Here are the most and least affordable states for home insurance

Where are home insurance rates cheaper: Mississippi or Oregon?

GOBankingRates calculated the average annual home insurance cost in every state using data from Insurance.com. While the average annual cost is $3,798, prices ranged from $703 to $6,893.

Click through to find out how your state stacks up, and see much homeowners insurance costs

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The most and least affordable states for home insurance
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The most and least affordable states for home insurance

51. Hawaii

Average annual insurance cost: $703

If you're looking for cheap home insurance, head to Hawaii, which has the least expensive average homeowners insurance cost in the U.S.

This might be due to Hawaii's balmy temperatures: Even in the winter, the average temperature on the islands is 78 degrees. People who live in states with frigid winters tend to pay more for home insurance because of the possibility of property damage caused by snow and ice, as well as costs incurred from frozen pipes and flooding risks, according to Insurance.com.

Hawaii might have cheap insurance rates, but see how everything else is more expensive

Photo credit: Getty

50. Vermont

Average annual insurance cost: $1,033

While weather-related claims are the most common, theft and vandalism also are among the reasons homeowners make claims against their insurance, according to the Insurance Information Institute. Vermont has the lowest property crime rate in the country, according to U.S. News & World Report, which would explain, in part, its low homeowners insurance costs.

Vermont is one of the best states in the Northeast to live if you're in the middle class

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49. Utah

Average annual insurance cost: $1,105

Utah is a safe state in terms of natural disasters. According to FEMA data, only 36 natural disasters have been declared in Utah since 1953, the eighth-lowest of any state in the country. This is likely why Utah has such low homeowners insurance costs.

Utah is a great state for other reasons, too. With a low unemployment rate and high employment growth, it's the best state to move to if you're unemployed and want a job

Photo credit: Getty

48. Idaho

Average annual insurance cost: $1,106

Idaho has the fifth-lowest rate of property crime in the country, according to U.S. News & World Report, plus it has one of the lowest incidences of FEMA-declared natural disasters, with 46 since 1956. Both factors likely contribute to the state's low insurance costs.

Low homeowners insurance rates are another reason Boise is one of the best cities to own investment property

Photo credit: Getty

47. Oregon

Average annual insurance cost: $1,137

Oregon has a relatively high number of natural disasters, but the majority have been due to fires. According to the Insurance Information Institute, most weather claims are caused by wind, hail, water damage and freezing as opposed to fires, so perhaps this is why Oregon still maintains low homeowners insurance costs. 

Photo credit: Getty

46. Washington

Average annual insurance cost: $1,155

Fires are the most common natural disaster in Washington, according to FEMA, so the efficiency of local fire departments might play a role in the lower-than-average homeowners insurance costs in the state. According to the Yakima, Wash., Fox-TV affiliate, high rankings received by the fire departments in Yakima and Union Gap in December 2017 could help premiums to go even lower. 

Photo credit: Getty

45. Nevada

Average annual insurance cost: $1,204

Like Oregon and Washington, Nevada has a relatively high incidence of natural disasters, with most of the FEMA-declared disasters being fires. Because damages caused by fires are not as common an insurance claim as other types of weather damage or theft or vandalism, according to the Insurance Information Institute, this might explain how the state maintains low home insurance costs. 

Photo credit: Getty

44. New Hampshire

Average annual insurance cost: $1,243

New Hampshire has the sixth-lowest property crime rates of any state, according to U.S. News & World Report, which could explain why the state has one of the lowest average homeowners insurance costs in the country.

New Hampshire is also the best state for families who want to live a richer life

Photo credit: Getty

43. Maine

Average annual insurance cost: $1,276

Property damage and theft are among the leading reasons why people make homeowners insurance claims, according to the Insurance Information Institute. Maine has the ninth-lowest property crime rate in the country, according to U.S. News & World Report, which likely accounts for its low annual insurance cost. 

Photo credit: Getty

42. Delaware

Average annual insurance cost: $1,306

Aside from Washington, D.C., Delaware has had the lowest number of natural disasters declared by FEMA. Even though hurricanes are the most common disaster in Delaware, and property damage caused by wind or hail are the most common homeowners insurance claim, there have only been eight that qualified as disasters in the state since 1953. The low risk of natural disasters is likely what accounts for Delaware's inexpensive annual insurance cost. 

