Red states have nation's highest home insurance rates

Florida, Oklahoma highest, while Hawaii, California lowest

Four of the five states with the highest home insurance rates have Republican governors, led by Florida, where the crisis has caused some residents to give up on insurance or leave the state.

In 2023, Florida homeowners paid an average premium of $7,788 anually, almost $1,000 more than second-place Oklahoma, according to virtual insurance industry business Insurify. Nationwide, home insurance rose 9 percent in 2023 to an average of $1,784, following a 7 percent hike in 2022.

Factors for the rises include more hurricanes and other extreme storms fueled by climate change, inflation, and supply chain issues. Another factor is that numerous insurance companies, including Farmers, have left Florida, leading to rising rates with less competition.

States like Florida and Oklahoma experience more weather-related storms, from hurricanes to tornadoes. Hurricanes generally cause more damage than tornadoes, with the eight most costly U.S. natural disaster being hurricanes. Katrina, which hit Louisiana. Florida, and other places in 2005, did the most damage at an estimated $194 billion, followed by Harvey [$155 billion in 2017 to Texas and other areas] and Ian [$115 billion in 2022 to Florida and other areas].

The most expensive storm so far in 2023 was Hurricane Idalia, racking up an estimated $10 billion. By contrast, the most costly U.S. tornado in history was the one that struck Missouri in 2011 with $3.6 billion in adjusted damage.

Louisiana is the third most expensive state for home insurance, followed by Alabama and Kansas. Louisiana is the only state in the top five with a Democratic governor, though voters there lean Republican in national elections.

Homes and other structures sustained significant damage during Hurricane Ian at Fort Myers Beach, Fla., in 2022.Photo byU.S. Air National Guard Senior Airman Jesse Hanson/ Public Domain

Residents face dire issues in Florida as some can't get insurance

A Florida resident who had his home wrecked by Hurricane Michael in 2018 is still not back in his dwelling five years later, a neighbor said on Twitter X. The U.S. Federal Emergency Management Agency helped him build a new house, but he can't obtain home insurance due to costs and many insurers leaving the state, she said.

"He can’t get the power or water turned on or move in until he has home insurance, which he has been unable to purchase, because it is insanely expensive & difficult to find providers in Florida," the user named Neptune's Daughter posted. "So he has been living in a camper next to his brand new, empty house for months."

Fellow Florida resident Jim Hickman said that his home insurance premium has almost tripled in the past seven years. He doesn't live on the water and hasn't made a claim. "People are literally having to move out of Florida due to insurance costs," he wrote.

About 275,000 residents left Florida in 2022, though more people moved to the state to give it a slight net gain, according to the U.S. Census Bureau. Of those who moved, more people settled in Georgia, North Carolina, and Tennessee.

Florida Gov. Ron DeSantis, who is campaigning for the 2024 presidential election, points out that the state is helping people with insurance troubles in measures such as the creation of a $2 billion taxpayer-funded reinsurance fund. But many have had trouble accessing any funds from the program. State legislation also prohibits insurance companies from denying coverage for homes with roofs that are less than 15 years old or have at least five years of life left.

The situation has caused some 17 million Americans to go without home insurance and hope disaster doesn't strike, said Peter St. Onge, an economist with the Heritage Foundation. "We’re becoming a three-tier country. The poor live on the edge of catastrophe. The rich don’t care - they've reached financial escape velocity. And the middle class runs on a treadmill dodging increasingly ridiculous monthly bills," he said.

The following shows the ten states and cities with the highest home insurance premiums in the U.S.

State ... Average annual home insurance premium, 2023
Florida ... $7,788
Oklahoma ... $6,853
Louisiana ... $5,353
Alabama ... $5,102
Kansas ... $5,005
Kentucky ... $4,370
South Dakota ... $4,343
Colorado ... $4,177
Texas ... $4,067
Nebraska ... $4,064

City ... Average annual home insurance rate, 2023
Hallandale Beach, Fla. ... $12,578
Hialeah, Fla. ... $12,319
Miami, Fla. ... $11,258
Lake Worth, Fla. ... $10,741
Orange Beach, Ala. ... $9,264
Chauvin, La. ... $8,042
Oklahoma City, Okla. ... $7,546
New Orleans, La. ... $7,518
Newalla, Okla. ... $7,268
El Reno, Okla. ... $7,226
Source: Insurify

Hawaii, California enjoy lowest rates

Hawaii had the lowest average home insurance rate in 2023 at only $582 to cover a residence worth $300,000, according to industry consulting site Insurance.com.

But that could change after claims from recent wildfires are processed. The damage bill from the fires is expected to eclipse $5.5 billion, and at least 99 residents have died in the disasters.

The following shows the five states with the lowest home insurance premiums.

State ... Average annual home insurance premium, 2023
Hawaii ... $582
California ... $1,380
Vermont ... $1,540
New Hampshire ... $1,551
New Jersey ... $1,555
Source: Insurance.com

California is also seeing insurance companies leave the state and costs escalate, though its disasters are generally not as costly as those with severe hurricanes like Florida.

Insurance experts urge homeowners to secure objects that might become projectiles before storms hit and build homes with the most durable materials. Insurance costs can be reduced by taking higher deductibles, meaning residents will have to pay more from their own pockets if a disaster strikes.