What U.S. homeowners pay on average to insure a home varies wildly across different regions, according to a report by TheZebra.com.
Overall, homeowners spend $2,802 each year for coverage, the data showed, as insurance premiums rise 8.7% faster than the average rate of inflation in 2025 and costs continue rising due to claim history, home features and location.
“Consumers face double‑digit increases in many ZIP codes,” said David Seider, chief commercial officer at TheZebra.com.
“Inflation is raising rebuilding and repair costs; a growing number of insurers are pulling back from high‑risk areas; and extreme weather events are causing soaring claims,” he added. “As homes age and climate‑driven disasters mount, we expect premiums to continue to rise. On the bright side, consumers now have more tools than ever to advocate for themselves. By shopping around, comparing their options, bundling insurance, and even investing in home resilience improvements, savvy homeowners can limit cost shocks and better protect their coverage in this ever-shifting market.”
Key findings from the report include:
- Multiple factors are contributing to soaring premiums, including inflation and supply chain disruption, tariffs, extreme weather and natural disasters, and government regulation.
- The states with the highest annual premiums are Nebraska and Oklahoma. Nebraska had average annual premiums almost three times the national average, in part due to hail and volatile weather patterns. Both states have average annual home insurance premiums around $2,000 more than the next most expensive state.
- The states with the lowest premiums are Hawaii and Vermont. Hawaii in particular premiums one-fourth of the national average. That said, that doesn’t include the cost of hurricane or typhoon insurance, which many island homeowners must also carry.
- Credit scores also play a key part in homeowners insurance rates. Nationally, the average for someone with excellent credit is $2,260 and the average for someone with Poor credit is $7,260 – a difference of 221%.
Meanwhile, tariffs have also played a key role in spiking insurance premiums for U.S. homeowners.
The construction industry relies heavily on imported materials, meaning tariffs will likely lead to significant increases in the cost of rebuilding and repairing homes. At the same time, insurance is a state-regulated industry, according to TheZebra.com, meaning the government can control how high insurance companies can raise rates.
The slideshow above illustrates the U.S. neighborhoods with the most homeowners as selected by UnitedStatesZipCodes.org.
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