These 5 States Have the Highest Homeowners Insurance Premiums

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Living in Tornado Alley can be pretty expensive. 

When choosing the place to call home, location is one of the most important considerations. It can affect everything from the length of the daily commute to the schools that children attend. More interesting to home insurers, it can also dictate the likelihood of theft and natural disasters and the cost of rebuilding a home following a loss.

These factors could come back to bite homeowners who live in one of the five states listed below. Fortunately, there are steps homeowners everywhere can take to keep their annual premiums as low as possible.

The five states with the highest average annual homeowners insurance premiums

The following five states have the highest average annual homeowners insurance premiums in 2023 based on our analysis of standardized personas:

Nebraska ($4,398)Oklahoma ($3,783)Mississippi ($3,373)Arkansas ($3,368)Kansas ($3,073)

The majority of these states fall within Tornado Alley. This understandably raises the risk of tornadoes and damage from high winds. But residents in several of these states also face the threat of serious hail damage.

Mississippi undoubtedly earns its place on the list due to its proximity to the coast. Many states on the Gulf Coast see higher rates due to the risk of hurricanes and flooding from storm surges.

It’s worth noting that not all residents of these states will pay this much for homeowners insurance. These are only averages. Some people will pay more while others will pay less, depending on the size and construction of the home, their claims history, and their location within the state.

How homeowners can find the best deal on insurance

The best thing homeowners can do to reduce their home insurance premiums is to shop around before buying. Compare quotes from a handful of companies and evaluate the overall value they provide. Price is obviously going to be an important factor, but the quality of a company’s customer service and the comprehensiveness of its coverage also matter.

Many homeowners insurance companies require homeowners to contact them directly to get a quote, so choosing the right insurer could take some time. However, some of the big names in the industry offer online quote tools to provide a faster price estimate.

Homeowners who have recently made upgrades to their home or plan to do so should look for insurers that reward these changes. Installing a new roof or storm shutters, for example, qualifies a home for discounts with several popular insurers.

Finally, raising a home insurance policy’s deductible can lower its premiums. But this also increases the homeowner’s out-of-pocket costs in the event of a claim. So it’s crucial to save for the deductible in an emergency fund in order to avoid costly debt.

Homeowners may run into multiple deductibles, especially if they live in one of the states above. Many insurers now charge separate wind and hail deductibles that are higher than the standard home insurance deductible. Homeowners must meet this before the insurance company will pay anything for wind- or hail-related claims. As with the standard deductible, increasing this could lower monthly homeowners insurance premiums.

Don’t skimp on coverage

It might be tempting to reduce coverage in order to keep costs down, but this can be a dangerous mistake. If the policy’s limit is less than what it costs to rebuild a home, the homeowner could have to pay for the rest of the repairs on their own in the event of a total loss. Stick to the tips above to keep costs down and shop around for lower rates once or twice per year to ensure no better deals go unnoticed.

Our picks for best homeowners insurance companies

There are many homeowners insurance companies to choose from. We’ve researched dozens of options and short-listed our favorites here. Looking for a green build discount or easy bundle policies? Want an easy-to-use interface? Read our free expert review and get a quote today.

We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.Kailey Hagen has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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