Which state pays the highest home insurance premiums in 2025?

Recently, Insurify released its third annual American Homeowner Insurance report which offers a detailed forecast of insurance trends in the U.S. for 2025. 

States that have a high risk of wildfires and severe weather will see the largest increases in homeowners insurance premiums. According to the report, Louisiana will see the largest premium increases with rates expected to rise by 27% in the Pelican State. California grabbed the second spot with a projected rate increase of 21%.

Nationally, homeowner insurance rates have risen by 20% over the last two years and according to the report there is no relief in sight. Insurify predicts an average 8% increase which will push the average annual premium to $3,520. 

It is not just states that experience hurricanes and wildfires that will see large rate increases. Iowa, which is seeing more wind and hailstorms will see insurance rates rise by 15% in 2025. Minnesota is a another midwestern state that will see a 15% increase in rates as insurers deal with the fallout of $18 billion in damages between 2022 and 2024 caused by severe weather. 

“Severe weather risks are a key factor driving home insurance rate increases,” said Hayden Broberg, vice president of commercial partnerships at Insurify in a recent Insurance Business Magazine. “In Iowa, for instance, hail events increased by 133% between 2022 and 2023. Combined with higher repair and material costs, insurers are struggling to absorb the growing risk, leading them to raise premiums.”

Florida, where residents already pay the highest premiums in the country will see an additional 9% increase according to the report which will push the average premium to $15,460 by the end of 2025. 

The major spike in rates is mainly attributed to climate change and the increased frequency and severity of natural disasters. Hurricanes, wildfires, tornadoes and hailstorms are causing massive damage to homes, leaving insurers to cover huge claims, those expenses are passed on to policyholders via higher premiums. 

The rate increases may not end soon with Insurify warning that homeowners in high-risk states will most likely continue to see rate increases in the future as severe weather continues to become more frequent.