Home Insurance vs Property Taxes by State in 2026: Full Comparison

The home insurance vs property taxes by state comparison shows how differently two major homeownership expenses can behave across the United States.

In LendingTree’s July 2026 housing-cost analysis, modeled homeowners with mortgages in 15 states are identified as spending more on homeowners insurance than on property taxes. Tennessee has the largest insurance-to-tax gap. Estimated monthly homeowners insurance is $284 compared with $143 in property taxes. Alabama follows at $182 for insurance versus $93 in property taxes.

Two additional states, Virginia and Montana, are effectively at parity. LendingTree estimates Virginia homeowners at $283 per month for insurance versus $276 for property taxes, while Montana is $268 versus $267. Because these figures are modeled estimates and the differences are small, LendingTree treats both states as places where the two costs are about the same rather than adding them to its 15-state group.

That distinction matters. A comparison like this should not turn a $1 modeled difference into a definitive affordability conclusion.

Nationally, the pattern is different. LendingTree estimates that a typical homeowner with a mortgage spends about $311 per month on property taxes and $200 on homeowners insurance. But state averages vary dramatically, and insurance has become an increasingly important part of the total cost of owning a home.

For buyers evaluating these recurring expenses alongside physical hazards and insurance availability, see our Housing Risk & Resilience research.

Home Insurance vs Property Taxes by State: 2026 Comparison

The following table uses LendingTree’s July 2026 modeled monthly estimates for homeowners with mortgages.

The insurance-to-tax ratio is:

Estimated monthly homeowners insurance ÷ estimated monthly property tax

A ratio above 1.00 means the modeled insurance figure is higher than the modeled property-tax figure. However, this article preserves LendingTree’s editorial classification of Virginia and Montana as near-parity states rather than mechanically treating minimal modeled differences as meaningful.

Source: LendingTree’s July 2026 home insurance and housing-cost analysis.

The District of Columbia appears in LendingTree’s original table but is omitted here because this article compares the 50 states.

The 15 States Where LendingTree Identifies Insurance Costs as Higher

LendingTree identifies the following 15 states as places where homeowners spend more on insurance than on property taxes:

1. Tennessee
2. Alabama
3. Colorado
4. South Carolina
5. Arkansas
6. Oklahoma
7. Arizona
8. New Mexico
9. Idaho
10. Nebraska
11. Mississippi
12. West Virginia
13. Kentucky
14. North Carolina
15. Louisiana

The size of the gap varies significantly.

In Tennessee, estimated insurance costs exceed property taxes by $141 per month.

In Colorado, homeowners pay $222 more per month for insurance than they do in property taxes.

In Louisiana, the gap is just $7 per month.

That variation is important because being on the same side of the insurance-versus-tax comparison does not mean homeowners face the same overall cost burden.

Why Virginia and Montana Need Special Treatment

Virginia and Montana are the borderline cases that require careful explanation.

Virginia

Estimated monthly costs:

• Home insurance: $283
• Property taxes: $276
• Difference: $7
• Ratio: 1.03

Insurance is technically higher in LendingTree’s modeled dollar figures.

However, the source does not include Virginia in its 15-state group. Instead, LendingTree describes Virginia as a state where homeowners spend about the same amount on insurance and property taxes.

That is a reasonable way to treat a small difference in modeled statewide estimates.

Montana

Estimated monthly costs:

• Home insurance: $268
• Property taxes: $267
• Difference: $1
• Ratio: 1.00

Montana is even closer.

Its estimated insurance cost is $1 higher in the underlying table, but the published ratio rounds to 1.00.

Treating Montana as definitively “insurance higher” based on a $1 modeled statewide difference would overstate what the data can support.

For that reason, this article follows LendingTree and classifies both Virginia and Montana as near parity.

Tennessee Has the Highest Insurance-to-Tax Ratio

Tennessee has the largest insurance-to-property-tax ratio in the study.

Estimated monthly costs are:

• Home insurance: $284
• Property taxes: $143

That produces a ratio of 1.99.

In other words, the modeled homeowners insurance expense is almost twice the modeled property-tax expense.

That does not mean Tennessee has the highest insurance premiums in the country.

Its position partly reflects comparatively low property taxes.

Property tax burdens in the state vary substantially because property taxes are generally imposed locally. Tax Foundation’s 2026 property-tax comparison shows how much effective rates and actual tax bills differ across states and counties.

A high insurance-to-tax ratio can therefore result from:

• High insurance costs
• Low property taxes
• Or a combination of both

That is why the ratio should not be interpreted as a ranking of total homeownership cost.