Photo credit: AOL

41. New Jersey

Average annual insurance cost: $1,318

Property crime rates are low in New Jersey, which ranks No. 3 for the lowest property crime rate and No. 5 for overall safety on U.S. News & World Report's list of the safest states. The low rate of property crime in the state likely explains why it has one of the lowest average annual insurance costs. 

Photo credit: AOL

40. Arizona

Average annual insurance cost: $1,351

Even though Arizona has low homeowners insurance costs compared with other states, a report by the home website HouseLogic stated that rates could go up as much as 17 percent after making just one claim. Perhaps the high hikes for claims is what keeps premiums low, as the state has the 11th-most-recorded natural disasters since 1953 in the U.S. according to FEMA, and ranks No. 44 for lowest property crime rates, according to U.S. News & World Report. 

Photo credit: AOL

39. Washington, D.C.

Average annual insurance cost: $1,365

Washington, D.C., has the fewest recorded national disasters compared with the 50 states, with only 20 disasters declared by FEMA in the U.S. capital since 1953. Because weather-related claims are the most frequent, the relatively good weather in D.C. likely explains why its homeowners insurance is on the lower end.

Other regular costs are high in the nation's capital — grocery prices in D.C. are the highest in the country

Photo credit: Getty

38. Wisconsin

Average annual insurance cost: $1,439

Wisconsin has a relatively low occurrence of natural disasters compared to other states, with the most common natural disaster in the state being severe storms. Low numbers of natural disasters likely mean fewer weather-related insurance claims, which would keep premiums low. 

Photo credit: AOL

37. Ohio

Average annual insurance cost: $1,537

Fifty-four natural disasters have occurred in Ohio since 1953, according to FEMA, including 24 severe storms and 15 floods. The state has the 18th-lowest number of declared natural disasters, which could explain why average homeowners insurance costs are on the lower end. 

Photo credit: AOL

36. North Carolina

Average annual insurance cost: $1,538

North Carolina is one of the states that receives the most disaster aid every year, a previous GOBankingRates study found. The state has been hit by 25 hurricanes that have qualified as disasters since 1953, according to FEMA, including Irene in 2011 and Matthew in 2016. Even though North Carolina does not have one of the highest natural disaster rates overall, hurricanes can be a major cause for home insurance claims attributed to wind and water damage. 

Photo credit: Getty

35. Pennsylvania

Average annual insurance cost: $1,587

The most common type of natural disaster in Pennsylvania is flooding, according to FEMA. However, most homeowners insurance policies do not cover flooding, according to the Insurance Information Institute, so this would not affect premiums. Discounting floods, the occurrence of natural disasters in Pennsylvania is relatively low, which would explain why premiums are on the lower end in the state as well. 

Photo credit: Getty

34. California

Average annual insurance cost: $1,619

It's surprising that California does not have higher premiums, given that the state has the second-most natural disasters in the U.S., according to FEMA. Most of the disasters have been fires, which usually lead to the most expensive insurance claims, according to the Insurance Information Institute. What could prevent homeowners insurance from being more expensive is that some insurance companies cancel policies after the insured makes fire damage claims, though the Wildfire Safety and Recovery Act, which was proposed by California state Sen. Ricardo Lara in December 2017, aims to make that practice illegal, the Los Angeles Times reported. 

Photo credit: Reuters

33. Alaska

Average annual insurance cost: $1,643

Alaska has had 61 natural disasters occur since 1953, with the most common disasters being severe storms, fires and floods, according to FEMA. The state falls in the middle for high occurrences of natural disasters compared to the other states, so it makes sense that its insurance premiums fall in the middle as well. 

Photo credit: Getty

32. Maryland

Average annual insurance cost: $1,692

Natural disasters are relatively uncommon in Maryland: The state is tied for the sixth-lowest number when looking at all 50 states plus Washington, D.C. Maryland also ranks toward the middle in terms of safety compared to other states, ranking No. 23 for lowest property crime rates, according to U.S. News & World Report. 

