Average Home Insurance Cost by State 2026 — Full Rate Comparison
Homeowners insurance has gotten significantly more expensive over the past few years — national averages are up 20–30% since 2022. But the state-by-state variation is enormous. A homeowner in Vermont might pay $800/year while someone in Louisiana pays $4,500+ for comparable coverage. Natural disaster risk, construction costs, and litigation patterns drive most of the difference.
Estimate your premium based on your home value, state, and coverage preferences with the Homeowners Insurance Calculator.
Average Annual Premiums by State (2026)
| State | Avg Annual Premium | vs. National Avg |
|---|---|---|
| Oklahoma | $4,800 | +152% |
| Louisiana | $4,500 | +137% |
| Florida | $4,200 | +121% |
| Texas | $3,800 | +100% |
| Kansas | $3,400 | +79% |
| Colorado | $3,200 | +68% |
| National Average | $1,900 | — |
| California | $1,800 | -5% |
| New York | $1,650 | -13% |
| Ohio | $1,300 | -32% |
| Oregon | $1,100 | -42% |
| Vermont | $850 | -55% |
| Hawaii | $800 | -58% |
The top-5 most expensive states all sit in Tornado Alley or hurricane zones. The cheapest states have mild weather, low construction costs, and fewer catastrophic claim events.
What Drives the Cost Differences
Natural disaster exposure. This is the #1 factor. Oklahoma, Texas, and Kansas face tornados and hail storms. Florida and Louisiana face hurricanes. Colorado has hail and wildfire risk. These catastrophic events generate enormous claims that drive up everyone's premiums in the region.
Construction and labor costs. Rebuilding after a disaster depends on local construction prices. States where labor and materials cost more (California, New York) have higher per-claim payouts, even if claims are less frequent.
Insurance regulation. Some states limit rate increases (California's Proposition 103 restricts how fast insurers can raise rates), which can keep premiums artificially lower — but may also cause insurers to leave the market, reducing competition.
Litigation environment. Florida's "assignment of benefits" abuse and Louisiana's historically plaintiff-friendly courts add billions in litigation costs that get passed through to premiums.
Average Cost by Coverage Amount
| Dwelling Coverage | Avg Annual Premium |
|---|---|
| $150,000 | $1,100 |
| $200,000 | $1,450 |
| $250,000 | $1,700 |
| $300,000 | $1,900 |
| $400,000 | $2,400 |
| $500,000+ | $2,900+ |
These are national averages — actual costs depend heavily on state, age of home, construction type, and proximity to fire stations and coastlines.
The Insurance Crisis in Florida, Louisiana, and California
Three states are experiencing what industry analysts call an "insurance crisis":
Florida — Multiple insurers have left the state or gone insolvent. Citizens Property Insurance (the state insurer of last resort) now covers 1.4+ million policies. Average premiums have roughly tripled since 2018.
Louisiana — Post-hurricane reconstruction costs and litigation have driven average premiums above $4,500. Several national carriers have stopped writing new policies in the state.
California — Wildfire risk has caused major insurers (State Farm, Allstate) to pause or restrict new policies. The FAIR Plan (the state's insurer of last resort) is increasingly the only option in fire-prone areas.
If you live in one of these states, shopping aggressively and working with independent agents who access surplus lines carriers becomes essential.
For understanding exactly what your policy covers, see What Does Homeowners Insurance Cover?. For strategies to reduce your premium, read How to Lower Homeowners Insurance Premiums. And for choosing the right deductible, check Home Insurance Deductible — How to Choose.
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