The U.S. homeowners insurance market exhibits significant variation across states, reflecting a complex interplay of factors including property values, geographic risks, and local regulations.
In this article, we examine the average homeowner’s insurance premiums as a percentage of median home value for each state, providing insight into the relative cost burden of insuring homes across different regions of the country.
State | Average Annual Home Insurance Cost (adjusted for Median Home Value) | Median Home Value |
Alabama | $3,147 | $267,100 |
Alaska | $2,064 | $350,000 |
Arizona | $4,086 | $435,300 |
Arkansas | $3,958 | $246,000 |
California | $4,266 | $793,600 |
Colorado | $5,542 | $586,100 |
Connecticut | $2,707 | $424,900 |
Delaware | $1,729 | $375,000 |
District of Columbia | $2,384 | $640,000 |
Florida | $5,527 | $405,000 |
Georgia | $2,881 | $389,500 |
Hawaii | $1,154 | $714,100 |
Idaho | $3,427 | $539,000 |
Illinois | $3,062 | $266,800 |
Indiana | $2,991 | $242,500 |
Iowa | $2,654 | $289,900 |
Kansas | $4,843 | $263,700 |
Kentucky | $3,326 | $246,700 |
Louisiana | $3,594 | $243,300 |
Maine | $1,741 | $370,000 |
Maryland | $2,131 | $395,000 |
Massachusetts | $2,746 | $595,700 |
Michigan | $2,411 | $238,800 |
Minnesota | $2,420 | $330,500 |
Mississippi | $3,380 | $232,800 |
Missouri | $3,543 | $243,500 |
Montana | $3,831 | $609,900 |
Nebraska | $5,652 | $280,400 |
Nevada | $1,853 | $479,299 |
New Hampshire | $1,488 | $451,400 |
New Jersey | $2,619 | $485,900 |
New Mexico | $3,489 | $358,600 |
New York | $3,276 | $649,000 |
North Carolina | $3,398 | $362,200 |
North Dakota | $3,898 | $334,075 |
Ohio | $1,805 | $228,000 |
Oklahoma | $4,442 | $233,900 |
Oregon | $2,185 | $490,200 |
Pennsylvania | $1,911 | $268,100 |
Rhode Island | $2,381 | $455,500 |
South Carolina | $3,219 | $360,800 |
South Dakota | $3,390 | $300,200 |
Tennessee | $3,737 | $418,900 |
Texas | $3,851 | $336,400 |
Utah | $2,876 | $548,900 |
Vermont | $1,555 | $395,800 |
Virginia | $2,694 | $415,600 |
Washington | $2,801 | $605,400 |
West Virginia | $1,911 | $284,000 |
Wisconsin | $1,662 | $329,000 |
Wyoming | $1,897 | $317,000 |
Key Observations
Range of percentages
The percentages range from a low of 0.16% in Hawaii to a high of 2.02% in Nebraska. This indicates a significant variation in the cost of homeowners insurance relative to home values across different states.
Regional patterns
Midwest and Plains states generally have higher percentages (e.g., Nebraska at 2.02%, Kansas at 1.84%, Oklahoma at 1.90%).
Coastal states, especially in the Northeast and West, tend to have lower percentages (e.g., Hawaii at 0.16%, California at 0.54%, Massachusetts at 0.46%).
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Outliers
Hawai’i stands out with the lowest percentage (0.16%), which is significantly lower than any other state. The median price for a home in Hawai’i is $714,100, and the average homeowner’s insurance costs $1,154 for coverage up to $800,000. However, since the Maui fires in August 2023, several insurance providers have reconsidered their policy coverage or canceled coverage entirely.
On the other side of the spectrum, Nebraska has the highest percentage (2.02%), followed closely by Oklahoma (1.90%) and Kansas (1.84%).
An increase in hail storms in Nebraska has been predominantly the leading factor that has put both homeowners and insurers looking for a middle ground, one that seems to tip in favor of insurance companies since the median home price in Nebraska is $280,400, and with the median sale price for a home has increased by only 2.9%, and 2.02% going towards insurance premiums, a net return of 0.88% not including taxes, depreciation, or mortgage interests, owning a home in Nebraska could be a major liability.
Factors influencing percentages
Factor | Comments |
Natural disaster risk | States prone to hurricanes, tornadoes, or other natural disasters may have higher insurance costs relative to home values. |
Property values | States with very high median home values (like California and Hawaii) tend to have lower percentages, as the insurance costs don’t necessarily scale linearly with property values. |
State regulations | Different insurance regulations across states may impact pricing. |
Coastal states | Interestingly, some coastal states known for hurricane risk (like Florida at 1.36%) have relatively high percentages, while others (like Hawaii at 0.16%) have very low percentages. |
Regional disparities
States in New England generally have lower percentages (e.g., New Hampshire at 0.33%, Massachusetts at 0.46%).
The Southeast and Gulf Coast states have mixed results, with some higher (Florida at 1.36%, Louisiana at 1.48%) and some lower (Georgia at 0.74%).
Median home values
States with very high median home values (like California at $793,600 and Hawaii at $714,100) tend to have lower insurance cost percentages.
States with lower median home values often have higher percentages (e.g., Oklahoma with a median home value of $233,900 and a 1.90% insurance cost).