10 States with the Cheapest Home Insurance in 2025

While home insurance rates soar after the wildfires in California and hurricanes in Florida, there are a few states where homeowners are paying well below average premiums to protect their homes.

According to the latest report from Bankrate, the national average home insurance premium in March was $2,242 per year for dwelling coverage of $300,000. But all 10 states listed below pay rates that are $1,000 or more less than that national average for the same coverage.

While the 10 states below are enjoying the lowest average home insurance rates in the country, it’s worth noting that this only applies to standard policies. Standard insurance is important, but there are a few surprising things home insurance won’t cover. For those uncovered risks, homeowners need to buy additional coverage to make sure they’re fully covered against every threat their home faces.

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Keep reading to find out what homeowners are paying in the 10 states with the cheapest home insurance, and why rates are so much lower in these places.

10 States with the Cheapest Home Insurance in 2025

While the national average is $2,242 per year for home insurance, homeowners in these 10 states are paying as little as $837 per year for the same coverage.

10. Wisconsin

Homeowners in Wisconsin pay $1,230 per year on average for home insurance. The northern state isn’t exposed to some of the more destructive natural disasters like hurricanes and wildfires, which helps keep costs down.

The most common risks are related to Wisconsin’s harsh winters, including things like frozen pipes, ice dams and snow-related roof damage. While these issues are covered by a standard policy, Wisconsin homeowners still need to take proper precautions to prevent damage to avoid a denial on their insurance claim.

9. Hawaii

The average annual home insurance premium in Hawaii is just $1,224, according to Bankrate. While the promise of cheap insurance and island living might tempt you to move to the Aloha state, there’s an important exclusion homeowners need to consider first.

While standard policies in just about every other state cover wind-related damage, wind is an excluded peril in Hawaii. Homeowners living here need to buy supplemental hurricane insurance on top of flood insurance to be fully covered against storm damage.

8. New Jersey

In New Jersey, homeowners pay $1,194 per year on average for a standard home insurance policy. While that is far below the national average, it’s important to note that most standard policies don’t cover flood damage.

Since more than half of the state’s total population lives on the coast, which is at high risk of flooding, it’s essential for New Jersey homeowners to buy flood insurance to fully protect their homes. Even those living further inland can still be exposed to stormwater surges and other forms of flooding.

7. Nevada

With little risk of hurricanes or other severe storms, Nevada homeowners pay just $1,079 per year on average for home insurance. The biggest weather-related issue in the state is the extreme heat it faces in the summer.

While heat is unlikely to cause any sudden damages the way storms or tornadoes do, the chronic exposure of your home to extreme heat can cause faster than usual wear and tear to things like your roof, siding and foundation. If you don’t keep these things maintained, your insurer might try to deny your claim, citing neglect or lack of maintenance.

6. New Hampshire

In New Hampshire, you can expect to pay an average of $1,033 per year for standard home insurance. The state is one of the safest places to live, as far as natural disasters go. Like Wisconsin, the biggest risks homeowners face are related to the snow and freezing damages experienced during New Hampshire’s harsh winters.

If you live here, make sure your pipes are insulated and you can provide proof that you’ve kept up with proper cold weather prep in your home to make your insurance claim process smoother.

5. Oregon

Oregon homeowners saw average annual home insurance premiums of just $1,016 this year. While it’s one of the safer states to live in, the risk of wildfires has been increasing. That risk isn’t as high as it is in California, its neighbor to the south, so Oregon hasn’t had to deal with the same issue of major insurers leaving the state.

Still, homeowners – especially those closest to the southern border – may want to take steps now to make their homes more fire ready. Those on the west coast might also want to consider buying earthquake insurance. Earthquake damage is usually excluded from standard policies and homeowners in the west have an above average risk of experiencing one.

4. West Virginia

The average annual home insurance premium in West Virginia is just $1,009, with some areas paying less than $1,000 per year for a standard policy. However, that price doesn’t include flood insurance.

Most of the state has an above average risk of flooding, especially during hurricane season. Since flooding is typically excluded from standard home insurance policies, it’s important to buy additional coverage for flood damage.

3. Delaware

The small coastal state of Delaware pays an average annual home insurance premium of just $964. But, like many states on the East Coast, the entire state is at high risk of flooding. So homeowners here should use some of that savings to purchase additional flood insurance.

2. Alaska

Homeowners in Alaska are paying an average of $942 per year for home insurance. As you can imagine, the biggest threats to homes in this state are related to the extreme and prolonged winter weather.

Winter-related damage is typically covered by standard home insurance, but it’s still the homeowner’s responsibility to take reasonable precautions to prevent damage.

1. Vermont

Coming in first place for the cheapest home insurance in the United States is Vermont. Homeowners in the northeastern state pay just $837 per year on average. That’s $1,405 less than the national average.

The low rates are because Vermont is one of the safest states in the country. Though, some parts of the state are at high risk of flooding. So, if you live here, doublecheck the FEMA Flood Map to find out if you’re in one of those high risk zones.

The bottom line

Insurance can be a financial lifesaver when disaster strikes. But until then, ever-increasing premiums can feel like a financial drain. That’s why it’s important to re-shop for home insurance regularly, whether you live in one of these states with cheaper than average home insurance or not.

When you do, compare both price and coverage to make sure you’re getting the coverage you need at the best price. Don’t forget to factor in additional coverage like flood insurance or earthquake insurance, depending on which excluded risks are most prevalent in your area.

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