The Worst States for Homeowners Insurance in 2024

Homeowners insurance rates vary widely across the United States, with the average annual premium ranging from over $4,500 in some states down to around $400 in others. For most homeowners, insurance is a major recurring expense, so choosing coverage in a state with high premiums can seriously impact your finances.

Below we look at the top 10 worst states for homeowners insurance based on having the highest average premiums. We’ll examine what risk factors contribute to the high costs and provide tips for getting more affordable rates.

The 10 Worst States for Homeowners Insurance

1. Oklahoma

Average Annual Premium: $4,565

Oklahoma has the highest average homeowners insurance premiums in the U.S., with rates over 150% higher than the national average. The main risk factor is tornadoes, as Oklahoma sits right in the heart of Tornado Alley. Hail storms and flash flooding are also common.

2. Nebraska

Average Annual Premium: $4,745

Nebraska ranks #2 for the most expensive homeowners insurance, with average rates almost $3,000 above the national mean. Like its neighbor Oklahoma, Nebraska is located in Tornado Alley and sees frequent severe storms.

3. Kansas

Average Annual Premium: $4,072

Coming in at #3 for highest rates is Kansas, yet another Tornado Alley state with an extremely high risk of tornadoes and hail storms. Homeowners pay an average of $2,300 more per year compared to the national average.

4. Kentucky

Average Annual Premium: $2,282

Kentucky has the highest rates in the Southeast and fourth highest nationwide. While not technically in Tornado Alley, the state still sees frequent and destructive tornadoes along with severe thunderstorms.

5. Arkansas

Average Annual Premium: $2,809

Arkansas rounds out the top 5, with average homeowners premiums $1,050 above the national benchmark. Tornadoes, hail storms, flash floods and winter storms lead to high property damage risks.

6. Louisiana

Average Annual Premium: $3,247

Louisiana’s biggest risk comes from hurricanes, with the long Gulf Coast seeing frequent major storms and floods. The average home insurance premium is almost $1,500 more than the national number.

7. Mississippi

Average Annual Premium: $2,028

Like its neighbor Louisiana, Mississippi’s coastal exposure leads to high hurricane and flood risks. Tornadoes are also a significant threat. Homeowners pay over $250 above the U.S. average.

8. Alabama

Average Annual Premium: $2,085

Alabama sees damage from all major perils: hurricanes, tornadoes, hail storms and flooding. These risks drive premiums around $325 higher than average. Coastal areas are most vulnerable.

9. Texas

Average Annual Premium: $2,130

Everything is bigger in Texas, including homeowners insurance rates. Premiums run over $370 more than the U.S. norm. Hurricane risks along the Gulf Coast and tornadoes throughout the state are the main factors.

10. South Carolina

Average Annual Premium: $1,209

South Carolina sneaks into the top 10 list with home insurance rates about $550 higher than average. Hurricanes and flooding threaten the coast, while tornadoes frequently occur inland.

Why Rates Are So High

Most of the states with exorbitant homeowners insurance rates face risks from multiple natural disasters and severe weather perils. The main factors driving up premiums include:

• Hurricanes – Coastal states like Florida, Louisiana, and the Carolinas are prone to hurricane damage from high winds, storm surge flooding, and heavy rains.

• Tornadoes – States in Tornado Alley (Oklahoma, Nebraska, Kansas) and Dixie Alley (Arkansas, Mississippi) have very frequent tornadoes that cause severe property damage.

• Hail – Large hailstones can batter roofs, siding, windows, and vehicles. States like Oklahoma and Nebraska are among the worst for hail.

• Floods – Heavy rains, storm surge, overflowing rivers, and poor drainage lead to flooding in many states.

• Wildfires – Drought and high winds contribute to extensive annual wildfire damage in Western states like California and Colorado.

• Earthquakes – States like California, Oklahoma, and Alaska are located in high earthquake risk zones.

Higher frequency and severity of these natural disasters means far more claims will be filed by homeowners in these states. Insurance companies have to raise rates to cover all the property damage claims they anticipate paying out.

Tips for Finding Cheaper Home Insurance

If you live in one of these high-risk, high-rate states, there are some things you can do to try and lower your homeowners insurance costs:

• Shop around – Compare quotes from at least 3-5 different highly-rated insurers to find the best rates. Local companies that specialize in your state may offer cheaper premiums.

• Raise your deductible – Choosing a higher deductible like $2,500 instead of $500 can save you 25% or more on your policy. Just be sure you have savings to cover the larger deductible amount if you file a claim.

• Improve home security – Things like alarm systems, fire and CO detectors, storm shutters, and fire-resistant roofing materials can qualify you for big discounts.

• Bundle policies – You can usually save up to 15% by getting multiple policies like auto and home from the same provider.

• Seek group discounts – If you belong to certain alumni organizations, employers, or associations, you may be eligible for a lower group insurance rate.

• Maintain good credit – In most states your credit-based insurance score factors into pricing, so keep your credit in top shape.

• Review periodically – Shop around for better deals every 1-2 years, as new insurers and discounts pop up over time.

Doing your due diligence to find the best rate and utilizing discounts can help offset the higher premium costs in states prone to natural disasters. Comparing many quotes remains the most effective strategy for saving on homeowners insurance no matter where you reside.

The Cheapest States for Home Insurance

On the opposite end of the spectrum, here are some of the cheapest states for homeowners insurance based on the lowest average premiums:

• Hawaii – $382 per year
• Delaware – $764 per year
• Vermont – $694 per year
• Virginia – $1,154 per year
• Washington – $1,157 per year

Low cost states like these see fewer natural disasters, less severe weather, lower crime rates, and overall lower risk. However, remember that Hawaii does not cover wind damage in its basic policies like other states. Homeowners need to add supplemental wind coverage, increasing their costs.

Using Average Rates as a Baseline

These state-by-state average rates can provide a good baseline for expectations, so you know if insurers are quoting you higher or lower compared to your state peers. However, the rates are not definitive. Actual premiums can vary dramatically even within a state based on your:

• Exact location/ZIP code
• Home’s characteristics like age and building materials
• Amount of dwelling and personal property coverage
• Selected deductibles
• Claims history and credit score
• Discounts for which you qualify
• Insurer you choose

Because of all those variables, it’s essential to shop around and compare customized quotes from multiple insurers before choosing coverage. That will give you the most accurate picture of what homeowners insurance will really cost for your situation.

While some states may be riskier and have pricier premiums on average, shopping smart allows you to find the best value with affordable rates for your home.