The Top 5 Most Expensive States For Home Insurance

Searching for an affordable and comfortable home to buy is part of the American Dream. When it comes time to crunch the numbers to determine how much home you can afford, it is imperative that home insurance expenses are included in your budget. The average cost for home insurance is $822 annually, however depending on what state you live in, you may end up paying significantly more than the rest of the nation.

Homeowners tend to be concerned about dramatic events like mudslides, floods and earthquakes wiping out the roofs above their heads. Although those are all legitimate concerns requiring proper insurance coverage, that type of protection is generally sold as additional riders and not included standard home insurance policies.

In reality, it is common weather systems such as wind, rain, hail, tornadoes and hurricanes that cause a vast quantity of insurance claims. By combining those factors with rates, real estate values, the cost of rebuilding, the type of construction and location of the property, the end results are the premiums consumers’ pay.

According to statistics provided by the National Association of Insurance Commissioner (NAIC) released in December 2009 (2007 Homeowners Insurance Report) the top five most expensive states for home insurance and their average annual home insurance premium are:


Florida: $1,534

Oddly enough, a place nicknamed the “Sunshine State” has a long history of powerful rainstorms. The region is prone to devastating hurricane activity and by nature, is a high-risk state, making securing coverage there challenging.

Not only is Florida the location of the highest home insurance rates nationally, some insurers are no longer offering policies in the area.


Texas: $1,448

Everything is bigger in Texas and that includes home insurance premiums. The largest contributing factors to the escalated insurance costs in the Lone Star include hurricanes, tornadoes, hail, wind storms and earthquakes.

It is important to note that according to the NAIC, Texas is unique in comparison to any other market because the standard homeowners policy in town is slightly different from policies across the nation.

Bourbon Street sign in New Orleans

Louisiana: $1,400

Home insurance rates rose in Louisiana after Hurricanes Katrina and Rita blew through the state. Not only did insurers up the premiums because of the weather risk factors, but they also upped the insured value of homes on people’s policies.

Within the region, the highest home insurance premiums are paid by homeowners in New Orleans.


Washington, D.C.: $1,089

Although not a state, Washington, D.C. has a well-earned place on this list. Because the area is the hub of our nation’s government, insurers consider it to be a high-risk terrorist location. Combine the fear factor with a huge population, unstable buildings and a higher than average cost for rebuilding, residents will pay more to for their home insurance.


Oklahoma: $1,054

The volatile activity of tornadoes combined with the frequency of hail and wind in state, is what causes the home insurance rates to be one of the highest in the nation.

In an especially cruel twist of fate for residents of the OK state, both property values and per capita incomes are well below the nation’s average.

On the flip side of the coin, Idaho ($422), Wisconsin ($491) and Utah ($505) have the lowest insurance rates in the nation.