Top 5 Most Expensive States for Homeowners Insurance

Searching for an affordable and comfortable home to buy is part of the American Dream. When it comes time to evaluate the expense to determine how much home you can afford, it is imperative that homeowners insurance expenses are included in your budget. Depending on which state where you reside, you may end up paying significantly more than the national average when it comes to property insurance premium. Homeowners are typically concerned about the growing severity of large-scale claims events like wildfires, sinkholes, hurricanes, tornadoes, ice & snow events, mudslides, flooding and earthquake risks that can affect homeowners premiums, on both a state and national level.

By combining those factors with insurance rates, real estate values, the cost of rebuilding, the type of construction and location of the property, property consultants and contractors, the end results are the premiums consumers’ pay. The replacement cost of a home typically exceeds original construction or sale price, based upon the work performed and the expense of labor and materials.

According to statistics provided by the National Association of Insurance Commissioners (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:


Ironically enough, a place nicknamed the “Sunshine State” has a long history of powerful rainstorms and devastating hurricane activity. By nature, Florida is a high-risk state, making securing insurance coverage there, in some Counties, considerably more challenging.

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


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

It is important to note that according to the N.A.I.C., Texas is unique in comparison to any other market because a standard homeowners policy may be slightly different given the significantly different regional risks that populate that state.


Home insurance rates rose significantly in Louisiana after Hurricanes Katrina and Rita. Not only did insurance companies increase the premiums because of the weather risk factors, but they also mandated the insured value and replacement cost of homes to be appropriately insured to value.

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

Washington, D.C.

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


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

In an especially cruel twist of fate, both property values and per capita incomes are well below the nation’s average. On the flip side of the coin, the lower scale of the national premium average is Idaho, Wisconsin and Utah - with the lowest insurance rates in the nation.