Home Insurance Costs Now Exceed Property Taxes in 15 US States

Home insurance costs now exceed property taxes in 15 U.S. states, a trend that is significantly influencing homeowners' budgets and their ability to purchase property. LendingTree's analysis reveals that in these states, the monthly cost of home insurance constitutes a larger portion of housing expenses than property taxes.

Nationally, the average homeowner pays approximately $311 per month for property taxes and $200 for home insurance, with insurance representing 8.5% of the total monthly housing budget. However, in the 15 identified states—Alabama, Arizona, Arkansas, Colorado, Idaho, Kentucky, Louisiana, Mississippi, Nebraska, New Mexico, North Carolina, Oklahoma, South Carolina, Tennessee, and West Virginia—home insurance accounts for nearly one-fifth of monthly housing costs.

Nebraska leads this trend, with home insurance making up 19.4% of total monthly housing costs, averaging $413 per month. Oklahoma follows at 17.6% ($278), and Texas at 14.4% ($331). The report also indicates that 20 states, including Montana and Virginia, spend an equal amount on home insurance and property taxes, with insurance costs reaching at least 10.0% of monthly housing expenses in these areas.

LendingTree insurance analyst Rob Bhatt noted that insurance, once an afterthought, is now a major consideration in the home-buying process due to its escalating costs. This shift in financial priorities is affecting consumer buying power in many regions. Conversely, states with the lowest monthly insurance costs include Vermont ($77), Hawaii ($95), Delaware ($97), and Maine ($107).