Home Insurance Rates by State: 2026 Averages and What's Driving Them

Let’s be real. You’re probably here because you got your home insurance renewal, your rates went up, and you want to know if you’re being hosed. That’s the kind of spirit we like to see. Just because an insurance company raised your premium doesn’t mean you have to pay it—you’ve got options. But the truth is, homeowners insurance rates are rising in many states. So let’s take a look at realistic prices for homeowners insurance in your state in 2026 to see what you can expect.

Before we dive in, though, here are a couple of things to keep in mind:

1. No matter how high rates rise, you can take specific steps to fit insurance into your budget. (We’ll cover them a little later.)
2. That’s good news because you simply can’t go without home insurance—we’re talking about protecting your biggest investment here!

All right, let’s find out where home insurance is the most expensive and where it won’t break the bank.

---

Let a pro shop and compare coverage for you—for free.

Protect My Home

---

What Are the Average Home Insurance Rates by State in 2026?

Across America, home insurance rates cover a wide range. You’ve got Oklahoma topping the list at over $7,200 all the way down to Vermont at just over $1,000. The national average annual premium lands at $2,490. States with more severe weather and higher rebuilding costs generally have the highest premiums.

No matter what state you live in, though, homeowners insurance has gotten more expensive over the last several years. More frequent natural disasters, higher rebuilding costs and more lawsuits have pushed rates higher nationwide. On average, homeowners in America saw their rates increase 24% from 2021 to 2024.^[3] But even with those nationwide increases, plenty of states remained well below the national average. 

Which States Have the Highest Home Insurance Rates?

And the award for priciest home insurance in 2026 goes to . . . Oklahoma, at $7,255! Yeah, that’s not exactly an honor Oklahomans were competing for. The state is known for extreme weather—from hail and high winds to tornadoes, wildfires and flooding. In fact, Oklahoma set a state record with 152 tornadoes in 2024. In a bad year, damage costs can get as extreme as the weather. In 2023, for example, insurers there paid out $129 in claims for every $100 of premiums they took in.^[4] (Before any of you Oklahomans pack up your home and hightail it, though, we’ll give you some tips below on how to save on home insurance.)

Many of the states with the highest home insurance premiums have one thing in common: frequent severe weather. Oklahoma, Nebraska and Kansas all sit in Tornado Alley (Nebraska had a record number of tornadoes in 2024).^[5] And many homeowners in these states may also need flood insurance, since it isn’t included in a standard home insurance policy.

All that storm damage brings on boatloads of homeowners insurance claims. And yes, the number of claims in your area does impact your (and your neighbors’) premiums going forward.

These are the five states with the highest average home insurance premiums:

1. Oklahoma: $7,255
2. Nebraska: $6,015
3. Kansas: $5,455
4. Arkansas: $4,955
5. Texas: $4,915

Data from Quadrant Information Services. Rates are accurate as of May 2026.

Which States Have the Cheapest Homeowners Insurance?

Who gets the bragging rights for lowest rates this year? Your winner is Vermont! As the state with the second-lowest population (which means fewer homes), it’s maybe not too surprising that home insurance rates are so affordable there.^[6]  And unlike those extreme-weather hot spots above, property damage from tornadoes and hurricanes is pretty rare in Vermont.

The same goes for the rest of the five states with the lowest average annual premium:

1. Vermont: $1,170
2. Delaware: $1,365
3. Alaska: $1,385
4. New Jersey: $1,480
5. New Hampshire : $1,500

Data from Quadrant Information Services. Rates are accurate as of May 2026.

Note about Hawaii: You might see Hawaii listed elsewhere as having the lowest home insurance rates. That’s because base premiums there are often very low. But many Hawaiian homeowners also need additional coverage, like hurricane insurance, which raises the total cost.^[7]  That’s why Hawaii doesn’t rank among the lowest-cost states on our list. You’ll see the base rate listed below.

Insurance Can Be Confusing. We Have Someone Who Can Help.

RamseyTrusted^® insurance pros are independent and vetted—and they help you fill the gaps in your policies. They make getting insurance (like home, auto and umbrella) one less thing to stress about. Plug in your zip code to connect with an agent who understands the coverage needs in your area.

How Do Home Insurance Rates Compare Across All 50 States?

The national average premium for homeowners insurance is $2,490 per year ($208 monthly) for $400,000 of dwelling coverage. But that number varies a lot from state to state. Sure, some are worse—but some are a whole lot better.

The state you live in isn’t the only factor in how insurance companies set your home insurance rate, but it does play a role. This chart shows the average homeowners insurance premiums by state for $400,000 in dwelling coverage.

