Homeowners Insurance
These Metros Pay Highest Share of Property Insurance Costs
Property insurance can account for a significant chunk of your monthly budget — especially in metros like Miami, where this insurance accounts for 13.1% of monthly homeownership costs (the highest in the nation).
This ValuePenguin study examines property insurance costs as a percentage of homeownership costs and household income in the 50 most populous U.S. metros. We also analyzed the rate of uninsured homes in each of the largest metros and found that (though perhaps not surprisingly given the high costs) Miami leads in this regard, too. Read on for our full findings.
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Key findings
- Homeowners across the 50 largest U.S. metros spend an average of 7.0% of their monthly homeownership costs on property insurance. That means an average of $145.66 of $2,077.58 goes toward property insurance.
- Property insurance costs make up the largest portion of monthly homeownership expenses in Miami. Here, insurance makes up 13.1% of monthly homeownership costs. Oklahoma City (13.0%) and Tampa, Fla. (11.6%), follow.
- Homeowners in San Jose, Calif., spend just 3.5% of monthly homeownership costs on property insurance — the lowest by metro. That’s half the 50-metro average. Fellow California metros San Francisco (4.3%) and Los Angeles (4.6%) follow.
- Miami has the highest rate of uninsured homes among the 50 largest metros, with 20.8% of homes lacking coverage. Tampa ranks second at 18.1% and Birmingham, Ala., ranks third at 17.3%.
- Portland, Ore., has the lowest rate of uninsured homes. Here, only 8.3% of homes lack insurance. Denver trails at 8.9%, while Seattle and Chicago tie for third at 9.4%.
How we define property insurance and homeownership costs
Our study drew on the Integrated Public Use Microdata Series (IPUMS), which utilizes U.S. Census Bureau data.
IPUMS property insurance figures include fire, hazard and flood insurance costs for single-unit, owner-occupied homes, condos and mobile homes. Its monthly cost of ownership figures include these coverages, as well as mortgage payments, property taxes, utilities, and condo fees and mobile home costs where applicable.
Homeowners spend 7.0% of monthly homeownership costs on property insurance
Across the 50 largest U.S. metros, an average of 7.0% of monthly homeownership costs go toward property insurance. This totals an average of $145.66 on property insurance coverage out of the $2,077.58-per-month price of homeownership.
At a glance: Monthly property insurance costs as share of monthly homeownership costs across 50 largest metros | |
|---|---|
| Avg. monthly property insurance costs | $145.66 |
| Avg. monthly homeownership costs | $2,077.58 |
| Property insurance costs as share of homeownership costs | 7.0% |
Source: ValuePenguin analysis of U.S. Census Bureau 2023 American Community Survey (ACS) microdata with one-year estimates via IPUMS.
That $145.66 also represents an average of 2.0% of the average monthly household income of $7,205.21.
At a glance: Monthly property insurance costs as share of monthly household income across 50 largest metros | |
|---|---|
| Avg. monthly property insurance costs | $145.66 |
| Avg. monthly household income | $7,205.21 |
| Property insurance costs as share of household income | 2.0% |
Source: ValuePenguin analysis of U.S. Census Bureau 2023 ACS microdata with one-year estimates via IPUMS.
Rob Bhatt, ValuePenguin home insurance expert and licensed insurance agent, says these figures seem consistent with averages. At $145.66, the yearly total for property insurance coverage comes out to just over $1,747, which seems like a reasonable annual cost, he says, especially when the average household income is $86,463 a year.
However, he points out, "there’s some price volatility within these averages. Several parts of the country have seen the cost of home insurance — a type of property insurance — go up by a significantly higher amount than income growth. In these areas, the rising cost is putting strains on families' budgets."
One place where this may be happening is Florida.
Property insurance makes up biggest share of homeowner costs in Florida metros
As we mentioned, Miami leads when it comes to the proportional cost of property insurance: In the Magic City, the average monthly coverage cost of $300.40 accounts for 13.1% of the average total monthly cost of homeownership of $2,292.77.
The next-highest metros on the list are Oklahoma City — where $217.15 monthly property insurance costs account for 13.0% of the $1,671.64 monthly cost of homeownership — and Tampa, Fla., where property insurance accounts for an average $216.86 of the $1,866.29 monthly cost of homeownership, or 11.6%.
Anyone who has watched the last few hurricane seasons likely understands why Florida metros see higher-than-average property insurance costs. 2024 alone saw Category 4 (Helene) and Category 3 (Milton) hurricanes make landfall in the Sunshine State in quick succession, each leaving billions of dollars of destruction, including flooding, in their wake.
While Oklahoma City might not be in any hurricane’s cone of uncertainty, it sees violent tornadoes. On four days in 2024, multiple tornadoes struck the area on the same day. (2024 is the first year since 2003 with more than one such occurrence.)
"We’ve seen an uptick in the number and severity of these extreme weather events," says Bhatt, which means "insurance companies have had to pay to rebuild more homes than normal. Meanwhile, inflation has made the cost of rebuilding each home more expensive."
The unfortunate compounding effect of severe weather and inflation forces up insurance companies’ expenses, says Bhatt — which, in turn, spikes insurance rates on the consumer side.
