North Dakota Homeowners Pay Average Insurance Costs Compared to the Rest of the Country

North Dakota homeowners face mid-range homeowners insurance premiums compared with the rest of the U.S. While costs are not as high as those in Gulf Coast states, they trend above some nearby Midwestern states, reflecting the state’s exposure to severe winter weather, flooding, and storms.

Data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report place North Dakota firmly in the middle of the pack.

North Dakota’s Insurance Costs in Context

According to the American Community Survey (ACS) data from the U.S. Census Bureau, North Dakota homeowners with a mortgage typically pay $1,500–$1,999 annually for homeowners insurance, while those without a mortgage average $1,000–$1,499. Overall statewide costs fall into the $1,500–$1,999 range.

North Dakota has 221,823 insured homeowner households in total—130,595 with a mortgage and 91,228 without. Among mortgaged owners, 12,016 pay less than $100 annually and 6,399 pay $4,000 or more. Among those without a mortgage, 14,474 pay less than $100 and 3,157 pay $4,000 or more.

Compared with nearby states, North Dakota sits in the middle range. Minnesota homeowners with a mortgage typically pay $1,500–$1,999, aligning closely with North Dakota. South Dakota averages the same, while Montana homeowners with a mortgage also pay $1,500–$1,999. By contrast, Iowa and Wisconsin are more affordable, averaging $1,000–$1,499 for mortgaged households. This places North Dakota in line with its Upper Plains neighbors, but higher than states to the south and east.

Climate Risks Across the Region

The Realtor.com 2025 Climate Risk Report highlights how climate-driven risks are pushing up premiums in many parts of the U.S. Miami, FL tops the list, with homeowners paying an average of $22,718 annually, or 3.7% of home value. Florida metros like Cape Coral, Sarasota, and Tampa also rank among the most expensive markets.

North Dakota does not appear on the report’s list of metros with the steepest insurance burdens, nor is it a leading state for hurricane or wildfire risks. However, the state is vulnerable to flooding along the Red River, severe winter storms, and tornadoes in the summer months.

These hazards have kept premiums elevated above Midwestern states with fewer extreme weather risks, though they remain far below the catastrophic costs faced by coastal states.

A National Affordability Challenge

Even though North Dakota’s premiums are mid-range, affordability remains a growing issue nationwide. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, while nearly half said they had already struggled with renewing or obtaining coverage.

These concerns are already shaping buyer behavior. Nearly 30% of homebuyers said they had completely changed their search areas because of insurance challenges, while another quarter said they had overhauled their strategies altogether. Even more concerning, 58% of homeowners nationwide said they would consider dropping insurance if premiums rose too high, with younger buyers the most likely to take that risk.

For now, North Dakota homeowners face manageable but elevated premiums compared with some neighbors. As severe weather becomes more frequent, the state’s costs could rise further, narrowing its affordability advantage.

This article was produced with editorial input from Dina Sartore-Bodo, Gabriella Iannetta, and Allaire Conte.