Where Homeowners Insurance Costs the Most—and the Least

Where Homeowners Insurance Costs the Most—and the Least

In a housing market already stretched thin by rising prices and high interest rates, homeowners insurance costs are adding a new layer of pressure—and widening the affordability divide.

According to new 2024 data from the U.S. Census Bureau’s American Community Survey, homeowners in Colorado, Nebraska, Texas, and Florida faced the steepest insurance costs nationwide, paying median annual premiums between $2,000 and $2,499.

Mortgage holders bore the brunt—typically paying $1,500–$1,999 per year—while homeowners without mortgages paid closer to $1,000–$1,499.

These numbers highlight how widespread high costs have become. Unlike averages, median values show what a “typical” homeowner pays—making it clear that elevated insurance premiums aren’t just outliers; they’re the norm.

Why It Matters

Homeowners insurance protects what’s often a family’s biggest asset. But as premiums soar and insurers retreat from high-risk areas, more Americans are considering going without it. Realtor.com’s survey found 1 in 7 homes is uninsured, and 58% of homeowners say they’d consider dropping coverage if costs keep climbing.

For mortgage holders, that’s not an option—lenders require insurance. In states like Colorado, Nebraska, Texas, Florida, Kansas, Oklahoma, and Louisiana, those homeowners pay $2,000–$2,499 annually—compared with a max median of $1,999 for those without a mortgage.

The takeaway? As ownership costs surge—up nearly 30% over the past five years—rising insurance premiums are reshaping where and how Americans can afford to live.

Information from Realtor.com