Here Are the 10 Most Expensive States for Home Insurance
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The surge in home insurance prices isn’t over yet. The average annual premium will likely top $2,500 nationally this year, and homeowners insurance will cost nearly $12,000 in the country’s most hurricane-prone state.
A recent forecast from Insurify, an online marketplace, predicts that the cost of home insurance will increase 6% in 2024, which would bump the average premium up to $2,522.
The average cost of home insurance in 2023 of $2,377 is already up 20% since 2021, when the average premium was $1,984.
Insurify says that higher building costs and recent climate catastrophes are to blame for the rise in premiums. Eight states, most of which are vulnerable to coastal storms, are expected to experience double-digit percentage increases in home insurance prices this year.
The largest increase is forecasted for Louisiana homeowners. Their premiums are projected to rise a whopping 23%, from an average of $6,354 to $7,809.
But it’s Florida where homeowners will pay the most for insurance again this year: The average cost is forecasted to jump from $10,996 last year to $11,759 in 2024. Remarkably, Florida residents pay about 12 times more for home insurance than residents of Vermont, where the average premium was $918 last year.
Betsy Stella, vice president of carrier management and operations at Insurify, said in a release that the country’s highest-risk areas could become “uninsurable.” In the last year, some insurance companies have limited business in certain markets and have even exited states entirely. Stella adds, “Where there's demand, typically a supplier will appear. The question will be, at what cost?"
10 most expensive states for home insurance
A couple of coastal states that face hurricanes and flooding damage have the highest home insurance costs, but others that are impacted by wildfires and tornadoes are also among the top 10 for the highest premiums. Here's the list of the states that have the highest average home insurance costs as of 2023:
- Florida: $10,996
- Louisiana: $6,354
- Oklahoma: $5,444
- Texas: $4,456
- Mississippi: $4,312
- Colorado: $4,072
- Nebraska: $3,962
- Alabama: $3,939
- Kansas: $3,437
- Arkansas: $3,368
And here's how much the average home insurance policy is projected to cost in these states in 2024:
- Florida: $11,759
- Louisiana: $7,809
- Oklahoma: $5,711
- Texas: $4,437
- Mississippi: $4,482
- Colorado: $4,367
- Nebraska: $4,292
- Alabama: $4,281
- Kansas: $3,666
- Arkansas: $3,662
Note: These are the average annual costs for a homeowner with good credit and no recent claims. The figures are for a policy with $300,000 of dwelling coverage and $300,000 of liability coverage.
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