Buying a home is one of lifeβs biggest investments β and protecting that investment with the right home insurance is just as important. But did you know that the cost of home insurance varies wildly depending on your state?
Some homeowners in the U.S. pay over $3,000 per year, while others pay under $700. Thatβs a huge difference β and most people donβt even know it! In this guide, weβll break down the cheapest home insurance by state in 2025, what affects the cost, and how you can save money no matter where you live.

π§Ύ Home insurance Vary costly from state to state Why?
Before diving into the cheapest states, itβs important to understand why prices differ so much:
- πͺοΈ Natural Disasters: States like Florida and Louisiana have higher premiums due to hurricanes and floods. Meanwhile, inland states with mild climates tend to have lower risks.
- π οΈ Cost to Rebuild: States where materials and labor are more expensive will have higher insurance premiums, even for smaller homes.
- π Crime Rates: Areas with highr,or burglary claims can rais significantly
- βοΈ Local Laws & Regulations: Some states have insurance rules that impact how companies set their prices.
So where is home insurance the cheapest in the U.S.? Letβs find out.
π Top 10 Cheapest States for Homeowners Insurance in 2025
Based on the latest 2025 insurance data, here are the 10 cheapest states for home insurance, along with their average annual premium:
Rank | State | Avg. Annual Premium |
1οΈβ£ | Vermont | $630 |
2οΈβ£ | Delaware | $650 |
3οΈβ£ | New Hampshire | $670 |
4οΈβ£ | Utah | $700 |
5οΈβ£ | Oregon | $710 |
6οΈβ£ | Idaho | $735 |
7οΈβ£ | Wisconsin | $750 |
8οΈβ£ | Maine | $770 |
9οΈβ£ | Washington | $790 |
π | Ohio | $800 |
π What Do These States Have in Common?
These states generally have:
- Low rates of natural disasters
- Stable housing markets
- Lower crime rates
- Competitive insurance providers
If you live in one of these states, congratulations β your home insurance is among the lowest in the country. But if youβre not, donβt worry β weβve got savings tips coming up.
πΈ Most Expensive States for Home Insurance (2025)
On the other hand, most expensive home states in 2025:
Rank | State | Avg. Annual Premium |
1οΈβ£ | Florida | $3,140 |
2οΈβ£ | Louisiana | $2,980 |
3οΈβ£ | Texas | $2,760 |
4οΈβ£ | California | $2,490 |
5οΈβ£ | Oklahoma | $2,310 |
These states are high-risk due to hurricanes, floods, wildfires, and other severe weather events. Insurers raise premiums to protect themselves from the high number of claims.
π Regional Home Insurance Cost Comparison
Letβs look at how different U.S. regions compare in average home insurance cost:
- π§ Northeast β Lowest overall: Vermont, New Hampshire, and Maine lead.
- π½ Midwest β Affordable: Ohio and Wisconsin offer great value.
- ποΈ West β Mixed: Utah and Oregon are cheap, California is costly.
- π΄ South β Most expensive: Florida and Louisiana dominate the high-cost list.
So depending on where you live, your insurance rate could change by over $2,000 per year for the same home.
π 7 Proven Ways to Lower Your Home Insurance Costs
No matter your state, these tips can help cut your insurance costs without sacrificing coverage:
1. π¦ Bundle with Auto or Life Insurance
Most companies offer 10% to 25% discounts if you combine home and auto insurance policies.
2. π Install Security Features
Add smoke detectors, burglar alarms, deadbolts, and smart home security. These reduce your risk and can bring discounts.
3. π³ Raise Your Deductible
Just make sure you can afford it.
4. π§Ό Maintain a Clean Claim History
Avoid making small claims. Insurers reward no-claim homeowners with lower rates.
5. π Improve Your Credit Score
Yes, most states allow insurers to consider credit score when pricing policies. A higher score = lower premiums.
6. ποΈ Shop Around Annually
Rates can change every year. Compare quotes from at least 3 insurers to ensure you’re not overpaying.
7. ποΈ Renovate Smartly
Updating your roof, electrical, or plumbing systems can reduce risk β and lower your rate over time.
π’ Best Home Insurance Providers for Budget-Conscious Homeowners
Here are some of the best companies for affordable home insurance in 2025:
β Lemonade
- AI-powered, super affordable, great for tech-savvy users.
- Ideal for small homes or condos.
β State Farm
- Nationβs largest insurer with wide coverage and bundling options.
- Good for families.
β USAA
- Available only to military families, but offers exceptional value.
- Top-rated for customer satisfaction.
β Allstate
- Easy quote comparisons, lots of discount options.
- Offers strong disaster coverage.
β Amica Mutual
- High ratings for claims service.
- Competitive pricing in northeast and midwest.
π How Often Should You Review Your Policy?
Experts recommend reviewing your policy:
- Every 12 months
- After renovating your home
- After a major weather event
- If your credit score improves
- When you buy or sell a car (if bundled)
Even a small life or home update could help you unlock hundreds of dollars in savings.
β Final Thoughts: Your State, Your Savings
While you canβt control where you live (at least not easily), you can control how much you pay for home insurance. By understanding how your state ranks β and taking action to reduce your risk β you can protect your home without breaking the bank.
Whether you’re in Vermont paying $630 or in Florida paying over $3,000, using the tips above can help lower your premium.
π Quick Recap:
- π’ Cheapest state: Vermont ($630/year)
- π΄ Most expensive: Florida ($3,140/year)
- π‘ Savings tips: Bundle, raise deductible, install security, shop annually
- π§ Best providers: Stat farm,USAA etc