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Home Insurance Adds $705 a Month in Florida but $91 in Vermont: What It Adds to Your Mortgage in Every State

Home insurance is quietly one of the biggest parts of a house payment. We converted every state's projected 2026 premium into what it adds to your monthly bill.

By · Updated · 4 min read

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Your mortgage payment isn’t just principal and interest. Homeowners insurance rides along in most escrow accounts, and in 2026 it can add anywhere from about $91 a month in Vermont to about $705 a month in Florida, based on Insurify’s projected average premiums.

Nationally, Insurify projects the average policy will cost $3,057 by the end of 2026. That’s about $255 a month, before you pay a single dollar toward the house itself.

Quick answers

  • U.S. average premium: $2,948 at the end of 2025 (up 12% in the year), projected $3,057 by the end of 2026 (+4%), per Insurify.
  • Since 2021, the average premium is up 46%, compared with 16% inflation over the same stretch.
  • Most expensive: Florida (~$705/month). Cheapest: Vermont (~$91/month).
  • Florida’s insurance alone costs about as much each month as the payment on a $104,000 mortgage at 7.18%.

Where the numbers come from

Insurify’s 2026 Insuring the American Homeowner report projects average annual premiums for each state by the end of 2026. Its figures are the median cost of a standard HO-3 policy at each state’s average dwelling coverage, built from its quote data and insurers’ rate filings. We divided each yearly figure by 12 to show what it adds to a monthly payment.

Your own bill depends on your home’s age, roof, rebuild cost, deductible, claims history and ZIP code, so treat these as state averages, not quotes.

Monthly home insurance cost in every state (projected end of 2026)

# State Avg. yearly premium Adds per month
1 Florida $8,458 $705
2 Oklahoma $5,205 $434
3 Louisiana $5,035 $420
4 Nebraska $4,560 $380
5 Texas $4,529 $377
6 Colorado $4,164 $347
7 Alabama $3,979 $332
8 Mississippi $3,833 $319
9 Minnesota $3,654 $305
10 Illinois $3,559 $297
11 Kansas $3,440 $287
12 South Carolina $3,370 $281
13 Arkansas $3,345 $279
14 Georgia $3,167 $264
15 Tennessee $3,094 $258
16 North Carolina $3,075 $256
17 Missouri $3,035 $253
18 Rhode Island $2,978 $248
19 Iowa $2,906 $242
20 Kentucky $2,852 $238
21 California $2,843 $237
22 South Dakota $2,775 $231
23 New Mexico $2,524 $210
24 Hawaii $2,520 $210
25 North Dakota $2,456 $205
26 Montana $2,437 $203
27 Michigan $2,289 $191
28 Connecticut $2,252 $188
29 Maryland $2,223 $185
30 New York $2,149 $179
31 Arizona $2,142 $179
32 Massachusetts $2,135 $178
33 Indiana $2,082 $174
34 Wyoming $1,937 $161
35 New Jersey $1,797 $150
36 Virginia $1,736 $145
37 Nevada $1,720 $143
38 Pennsylvania $1,710 $143
39 Idaho $1,702 $142
40 District of Columbia $1,702 $142
41 Wisconsin $1,658 $138
42 Ohio $1,657 $138
43 West Virginia $1,623 $135
44 Washington $1,600 $133
45 Oregon $1,571 $131
46 Delaware $1,519 $127
47 Alaska $1,482 $124
48 New Hampshire $1,435 $120
49 Utah $1,370 $114
50 Maine $1,359 $113
51 Vermont $1,094 $91

Source: Insurify projected end-of-2026 averages; monthly figures are Keys & Coffee calculations (yearly ÷ 12, rounded).

Fun factA Florida homeowner paying the state average spends about $614 a month more on insurance than a Vermont homeowner. Over 30 years, at today’s prices, that gap adds up to more than $220,000.

Who’s rising fastest in 2026

Insurify projects California will see the biggest jump this year, about 16% (+$388), after the early-2025 wildfires shook up its market. Nebraska (+13%), New Mexico (+11%), Georgia (+10%) and South Carolina (+9%) are next. A few states are projected to dip slightly, including Hawaii, Massachusetts and Maine.

We ran the numbers: insurance vs. buying power

Lenders count insurance in your housing payment when they decide how much you can borrow. So a high premium doesn’t just cost money; it also shrinks the loan you qualify for.

Monthly insurance Loan that same money would cover at 7.18%
$255 (U.S. average) ~$37,600
$705 (Florida average) ~$104,000
ExampleTwo buyers can each afford $2,800 a month for housing. One buys in Ohio (insurance ~$138/month), the other in Oklahoma (~$434/month). Ignoring taxes, the Oklahoma buyer has about $296 less each month for the loan itself, which at 7.18% is roughly $44,000 less house.
Myth buster“My mortgage payment is fixed, so my costs are fixed.” Only principal and interest are fixed on a fixed-rate loan. If insurance or taxes rise, your escrow payment rises too. See how escrow works.

How to keep your premium in check

  1. Shop around at every renewal. Prices for the same home vary between insurers.
  2. Raise your deductible carefully. It lowers the premium, but only if you have the cash to cover it.
  3. Ask about discounts for a newer roof, storm shutters, security systems or bundling with car insurance.
  4. Check your coverage amount. You want enough to rebuild, not market value. More in our homeowners insurance explainer.
  5. Before you buy, get a quote. Add it to the mortgage calculator and affordability calculator so there are no surprises.

What this means for you

  • Buyers: two similar houses can have very different insurance bills. Get quotes during your inspection period.
  • Owners in fast-rising states: review your policy before renewal and compare at least three quotes.
  • Retirees on fixed incomes: insurance is one of the costs that keeps rising after the mortgage is paid off. Budget for it. See our look at retirees still carrying a mortgage.

FAQ

What is the average cost of home insurance in 2026?

Insurify projects about $3,057 a year by the end of 2026, or roughly $255 a month.

Which state has the most expensive home insurance?

Florida, at a projected $8,458 a year on average, about $705 a month.

Which state has the cheapest home insurance?

Vermont, at about $1,094 a year, or roughly $91 a month, by Insurify’s projection.

Is home insurance included in my mortgage payment?

If you have an escrow account, yes. Your servicer collects it monthly and pays the insurer. Without escrow, you pay the insurer directly.

Sources: Insurify, Insuring the American Homeowner 2026; Freddie Mac PMMS via FRED; Keys & Coffee calculations. This article is general education, not financial or insurance advice. Keys & Coffee is not a lender or insurer.

Shivam Kaushik (IMSHIVA)

Written by

Shivam Kaushik· IMSHIVA

Founder & Director, QuibbleTech Solutions Pvt Ltd · Editor, Keys & Coffee

Shivam Kaushik is the founder of QuibbleTech Solutions Pvt Ltd and the editor of Keys & Coffee. He is not a licensed loan officer or financial adviser. Every guide here is written in plain English and checked against official sources such as the CFPB, HUD, Fannie Mae, Freddie Mac and the Federal Reserve. For advice on your own loan, talk to a licensed lender.

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Keys & Coffee is an independent education site. We are not a lender or mortgage broker, we do not take loan applications or payments, and nothing here is financial advice. This site is not affiliated with Axia Home Loans, Axia Financial, LLC, or Planet Home Lending. Rates and rules change often — always confirm details with a licensed loan officer and check any lender on the NMLS Consumer Access site.

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