Louisiana, Florida homeowners would save the most without insurance coverage — but at a cost

Becoming a homeowner is one of the most important financial goals for many Americans. But many, especially younger homeowners, often discover that maintaining a home is more expensive than they anticipated, particularly when it comes to insurance costs. With other budget items, consumers can cut back on costs when financial pressures reach a tipping point. But their options are limited for insurance, as lenders require borrowers to carry insurance as a condition of their mortgage.

If that changed and lenders permitted homeowners to drop their coverage, Gulf Coast residents would see some of the most notable changes in costs, saving nearly $10,000 in average annual expenses in some states. Of course, those states are also the most at risk of devastating natural disasters — making dropping insurance a very high-stakes gamble.

But some homeowners would be willing to roll the dice. Nearly 3 in 10 Americans (28%) would drop their coverage if they could, Insurify found. And nearly half (45%) believe homeowners should at least have the option to drop their coverage.

Expected Savings on Housing Costs for Homeowners Who Drop Insurance

state_id	Potential Savings on Monthly Housing Payment After Dropping Insurance	Average Monthly Housing Payment (PITI)	Average Monthly Home Insurance Cost
Alaska	6%	$1,991	$120
Alabama	23%	$1,337	$303
Arkansas	21%	$1,248	$257
Arizona	10%	$2,089	$208
California	5%	$3,848	$202
Colorado	14%	$2,853	$396
Connecticut	8%	$2,656	$224
Washington D.C.	5%	$3,083	$155
Delaware	7%	$1,893	$128
Florida	30%	$2,720	$819
Georgia	14%	$1,820	$253
Hawaii	6%	$3,857	$215
Iowa	15%	$1,378	$203
Idaho	7%	$2,235	$161
Illinois	15%	$1,914	$278
Indiana	11%	$1,358	$155
Kansas	19%	$1,526	$283
Kentucky	18%	$1,270	$227
Louisiana	31%	$1,401	$428
Massachusetts	6%	$3,426	$196
Maryland	9%	$2,284	$195
Maine	6%	$2,092	$131
Michigan	11%	$1,443	$160
Minnesota	15%	$1,993	$299
Missouri	15%	$1,439	$213
Mississippi	25%	$1,169	$296
Montana	8%	$2,293	$186
North Carolina	12%	$1,752	$218
North Dakota	13%	$1,567	$203
Nebraska	19%	$1,692	$313
New Hampshire	4%	$2,741	$98
New Jersey	4%	$3,226	$132
New Mexico	15%	$1,674	$247
Nevada	5%	$2,134	$108
New York	7%	$2,852	$186
Ohio	9%	$1,384	$127
Oklahoma	29%	$1,459	$424
Oregon	5%	$2,496	$124
Pennsylvania	7%	$1,577	$116
Rhode Island	9%	$2,714	$236
South Carolina	15%	$1,610	$235
South Dakota	12%	$1,753	$214
Tennessee	14%	$1,698	$234
Texas	18%	$1,892	$344
Utah	5%	$2,526	$129
Virginia	8%	$2,101	$166
Vermont	4%	$2,196	$79
Washington	4%	$2,985	$131
Wisconsin	7%	$1,752	$120
West Virginia	14%	$894	$126
Wyoming	11%	$1,889	$203

Source: Insurify analysis based on average monthly costs of home insurance, property taxes, mortgage principal and interest.

