If your homeowners insurance renewal came with sticker shock, you’re not alone. Premiums have risen sharply across the country, and in some states, finding coverage at all has become the challenge.
The Numbers
Average annual homeowners insurance premiums by state now range from $1,120 in Vermont to $4,334 in Oklahoma. The national average sits around $2,200, up from roughly $1,400 five years ago.
States with the highest premiums share a common trait: elevated severe weather risk.
| State | Avg Premium | Primary Risk |
|---|---|---|
| Oklahoma | $4,334 | Hail, tornadoes |
| Nebraska | $4,148 | Hail, severe storms |
| Florida | $4,231 | Hurricanes |
| Kansas | $3,931 | Tornadoes |
| Texas | $3,875 | Wind, hail, hurricanes |
| Colorado | $3,349 | Hail |
Check your state’s average on the HomeStats state pages, where insurance costs are factored into the total annual ownership calculation.
What’s Driving the Increases
Climate risk repricing: Insurers have updated their catastrophe models with better data on wildfire, hurricane, and severe convective storm frequency. The models show higher expected losses than previous estimates.
Reinsurance costs: Insurance companies buy reinsurance to protect against large losses. Reinsurance rates have climbed 20-40% globally since 2020, and those costs pass through to your premium.
Repair cost inflation: Construction materials are up 22-48% over five years. Labor costs for trades have risen 15-25%. When a claim is filed, the payout is larger than it would have been in 2020, which raises everyone’s premiums.
Insurer exits: In Florida, Louisiana, and parts of California, private insurers have pulled out of the market entirely. When competition drops, remaining carriers raise rates or tighten underwriting.
What You Can Do
Mitigation discounts
Many insurers offer discounts for:
- Impact-resistant roofing (5-15% discount)
- Hurricane shutters or impact windows (5-10%)
- Monitored alarm systems (5-15%)
- Whole-house generators (varies)
- Roof age under 10 years (varies significantly)
A new roof alone can save $500-$1,500 per year on insurance in storm-prone states. In some Florida markets, carriers require a roof under 15 years old to write a policy at all.
Increase your deductible
Moving from a $1,000 to a $2,500 deductible typically saves 10-15% on premium. A $5,000 deductible can save 20-25%. Self-insuring small claims and reserving insurance for catastrophic events is often the most cost-effective approach.
Bundle policies
Combining home and auto insurance with the same carrier typically saves 10-20% on both. Get quotes for bundled and standalone to compare.
Shop annually
Don’t auto-renew without checking alternatives. Get at least three quotes before each renewal. Use an independent agent who represents multiple carriers to make this easier.
Review your coverage
Make sure you’re not over-insured. Your dwelling coverage should reflect replacement cost, not market value (which includes land). If your home would cost $250,000 to rebuild but the property is worth $400,000, you need $250,000 in dwelling coverage.
The Insurance Factor in Home Buying
Insurance costs should be part of your home search criteria. Two homes with the same price in different states (or even different parts of the same state) can have dramatically different insurance costs.
A $350,000 home in Vermont ($1,120 insurance) vs. Oklahoma ($4,334 insurance) means a $3,214 annual difference. Over a 30-year mortgage, that’s nearly $100,000.
Climate risk and insurance costs are factored into the total ownership cost on every HomeStats state page.
For the complete breakdown of insurance and every other hidden ownership cost, read The Resale Trap.