Photo credit: AOL

31. Illinois

Average annual insurance cost: $1,786

Sixty natural disasters have occurred in Illinois since 1953, according to FEMA. The most common types of disasters in Illinois are severe storms, floods and tornadoes. The state ranks in about the middle for the number of natural disasters, but ranks high for safety: Illinois is No. 16 for lowest property crime rates, according to U.S. News & World Report. 

Photo credit: AOL

30. Connecticut

Average annual insurance cost: $1,789

Property crime likely is not much of a concern for insurance companies in Connecticut, as the state has the seventh-lowest property crime rate in the U.S., according to U.S. News. Although Connecticut has had the fifth-lowest number of natural disasters since 1953 compared to the other states and Washington, D.C., the most common types of natural disasters in the state are hurricanes, severe storms and snow, according to FEMA. Because wind, hail, water damage and freezing caused by weather are the most common types of home insurance claims, the weather in Connecticut might be the reason premiums are not lower.

Learn More: How Much It Really Costs to Protect Your Home Against Natural Disasters 

Photo credit: Getty

29. Virginia

Average annual insurance cost: $1,877

Virginia ranks in the middle for natural disaster occurrences, with 64 since 1953, according to FEMA. Perhaps the reason Virginia's homeowners insurance costs are on the lower side is because the state does not have much property crime: Virginia has the 10th-lowest property crime rate in the country, according to U.S. News & World Report. 

Photo credit: AOL

28. Wyoming

Average annual insurance cost: $1,888

Wyoming has one of the lowest numbers of natural disasters compared to other states. However, the most common type of natural disaster in the state is fires, according to FEMA, which can lead to the most costly homeowners insurance claims. According to the Insurance Information Institute, the average cost of a claim due to fire or lightning is $43,983. 

Photo credit: AOL

27. New York

Average annual insurance cost: $1,988

New York has received the most federal disaster aid over the past five years, largely due to damage caused by Hurricane Sandy in 2012, a previous GOBankingRates study found. The state has had the seventh-highest number of natural disasters since 1953, with the most common type of disaster being severe storms, according to FEMA. Most homeowners insurance claims made in New York are likely due to weather rather than property crime, as the state has the second-lowest rate of property crime in the U.S., according to U.S. News & World Report. 

Photo credit: Getty

26. Michigan

Average annual insurance cost: $1,997

Michigan has a relatively low occurrence of natural disasters, according to FEMA, but the cold temperatures in the state are likely what prevent home insurance costs from being lower. With average highs in December, January and February in the 30s, homes could be at risk for damage from snow and ice as well as repairs needed for frozen pipes. 

Photo credit: Getty

25. Montana

Average annual insurance cost: $1,999

The most common type of natural disaster in Montana is fires, according to FEMA, which often lead to the most costly home insurance claims. The state has had 34 fires that qualified as natural disasters since 1953. 

Photo credit: AOL

24. New Mexico

Average annual insurance cost: $2,012

Even though New Mexico has the second-highest property crime rate in the country, according to U.S. News & World Report, homeowners insurance costs are still below average because of lower-than-average risk from natural disasters and home values that are slightly below the national average, according to financial news site Benzinga.com.

Thanks to a relatively low median home list price, New Mexico is one of the states where it's cheaper to own a home than to rent, a previous GOBankingRates study found. 

Photo credit: Getty

23. Massachusetts

Average annual insurance cost: $2,050

Massachusetts is one of the safest states in terms of property crimes, with the fourth-lowest rate in the country, according to U.S. & World Report. However, cold temperatures are likely what account for higher insurance costs. The average lows are below freezing for four months out of the year in the New England state. 

Photo credit: Getty 

22. Iowa

Average annual insurance cost: $2,063

Severe storms, tornadoes, ice storms and snow are par for the course in Iowa, all of which could cause property damage. However, flooding is the most common natural disaster in the state, according to FEMA, and it is not covered by most home insurance policies. 

Photo credit: Getty

21. Indiana

Average annual insurance cost: $2,082

Indiana's homeowners insurance prices are affected by inclement weather, including severe storms, snow, tornadoes, hurricanes and ice storms. According to FEMA, severe storms are the most commonly occurring naturally disaster in the Hoosier State.

Related: When to Use Your Emergency Fund 

Photo credit: Getty

20. Georgia

Average annual insurance cost: $2,212

The property crime rates are relatively high in Georgia: The Southern state has the ninth-highest property crime rate in the country, according to U.S. News & World Report. This could affect homeowners insurance prices due to theft and vandalism claims. 

