10 Most Expensive States For Homeowner’s Insurance

10. Kansas

Average Annual Premium: $836

When you find yourself living in a part of the country nicknamed “tornado alley,” it isn’t hard to imagine why insurance rates would be high. Think The Wizard of Oz.

9.  Alabama

Average Annual Premium: $847

All Gulf Coast states are susceptible to hurricanes. But here, building codes are more stringent than they are in Mississippi. What’s more, Alabama, unlike Louisiana, doesn’t have much property below sea level, which helps explain why its costs are lower. Still, the state’s weather patterns feature thunderstorms, hail and tornadoes that can cause considerable damage to homes.

8.  Rhode Island

Average Annual Premium: $849

For a small state, Rhode Island has a considerable length of coastline. And resort towns like Newport are filled with high-priced second homes. Premiums in these areas are high, since insurers are reluctant to take on beachfront property prone to wind damage and are fearful of the effects of global warming.

7.  California

Average Annual Premium: $895

Earthquake premiums are covered separately here, but a lot can still go wrong in this disaster-prone state. The coastal population has to deal with ocean storms and the desert dwellers have yearly brush fires, but nearly everyone has to worry about mudslides.

6.  Florida

Average Annual Premium: $929

Insurance companies are fleeing the Sunshine State, making an already high-risk region more expensive by virtue of decreased competition. Fears of global warming, rising sea levels and more powerful hurricanes have Floridians paying more. As these numbers do not reflect the Citizens Property Insurance Corporation, the “insurer of last resort” in hurricane zones, the actual statewide figure would probably be the costliest in the nation.

5.  Mississippi

Average Annual Premium: $929

Insurance companies are fleeing the Sunshine State, making an already high-risk region more expensive by virtue of decreased competition. Fears of global warming, rising sea levels and more powerful hurricanes have Floridians paying more. As these numbers do not reflect the Citizens Property Insurance Corporation, the “insurer of last resort” in hurricane zones, the actual statewide figure would probably be the costliest in the nation.

4.  Washington D.C.

Average Annual Premium: $963

Urban areas tend to have higher insurance rates than their country cousins because property values and costs associated with rebuilding are usually higher. Washington is nothing but city, and labor and business costs for repair add to pricing. Throw into the mix insurers’ perception that the District is at risk for terrorism, and it’s easy to understand the $963 per year.

3.  Oklahoma

Oklahoma, where the wind comes sweeping down the plain. Twisters, too. Both drive the state’s bloated insurance costs, the fourth-highest in the country. The good news is that prices are stabilizing. The average premium increased by only $5 from last year.

2.  Louisiana

Average Annual Premium: $1,144

Hurricane Katrina tragically illuminated the reasons behind Louisiana’s high premiums. Much of New Orleans is below sea level, and as such is susceptible to powerful hurricanes. It also has a high proportion of poorly structured homes unable to withstand increasingly strong winds and rain.

1.  Texas

Average Annual Premium: $1,372

Name all the country’s collective disasters, and you’ll find them all in the Lone Star state, where insurers try to make a profit despite hurricanes, tornadoes, hail, wind storms and earthquakes. At an average premium rate of $1,328, Texas tops our list. The good news for Texans is that rates are falling, thanks to 2003 regulations. What’s more, the rest of the country is closing the gap.