Cheapest Homeowners Insurance by State — 2026 Rankings

Homeowners insurance costs vary by more than 13x across the United States — from just $605/yr in Hawaii to a staggering $7,900/yr in Florida. The national average is approximately $2,600/yr, but that single number obscures enormous state-to-state differences driven by natural disaster risk, litigation costs, and local market conditions.

Here are all 50 states ranked from cheapest to most expensive:

**Under $1,500/yr (Budget tier)**: 1. Hawaii — $605/yr 2. Vermont — $1,000/yr 3. Delaware — $1,050/yr 4. Nevada — $1,200/yr 5. New Hampshire — $1,200/yr 6. Oregon — $1,200/yr 7. Utah — $1,350/yr 8. Alaska — $1,400/yr 9. Maine — $1,400/yr 10. Idaho — $1,500/yr 11. Wisconsin — $1,500/yr

**$1,500–$2,000/yr (Below average)**: 12. New Jersey — $1,550/yr 13. Washington — $1,550/yr 14. West Virginia — $1,600/yr 15. New York — $1,700/yr 16. Wyoming — $1,700/yr 17. Massachusetts — $1,800/yr 18. New Mexico — $1,800/yr 19. Maryland — $1,900/yr 20. Ohio — $1,900/yr 21. Pennsylvania — $1,900/yr

**$2,000–$2,600/yr (Average)**: 22. California — $2,100/yr 23. North Dakota — $2,100/yr 24. Rhode Island — $2,100/yr 25. Virginia — $2,100/yr 26. Arizona — $2,250/yr 27. Connecticut — $2,250/yr 28. Indiana — $2,400/yr 29. Iowa — $2,400/yr 30. Georgia — $2,500/yr

**$2,600–$3,500/yr (Above average)**: 31. Illinois — $2,700/yr 32. Minnesota — $2,700/yr 33. Missouri — $2,600/yr 34. Tennessee — $2,700/yr 35. South Carolina — $2,800/yr 36. North Carolina — $2,900/yr 37. South Dakota — $3,000/yr 38. Kentucky — $3,200/yr 39. Montana — $3,400/yr 40. Alabama — $3,400/yr

**$3,500+/yr (Expensive)**: 41. Texas — $4,800/yr 42. Arkansas — $3,800/yr 43. Mississippi — $4,200/yr 44. Colorado — $4,400/yr 45. Kansas — $4,600/yr 46. Oklahoma — $5,500/yr 47. Nebraska — $6,100/yr 48. Louisiana — $6,100/yr 49. Florida — $7,900/yr

The cheapest states for homeowners insurance share several characteristics:

**1. Hawaii — $605/yr**: The clear outlier. Hawaii's premiums are remarkably low despite hurricane exposure because of strong building codes, the state's TICL (Tropical Indemnity Company Limited) wind pool, and relatively few catastrophic losses in recent decades. The catch: earthquake and volcanic activity are real risks requiring separate coverage.

**2. Vermont — $1,000/yr**: Minimal severe weather, very low population density, affordable construction costs, and a competitive insurance market. Vermont simply doesn't generate many large claims. Some nor'easter and ice dam exposure exists, but claims frequency is among the lowest in the nation.

**3. Delaware — $1,050/yr**: A small state with moderate risk exposure. Some coastal flooding near Rehoboth Beach, but the majority of the state has minimal natural disaster risk. Competitive market with multiple carriers.

**4. Nevada — $1,200/yr**: Nevada's dry climate is the primary driver of low costs. Water damage is the most common homeowners claim nationwide, and Nevada has far less of it. Increasing wildfire risk in the Reno/Tahoe area is the main concern, but it hasn't yet moved the statewide average significantly.

**5. New Hampshire — $1,200/yr**: Similar to Vermont — low population, minimal disaster risk, affordable construction. Some nor'easter and ice damage, but claims are infrequent and moderate in size.

**6. Oregon — $1,200/yr**: Despite earthquake risk (the Cascadia Subduction Zone) and growing wildfire exposure, Oregon's competitive market and overall low claims frequency keep premiums affordable. This may change as wildfire risk increases.

**7. Utah — $1,350/yr**: Dry climate, low crime, and affordable construction costs. Limited earthquake risk along the Wasatch Front is the primary concern, but it hasn't historically generated major claims.

**8. Alaska — $1,400/yr**: Extreme cold and remoteness might suggest high costs, but Alaska's low population density and infrequent severe weather result in very few claims. Earthquake risk is real but hasn't produced a major urban event in recent decades.

**9. Maine — $1,400/yr**: Rural, low-crime, minimal severe weather. Aging housing stock is the primary cost driver — older homes with outdated systems cost more to insure individually, but the statewide average remains low.

**10. Idaho — $1,500/yr**: Growing rapidly, but still benefits from low population density, low crime, and limited severe weather. Wildfire risk in the Boise foothills and north Idaho is the emerging concern.

The common thread: minimal catastrophic weather risk, low population density, low crime, and affordable construction costs. If you live in one of these states, your insurance savings compared to the national average add up to $1,100–$2,000/yr, or $11,000–$20,000 per decade.

The most expensive states tell a consistent story of natural disaster exposure amplified by other cost factors:

**49. Florida — $7,900/yr**: More than 3x the national average and 13x Hawaii's rate. Florida combines hurricane risk, sinkhole coverage requirements, a legacy litigation crisis (assignment of benefits abuse), and an insurer exodus that has reduced competition. Citizens Property Insurance, the state's insurer of last resort, now covers over 1.3 million policies. Despite 2023 tort reform, premiums remain stubbornly high as insurers work through legacy claims.