Photo credit: AOL

19. Minnesota

Average annual insurance cost: $2,252

More than half ― 54 percent ― of Minnesota's insurance claims between 2005 and 2013 were a result of natural disasters, with notable spikes during years that had a high occurrence of tornadoes, severe thunderstorms and hail, according to the Insurance Research Council. Across the country, the average percent of claims because of natural disasters during the same time period was only 37 percent, which could explain why homeowners insurance costs in Minnesota are on the higher end. 

Photo credit: Getty 

18. Colorado

Average annual insurance cost: $2,311

Colorado has a high incidence of natural disasters compared to other parts of the country, with the most common type of natural disaster in the state being fire — which is also the most costly. According to FEMA, Colorado has had 57 fires that qualified as disasters since 1953. 

Photo credit: Getty

17. North Dakota

Average annual insurance cost: $2,313

With more snow and lower average temperatures than the U.S. average, North Dakota's weather can affect homeowners insurance costs. Harsh winters can lead to snow and ice damage, freezing and flooding, which could drive prices upward. 

Photo credit: Getty 

16. Kentucky

Average annual insurance cost: $2,471

Kentucky has relatively mild winters, but the state is still prone to extreme weather, including severe storms, fires, floods, snow, tornadoes, severe ice storms and hurricanes, according to FEMA data. These natural disasters affect the cost of homeowners insurance, but the rates are still below average. 

Photo credit: AOL

15. West Virginia

Average annual insurance cost: $2,494

After floods, which typically are not covered by homeowners insurance, severe storms, hurricanes and snow are the most common types of natural disasters in West Virginia, according to FEMA. Wind, hail, water damage and freezing are the most common types of homeowners insurance claims, according to the Insurance Information Institute, so these types of extreme weather could affect premiums.

There are savings to be had in West Virgina in other places — it's the second-best state for first-time home buyers

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14. South Dakota

Average annual insurance cost: $2,546

South Dakota's cold winters could be the reason why homeowners insurance rates are relatively high. Low temperatures in December, January and February average in the single digits. According to Insurance.com, states with frigid winters often have more expensive home insurance due to the risk of snow and ice damage, plus frozen pipes and related flooding. 

Photo credit: Getty

13. Nebraska

Average annual insurance cost: $2,615

Again, frigid winters could be the reason homeowners insurance costs in Nebraska are relatively high. The average lows are below freezing from November through March in the state. 

Photo credit: AOL

12. Rhode Island

Average annual insurance cost: $2,716

Rhode Island hasn't had many natural disasters compared to other states, according to FEMA, but can experience hurricanes, snow and severe storms, all of which could lead to costly home repairs — which in turn push home insurance costs up.

Rhode Island is also one of the best states for single parents to raise a family

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11. Tennessee

Average annual insurance cost: $2,820

According to FEMA, severe storms and fire are among the most common natural disasters in Tennessee — both of which could drive homeowners insurance costs up. The state also has experienced its share of tornadoes, severe ice storms and hurricanes. 

Photo credit: Getty

10. South Carolina

Average annual insurance cost: $2,833

South Carolina has experienced several severe hurricanes in recent years: Hugo (1989), Bonnie (1998), Charley (2004), Frances (2004) and Matthew (2016). The high incidence of hurricanes likely has caused homeowners insurance rates to rise. Plus, the Southern state has the fifth-highest property crime rate in the country, according to U.S. News & World Report. 

Photo credit: Getty

9. Missouri

Average annual insurance cost: $3,121

Missouri is prone to severe hail storms and tornadoes, both of which lead to higher homeowners insurance costs. Missouri is the fifth-worst state for hail damage in the country, according to insurer State Farm. 

Photo credit: Getty

8. Kansas

Average annual insurance cost: $3,170

The high cost of Kansas' homeowners insurance is attributed to the inclement weather that's common in the Midwest, added to the older age of homes and a natural disaster risk due to its location on fault lines, according to Benzinga.com. Older homes have higher costs to insure because older wires and plumbing could lead to home fires and flooding, according to Insurance.com. 