Metros also vary in how much of a share of monthly household income property insurance accounts for. Across the 50 metros, that figure is 2.0%.
However, in Miami, a metro with higher-cost coverage, it rises to 4.7% of the average monthly household income of $6,355.92 — which can make it even more challenging for families to afford their insurance.
In fact, the top three metros where property insurance accounts for the highest percentage of monthly household income directly track with the top three metros where property insurance accounts for the highest rate of monthly homeownership expenses. Second is, again, Oklahoma City, whose $217.15 average property insurance cost comes out to 3.7% of the average $5,824.58 monthly income. In Tampa, 3.6% of households’ monthly $6,061.92 earnings go toward property insurance. (These are also the three metros with the highest average property insurance costs overall.)
In California, property insurance costs are proportionally low
Conversely, there are metros where property insurance makes up a smaller-than-average share of the cost of homeownership. Here, California leads: In San Jose, monthly property insurance accounts for just 3.5% of overall homeownership expenses, below San Francisco (4.3%) and Los Angeles (4.6%).
While this finding may seem counterintuitive given the state’s tendency toward powerful and destructive wildfires, it’s likely at least partially a result of the proportionally higher overall cost of homeownership in these cities. In fact, these three metros have the highest monthly homeownership costs in our ranking, in the same order: San Jose ($3,844.64), San Francisco ($3,597.99) and Los Angeles ($2,961.65).
We also found that homeowners in San Jose enjoy the lowest proportion of property insurance to monthly household income: Their $133.59 monthly average property insurance cost accounts for just 1.0% of their average $12,766.83 monthly household income. Washington, D.C., and Salt Lake City tie for second at 1.4%, followed by a six-way tie between Seattle; Portland, Ore.; San Francisco; Buffalo, N.Y.; Grand Rapids, Mich.; and Milwaukee at 1.5%.
Full rankings: Metros where monthly property insurance costs take up largest/smallest share of monthly homeownership costs
Rank | Metro | Monthly property insurance costs | Monthly homeownership costs | % of property insurance as share of homeownership costs |
|---|---|---|---|---|
| 1 | Miami, FL | $300.40 | $2,292.77 | 13.1% |
| 2 | Oklahoma City, OK | $217.15 | $1,671.64 | 13.0% |
| 3 | Tampa, FL | $216.86 | $1,866.29 | 11.6% |
| 4 | Orlando, FL | $204.30 | $1,905.46 | 10.7% |
| 5 | Houston, TX | $208.66 | $2,076.61 | 10.0% |
| 6 | Jacksonville, FL | $185.23 | $1,862.39 | 9.9% |
| 6 | Memphis, TN | $158.40 | $1,606.54 | 9.9% |
| 8 | St. Louis, MO | $156.17 | $1,599.97 | 9.8% |
| 9 | Kansas City, MO | $173.26 | $1,782.19 | 9.7% |
| 10 | Birmingham, AL | $140.15 | $1,505.62 | 9.3% |
| 11 | Dallas, TX | $206.60 | $2,236.40 | 9.2% |
| 12 | Louisville, KY | $139.18 | $1,553.94 | 9.0% |
Source: ValuePenguin analysis of U.S. Census Bureau 2023 ACS microdata with one-year estimates via IPUMS.
Full rankings: Metros where monthly property insurance costs take up largest/smallest share of monthly household income
Rank | Metro | Monthly property insurance costs | Monthly household income | % of property insurance as share of income |
|---|---|---|---|---|
| 1 | Miami, FL | $300.40 | $6,355.92 | 4.7% |
| 2 | Oklahoma City, OK | $217.15 | $5,824.58 | 3.7% |
| 3 | Tampa, FL | $216.86 | $6,061.92 | 3.6% |
| 4 | Orlando, FL | $204.30 | $6,448.17 | 3.2% |
| 4 | Houston, TX | $208.66 | $6,621.92 | 3.2% |
| 6 | Memphis, TN | $158.40 | $5,335.42 | 3.0% |
| 7 | Jacksonville, FL | $185.23 | $6,420.33 | 2.9% |
| 7 | Dallas, TX | $206.60 | $7,238.33 | 2.9% |
| 9 | Kansas City, MO | $173.26 | $6,653.50 | 2.6% |
| 10 | San Antonio, TX | $150.21 | $6,099.58 | 2.5% |
| 11 | Birmingham, AL | $140.15 | $5,773.67 | 2.4% |
| 11 | Louisville, KY | $139.18 | $5,743.42 | 2.4% |
Source: ValuePenguin analysis of U.S. Census Bureau 2023 ACS microdata with one-year estimates via IPUMS.
Uninsured rates reach 20.8% in one of largest metros
Given the high proportional cost of insurance in some locales, it’s no surprise that many homeowners find themselves underinsured — or without home insurance altogether.
In fact, across the 50 metros, an average of 11.5% of homes are without insurance coverage — a figure that rises to a scary 20.8% in Miami. (The uninsured data differs from the prior data and focuses on home insurance, rather than property insurance in general.) Recall that Miami, too, has the highest average monthly property insurance cost, and also the highest proportional cost as related to total homeownership costs and monthly household income.