**48. Louisiana — $6,100/yr**: Hurricanes, flooding, and litigation costs mirror Florida's problems on a slightly smaller scale. Louisiana averages a major hurricane landfall every few years, and the state's legal environment has historically been very favorable to plaintiffs.

**47. Nebraska — $6,100/yr**: Perhaps the most surprising entry. Nebraska's extreme hail exposure — the state sits in the core of the national hail belt — generates billions in annual claims. Hail damage to roofs is the primary driver, and the state has experienced multiple years of severe hail events in succession.

**46. Oklahoma — $5,500/yr**: The heart of Tornado Alley. Oklahoma faces tornadoes, severe hail, high winds, and even earthquake risk from induced seismicity. The combination of perils makes it one of the most consistently dangerous states for property damage.

**45. Kansas — $4,600/yr**: Similar profile to Oklahoma — Tornado Alley location with severe hail. Kansas has slightly lower premiums due to lower population density and less induced seismicity.

**44. Texas — $4,800/yr**: Texas is uniquely exposed to virtually every peril: hurricanes on the Gulf Coast, tornadoes in north and central Texas, severe hail along the I-35 corridor, flooding statewide, and wildfire in west Texas. No other state faces such a diverse threat portfolio.

**43. Colorado — $4,400/yr**: Colorado's Front Range (Denver to Colorado Springs) sits in one of the nation's worst hail corridors. The 2023 and 2024 hail seasons caused cumulative billions in damage. Wildfire risk in the foothills (the 2021 Marshall Fire destroyed over 1,000 homes in suburban Louisville) adds another layer.

**42. Mississippi — $4,200/yr**: Hurricane risk along the Gulf Coast, tornado exposure inland, and one of the poorest states with high uninsured rates and limited market competition.

**41. Arkansas — $3,800/yr**: Tornado Alley exposure, severe thunderstorms, and limited carrier competition in rural areas.

**40. Alabama — $3,400/yr**: Hurricane risk on the Gulf Coast, tornado risk statewide (the 2011 Super Outbreak devastated Tuscaloosa), and above-average crime rates.

These states demonstrate that natural disaster risk is the dominant factor in homeowners insurance pricing. Every state on this list faces either hurricanes, tornadoes, or severe hail — and the worst cases face multiple perils simultaneously.

The 13x gap between Hawaii ($605) and Florida ($7,900) seems extreme. Here's what accounts for it:

**Catastrophic loss potential** — Florida faces an annual hurricane season where a single storm can cause $50–$100 billion in insured losses. Hawaii faces hurricanes too, but its geographic isolation means far fewer storms make landfall. The probability-weighted expected annual loss in Florida is simply enormous.

**Litigation costs** — Florida has historically accounted for 8% of national homeowners claims but over 75% of homeowners insurance lawsuits. This legal overhead adds thousands per policy. Hawaii has no comparable litigation environment.

**Market dynamics** — Florida's insurer exodus has reduced competition, giving remaining carriers pricing power. Multiple carriers have gone insolvent or left the state since 2020. Hawaii maintains a healthy, competitive market.

**Construction costs after disasters** — When a hurricane hits Florida, every contractor, roofer, and builder in the state is busy simultaneously. This demand surge inflates repair costs by 20–50%, and insurers must price for this surge. Hawaii's infrequent events don't create the same demand surge pricing.

**Fraud and abuse** — Florida's insurance fraud rate is among the highest in the nation. Roof replacement schemes, inflated water damage claims, and contractor fraud add billions in losses that are spread across all policyholders.

**Regulatory environment** — California ($2,100/yr) demonstrates how regulation affects pricing. California's Proposition 103 heavily regulates rate increases, keeping premiums artificially lower — but at the cost of insurers leaving the state and consumers struggling to find coverage in wildfire-prone areas.

Understanding these factors helps homeowners make informed decisions about where to live, how to reduce their premiums, and when to shop for better rates.

Whether you're in a cheap state or an expensive one, these strategies can meaningfully reduce your homeowners insurance premium:

**Shop annually** — Insurance markets shift constantly. The carrier that was cheapest last year may not be cheapest today. Get 3–5 quotes at every renewal. In expensive states, the spread between carriers can be $1,000–$2,000/yr.

**Increase your deductible** — Moving from $1,000 to $2,500 saves 10–15%. Moving to $5,000 saves 20–25%. In a state like Florida where premiums are $7,900/yr, a higher deductible could save $800–$2,000 annually.

**Bundle policies** — Combining homeowners and auto with the same carrier saves 10–25% on both policies. In a state like Texas where combined premiums exceed $7,400/yr (homeowners + auto), bundling can save $750–$1,850.

**Fortify your home** — Impact-resistant roofing saves 10–30% in hurricane and hail states. Storm shutters, reinforced garage doors, and hip roofs all qualify for discounts in Florida. In Tornado Alley, safe rooms and storm shelters earn credits.

**Improve your credit** — In the 45 states that allow credit-based insurance scoring, improving your credit from "fair" to "good" can save 10–20% on premiums.

**Ask about every discount** — New home, claims-free, loyalty, smart home devices, gated community, fire-resistant materials, proximity to fire station, non-smoker — the list of available discounts is long. Ask your agent specifically about every discount your carrier offers.

**Consider state programs** — Florida's Citizens Property, Texas's TWIA, California's FAIR Plan, and other state programs provide coverage when private carriers won't. These programs aren't always cheapest, but they serve as important benchmarks and safety nets.

For the complete breakdown including landlord and renters insurance costs for every state, explore our state pages or use our comparison tool.