Alabama Is a Similar Case

Alabama ranks second.

Estimated monthly costs are:

• Home insurance: $182
• Property taxes: $93

The insurance-to-tax ratio is 1.96.

Alabama’s modeled insurance premium is far below Colorado’s, Nebraska’s, or Texas’s.

Its ratio is high because the modeled property-tax amount is especially low.

This illustrates an important affordability principle:

Low property taxes do not guarantee low recurring housing costs.

Insurance can become a much larger part of the household budget when another major ownership expense is relatively small.

Colorado Has the Highest Modeled Insurance Premium

Colorado’s comparison is different.

Estimated monthly costs are:

• Home insurance: $463
• Property taxes: $241
• Ratio: 1.92

LendingTree estimates Colorado’s annual homeowners insurance premium at approximately $5,553, the highest in its July 2026 housing-cost study.

The state therefore ranks near the top not merely because property taxes are lower, but because its modeled insurance cost is genuinely high.

Colorado households can face exposure to hazards including:

• Hail
• Severe thunderstorms
• Wildfire
• Wind
• Winter weather

Weather risk is not the only factor insurers consider, but costly claims and rebuilding expenses can affect statewide pricing.

Nebraska Shows a Different Kind of Insurance Burden

Nebraska ranks ninth on the insurance-to-tax comparison, tied with Idaho at a ratio of 1.18.

But Nebraska ranks first when insurance is measured as a share of the total modeled monthly housing budget.

LendingTree estimates:

• Mortgage: $1,365
• Property taxes: $350
• Home insurance: $413
• Total modeled monthly housing cost: $2,128

Insurance accounts for approximately 19.4% of the total.

Oklahoma follows at 17.6%.

Texas ranks third at 14.4%.

This demonstrates why the insurance-to-tax ratio should not be the only metric considered.

A state can rank lower on the ratio comparison yet still have a large absolute insurance burden.

Texas Has High Insurance Costs Even Though Property Taxes Are Higher

Texas is a particularly useful example.

Estimated monthly costs are:

• Home insurance: $331
• Property taxes: $438

Its insurance-to-tax ratio is 0.76, so property taxes remain the larger modeled expense.

But $331 per month is still one of the highest insurance figures in LendingTree’s study.

Texas also ranks third nationally for the share of modeled housing costs devoted to insurance.

So a ratio below 1.00 does not mean insurance is inexpensive.

It simply means the state’s modeled property-tax bill is even larger.

This is one reason our Texas vs. Florida cost of living comparison evaluates purchase price, taxes, and insurance together rather than using one cost in isolation.

Florida Does Not Fall Into the 15-State Group

Florida’s modeled monthly costs are:

• Home insurance: $224
• Property taxes: $277
• Ratio: 0.81

So under LendingTree’s standardized assumptions, property taxes exceed home insurance at the statewide level.

That may surprise readers familiar with Florida’s insurance-market challenges.

The explanation is that statewide modeled figures cannot represent every individual Florida property.

Insurance premiums can vary significantly according to:

• County
• Coastal exposure
• Wind risk
• Building characteristics
• Roof age
• Replacement cost
• Coverage limits
• Deductible
• Insurer

A statewide modeled estimate should never replace an actual insurance quote for a property being considered.

New Jersey Shows the Opposite Problem

New Jersey sits near the bottom of the insurance-to-tax ranking.

Estimated monthly costs are:

• Home insurance: $159
• Property taxes: $863
• Ratio: 0.18

That does not mean New Jersey is inexpensive to own a home in.

Instead, the low ratio reflects extremely high property taxes relative to insurance.

Vermont has an even lower ratio at 0.16, but its modeled monthly property-tax figure is $467 rather than New Jersey’s $863.

A ratio can therefore describe the relationship between two costs without telling you whether either cost is affordable.

Home Insurance Is Becoming More Important to Housing Affordability

Nationally, LendingTree estimates a typical mortgaged homeowner’s monthly housing budget at:

• Mortgage payment: $1,843
• Property taxes: $311
• Home insurance: $200

Total:

$2,354

Insurance represents approximately 8.5% of that modeled total.

In 20 states, insurance accounts for at least 10% of modeled monthly housing costs.

That is significant because traditional home-affordability discussions often emphasize:

• Home price
• Mortgage rate
• Down payment
• Property taxes

Insurance has become another material part of the affordability calculation in many markets.

Our Housing Affordability research evaluates these recurring costs alongside prices and household income.

For another statewide affordability measure, see our home price-to-income ratio by state comparison.

