‘Often an early warning sign’

The cost of homeownership is becoming increasingly expensive as insurers across the nation raise their rates on policyholders, reflecting the climbing risk of climate-fueled property damage. A new report by Axios shows just how much each state is paying for homeowner insurance as of July 2025.

What’s happening?

According to Axios’ report, homeowners in Nebraska and Louisiana are paying the most expensive homeowner insurance premiums across the nation. Nebraska homeowners pay, on average, $6,425 per year, or about $535 per month. Louisiana homeowners pay just slightly less — $6,274 per year, or about $523 per month. 

Florida’s annual homeowner insurance premiums would also surpass $6,000 annually if it were not for state legislative efforts to keep the cost of premiums down. Average Florida homeowner insurance premiums come in at $5,735 per year, which reflects a 9% decrease in homeowner insurance rates from 2023 to 2025, which knocked $579 off of average annual rates. 

These states are the very same states at high risk of extreme weather events. 

For example, Nebraska falls within the Tornado Alley, along with other states like Kansas, Oklahoma, and Texas, which may explain their higher-than-average homeowner insurance premiums — each above $4,000 per year. Nebraska also has a smaller population size, and thus fewer homeowners within the state to share the insurance burden risk among, which may contribute to historical insurance premiums.

According to Axios, the average annual homeowner insurance premium across the nation has jumped 9% since 2023 — now at $2,470. 

For many homeowners, the alternate reality is losing their insurance coverage — either because they cannot afford the price hikes or insurers refuse to renew their policies due to heightened climate risks. 

“Non-renewals are correlated with higher premiums and are often an early warning sign of market destabilization,” Axios’ report read. 

Why are rising homeowner insurance rates concerning?

Extreme weather events play a big role in how insurers determine homeowner insurance premiums, or whether to offer coverage at all. Many insurers have dropped coverage for policyholders they deemed “too high risk,” leaving homeowners vulnerable without coverage. 

NASA environmental data reports that extreme weather events are becoming more frequent and intense, driven by rising global temperatures, caused by human activities, such as burning dirty energy sources.

Increased climate risks, rising homeowner insurance rates, lost coverage, and heightened danger to communities become a vicious cycle where everyone loses. 

What’s being done about rising homeowner insurance?

Despite the reality of rising insurance premiums, some states have demonstrated how legislative efforts and public programs can help ease the cost of unaffordable homeowner insurance. 

Florida, for example, introduced the “My Safe Florida Home” program in 2022, which provides free wind-mitigation inspections for homeowners. Florida homeowners can use this report to seek all available and qualifying insurance discounts from insurers to lock in the lowest rate possible. Through the program, eligible homeowners may also receive grants to make specific home improvements to help the home better defend against extreme weather events. 

In May, Colorado passed a law that required insurers that used wildfire risk models, catastrophe models, or a combination of these models, or a scoring method, to share information regarding these models with the commissioner of insurance. This disclosure encourages transparency and fairness in how insurers determine risks, preventing unethical premium hikes at the expense of vulnerable homeowners.

Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.