Home Insurance Rates by State in 2025

If you’re shopping for homeowners insurance, you’ll find that home insurance rates by state vary widely. Local factors like severe weather, crime, and claims affect what you pay.

Use this guide to learn about the various location-related factors that affect the average homeowners insurance cost by state, and find out how to estimate home insurance rates based on where you live.

Read on to learn about the average rates in your state and find affordable auto insurance companies in your state. If you are looking to get quick home insurance quotes today, enter your ZIP code in our free quote tool.

Affordable Home Insurance Rates by State

The cost of home insurance depends partly on the state in which you live. Some states have much higher home insurance costs than others.

The average home insurance cost by ZIP code is based on several factors, such as the cost of living, local weather risks, crime rate, and more.

Nebraska and Florida are some states where you can expect to pay more for home insurance, while states like Hawaii or New Hampshire have much lower rates.

While it may be tempting to skip out on home insurance if you aren’t required to have coverage and live in a state with very expensive rates, this usually isn’t the best decision (Read More: Is home insurance required?).

Home insurance is a necessary protection to purchase for your dwelling, no matter what state you live in, as it protects you financially in cases of damage, liability claims, and more.

So, unless you have a considerable sum of money saved away for home emergencies that you are willing to part with, it is best to pay for homeowners insurance to protect yourself.

Most Expensive States for Home Insurance

Where does homeowners insurance cost the most? If you live in Nebraska, you are likely paying some of the highest home insurance rates.

Nebraska home insurance rates for a $300,000 dwelling average $471 a month. Part of the reason for Nebraska’s high home insurance rates is the risk of damage from severe weather, such as hail and tornadoes.

10 States With the Most Expensive Home Insurance

Some of the other top 10 most expensive homeowners insurance states also have higher rates due to the severity of their weather conditions. For example, Arizona, Colorado, California, and Montana all have a higher risk of wildfires.

In high-risk states like these, you may have trouble finding home insurance coverage from a regular insurance company (Learn More: Does homeowners insurance cover wildfires?).

If you have to purchase home insurance through a state plan, you can expect it to be expensive. However, it is better than being without any home insurance.

Additionally, if you live in a high-risk area, insurance companies willing to insure customers will charge high rates anyway, making state insurance potentially similar in cost.

Cheapest States for Home Insurance

Hawaii, New Hampshire, and Vermont have the top three lowest homeowners insurance rates by state. Hawaii has a milder climate than most states, which reduces the risk of home insurance claims for weather damage.

New Hampshire and Vermont also have a lower risk of weather-related claims, as well as lower crime rates.

10 States with the Cheapest Home Insurance

Where does homeowners insurance cost the least? Places with low crime rates typically have the cheapest average home insurance premiums.

Average home insurance rates will also be on the lower side if you live in a state with more affordable housing or lower-value homes (Learn More: Best Home Insurance for High-Value Properties).

Why Home Insurance Rates Are Going Up

Insurance companies consider several different aspects when offering quotes, and location is just one factor that will affect what you pay for home insurance coverage.

Other factors include the age of your home, the amount of coverage you choose, your credit score, and more.

Factors That Impact Home Insurance Premiums

Even the security you have for your home will impact your rates, as homes with better security will likely have lower rates.

This is because having security systems reduces your risk of burglary, a common threat all homeowners face (Learn More: The 7 Most Dangerous Threats Facing American Homeowners).

The lower your home risk, the less you will pay. For example, older homes cost more because they are more prone to age-related damage or may not be up to code.

This makes them more likely to have severe damage from weather or issues with pipe flooding, electrical, and more.

Home Insurance Monthly Rate Increases by Risk Factors

The average home insurance rate comparison shows that an older home will cost about $6 more per month to insure than a standard home, while a high-value home will cost $15 more per month.

Living in a high-risk area for weather is also another major risk factor, with the biggest average increase of $20 per month.

More Coverage Means Higher Rates

When buying a home insurance policy, you will likely have several different types of coverage available to you. The more coverage types you add to your home insurance policy, the more you can expect to pay.

Our homeowners insurance coverage guide breaks down the following types of policies you can buy.

Types of Home Insurance Coverage

However, it is important to carry basic coverages that are on all home insurance policies, like dwelling coverage.

Dwelling coverage is what most people think of when they think of home insurance, as it protects the structure of your home.

Another common coverage is personal liability, which will protect you if someone is injured on your property.

The last thing you want is to be sued and not have the money to cover a lawyer or a lawsuit payout because you don’t have personal liability insurance.

Other coverages, like living expenses, may not be as important to all homeowners and may be dropped to save on home insurance.

However, be sure to research the specific protections each home insurance coverage offers to ensure you’re not missing important coverages.

More Claims Mean Higher Rates

If you live in an area where home insurance claims are common, or you have made home insurance claims in the past, you can expect a higher home insurance rate.

One of the more common home insurance claims is wind and hail damage claims, so if you live in an area that has high winds or frequent hailstorms, rates will be higher.

Most Common Home Insurance Claims in the U.S.

The average amount paid out in claims in your area will also impact rates. For example, fire and lightning claims cost insurance companies an average of $78,000 per incident.

Therefore, if you have had to make a wildfire claim or if homes in your area are at a higher wildfire risk, home insurance rates will be high (Learn More: How to File a Home Insurance Claim After a Wildfire).

Theft and property damage make up a minimal amount of claims, but can still cost $10,000 or more. When a property is located in a safe area with minimal theft, vandalism, or burglary incidents, insurers view it as less likely to experience costly claims.

If you live in an area with lower overall risk, home insurance carriers often reward homeowners with reduced premiums or additional coverage perks.

How Credit Score Impacts Home Insurance Rates

One of the last factors that impacts home insurance rates is your credit score. Customers with higher credit scores will find it easier to get lower home insurance rates in their state.

For example, the average cost of home insurance in Alabama is $223 per month for customers with an excellent credit score, but $472 per month for customers with a poor credit score.

Home Insurance Monthly Rates by Credit Score

Why does credit score matter so much to home insurance companies? Customers with poor credit scores are more likely to miss payments, which can result in the cancellation of their insurance.

Working on improving your credit score can therefore help you save on your home insurance coverage at the cheapest home insurance companies.

How to Save Money on Home Insurance

Updating your home with features like storm shutters or a new roof can lower your home insurance rates, especially in high-risk weather states on the coast.

Some other ways to reduce home insurance rates by state include improving your credit score, raising your deductible, shopping for quotes, and applying for discounts.

Top Home Insurance Discounts

Applying for home insurance discounts through your company is one of the easiest ways to lower your monthly costs if your home insurance rates are going up.

One easy way to receive a discount is to have your home and auto insurance with the same company, which qualifies you for a bundle discount (Read More: Best Auto and Home Insurance Bundles).

Use our free quote tool to score the best home insurance rates by state. Just enter your ZIP code to get started.