Homeowners’ insurance rates vary greatly by state

When exploring homeowners' insurance options, the spectrum of cost can be greatly determined by state. According to a study by Value Penguin, the states with the highest premiums are, unsurprisingly, states that are most vulnerable to natural disasters. Here are the five most expensive states, based on average homeowners' insurance premiums:

  1. Florida, $1,933
  2. Louisiana, $1,672
  3. Texas, $1,578
  4. Mississippi, $1,409
  5. Oklahoma, $1,386

While those steep premiums are burdensome to residents, one can factor higher prices as the cost of living in disaster-prone regions of the country.

"Four of those states are victims of the large hurricanes that make their way into the Gulf of Mexico (Florida, Mississippi, Louisiana, and Texas) while the 5th state, Oklahoma, has more tornadoes per square mile than any other place in the United States," explains the report. 

Losses from hurricane and tornado damage can be expensive for insurance providers to cover, so it stands to reason that consumers pay more for protection. On the other hand, these are the states which enjoy the lowest average homeowners' insurance premiums:

  1. Idaho, $518
  2. Oregon, $559
  3. Utah, $563
  4. Wisconsin, $592
  5. Washington, $626

Policy holders in Idaho pay nearly a quarter of what homeowners in Florida pay on average. The study notes that states in the Pacific Northwest are often spared catastrophic natural damages, while Wisconsin posts low vulnerability to damage due to hazardous weather.

While these poles illustrate the range of geographic differences, the majority of consumers experience more moderate pricing. According to the Homebuying Institute, however, the average homeowner in America pays around $1,000 in premiums, meeting somewhere in the middle of the more extreme ends of the spectrum. Familiarizing yourself with local insurance rates is an important consideration to make when purchasing a home or deciding on a homeowners' policy.