Homeowners in 15 states spend more each month on insurance than on property taxes, according to a recent LendingTree study. Many are in parts of the country exposed to hail, tornadoes, hurricanes, wildfires and other costly disasters.
Nationwide, the typical homeowner with a mortgage pays an estimated $200 a month for insurance and $311 for property taxes. In some states, that relationship is reversed.
15 high-cost home insurance states
LendingTree ranked the states by the ratio of insurance costs to property taxes, starting with the state with the largest insurance burden relative to the tax bill.
- Tennessee: $284 for insurance versus $143 for property taxes
- Alabama: $182 versus $93
- Colorado: $463 versus $241
- South Carolina: $259 versus $135
- Arkansas: $200 versus $115
- Oklahoma: $278 versus $178
- Arizona: $238 versus $162
- New Mexico: $244 versus $189
- Idaho: $200 versus $169
- Nebraska: $413 versus $350
- Mississippi: $149 versus $131
- West Virginia: $113 versus $101
- Kentucky: $186 versus $167
- North Carolina: $214 versus $196
- Louisiana: $132 versus $125
Tennessee has the highest insurance-to-property-tax ratio. Its estimated insurance bill is nearly twice its property tax bill.
Colorado has the largest dollar difference. Homeowners there pay an estimated $463 a month for insurance, or $5,553 a year, compared with $241 a month for property taxes.
Rising insurance costs
Many of the states on the list face substantial weather risks. Colorado and parts of the West contend with hail and wildfires. States across the central U.S. face tornado and wind damage. The Southeast and Gulf Coast are exposed to hurricanes, flooding and severe thunderstorms.
Rebuilding has also become more expensive. Higher costs for materials and skilled labor mean insurers may pay more on each claim.
Those pressures have pushed insurance costs up much faster than ordinary consumer prices. The average annual home insurance premium increased 46% from 2021 through 2025, compared with 16% inflation, according to an Insurify analysis. Insurify projects another 4% increase in 2026, which would bring the national average premium to $3,057 by the end of the year.
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Property taxes rising, too
Insurance is not the only ownership cost moving higher. Property tax payments increased 31% from 2019 through 2025, according to the Harvard Joint Center for Housing Studies’ 2026 housing report.
Home prices rose 54% from 2020 through early 2026. Because property taxes are generally tied to a home’s assessed value, rising prices can eventually lead to higher tax bills, although the timing and calculation vary by location.
Homeowners may therefore face increases from both directions. One bill reflects the property’s taxable value. The other reflects the cost and risk of protecting it.
Think ahead when buying a home
Homebuyers often compare sale prices, mortgage rates and property taxes before making an offer. Insurance may receive little attention until the closing process is underway.
That can be an expensive mistake. Two similar homes in the same area may carry very different premiums because of the roof’s age, construction materials, claims history or exposure to wildfire, wind and flooding.
Check insurance estimates before committing to a property, particularly in a disaster-prone area. A house with a manageable mortgage and modest tax bill may become unaffordable once insurance is included.
Put pressure on your premium
Look beyond the premium and review coverage limits, deductibles and exclusions. A cheaper policy may provide substantially less protection.
Ask whether the insurer offers discounts for a newer roof, storm shutters, updated wiring, monitored alarms or other improvements. The upgrades that qualify depend on the company and the risks in your area.
Raising the deductible may reduce the premium, but only choose an amount you could pay from savings after a loss. A high deductible can turn an affordable policy into an unaffordable claim.
Review the dwelling coverage limit as well. It should reflect the cost of rebuilding the home, not its purchase price or current market value. Those figures may be very different.
Finally, read the renewal notice rather than filing it away. Check for premium increases, reduced coverage and new deductibles or exclusions. In many states, home insurance now deserves as much attention as the mortgage and property tax bill. Start comparing quotes now.
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