state_id	Potential Savings on Monthly Housing Payment After Dropping Insurance	Average Monthly Housing Payment (PITI)	Average Monthly Home Insurance Cost
Alaska	6%	$1,991	$120
Alabama	23%	$1,337	$303
Arkansas	21%	$1,248	$257
Arizona	10%	$2,089	$208
California	5%	$3,848	$202
Colorado	14%	$2,853	$396
Connecticut	8%	$2,656	$224
Washington D.C.	5%	$3,083	$155
Delaware	7%	$1,893	$128
Florida	30%	$2,720	$819
Georgia	14%	$1,820	$253
Hawaii	6%	$3,857	$215
Iowa	15%	$1,378	$203
Idaho	7%	$2,235	$161
Illinois	15%	$1,914	$278
Indiana	11%	$1,358	$155
Kansas	19%	$1,526	$283
Kentucky	18%	$1,270	$227
Louisiana	31%	$1,401	$428
Massachusetts	6%	$3,426	$196
Maryland	9%	$2,284	$195
Maine	6%	$2,092	$131
Michigan	11%	$1,443	$160
Minnesota	15%	$1,993	$299
Missouri	15%	$1,439	$213
Mississippi	25%	$1,169	$296
Montana	8%	$2,293	$186
North Carolina	12%	$1,752	$218
North Dakota	13%	$1,567	$203
Nebraska	19%	$1,692	$313
New Hampshire	4%	$2,741	$98
New Jersey	4%	$3,226	$132
New Mexico	15%	$1,674	$247
Nevada	5%	$2,134	$108
New York	7%	$2,852	$186
Ohio	9%	$1,384	$127
Oklahoma	29%	$1,459	$424
Oregon	5%	$2,496	$124
Pennsylvania	7%	$1,577	$116
Rhode Island	9%	$2,714	$236
South Carolina	15%	$1,610	$235
South Dakota	12%	$1,753	$214
Tennessee	14%	$1,698	$234
Texas	18%	$1,892	$344
Utah	5%	$2,526	$129
Virginia	8%	$2,101	$166
Vermont	4%	$2,196	$79
Washington	4%	$2,985	$131
Wisconsin	7%	$1,752	$120
West Virginia	14%	$894	$126
Wyoming	11%	$1,889	$203

state_id	Potential Savings on Monthly Housing Payment After Dropping Insurance	Average Monthly Housing Payment (PITI)	Average Monthly Home Insurance Cost
Alaska	6%	$1,991	$120
Alabama	23%	$1,337	$303
Arkansas	21%	$1,248	$257
Arizona	10%	$2,089	$208
California	5%	$3,848	$202
Colorado	14%	$2,853	$396
Connecticut	8%	$2,656	$224
Washington D.C.	5%	$3,083	$155
Delaware	7%	$1,893	$128
Florida	30%	$2,720	$819
Georgia	14%	$1,820	$253
Hawaii	6%	$3,857	$215
Iowa	15%	$1,378	$203
Idaho	7%	$2,235	$161
Illinois	15%	$1,914	$278
Indiana	11%	$1,358	$155
Kansas	19%	$1,526	$283
Kentucky	18%	$1,270	$227
Louisiana	31%	$1,401	$428
Massachusetts	6%	$3,426	$196
Maryland	9%	$2,284	$195
Maine	6%	$2,092	$131
Michigan	11%	$1,443	$160
Minnesota	15%	$1,993	$299
Missouri	15%	$1,439	$213
Mississippi	25%	$1,169	$296
Montana	8%	$2,293	$186
North Carolina	12%	$1,752	$218
North Dakota	13%	$1,567	$203
Nebraska	19%	$1,692	$313
New Hampshire	4%	$2,741	$98
New Jersey	4%	$3,226	$132
New Mexico	15%	$1,674	$247
Nevada	5%	$2,134	$108
New York	7%	$2,852	$186
Ohio	9%	$1,384	$127
Oklahoma	29%	$1,459	$424
Oregon	5%	$2,496	$124
Pennsylvania	7%	$1,577	$116
Rhode Island	9%	$2,714	$236
South Carolina	15%	$1,610	$235
South Dakota	12%	$1,753	$214
Tennessee	14%	$1,698	$234
Texas	18%	$1,892	$344
Utah	5%	$2,526	$129
Virginia	8%	$2,101	$166
Vermont	4%	$2,196	$79
Washington	4%	$2,985	$131
Wisconsin	7%	$1,752	$120
West Virginia	14%	$894	$126
Wyoming	11%	$1,889	$203

1. Louisiana

• Average annual home insurance cost: $5,139 ($428 per month)

• Possible savings on monthly housing payment without insurance: 31%

• Average home insurance claim cost: $20,082

Louisiana has some of the lowest average mortgage payments but the second-highest cost for home insurance. Home insurance policies account for 31% of a typical monthly housing payment for Louisiana homeowners, along with property taxes and mortgage principal and interest.