Insurance Rates Have Risen Sharply Since 2020

A separate LendingTree analysis of state insurance-rate changes found that homeowners insurance rates in the U.S. rose a cumulative 46.8% between 2020 and 2025.

The increase was not uniform.

Colorado recorded the largest cumulative increase at 100.8%, followed by Iowa at 96.0% and Minnesota at 88.2%.

The pace eased nationally in 2025, when rates increased 6.0%, compared with the larger increases recorded in the previous two years.

See the separate LendingTree State of Home Insurance 2026 report.

Do not mix these rate-change figures directly with the monthly premium estimates in the main table.

They answer different questions:

• The housing-cost study estimates modeled 2026 monthly premiums under standardized coverage assumptions.
• The rate study measures insurance rate changes over time.

Keeping those methodologies separate prevents misleading comparisons.

The Insurance Market Shows Signs of Stabilizing in 2026

There are indications that premium growth is moderating.

Matic’s 2026 Home Insurance Trends Report found that premiums for newly written policies increased 5.9% year over year during the first half of 2026.

The same report found that 11.7% of renewing homeowners experienced a premium decrease, the highest share Matic had recorded since tracking the measure.

Renewal premium increases also slowed compared with 2024 and 2025.

Those trends suggest an improving competitive environment in some markets.

But slower growth does not mean insurance has become inexpensive.

Premiums remain elevated after several years of substantial increases, and conditions still vary considerably by state and property.

Why Homeowners Insurance Costs Differ So Much

Homeowners insurance pricing depends on far more than the home’s market value.

Factors can include:

• Severe-weather exposure
• Wildfire exposure
• Hurricane and wind risk
• Hail frequency
• Claims history
• Construction costs
• Building materials
• Roof condition
• Replacement value
• Deductible
• Coverage level
• Insurer
• State regulation
• Local loss experience

Rebuilding costs are particularly important.

Insurance is designed around the cost of repairing or replacing the insured structure, not simply what the property would sell for on the open market.

That means two homes with similar market values can have different premiums.

Property Taxes Are Also Highly Local

Property taxes should not be treated as one uniform statewide expense either.

They are typically determined by local taxing jurisdictions and can vary among:

• Counties
• Municipalities
• School districts
• Special districts

Exemptions and assessment rules also matter.

Statewide effective rates are therefore useful for broad comparisons but cannot predict the tax bill on an individual house.

The best affordability analysis must eventually move from:

State → metro → county → property

What Homebuyers Should Compare Before Making an Offer

Before buying a home, calculate more than the mortgage principal and interest.

A more realistic ownership estimate includes:

Mortgage principal and interest + property taxes + homeowners insurance + HOA fees + any required additional coverage

Depending on the property, additional costs can include:

• Flood insurance
• Wind coverage
• Earthquake insurance
• Private mortgage insurance
• Condo assessments

That complete monthly figure is much more useful than comparing listing prices alone.

Get an Insurance Quote Early

Insurance should be investigated before the closing process is nearly complete.

A buyer should determine:

1. Whether the property is readily insurable
2. What appropriate coverage will cost
3. What deductibles apply
4. Whether separate hazard coverage may be needed

Two houses with nearly identical sale prices can produce dramatically different insurance bills.

An inexpensive house with a costly risk profile can therefore be less affordable than a somewhat more expensive property with lower recurring costs.

How Homeowners Can Manage Insurance Costs

Homeowners cannot control statewide insurance-market conditions, but several steps may help manage an individual premium.

Compare Multiple Insurers

Different insurers can price the same property differently.

Shopping periodically can reveal whether another carrier offers comparable coverage at a lower cost.

Compare Equivalent Coverage

Do not compare premiums without checking:

• Dwelling limits
• Liability coverage
• Deductibles
• Roof provisions
• Exclusions
• Replacement-cost terms

The cheapest policy is not necessarily the best value.

Review the Deductible

A higher deductible can reduce premiums.

But the household should be able to comfortably pay that deductible after a covered loss.

Ask About Mitigation Discounts

Depending on the state and insurer, risk-reduction improvements may affect premiums or eligibility.

Examples can include:

• Impact-resistant roofing
• Wind mitigation
• Updated electrical systems
• Updated plumbing
• Storm shutters
• Ember-resistant vents
• Water-leak detection

Review Coverage Regularly

Replacement costs change over time.

A policy that provided sufficient coverage several years ago may no longer be adequate to rebuild the property after a major loss.

What the Comparison Means for Relocation

The home insurance vs property taxes by state comparison can also help households understand how recurring ownership costs may change when relocating.

A household comparing two states should not ask only:

Which state has cheaper houses?

