These states have the highest home insurance rates in 2025
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Five of the eight most expensive states for home insurance are along the Gulf Coast. The region is extremely susceptible to hurricanes, which cause more financial damage than any other type of natural disaster.[1] The states listed below have the highest projected home insurance costs for 2025.
| Average Annual Premium (2024) | Projected Annual Premium (2025) | Projected Cost Increase in 2025 | Projected Percentage Increase in 2025 |
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| Florida | $14,140 | $15,460 | $1,320 | 9% |
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| Louisiana | $10,964 | $13,937 | $2,974 | 27% |
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| Oklahoma | $7,762 | $8,369 | $607 | 8% |
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| Colorado | $5,984 | $6,630 | $646 | 11% |
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| Texas | $6,005 | $6,522 | $516 | 9% |
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| Alabama | $5,445 | $5,831 | $386 | 7% |
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| Nebraska | $4,725 | $5,203 | $478 | 10% |
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| Mississippi | $4,809 | $5,198 | $389 | 8% |
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| Arkansas | $4,490 | $5,077 | $588 | 13% |
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| Kansas | $4,556 | $4,782 | $226 | 5% |
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1. Florida
Projected annual cost by the end of 2025: $15,460
Projected increase in 2025: 9%
Average annual cost in 2024: $14,140
Insurify projects Florida will remain the most expensive state for home insurance in 2025. Frequent hurricanes have caused insurers to take on heavy losses to make payouts from disaster damage. Floridians filed nearly 458,000 hurricane claims last year. Hurricanes Helene and Milton, the two most destructive disasters of 2024 in the U.S., caused more than $100 billion in combined damages. Since 2020, climate disasters have cost Florida an estimated $237 billion, according to the National Centers for Environmental Information (NCEI).
High losses have led 16 insurers to withdraw from the state, with another 16 going insolvent since 2017. FEMA rates 34 of Florida’s 67 counties at “very high” or “relatively high” risk of hurricane damage. Florida’s exposure to disasters makes the market untenable for many insurers and ultimately less affordable for homeowners.
2. Louisiana
Projected annual cost by the end of 2025: $13,937
Projected increase in 2025: 27%
Average annual cost in 2024: $10,964
Louisiana homeowners will pay nearly four times the national average for home insurance coverage in 2025, according to Insurify projections. Natural disasters, particularly hurricanes, have caused more than $115 billion in damages since 2020.[1] Louisiana remains the least profitable state for insurers due to its large loss ratio — the gap between claims paid out and premiums charged. For every $100 Louisiana insurers collect in premiums, they pay out $159 in claims, according to Insurify’s analysis of five-year loss ratios. Loss ratios exclude overhead costs, meaning insurers are losing more money than the loss ratio reflects.
Twelve insurers in the state became insolvent after hurricanes in 2020 and 2021, lowering competition as premiums rose for homeowners. Insurify found that four of the nation’s 10 most expensive cities for home insurance are in Louisiana, including New Orleans, where homeowners pay nearly six times the national average.
3. Oklahoma
Projected annual cost by the end of 2025: $8,369
Projected increase in 2025: 8%
Average annual cost in 2024: $7,762
Oklahoma is at high risk for tornadoes, hail, and severe winds, according to FEMA. About 80% of claims in the state are for storm damage. Farmers Insurance, the state’s second-largest home insurance company, announced last year that it would not renew about 1,300 policies due to wildfire risk.[2]
From 2022 to 2023, Oklahoma saw a 41% increase in tornadoes. In 2024, state officials moved to provide grants to homeowners to strengthen structures against damage caused by tornadoes, windstorms, and hail. Some insurers in high-risk hail areas are changing the way they cover roof claims, moving from replacement cost to actual cash value, which factors in depreciation and reduces their burden by lowering payouts.
“While product changes may lead to lower coverage, this is a way for carriers to keep coverage affordable and available,” Lucas said.
4. Colorado
Projected annual cost by the end of 2025: $6,630
Projected increase in 2025: 11%
Average annual cost in 2024: $5,984
Insurify projects Colorado’s average home insurance cost will overtake Texas’ by the end of 2025. Centennial State insurers lost money in 2023, the most recent year with available data, paying out more in claims than they took in through premiums.[3]
Continued severe weather puts the state at heightened risk. Colorado has more than 300,000 properties at risk of wildfire, with nearly $200 billion in exposed assets.[4] Hailstorms, which can cause expensive damage to roofing, have increased 65% over the past three years.
“The affordability problems we have in Colorado are driven by hail,” Colorado Insurance Commissioner Michael Conway told the Colorado Sun. “Anywhere from 50% to 60% of the insurance premiums that people pay in Colorado is, on average, paying for hail.”