Photo credit: Getty

7. Texas

Average annual insurance cost: $3,306

Texas has had the greatest number of natural disasters of any state in recent history, according to FEMA. The most common natural disaster in Texas is fires, with 154 fires that qualified as disasters since 1953. The high cost of fire claims is likely why insurance premiums are so high in the state. 

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6. Arkansas

Average annual insurance cost: $4,026

Tornadoes and hail storms make Arkansas homeowners more likely to file insurance claims than people living in states with better weather. According to the Insurance Research Council, in 2008 — a year the state experienced nine strong tornadoes and a hail storm — insurers paid an average of $1,045 per insured home, which was twice the national average for that year.

Thanks to low housing prices, though, you can buy a lot of square footage for $300,000 in Arkansas

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5. Mississippi

Average annual insurance cost: $4,351

Mississippi's most common natural disasters are severe storms, hurricanes and tornadoes, which can lead to costly home insurance claims. In recent years the state has been hit by Hurricane Georges (1998), Tropical Storm Isidore (2002), Hurricane Ivan (2004), Hurricane Dennis (2005), Hurricane Katrina (2005), Hurricane Gustav (2008) and Hurricane Isaac (2012). In 2005, the year Hurricane Katrina hit, the average insurance claim per home was $4,427, the majority of which was due to natural catastrophes, according to the Insurance Research Council.

Insurance might be expensive, but thanks to a low cost of living, Mississippi is the state where you're least likely to live paycheck to paycheck

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4. Oklahoma

Average annual insurance cost: $4,454

Oklahoma has the third-highest rate of natural disasters in the U.S., according to FEMA data. In addition to the severe storms and tornadoes the state is known for, Oklahoma has experienced 84 fires that qualified as disasters since 1953. Between 2008 and 2013, natural disasters accounted for 66 percent of all home insurance claims made in the state, according to the Insurance Research Council. 

Photo credit: Getty

3. Alabama

Average annual insurance cost: $4,532

Severe storms and hurricanes are the most common natural disasters in Alabama, where the average cost of home insurance is $734 above the national average. In addition to its inclement weather, Alabama also has a high rate of property crime compared to other states. The Southern state has the 11th-highest property crime rate, according to U.S. News & World Report. 

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2. Louisiana

Average annual insurance cost: $6,115

After Hurricane Katrina, many insurance companies stopped providing coverage in Louisiana, according to WDSU News, while others began to restrict coverage, refuse policy renewals, increase deductibles and raise premiums, according to Money magazine. Some homeowners in Louisiana have seen their insurance more than quadruple — and unfortunately, the cost is still extremely high more than a decade after the costly storm hit. 

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1. Florida

Average annual insurance cost: $6,892

The frequency of fires, hurricanes and tropical storms make Florida the most expensive state for homeowners insurance. Those living in South Florida will be hit with even higher costs beginning Jan. 26, 2018, as the state's largest property insurer, Universal Property & Casualty, has received approval from Florida insurance regulators to increase its rates an average of 9.9 percent for a majority of the company's single-family homeowners in Broward, Palm Beach and Miami-Dade counties, the Sun-Sentinel reported. The rise in rates is due to a high increase in water damage claims in those areas compared to the rest of the state. The area suffered severe flooding during Hurricane Irma in 2017. 

Photo credit: Getty

States Where Home Insurance Is Most Expensive

Home insurance costs are affected by a number of location-based factors, including natural disaster frequency and fire department proximity. In fact, a high frequency of major natural disasters is a key indicator of high insurance rates. So, states on the Gulf of Mexico (susceptible to hurricanes) and on the plains (tornadoes) have the highest home insurance rates.

Safety also plays a factor, and states with higher property crime rates can have higher costs. But the most frequent claims are due to wind and hail, water damage and freezing, according to the Insurance Information Institute.

Cold winters affect rates, too. That's one reason why Hawaii has the lowest rates in the country.

Up Next: Financial Reasons to Never Buy a Home

Methodology: GOBankingRates calculated average insurance rates for all 50 states and Washington, D.C., using data from Insurance.com based on five levels of coverage. The rates were all for a $1,000 deductible and $300,000 liability policy and dwelling values were either $200,000, $300,000, $400,000, $500,000 or $600,000. 

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