Home insurance is a package coverage that protects households against natural disaster-related property damage, theft, and responsibility for inflicting physical harm or property damage on others. Homeowners can also choose from a variety of popular supplemental coverages, such as earthquake, floods, and water backup coverage.
Those who live on a fault line can benefit from earthquake coverage, while water backup coverage can cover damages caused by backed-up sewers or drains. The purchase of home insurance is not required by law. However, lenders may need homeowners insurance when financing a home. Private communities almost always demand home insurance.
Our Methodology:
We obtained the most recent data on state-level home insurance prices in order to produce a list of the ten states with the most costly home insurance in the United States. This information was obtained from Bankrate, a renowned consumer financial services organization. As of 2023, the most recent data was available. Our primary metric was average yearly premium, and our secondary metric was average monthly premium.
Finally, Insider Monkey prioritized the ten states with the most costly house insurance in the United States based on their average annual premium and average monthly premium.
10. Texas
Average Annual Premium: $1,967
Average Monthly Premium: $164
Wind coverage, flood insurance, and seepage and leakage coverage are all options for Texas homeowners. The average annual rate for house insurance in the state is currently $1,967. Deer Park, Hale Center, and Richardson are among the most expensive cities in this category.
9. Florida
Average Annual Premium: $1,981
Average Monthly Premium: $165
Florida is another US state with high house insurance rates. In the state, the average yearly home insurance premium is $1,981. Pensacola, Panacea, and Saint Marks are among the most expensive cities in Florida for home insurance. Floods, tropical cyclones, severe storms, tornadoes, and wildfires all have a significant impact on Florida residences.
8. Louisiana
Average Annual Premium: $1,992
Average Monthly Premium: $166
In Louisiana, the average annual premium for house insurance is $1,992. As a result, Louisiana is one of the states with the most expensive house insurance in the United States. Within the state, Hahnville, Luling, and Saint Rose have the highest house insurance rates. Natural catastrophes have also caused destruction in Louisiana.
7. Kentucky
Average Annual Premium: $2,009
Average Monthly Premium: $167
Kentucky is one of the ten states with the most costly house insurance in the United States. The average annual rate for home insurance is currently $2,009. Hurricanes, tornadoes, and flooding are all common hazards for people of the state. In this perspective, Holyrood, Derby, and Florence are expensive cities.
Investors interested in the US house insurance sector can check into The Allstate Corporation, Chubb Limited, and Erie Insurance Group.
6. South Dakota
Average Annual Premium: $2,105
Average Monthly Premium: $175
In terms of house insurance costs, South Dakota is one of the most costly states in the United States. In the state, the average yearly home insurance premium is $2,105. South Dakota’s weather extremes include hot summers and very cold winters. Black Hawk, Belvidere, and Wasta are among the most expensive localities in the state for house insurance.
5. Arkansas
Average Annual Premium: $2,123
Average Monthly Premium: $177
Arkansas has expensive house insurance, with an average annual premium of $2,123. Aside from earthquakes and flooding, wind damage is a major insurance claim made by citizens of the state. Adona, Mansfield, and Gravelly are the most expensive cities in Arkansas for house insurance.
4. Colorado
Average Annual Premium: $2,152
Average Monthly Premium: $179
The average yearly home insurance price in Colorado is $2,152, which is comparatively expensive when compared to nearby states. The state’s meteorological conditions, including as snow and hail storms, result in high house insurance rates. Strasburg, Rush, and Ramah are among the most costly neighborhoods in this category.
3. Nebraska
Average Annual Premium: $2,951
Average Monthly Premium: $246
Nebraska is one of the 10 states with the most costly home insurance in the US, with an average annual premium of $2,951. Home insurance costs more in places prone to extreme weather and greater crime rates. Ayr, Overton, and Greenley are the most expensive cities in Nebraska for homeowner insurance.
2. Kansas
Average Annual Premium: $3,083
Average Monthly Premium: $257
Kansas homeowners must pay hefty rates, as indicated by the average annual premium of $3,083. Wichita, in particular, has a high cost of home insurance. Blizzards, tornadoes, and hailstorms in the state drive raise home insurance costs even more. As a result, Kansas joins the list of US states with expensive house insurance.
1. Oklahoma
Average Annual Premium: $3,659
Average Monthly Premium: $305
Oklahoma is one of the states in the United States with the most costly house insurance. The average yearly premium in the state is currently $3,659, which is significantly more than the national average. Furthermore, natural disasters such as tornadoes and severe winds are a possibility. Flooding is also a problem in the state’s eastern sections, making property insurance in Oklahoma expensive.