Severe weather, primarily hurricane risk, drives up the chances of catastrophic losses. Hurricane Katrina in 2005 remains the most expensive natural disaster on record in the U.S., causing $201 billion in damage.

Louisiana has the second-lowest household income of any state, which may prompt a higher share of homeowners to go without insurance. Currently, 22% of Louisiana homeowners don’t carry home insurance, the third most of any state. Some in particularly risky areas have already made the decision to forgo coverage. In coastal, hurricane-prone Terrebonne Parish, 30% don’t have insurance.

2. Florida

• Average annual home insurance cost: $9,832 ($819 per month)

• Possible savings on monthly housing payment without insurance: 30%

• Average home insurance claim cost: $30,216

Florida homeowners continue to pay the highest home insurance premiums nationally, which account for 30% of their monthly housing payments on average. Florida is one of the riskiest states for insurers, which raises rates, since the state is susceptible to sweeping disaster losses.

In 2024, Floridians filed more than 300,000 home insurance claims in response to hurricanes. Hurricanes Helene and Milton caused roughly $100 billion in damage, according to the National Centers for Environmental Information.

3. Oklahoma

• Average annual home insurance cost: $5,090 ($424 per month)

• Possible savings on monthly housing payment without insurance: 29%

• Average home insurance claim cost: $24,925

Oklahoma has the highest average home insurance costs of any non-coastal state. Wind and hail can batter homes and lead to costly roof repairs or replacements. Oklahoma led the nation with 151 tornadoes in 2024 and had the third-most hailstorms of any state. Increasing instances of severe wind and hail mean insurers are paying out more in claims, and they’ve raised premiums to maintain their financial viability.

In 2023, Oklahoma was one of seven states where home insurers paid more money in claims than they made in premiums.^[2] In 2025, the average cost of home insurance rose by about 25%.

4. Mississippi

• Average annual home insurance cost: $3,547 ($296 per month)

• Possible savings on monthly housing payment without insurance: 25%

• Average home insurance claim cost: $16,797

Home insurance costs take up about one quarter of the average Mississippi homeowner’s monthly housing payment. Affording home insurance is an uphill battle for some in the state, as Mississippi has above-average home insurance costs but the lowest median household income nationally.

Mississippi law requires insurers to give discounts, ranging from 15% to 30%, to people who upgrade their homes to certain safety standards. A state program designed to offer $10,000 grants for home-hardening upgrades has hit legislative hurdles after its test phase, leaving Mississippi as the lone Gulf Coast state without an active mitigation program, according to the Mississippi Free Press.^[3]

5. Alabama

• Average annual home insurance cost: $3,639 ($303 per month)

• Possible savings on monthly housing payment without insurance: 23%

• Average home insurance claim cost: $19,213

On average, Alabama homeowners would save the fifth most on their monthly home payment if insurance were eliminated from their housing costs. That comes out to about $303 per month, yet the average home insurance claim in Alabama exceeds $19,000. Alabama has just 53 miles of coastline but the eighth-highest expected financial losses from hurricanes, according to the National Risk Index.^[4]

To help address weather risks, Alabama law requires insurers to provide discounts for certain home-hardening upgrades. A recent analysis showed that fortified homes suffered less damage than standard homes during 2020’s Hurricane Sally.^[5] Strong winds are another danger, with the state averaging about 70 tornadoes per year.^[6]