The Most Expensive Homeowners Insurance in 2025

When it comes to homeowners insurance, the cost varies widely depending on the location of your property and the risks associated with it. For 2025, Oklahoma tops the list of states with the most expensive homeowners insurance, with an average annual premium of $8,865. Other states, such as Louisiana, Texas, and Florida, also experience high premiums due to frequent natural disasters like tornadoes, hurricanes, and floods.

Why Is Homeowners Insurance So Expensive in Some States?

Several key factors contribute to the high cost of homeowners insurance in states like Oklahoma, Louisiana, Texas, and Florida:

1. Natural Disasters
   Oklahoma is part of Tornado Alley, and its frequent tornadoes significantly increase the risk for insurers. In hurricane-prone states like Florida and Louisiana, homeowners face similar challenges, with the risk of wind and flood damage driving up insurance premiums. States exposed to high-risk natural events will always carry higher premiums to offset the probability of damage.

2. High Claims and Loss Ratios
   Insurers in high-risk states experience frequent claims due to weather-related events, leading to higher loss ratios (the percentage of premiums paid out in claims). To compensate for these losses, insurers raise premiums for homeowners. For instance, Louisiana, recovering from multiple hurricanes, and Texas, known for both hurricanes and hailstorms, have seen significant increases in rates over the years.

3. Building Costs
   Another factor that drives up the cost of homeowners insurance is the cost of rebuilding after a disaster. In high-risk areas, insurers must consider the cost of materials and labor for repairs, which can vary significantly depending on location. In Oklahoma and Texas, where rebuilding after storm damage is common, this leads to even higher premiums.
   
   

Most Expensive States for Homeowners Insurance

1. Oklahoma – $8,865 per year (average)
   Tornadoes and hailstorms make Oklahoma one of the most hazardous states for homeowners, leading to exceptionally high premiums.

2. Louisiana – $6,574 per year (average)
   With its vulnerability to hurricanes and floods, Louisiana consistently ranks among the states with the highest homeowners insurance rates.

3. Texas – $6,799 per year (average)
   Homeowners in Texas are subject to risks from hurricanes, tornadoes, hail, and wildfires, contributing to the state’s high insurance premiums.

4. Florida – $6,099 per year (average)
   Florida’s exposure to hurricanes, coupled with high rebuilding costs, places it high on the list for expensive homeowners insurance.
   
   

How Can Homeowners Find Affordable Insurance?

While states like Oklahoma, Louisiana, and Texas have high insurance premiums, it’s still possible to find affordable coverage. One way to do this is by shopping around and comparing rates from different providers. For example, Progressive Insurance, offered through Toby Hansen Insurance Agency, is known for providing competitive homeowners insurance rates, even in high-risk areas.

At Toby Hansen Insurance Agency, we work with Progressive to help homeowners get the best possible coverage at competitive prices. Our team is committed to helping you find affordable solutions to protect your home, even in areas with higher risks. Whether you live in Oklahoma, Florida, or any other state, we can help you explore options to reduce your premium costs.

If you’re a homeowner in states like Oklahoma, Louisiana, or Texas, it’s no surprise that you may face higher insurance premiums due to the increased risk of natural disasters. However, by working with a trusted provider like Progressive, you can still find ways to manage these costs and protect your home effectively.