Top US Housing Markets with Highest Homeowners Insurance Premiums in 2025
Homeowners across the United States are experiencing rising insurance premiums driven by increased climate risks and escalating rebuilding costs. Certain regions, particularly those vulnerable to hurricanes, flooding, and severe storms, face notably higher insurance costs relative to property values.
Realtor.com’s 2025 Housing and Climate Risk Report combines home valuations with insurance rate data from Insurify, revealing key markets where premiums are disproportionately high. The analysis assumes typical HO-3 policies covering dwelling, personal property, liability, and various deductibles, offering insight into market variance. Greater Houston, noted for its rapid population growth and housing affordability with median home prices around $317,000, sees high annual premiums averaging $4,755, equating to 1.5% of home value.
This area faces substantial wind damage risks and flooding vulnerability, exacerbated by events like Hurricane Harvey and recent storms. The Tampa-St. Petersburg-Clearwater region, known as Tampa Bay, carries premiums averaging $6,645 on a $390,900 home, or 1.7% of value, with widespread exposure to wind and flood hazards heightened by multiple recent hurricanes. Tulsa, Oklahoma’s second-largest city, experiences elevated insurance costs of approximately $3,919 annually on typical $230,530 homes, or 1.7% of value, attributable mainly to its location in Tornado Alley and recurrent extreme weather events. North Port-Bradenton-Sarasota homeowners pay substantial premiums averaging $7,657, or 1.7% of a median $450,401 home, driven by frequent hurricanes, tornadoes, and flooding risks. The Melbourne, Florida metro area, part of the Space Coast with a median home value of $363,076, encounters insurance averages of $6,172 annually (1.7% of home value) due to persistent hurricane winds, flooding, and accelerating coastal erosion. Baton Rouge, Louisiana homeowners face an average premium-to-value ratio of 2%, reflecting flood and wind exposure from the Mississippi River basin and historical hurricane impacts. Oklahoma City insurance costs align similarly at roughly 2% of home value, challenged by tornado and flash flood hazards.
The Fort Myers metro area, encompassing coastal waterways, registers the highest premium-to-value ratio at 2.2%, with annual premiums near $8,649 for $393,147 homes amid severe flood and wind threats. New Orleans homeowners confront notably elevated premiums averaging $8,328 annually on $231,328 properties, or 3.6% of value, due to extensive flood and wind dangers compounded by geography below sea level and legacy storm damage. Lastly, Greater Miami's hurricane-prone peninsula experiences the highest national insurance costs, with premiums approximating $22,718 annually, or 3.7% of $614,000 homes, pressured by persistent flooding and wind risks. These findings highlight the intersection of growing climate risks with regional insurance markets, emphasizing the financial impact on homeowners in high-hazard zones and suggesting ongoing challenges for insurers and regulators addressing risk mitigation and premium affordability.