Homeowners insurance costs rise in smaller cities facing severe weather risks. Houston, with 2.4 million residents, charges $788 monthly compared to New York's $176, despite having less than one-third the population. Hurricane season and hailstorms drive up Houston's premiums, while New York's dense urban infrastructure and lower risk of catastrophic weather keep costs down.
Homeowners Insurance Rates by City & ZIP Code
Updated: January 14, 2026
Advertising & Editorial Disclosure
Key Takeaways
Your city and ZIP code affect home insurance rates significantly, with monthly costs ranging from $288 to $1,045 within states with varying weather conditions like Louisiana.
Insurers consider local factors such as crime rates, labor and building expenses, and the likelihood of natural disasters when setting premiums, meaning that both your city and specific ZIP code influence the cost of coverage.
Kailua, Honolulu and Kilauea in Hawaii are some of the cheapest cities to get home insurance, while Wilmington, NC, Port Aransas, TX and Miami, FL are the most expensive.
Average Home Insurance Costs in the 10 Most Populous Cities Across the U.S.
| New York | New York | 8,478,072 | 28,217.3 | $176 | $2,111 | 35.84 |
| Los Angeles | California | 3,878,704 | 8,243.4 | $157 | $1,883 | 22.03 |
| Chicago | Illinois | 2,721,308 | 11,948.8 | $287 | $3,445 | 10.66 |
| Houston | Texas | 2,390,125 | 3,730.2 | $788 | $9,453 | 40.78 |
| Phoenix | Arizona | 1,673,164 | 3,228.0 | $233 | $2,792 | 7.30 |
| Philadelphia | Pennsylvania | 1,573,916 | 11,717.2 | $239 | $2,867 | 30.59 |
| San Antonio | Texas | 1,526,656 | 3,059.7 | $407 | $4,884 | -27.27 |
| San Diego | California | 1,404,452 | 4,306.9 | $122 | $1,468 | -4.90 |
| Dallas | Texas | 1,326,087 | 3,903.9 | $502 | $6,025 | -10.27 |
| Jacksonville | Florida | 1,009,833 | 1,351.4 | $430 | $5,154 | -50.36 |
*Rates are based on a policy with $250,000 in dwelling coverage and a $1,000 deductible for a sample homeowner profile.
Average Homeowners Insurance Rates by City
Homeowners insurance costs vary significantly between cities and even within ZIP codes in the same metro area. Local crime rates, fire station proximity and flood zones push some neighborhoods' premiums higher than others just miles away. For example, California homeowners in North Hollywood pay an average of $180 monthly while Santa Rosa residents pay $91, a difference driven by the former’s higher home values, building costs and dense urban environment.
Data filtered by:
Alabama
$250K Dwelling / $125K Personal Property / $200K Liability
$1,000
| Mobile | $570 | $6,840 | 40.65 |
| Chunchula | $525 | $6,297 | 29.49 |
| Rainsville | $405 | $4,861 | -0.04 |
| Birmingham | $359 | $4,304 | -11.48 |
| Huntsville | $350 | $4,200 | -13.63 |
| Phenix City | $328 | $3,935 | -19.09 |
| Montgomery | $321 | $3,855 | -20.72 |
Why Do Home Insurance Rates Change by City?
Homeowners insurance rates vary dramatically from city to city because insurers evaluate specific risks unique to each location. Your premium reflects the likelihood of claims based on local weather patterns, crime statistics and construction costs in your area.
Weather and Natural Disaster Risk
Cities prone to hurricanes, tornadoes, hail or wildfires face higher premiums due to increased claim frequency and severity. Insurers analyze historical weather data and catastrophic loss patterns to predict future claims in your specific location.
Crime Rates
Higher theft, vandalism and property crime rates in urban areas drive up insurance costs. Cities with elevated crime statistics generate more claims for stolen property and break-ins, prompting insurers to charge higher premiums to offset these losses.
