5 States That Haven’t Seen Home Insurance Price Spikes in the Past 5 Years

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Scientific evidence has shown that storms and natural calamities around the world, including in the United States, have grown in frequency and intensity over the past few decades. For example, Hurricanes Helene and Milton, striking in Sept. and Oct. 2024, caused billions of dollars in damage.

As a result of these increasingly frequent and damaging natural disasters, insurance companies have been scrambling. To ensure they remain solvent, they’ve been forced to increase home insurance premiums in the more disaster-prone states, in some cases quite dramatically.

However, not all states carry the same level of risk. For those fortunate enough to live in states where disasters happen only infrequently, insurance premiums have remained modest, and in some cases have even decreased over the past five years. Here’s a look at five of the states that haven’t seen home insurance spikes in at least five years, according to a recent study by Insurify. 

Also see whether you should get flood insurance in 2025, according to experts.

Maine

• Average annual insurance cost: $1,266

According to Insurify, tropical cyclones are the most destructive natural disasters, at least financially. As Maine is too far north to be affected by most hurricanes, it sidesteps the biggest contributor to high home insurance premiums.

Maine’s average loss ratio is the second-lowest in America at just 43.3, per Insurify. That’s roughly one-quarter of the loss ratio in disaster-prone Louisiana.

In 2024, Maine residents actually saw their average home insurance premiums drop by 4%.

West Virginia

• Average annual insurance cost: $1,374

West Virginia is one of only six states that saw a decline in home insurance premiums in 2024. It’s another state that is helped by its geography, as it is inland from the sea and full of mountainous terrain.

Just nine major disasters have afflicted the state in the past five years, costing just $385 million in damage. West Virginia residents pay only $1,374 in home insurance premiums annually, more than $1,200 below the national average.

Vermont

• Average annual insurance cost: $954

Vermont has had only four major disasters over the past five years, far below the national average of 21, per Insurify. Due in large part to this low risk profile, Vermont actually has the lowest average home insurance prices in the nation.

Weather in Vermont tends to be colder and wetter, which can actually reduce the intensity of storms, although flooding still remains an issue. But while not immune to natural disasters, Vermont has generally experienced disasters that are less frequent and less intense than those in the rest of the country. 

New Hampshire

• Average annual insurance cost: $1,226

Home insurance premiums in New Hampshire remained stable in 2024. This is because insurers don’t need to raise rates to remain profitable here, as losses in the state are quite low, at least recently.

The state’s northerly location means tropical storms tend to weaken by the time they arrive, and its damp weather in general helps diminish the risk of wildfires. 

Alaska

• Average annual insurance cost: $1,197

When it comes to avoiding natural disasters, Alaska has a lot going for it. Its small, widely dispersed population tends to limit the damage that any one disaster can cost, and its cold and damp weather tends to minimize the risk of fire, hurricanes and droughts.

Over the past five years, the state has suffered only $52.5 million in damages from natural disasters. As a result, Alaskans enjoy the third-lowest home insurance premiums in the country. 

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