After Miami, Tampa has the highest proportion of homes without coverage at 18.1%, followed by Birmingham, Ala., at 17.3%. (Another ValuePenguin survey found that half of policyholders worry their homes will become uninsurable in the future.)
"Leaving your home uninsured or underinsured is extremely risky," Bhatt warns. Without this important financial product, "you’d have to take out a loan or sell your house if it's damaged by a major or even moderate disaster," he says.
"This, in turn, can reduce or eliminate the equity you've built in your home. You never know when a disaster will strike. Insuring your home prevents a disaster from devastating your finances."
Metros at the other end of the spectrum have seemingly taken this wisdom to heart — including Portland, where a relatively low 8.3% of homes are uninsured, the lowest of the 50 studied metros. Next in line is Denver (8.9%), followed by a tie between Seattle and Chicago (9.4%). All of these metros enjoy a monthly household income higher than the national average, which may explain homeowners’ willingness and ability to keep their property covered.
Full rankings: Metros with highest/lowest rate of uninsured homes
Rank | Metro | # of homes | # of homes w/out insurance | % of homes w/out insurance |
|---|---|---|---|---|
| 1 | Miami, FL | 1,452,129 | 301,973 | 20.8% |
| 2 | Tampa, FL | 922,351 | 167,256 | 18.1% |
| 3 | Birmingham, AL | 334,827 | 57,937 | 17.3% |
| 4 | San Antonio, TX | 634,407 | 100,111 | 15.8% |
| 5 | Jacksonville, FL | 462,206 | 70,391 | 15.2% |
| 6 | Houston, TX | 1,677,691 | 249,540 | 14.9% |
| 6 | Orlando, FL | 670,080 | 99,763 | 14.9% |
| 8 | Detroit, MI | 1,275,982 | 176,945 | 13.9% |
| 8 | Memphis, TN | 317,899 | 44,188 | 13.9% |
| 10 | Fresno, CA | 222,251 | 30,257 | 13.6% |
| 11 | Grand Rapids, MI | 333,356 | 43,529 | 13.1% |
| 12 | Las Vegas, NV | 509,177 | 65,794 | 12.9% |
Source: ValuePenguin analysis of the U.S. Census Bureau 2023 ACS with one-year estimates.
Paying for property insurance: Tips to keep costs manageable
No matter where you call home, keeping your home properly covered by property insurance — which can include many coverage types — can help keep a weather disaster from wreaking havoc on your finances. Here are our top expert tips for keeping your costs manageable without sacrificing coverage.
- Avoid small claims. "It's good to pay for minor repairs or losses out of your own pocket," Bhatt says. That’s because insurance companies almost always raise your rates after you file a claim — no matter its size. Plus, "if you have two or more claims within a two- or three-year period," Bhatt warns, "your insurance company may drop you." That could lead to a costly insurance lapse. Springing for a $2,000 or $3,000 repair may seem like a pain, but it may save you money in the long run."
- Choose high deductibles. It’s simple math: The higher your deductible, the lower your overall rate. But "since your deductible comes out of your own pocket," Bhatt cautions, "you don't want it to be too high." After all, you need to be able to afford to pay it should you need to. Still, "going to the upper end of your comfort level is a good way to bring down your rate," Bhatt says.
- Be strategic about your home improvements. Impact-resistant roofs and windows, fire-resistant building materials and other upgrades based on the risks in your area may not just reduce the damage you’d sustain in an emergency — they might also score you an insurance discount.
- Shop around for home insurance. "It's good to compare home insurance quotes every few years, or anytime you get an unreasonable rate hike," Bhatt says. "Companies frequently change their rating systems, and your own rate qualifications change, too. A company that quoted you an expensive rate a few years ago may be a relatively good deal now."
- Go for the bundle. Most insurers cut you a discount when you bundle multiple insurance policies under the same carrier, such as home, auto and pet insurance. "If you bundle, make sure to compare quotes for your entire insurance package," Bhatt advises. "Some companies with cheap auto insurance have high home insurance rates or vice versa. It's good to make sure the company you choose has the best overall rate for your entire insurance package."
Methodology
ValuePenguin analysts utilized U.S. Census Bureau 2023 American Community Survey (ACS) data and microdata hosted on IPUMS to determine monthly property insurance costs, monthly homeownership costs and monthly household income in the 50 largest U.S. metros.
The percentage of property insurance as a share of monthly homeownership costs was determined by dividing a metro's average property insurance cost by its average homeownership cost. The same method was applied to household income.
Additionally, ValuePenguin researchers analyzed the U.S. Census Bureau 2023 ACS with one-year estimates to gather home insurance cost data across the 50 largest metros.
Owner-occupied homes with annual home insurance costs of less than $100 were classified as uninsured. The number of owner-occupied homes that paid less than $100 in annual home insurance costs in 2023 was divided by the total number of owner-occupied homes to calculate the percentage of uninsured homes.
The U.S. Census Bureau 2023 ACS with one-year estimates was used to identify the 50 largest metros by population to be included in the analysis.
