10 U.S. Cities Where You'll Have to Buy Extra Insurance for Your Home (Avoid Unpleasant Surprises!)

If you own a home in these cities, you can expect to pay a lot more for home insurance.
Updated May 30, 2023
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Whether you’re already a homeowner or about to buy your first property, homeowners insurance is probably on your mind. Unlike other types of insurance, homeowners insurance is not a legal requirement but that doesn’t mean it’s unnecessary.

After all, your home is probably your biggest asset, so it makes sense to protect it. Plus, your mortgage lender usually requires that you have a certain amount of coverage for your home. 

Depending on where you live, you might want to purchase additional coverage. The average annual cost for homeowners insurance is $1,899, but it’s much higher in some cities.

Here’s what you need to know about insurance considerations for 10 cities where you’ll pay more, and where you may need to pick up some extra cash if you live there.

Miami, Florida

Kuteich/adobe buildings and resorts standing tall at miami beach shore with white sand and crystal blue water at day time

Miami might be known as a great vacation destination, but it can be an expensive place for homeowners. Due to the state’s proximity to the ocean and natural disasters, Floridians often want to add extra insurance coverage options like flood insurance, which can raise costs.

The average homeowner’s policy in Hialeah, Florida, an area right outside of Miami, is $5,931, or nearly triple the country average, according to recent data from Policygenius.

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Birmingham, Alabama

Kevin Ruck/Adobe Birmingham Alabama

Alabama is another state that often experiences extreme weather events like hurricanes. Because of that, it might be a good idea to purchase extra insurance coverage.

It depends on your policy and what it includes, so it’s a good idea to double-check with your insurance agent and ask about coverage recommendations.

The average annual homeowner’s insurance premium in Sterret, located outside Birmingham, is $3,340.

Los Angeles, California

Dmitry/Adobe moonlit Los Angeles

If you live in California, you’re probably familiar with the natural disasters that can occur in the state. Fires and earthquakes are usually two of homeowners’ most significant potential threats.

Because of that, you might want to ensure that your homeowner’s insurance policy includes additional coverage. The cost of a policy varies depending on your exact location and the details of your house.

Still, the average annual price is $2,333 in Acton, California, a small city in Los Angeles County.

Phoenix, Arizona

Kevin Ruck/Adobe Phoenix Arizona USA Downtown Skyline Aerial

Arizona is known for its natural beauty and unique desert landscape that draws visitors nationwide. But residents in the state are probably familiar with other aspects of the state, like monsoon season, dust storms, and potential fires.

Because of those risks, homeowners might have unique insurance needs. It’s always a good idea to ensure adequate coverage based on location. It can come at an additional cost, though.

The average annual premium in Phoenix is $2,544 or $212 per month.

Washington, D.C.

Sergey Novikov/Adobe panorama from above of Pennsylvania Avenue

The nation’s capital offers endless opportunities for adventure and learning about the country’s history. But it’s also prone to weather events that can increase the cost of homeowners insurance.

Unexpected weather occurrences can hit the area, whether it’s floods, blizzards, or hurricanes. You might want to adjust your homeowner’s insurance accordingly, which can increase the costs.

The average annual price for homeowners insurance in the area is $1,154.

Chicago, Illinois

SeanPavonePhoto/Adobe sightseeing cruise and skyline on the river

Known as the Windy City, Chicago has a lot to offer. But one of the less pleasant aspects of life in the city might be increased costs for home insurance.

Due to severe winters and other natural weather events, you might have to pay more for coverage or want to add on additional insurance riders.

The average cost for homeowners insurance coverage in the city is $2,967.

New Orleans, Louisiana

Don/Adobe colorful panorama of New Orleans skyline

It might not come as a surprise that homeowners insurance in New Orleans is expensive. The average cost for an annual policy in Lafitte, an area outside the city, is $5,467. The area’s insurance is costly, costing an average of $455 monthly.

The increased costs are partially due to the history of hurricanes, floods, and other natural disasters in the area. If you’re considering a home nearby, you might want to prepare yourself for a large insurance bill.

Kansas City, Missouri

Julien/Adobe kansas city missouri evening skyline

Kansas City boasts an affordable cost of living compared to other cities. But you might have a larger homeowners insurance bill if you buy property in the area.

You might need increased coverage to protect your home and belongings due to tornados and heavy storms. The average annual cost for a policy in the city and surrounding area is $3,744.

Virginia Beach, Virginia

jomo333/Adobe Virginia Beach

Located right along the coast, Virginia Beach offers excellent outdoor activities and access to the beach. But proximity to the ocean often comes with increased insurance costs due to potential storm damage and other environmental factors.

The average annual price for a policy in the area is $2,634. It’s not as expensive as some other cities on the list, but it’s nearly $1,000 more than the national average.

Myrtle Beach, South Carolina

Larry Gibson/Adobe Myrtle Beach boardwalk South Carolina

Myrtle Beach is a popular vacation destination with ocean views and clear water. But residents who live in the area year-round might face increased costs for home insurance due to hurricanes and flooding.

The average annual price for a policy in the city is $3,045, nearly double the national average. It’s a good idea to check what insurance coverage you need if you own in the area.

Bottom line

Lumos sp/Adobe young couple deals a real estate investment

It’s essential to consider that insurance might be more expensive if you’re considering buying a home in an area prone to natural disasters. It’s not always the case, but preparing beforehand is wise.

If you find yourself in one of these areas then you’ll want to make sure you’re protected with the needed insurance, which can help eliminate some money stress out of your life if something goes wrong.

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