Proximity to Fire Protection
Your distance from fire stations and hydrants directly impacts your rates, with homes farther from emergency services paying more. Insurers know that quick fire response reduces damage severity, so they reward homeowners in well-protected neighborhoods with lower premiums.
Local Construction and Labor Costs
Cities with expensive building materials, high labor rates and strict building codes see higher insurance premiums. Insurers must account for what it costs to rebuild your home in your specific market, not a national average.
Claims History in Your Area
Neighborhoods with frequent insurance claims, whether from storms, fires or theft, face higher rates than low-claim areas. Insurers use ZIP-code-level data to identify high-risk areas where claims occur more often or cost more to settle.
Home Values and Replacement Costs
Cities with higher property values require more coverage, which increases premiums proportionally. A $500,000 home in San Francisco costs more to insure than a $200,000 home in Ohio, even with similar risk factors.
Other Factors That Affect Your Home Insurance Costs
Beyond your city's location and risk profile, insurers evaluate characteristics specific to your property and personal profile. These individual factors can significantly raise or lower your premium regardless of where you live.
Home Insurance Estimates by City: Bottom Line
Homeowners insurance costs vary wildly across American cities, from $50 monthly in Hawaii to over $1,500 in coastal hurricane zones. Your specific rate depends on your city's weather risks, local construction costs and crime rates, plus personal factors like your credit score, home age and claims history. Shopping around and comparing quotes from multiple insurers helps you find the best rate for your location and property.
Average Home Insurance Cost by City: FAQ
Here are answers to common questions about how location affects your homeowners insurance costs.
What is the cheapest city for homeowners insurance?
Honolulu and Kailua, Hawaii tie for the nation's lowest rates at $50 monthly or $599 annually. Hawaii's mild climate and absence of tornadoes, hurricanes and severe winter storms keep premiums low compared to mainland cities facing catastrophic weather risks.
Why does homeowners insurance cost more in some cities than others?
Cities and ZIP codes with higher weather risks, frequent natural disasters and elevated construction costs charge more for homeowners insurance. Insurers price policies based on the likelihood and cost of claims in your specific area, which explains why coastal hurricane zones pay 10 to 30 times more than low-risk regions.
Does living in a big city automatically mean higher homeowners insurance rates?
No, population size doesn't determine your rates, local risk factors do. New York City residents pay $176 monthly despite the massive population, while smaller Houston charges $788 due to hurricane exposure and severe weather patterns.
Can I lower my homeowners insurance premium if I live in an expensive city?
Yes, you can reduce costs by increasing your deductible, bundling home and auto policies, and improving your credit score. Installing security systems, updating your roof and avoiding small claims also help lower premiums regardless of your city's average rates.
How often do homeowners insurance rates change in my city?
Insurers typically review and adjust rates annually, though you'll only see changes at your policy renewal. Major disasters, rising construction costs or increased claims in your area can trigger rate adjustments within months rather than waiting for the next policy year.
Cost of Home Insurance by ZIP Code: Our Review Methodology
MoneyGeek evaluated homeowners insurance rates across major U.S. cities using premium data from Quadrant Information Services' official databases. We analyzed average costs for cities nationwide to identify the most and least expensive markets for homeowners insurance, examining how location-specific factors like weather patterns, natural disaster exposure and local construction costs affect premiums in each urban area.
Our analysis used a standardized homeowner profile to ensure accurate city-to-city comparisons: a home built in 2000 with wood-frame construction, composite shingle roof and a homeowner with good credit (769 to 792 credit score). Coverage limits included $250,000 in dwelling coverage, $125,000 in personal property coverage, $200,000 in personal liability coverage and a $1,000 deductible. This approach reveals true geographic price differences by controlling for property and personal variables that typically influence rates.
House Insurance Costs by Postcode: Related Articles
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.
Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!
He writes about economics and insurance, breaking down complex topics so people know what they're buying.