A better question is:

What will the complete monthly housing cost be after I move?

Consider:

• Purchase price
• Mortgage financing
• Property taxes
• Homeowners insurance
• Other hazard coverage
• HOA costs
• Income
• Transportation
• Utilities

This issue matters particularly when evaluating supposedly affordable or rapidly growing markets.

Our analysis of fast-growing affordable metros identifies markets with relatively moderate housing values, but those rankings do not eliminate the need to evaluate property-specific insurance and tax costs.

Likewise, our Compare Places research focuses on the combined cost picture rather than a single expense.

For a concrete relocation example, our guide to moving from California to Texas shows how lower purchase prices can interact with higher property taxes, insurance, and income-tax differences.

Methodology and Data Sources

The primary comparison in this article uses LendingTree’s July 2026 housing-cost study.

Source: LendingTree: Home Insurance Takes Up Nearly a Fifth of Monthly Housing Costs in Some States

LendingTree analyzed:

• 2024 U.S. Census Bureau American Community Survey data
• Federal Housing Finance Agency House Price Index data
• Freddie Mac Primary Mortgage Market Survey data
• Quadrant Information Services homeowners insurance rate data pulled in February 2026

Home Values

LendingTree used each state’s 2024 median home value as a baseline and estimated 2026 values by applying changes from the FHFA House Price Index through the first quarter of 2026.

Property Taxes

The study calculated an effective property tax rate for 2024 using Census data and applied that rate to the estimated home value for 2026.

Mortgage Assumptions

The model assumes:

• 20% down payment
• 80% loan-to-value
• 30-year fixed mortgage
• 6.21% 2026 year-to-date average mortgage rate through May 21, 2026

Homeowners Insurance

LendingTree used Quadrant Information Services rate data and standardized coverage assumptions.

Dwelling coverage was approximated to the available benchmarks of:

• $200,000
• $350,000
• $500,000

depending on the estimated home value.

Additional assumptions included:

• $100,000 personal liability coverage
• $1,000 medical payments coverage
• $1,000 deductible

Why Virginia and Montana Are Classified as Near Parity

LendingTree’s underlying modeled table shows:

Virginia: $283 insurance vs. $276 property taxes
Montana: $268 insurance vs. $267 property taxes

However, LendingTree explicitly describes homeowners in both states as spending approximately the same amount on insurance and property taxes.

The small modeled differences, along with Montana’s ratio rounding to 1.00, lead this article to preserve that classification instead of overstating marginal modeled differences.

Important Limitation

These are statewide modeled estimates.

They are not insurance quotes or property-tax bills for individual homes.

Actual costs can differ significantly according to location, coverage, property characteristics, local tax rules, and household circumstances.

Frequently Asked Questions

Which states have higher home insurance costs than property taxes?

LendingTree identifies 15 states where modeled homeowners insurance costs are higher than modeled property taxes: Tennessee, Alabama, Colorado, South Carolina, Arkansas, Oklahoma, Arizona, New Mexico, Idaho, Nebraska, Mississippi, West Virginia, Kentucky, North Carolina, and Louisiana.

What about Virginia?

Virginia is a near-parity state. LendingTree estimates monthly insurance at $283 and property taxes at $276 but describes homeowners there as spending about the same amount on the two expenses.

What about Montana?

Montana is essentially equal. Its modeled insurance cost is $268 per month versus $267 in property taxes, while the insurance-to-tax ratio rounds to 1.00.

Which state has the highest insurance-to-property-tax ratio?

Tennessee has the highest ratio at 1.99.

Which state has the highest modeled homeowners insurance premium?

Colorado has the highest premium in LendingTree’s housing-cost study at approximately $463 per month, or about $5,553 annually.

Where does insurance consume the largest share of housing costs?

Nebraska ranks first, with insurance accounting for approximately 19.4% of its modeled monthly housing costs.

Is homeowners insurance more expensive than property taxes in Texas?

No under this methodology. Texas is estimated at $331 per month for homeowners insurance and $438 for property taxes. Insurance is still a significant housing expense.

Is homeowners insurance more expensive than property taxes in Florida?

Not at the statewide modeled level. Florida is estimated at $224 per month for insurance and $277 for property taxes. Individual Florida properties can differ substantially.

Does a low insurance-to-tax ratio mean a state is affordable?

No. A low ratio can simply mean property taxes are high. Both expenses should be evaluated in actual dollars alongside home prices, mortgage payments, and household income.

Should buyers obtain a homeowners insurance quote before purchasing?

Yes. Property-specific insurance costs can materially change the monthly cost of owning a home and may differ substantially from statewide estimates.