15 States With the Most Expensive Home Insurance

INSURANCE - HOME INSURANCE
Discover where homeowners pay a premium for peace of mind.
Updated April 9, 2024
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Often overlooked when budgeting for homeownership, home insurance can make it a little harder to pay your monthly bills, even for the most informed buyers.

While you might think your home is safe from disaster, insurance companies base your premium on risk factors like natural disasters and historical data.

And for residents of these 15 states, that translates to significantly higher annual premiums compared to the national average.

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15. Missouri

f11photo/Adobe st louis downtown

High crime, tornadoes, and vicious storms have driven up the cost of home insurance in Missouri. Homeowners in the Show-Me State can expect to pay an average annual premium of $1,769 and an average monthly premium of $147.

14. New Mexico

Shambhala/Adobe Route 66 with mountains at sunset

New Mexico residents pay an average annual premium of $1,789 and a monthly premium of $149 because of the weather-related risks of their state. Wind, hail, and heavy storms can hit at a moment’s notice in this arid climate.

13. North Dakota

FiledIMAGE/Adobe fargo theater north dakota usa

Harsh winters with blizzard conditions can do a number on homes, and that’s why North Dakota homeowners face high insurance. Expect to pay an average annual premium of $1,900 and an average monthly premium of $158.

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12. Mississippi

ken/Adobe Piers on Bay of Saint Louis

An average annual premium of $1,900 and an average monthly premium of $158 in Mississippi is thanks to this Gulf Coast state’s well-deserved reputation as a hotspot for hurricanes and tropical storms.

11. Minnesota

Matt/Adobe farm on snowy hill in minnesota

Those who don’t mind winter weather will find a welcome home in Minnesota, but they’ll also find high insurance costs thanks to extreme snowstorms. The average annual premium for home insurance is $1,930, while the monthly is $161.

10. Texas

Reagan/Adobe austin aerial skyline

In Texas, you could face high winds, hail, severe summer storms, ice storms, and hurricanes, and the insurers have adjusted their rates accordingly. Expect to pay an average annual premium of $1,967 and a monthly premium of $164 if you move to the Lone Star State.

9. Florida

Satoshi Kina/Adobe las olas blvd in hurricane irma

Some insurers are pulling out entirely in Florida due to the extreme risk. And those continuing to write policies have adjusted their premiums to account for hurricane season, floods, severe summer storms, wildfires, and more. 

The average annual premium is $1,981, and the average monthly premium is $165.

8. Louisiana

Kevin Ruck/Adobe new orleans louisiana downtown skyline

Louisiana is known for bearing the brunt of hurricanes, and that’s why the state also sees higher-than-average home insurance rates. Those looking to live in this Gulf Coast state will pay an average annual premium of $1,992 and a monthly premium of $166.

7. Kentucky

Michael K Greer/Wirestock Creators/Adobe skyline of louisville at sunrise

Living in Kentucky means putting yourself in the way of hurricanes, floods, and tornadoes, which drive up the cost of home insurance. Bluegrass State homeowners will pay an average annual premium of $2,009 and an average monthly premium of $167.

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6. South Dakota

Jacob/Adobe hot-springs-town-covered-in-snow

Average annual premiums of $2,105 and average monthly premiums of $175 put South Dakota near the top of insurance premiums nationwide. The state sees extremes in weather, which ushers in major summer storms and snowy, icy winters.

5. Arkansas

Brandon/Adobe arkansas riverfront park

Residents in Arkansas will pay an average annual premium of $2,123 and an average monthly premium of $177, thanks to earthquakes, flooding, and wind damage. This risky state is a prime spot for natural disasters.

4. Colorado

FashionStock/Adobe ski lodge at breckenridge ski resort

Colorado residents may love the early snowstorms that make for a good ski season, but that could be why their average annual premium is $2,512 and their average monthly premium is $179. Snowstorms, blizzards, and other weather drive up their high home insurance costs.

3. Nebraska

Jacob/Adobe downtown lincoln nebraska

With an average annual premium of $2,951 and a monthly premium of $246, Nebraska is, unfortunately, a contender in the race for the highest home insurance premiums. Extreme weather and high crime in certain cities contribute to the high cost.

2. Kansas

Christopher Boswell/Adobe kansas state capital building in topeka

If you’re looking for reasonable home insurance, then we have a feeling you won’t be in Kansas anymore. The average annual premium is $3,083, while the monthly is $257. 

Not only do they get hit with tornadoes, hail, and wind storms, but they’re also vulnerable to cold weather disasters, including snowstorms and blizzards.

1. Oklahoma

SeanPavonePhoto/Adobe oklahoma city skyline during day time

Oklahoma might not have been at the top of your list for through-the-home insurance, but it comes in at No. 1 with an average monthly premium of $305 and an average annual premium of $3,659. 

Tornadoes, wind storms, and flooding make it a risky place to live and insure.

Bottom line

Drazen/Adobe african american financial advisor with client

Fortunately, you can still save on your home insurance by bundling policies, improving your credit score, adjusting your deductible, and comparing quotes from different providers.

These steps may not replicate the savings found in states with the lowest home insurance rates — like Delaware and Vermont — but they can help you keep more cash in your wallet every month.

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Author Details

Heather Bien Heather Bien is a writer covering personal finance and budgeting and how those relate to life, travel, entertaining, and more. With bylines that include The Spruce, Apartment Therapy, and mindbodygreen, she's covered everything from tax tips for freelancers to budgeting hacks to how to get the highest ROI out of your home renovations.

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