The States Hit Hardest by Home Insurance Spikes - Insurance Dimes

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Jul 16, 2026

Data, Home Insurance

The States Hit Hardest by Home Insurance Spikes

Home insurance premiums rose by 46.8 percent overall between 2020 and 2025.

This multiyear escalation was far from steady. Early annual bumps were relatively small, measuring 2.0 percent in 2020 and 2.8 percent in 2021.

The momentum shifted with a 5.2 percent jump in 2022 and hit a record 12.7 percent spike in 2024. The pace softened slightly to 6.0 percent in 2025.

This upward trajectory is attributed primarily to severe weather losses alongside the rising costs of labor, materials, and repairs.

The United States endured approximately 23 individual billion dollar disasters annually between 2020 and 2024.

This marks a drastic escalation from the preceding five year window, which averaged only 15 such disasters per year.

The average number of major storms grew from nearly nine per year between 2015 and 2019 to over 14 annually between 2020 and 2024.

These storms bring high winds, heavy rainfall, and hail that inflict massive damage on entire communities at once.

Home Insurance Rate Increases by State, 2020–2025

Cumulative percent change in average homeowners insurance premiums. Tap or hover a state for details.

No data

Source: LendingTree, cumulative change in average homeowners insurance rates, 2020–2025. No data was available for Wyoming.

Selected state

Tap or hover any state on the map to see its rate change here.

Biggest increases

Smallest increases

Colorado Homeowners experienced the highest Cumulative Increases

Colorado residents absorbed the heaviest financial blow, with home insurance costs inflating 100.8 percent from 2020 to 2025.

Colorado also held the top spot in the previous year's analysis.

Iowa closely follows with a 96.0 percent hike, while Minnesota takes third place at 88.2 percent.

CoreLogic data places Colorado second nationally for homes facing moderate or severe wildfire threats, exposing over 321,000 properties and $141 billion in reconstruction value.

LexisNexis data further reveals that Colorado suffered the highest catastrophe claim costs in 2024 due to hail, wildfires, and major storms.

Minnesota and Iowa face similar vulnerabilities, with Minnesota ranking high for hail exposure and Iowa topping the charts for wind damage claims.

Top 10 States for 2025 Rate Increases

Rank State Percentage Change 1Colorado18.3%2Minnesota17.0%3Iowa14.7%4Illinois14.1%5Delaware10.8%6Kentucky10.2%7Mississippi10.1%8South Carolina9.7%9Hawaii9.2%10Alaska8.8%

Average Annual Costs Depend on Location

The national average premium sits at $2,395, but individual state averages vary wildly.

Oklahoma residents face the steepest bills, paying an average of $5,298 annually, which is 121.2 percent above the national baseline. Nebraska holds the second spot at $4,956, sitting 106.9 percent above the national average.

These are the only two states where premiums exceed double the national benchmark. Colorado ranks third at $4,310.

Hawaii provides the cheapest coverage at just $801 per year, a massive 66.6 percent below the national average.

Vermont follows at $924, and New Hampshire at $1,028.

Central states frequently rank among the most expensive.

Kansas costs $4,095, Texas costs $3,969, and Arkansas costs $3,538.

Meanwhile, coastal and Northeastern states like California ($1,413), New York ($1,387), and Massachusetts ($1,635) sit comfortably below the national average.

Most Expensive States for Annual Home Insurance

Rank State Average Annual Cost Percentage Difference from US Average 1Oklahoma$5,298+121.2%2Nebraska$4,956+106.9%3Colorado$4,310+80.0%4Kansas$4,095+71.0%5Texas$3,969+65.7%6Arkansas$3,538+47.7%7Tennessee$3,408+42.3%8South Dakota$3,258+36.0%9Alabama$3,254+35.9%10Kentucky$3,158+31.9%

We expect premiums to remain elevated in the near term, though the rapid acceleration seems to be cooling. Insurance providers are finally balancing their books against recent claim costs.

While states with elevated risk will likely face ongoing hikes, the extreme surges of 2023 and 2024 should taper off unless severe hurricane seasons or massive wildfire outbreaks occur.

Homeowners can employ a few key tactics to protect their wallets.

Explore Regional Providers. Getting quotes from smaller, local insurance companies is a highly effective strategy. Regional carriers often understand localized risks better and can offer cheaper rates alongside better service. Homeowners should verify the financial stability of smaller companies but avoid assuming that massive national brands always offer the best deals.

Fund Preventative Upgrades. Investing in damage prevention pays off. Installing a new roof or adding storm shutters mitigates the risk of catastrophic claims during bad weather. Many insurance companies offer discounts for these protective upgrades. Avoiding claims altogether is the best way...