5. Texas
Projected annual cost by the end of 2025: $6,522
Projected increase in 2025: 9%
Average annual cost in 2024: $6,005
Texas home insurance rates continue to climb, in large part due to losses from major natural disasters. In the last five years, 68 billion-dollar disasters have impacted Texas, the most of any state, causing about $108 billion in damages.[1] Texas is one of three states, along with California and Florida, that FEMA rates “very high” for expected losses from natural hazards. In fact, FEMA ranks Texas among the 10 most at-risk states for hurricanes, coastal flooding, drought, hail, lightning, tornadoes, wildfires, ice storms, strong winds, heat waves, and cold waves.
Four home insurers stopped writing policies in the state in 2024, affecting about 11,000 homeowners. Progressive sent out notices of non-renewal to homeowners about a month after Hurricane Beryl, citing “risks relating to natural and catastrophic losses.”[5]
6. Alabama
Projected annual cost by the end of 2025: $5,831
Projected increase in 2025: 7%
Average annual cost in 2024: $5,445
Severe weather has led to higher home insurance prices in Alabama. The state has “relatively high” expected losses from tornadoes, according to FEMA. More than 400 twisters have struck the state in the last five years, causing more than $34 million in property damage.[6]
Among Gulf Coast states, Alabama broadly has less exposure to hurricanes than Florida and Louisiana. But FEMA maps indicate Alabama’s two coastline counties, Mobile and Baldwin, are at “very high” and “relatively high” risk for expected hurricane losses.
7. Nebraska
Projected annual cost by the end of 2025: $5,203
Projected increase in 2025: 10%
Average annual cost in 2024: $4,725
Homeowners in some parts of Nebraska are finding it harder to obtain insurance heading into 2025. Non-renewal rates increased in Nebraska from 2018 to 2023, with weather risk playing a large role.[7] Nebraska has suffered about $10 billion in damages from natural disasters over the past five years, most often due to severe storms, according to an Insurify analysis of NCEI data.
Nebraska has the third-highest expected losses from hail of any state, and its most populous county, Douglas County, is considered “very high” risk for hail damage, according to FEMA. In June 2024, this county, which includes Omaha, “experienced up to baseball-sized hail, damaging homes, vehicles, and businesses,” according to the NCEI.
Nebraska saw 63 tornadoes in 2023, a 142% increase from the previous year, according to NOAA.
8. Mississippi
Projected annual cost by the end of 2025: $5,198
Projected increase in 2025: 8%
Average annual cost in 2024: $4,809
All five Gulf Coast states, including Mississippi, have higher-than-average home insurance costs. Coastal counties within Mississippi have historically paid about twice as much as inland counties for insurance due to hurricane risk.[8]
In 2020, winds and debris from Hurricane Zeta damaged about 10,000 homes, causing an estimated $635 million in losses, with the worst damage on the coast.[9] In addition to severe weather, inflation and the rising cost of reinsurance have also put upward pressure on home insurance rates, according to the Mississippi Insurance Department.
9. Arkansas
Projected annual cost by the end of 2025: $5,077
Projected increase in 2025: 13%
Average annual cost in 2024: $4,490
Insurify projects high home insurance costs will continue in Arkansas. In both 2022 and 2023, insurers lost money in the state, paying out more in claims than they took in through premiums, according to a P&C Specialist analysis of S&P data.
Arkansas was one of several states struck by a May 2024 outbreak of 110 tornadoes, leading to about $3.5 billion in damages.[10] In Arkansas, storm winds reached up to 155 mph. In the wake of Hurricane Beryl, the state saw an additional 10 tornadoes on July 8, the largest July tornado outbreak on record in the state.
Additionally, Arkansas is at “very high” risk for losses from ice storms, according to FEMA, behind Oklahoma and Missouri. The sheer weight of ice or snow can cause roof damage, with falling ice-covered tree limbs adding more danger.
10. Kansas
Projected annual cost by the end of 2025: $4,782
Projected increase in 2025: 5%
Average annual cost in 2024: $4,556
Kansas remains one of the more expensive states for home insurance. Located in the middle of Tornado Alley, Kansas experienced 45 tornadoes in 2023, with preliminary reports of 89 tornadoes in 2024. Preliminary findings also show the state recorded the second-most severe wind events of any state in 2024 with 948, according to National Oceanic and Atmospheric Administration (NOAA) data.
Hail is a major concern for Kansas homeowners, with hail events increasing 68% between 2022 and 2023. The state had 778 hail events in 2023. The state’s most populous city, Wichita, is most at risk for hail damage.[11]
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Insurify projects home insurance premiums will climb in every state by the end of 2025. The typical homeowner will see their home insurance costs rise an estimated $261 over the next 12 months.)
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