Average Homeowners Insurance Premiums by State in 2026

Data from Quadrant Information Services. Rates are accurate as of May 2026.

Which States Are Losing Homeowners Insurance Coverage? 

California, Florida and Louisiana are actually losing insurers. Companies find they can’t make money in states where wildfires and hurricanes are pummeling houses more and more often while inflation pushes up the cost of rebuilding and regulations keep them from raising prices enough to cover their costs.^[8] Combined with fraudulent claims and increasing numbers of lawsuits, these pressures have led some companies to stop renewing home insurance policies or withdraw from these states altogether.^[9],[10]

Homeowners insurance in California, Florida and Louisiana can be difficult to find. If you’re in a state where policies are scarce, an independent insurance agent will be your best friend. They’re pros at scouring the insurance market to find the best policy for your needs.

On the upside, there is good news in Louisiana. Recent state incentives are attracting more insurers back to the market.

What Factors Affect Your Home Insurance Premium?

The main factors that affect how much you pay for home insurance are:

• Level of coverage and deductible
• Claims history
• Construction type
• Location
• Age and condition of your home
• Safety features
• Replacement cost
• Number of occupants
• Credit score

Many of those factors are within your control, so even if you’re not in a state with lower premiums, there’s no need to panic. We’ve got a few ways for you to lower your premium that don’t involve job searches or moving trucks.

Take a look at how you can adjust each factor to bring that premium down:

Level of Coverage and Deductible

Some of your premium is based on how much coverage you have and how high your deductible is. (Your deductible is the amount you’ll pay out of pocket for a homeowners claim before the insurance company starts covering the costs.) If you’re on Baby Step 3 and have the emergency fund to cover it, a higher deductible is a smart way to lower your premiums. We don’t recommend skimping on the home insurance you need, though.

Claims History

Past claims come into play with your premium too. It might feel unfair, but it’s one of the facts of the insurance game. In fact, a high number of claims in your neighborhood affects everyone’s premiums! So the next time your child fires a wayward boomerang through your living room window, think about paying to fix it yourself. Paying for small repairs under or near your deductible will probably help keep your premium down (while a claim could circle back and bite you).

Construction Type

Obviously, you can’t wave a wand to change this for your current home. But if you’re thinking of moving, keep construction type in mind as you shop. Wood homes have higher premiums, while insurance for brick and concrete structures is more affordable.

Location

This is the main factor we’ve already been talking about. High insurance cost probably isn’t the leading reason anyone chooses to relocate. But if you live in Nebraska and happen to make an online love connection in Vermont, lower premiums (and higher oxytocin) could be in your future.

Age and Condition of Your Home

Older homes or those with known issues will have higher premiums. That’s logical, right? And while a time machine might come in handy here, the age of your home is one of those factors you have no control over. On the other hand, you can improve its condition. General maintenance will make your life easier and head off future claims.

Safety Features

Some insurers will give you a break on premiums for installing extra safety features like burglar alarms, smoke detectors or dead bolt locks.

Replacement Cost

Your replacement cost is the dollar amount an insurer estimates it would take to replace your home in the event of damage. You can’t do much to bring this cost down—other than moving into a smaller place with cheaper furniture. Then again, if home insurance costs are keeping you from making financial progress, downsizing might make a lot of sense (and could help you save in other ways too).

Number of Occupants

The more people under your roof, the higher the probability of accidents and claims. The only way to shrink this number is to shoo your children into homes of their own when they become adults (while being sure to share this article with them).

Credit Score

Believe it or not, your credit score can affect your homeowners insurance premium. We’re not big fans of a credit score, period (it’s like a score for how good you are at taking on debt), but if you can lower your credit score, that could lower your premium as well.

How Can You Lower Your Home Insurance Premium More?

Still not satisfied that you’ve done everything possible to bring down your home insurance premium? We’ve got a few more tips for you.

First, use an independent agent to shop around and maybe switch carriers. We recommend working with a RamseyTrusted^® pro. They’re experts who know the insurance industry inside and out, with the experience to understand what’s driving rates in your area. They’ll show you your best strategies for saving money.

And second, while you’ve got that RamseyTrusted pro on the phone, be sure to ask about the possibility of saving through bundling. It doesn’t apply in every situation, but in many cases, combining your homeowners insurance with another policy is another way to save on premiums.

Don’t forget to ask about available discounts too. And if you’re on Baby Step 3, your fully funded emergency fund means you can go for that high deductible to save even more.