What State Has the Lowest Homeowners Insurance in 2025?

In 2025, homeowners insurance costs still vary widely by state. If you’re looking to save, these states consistently offer the lowest average annual premiums—making them stand out in affordability.

1. Top Five Cheapest States for Homeowners Insurance in 2025

Based on the latest data:

• Vermont – around $830/year for $300,000 dwelling coverage

• Alaska – about $933/year

• Delaware – approximately $964/year

• West Virginia – close to $1,009/year

• Oregon – roughly $1,011/year

2. Why These States Are So Affordable

Key reasons include:

• Low natural disaster risk

• Fewer claims filed annually

• Stable insurance markets

• Minimal premium increases in recent years (12–13% over 5 years)

3. How They Compare to High-Cost States

States like Florida, Louisiana, Oklahoma, Kansas, and Nebraska report premiums between $4,400 and $5,800/year, largely due to weather-related risks like hurricanes, tornadoes, and hail.

4. Rate Trends and Inflation Impact

• National average premiums rose 40% between 2019 and 2024

• Vermont and Alaska had the lowest increases, just 12–13%

• High-risk states saw increases as high as 58%

Final Thoughts

If you’re considering relocation or shopping for a new policy, the most affordable states in 2025 are:

• Vermont – ~$830/year

• Alaska – ~$933/year

• Delaware – ~$964/year

• West Virginia – ~$1,009/year

• Oregon – ~$1,011/year

These states remain well below the national average of $2,258/year.

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