Where Home Insurance Still Costs Under $1,200 a Year

Natural disasters are becoming more frequent and intense across the United States, reshaping the home insurance landscape. States like Florida, Louisiana, and Texas are experiencing steep increases in premiums due to hurricanes, floods, and wildfires. In 2024 alone, 27 major weather events caused $182.7 billion in damages, and insurers are passing those costs along to homeowners. Florida now leads the nation with average premiums surpassing $6,000, and in the most vulnerable zip codes, rates can top $8,000 annually.

In contrast, Midwestern states such as Ohio, Wisconsin, and Indiana remain relatively insulated from these sharp increases. These states boast average home insurance premiums well below the national average of $1,428—some even under $1,200. Their secret? Fewer large-scale disasters, stronger building codes, and investment in infrastructure that proactively reduces risk. This allows insurers to keep premiums stable while maintaining adequate coverage levels for policyholders.

Real homeowners are feeling these differences firsthand. Florida residents like Alexis and Jason Patterson are overwhelmed by premium hikes, while Indiana’s Stacey Morales enjoys predictable, affordable costs. These stories underscore a growing disparity between regions—one where geography, risk management, and climate exposure dictate the financial realities of homeownership.

As the insurance industry navigates this turbulent era, states that prioritize resilience and long-term planning may offer a model for maintaining affordability. The question remains whether high-risk states can adapt quickly enough to rein in rising costs before they become unmanageable for the average homeowner.