that it is a combination of multiple factors.  One factor is the insurance bureau in each state. Each insurance bureau operates independently and may determine rates differently.  Another observation is that most of states with the least expensive premiums are comprised of more rural areas than those with the most expensive premiums. A smaller population density may mean a smaller shared risk for these homeowners.
 
DATA SOURCE: National Association of Insurance Commissioners