These 9 States Have the Cheapest Home Insurance — but Are They Affordable To Live In?

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Home insurance prices are up across the U.S. as insurance companies both try to recoup incredible losses from the last few years and brace for more losses as climate-related disasters intensify. Recent research by Insurify found that there is no state where home insurance prices are not going up in 2025.

How much home insurance rates are rising and how high they’ll go depends entirely on your location. All states bear exposure to extreme weather events and the perils of climate change, but some states are less vulnerable to date than others. Home insurance prices in these states are going up less aggressively. But are the nine states with the cheapest home insurance rates (based on 2024 costs) affordable to live in? To find out, we found the average cost of a home in each state, along with the cost of housing, as compared to the national average. 

New Jersey

• 2024 average annual home insurance premium: $1,674
• 2025 projected average annual home insurance premium: $1,773
• Cost of housing, as compared to the national average: 44% higher
• Average home value in 2025: $569,314

West Virginia

• 2024 average annual home insurance premium: $1,656
• 2025 projected average annual home insurance premium: $1,744
• Cost of housing, as compared to the national average: 27% lower
• Average home value in 2025: $169,928

Maine

• 2024 average annual home insurance premium: $1,641
• 2025 projected average annual home insurance premium: $1,688
• Cost of housing, as compared to the national average: 1.2% lower
• Average home value in 2025: $416,948

Oregon

• 2024 average annual home insurance premium: $1,617
• 2025 projected average annual home insurance premium: $1,807
• Cost of housing, as compared to the national average: 39% higher
• Average home value in 2025: $507,256

Delaware

• 2024 average annual home insurance premium: $1,607
• 2025 projected average annual home insurance premium: $1,693
• Cost of housing, as compared to the national average: 5% lower
• Average home value in 2025: $405,948

New Hampshire

• 2024 average annual home insurance premium: $1,556
• 2025 projected average annual home insurance premium: $1,608
• Cost of housing, as compared to the national average: 24.6% higher
• Average home value in 2025: $507,081

Hawaii

• 2024 average annual home insurance premium: $1,548
• 2025 projected average annual home insurance premium: $1,808
• Cost of housing, as compared to the national average: 206% higher
• Average home value in 2025: $833,984

Alaska

• 2024 average annual home insurance premium: $1,470
• 2025 projected average annual home insurance premium: $1,543
• Cost of housing, as compared to the national average: 28% higher
• Average home value in 2025: $377,447

Vermont

• 2024 average annual home insurance premium: $1,209
• 2025 projected average annual home insurance premium: $1,248
• Cost of housing, as compared to the national average: 27% higher
• Average home value in 2025: $403,432

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