Idaho Homeowners Pay Some of the Lowest Insurance Costs In The Country Despite Wildfire Risks

Idaho homeowners enjoy some of the lowest insurance premiums in the nation, even as premiums rise across many other states.

While climate risks are pushing prices higher in places like Florida, Texas, and California, new data from the U.S. Census Bureau and the Realtor.com® 2025 Climate Risk Report show that Idaho households remain relatively insulated from the steepest increases.

Idaho’s Insurance Costs Stay Affordable

According to newly released American Community Survey (ACS) data from the U.S. Census Bureau, Idaho homeowners with a mortgage typically pay $1,000–$1,499 annually for homeowners insurance, while those without a mortgage average $800–$999. Overall statewide costs also fall in the $1,000–$1,499 range.

Idaho has 538,468 insured homeowner households in total—325,019 with a mortgage and 213,449 without. Among mortgaged owners, 29,024 pay less than $100 annually and 11,454 pay $4,000 or more. Among those without a mortgage, 37,668 pay less than $100 and 6,449 pay $4,000 or more.

Compared with nearby states, Idaho is on the more affordable side. Montana homeowners with a mortgage typically pay $1,500–$1,999, while Wyoming averages the same. Utah homeowners fall into the $1,000–$1,499 range, aligning closely with Idaho. Oregon and Washington also average $1,000–$1,499, giving the Pacific Northwest region a relatively affordable profile.

By contrast, Colorado is far more expensive, with mortgaged homeowners paying $2,000–$2,499 annually. This makes Idaho’s position one of stability within the Mountain West.

Climate Risks and Regional Exposure

The Realtor.com 2025 Climate Risk Report highlights how insurance burdens are heaviest in Southern and coastal states. Miami homeowners lead the nation with average annual premiums of $22,718, or 3.7% of median home value. Cape Coral, Tampa, and Sarasota also appear on the list, where premiums consume more than 2% of home values.

Idaho, by contrast, does not appear in the top 100 metros with the highest insurance burdens. Nor is it among the markets most exposed to flood or hurricane wind risk. However, wildfire remains a concern.

In Idaho, where droughts and wildfires have become much more frequent and destructive in recent years, according to data from the National Centers for Environmental Information, home insurance premiums surged by 17 percent last year, Insurify found.

Nationally, 5.6% of homes—worth $3.2 trillion—face severe or extreme wildfire risk, concentrated heavily in California. Idaho’s forested regions leave it vulnerable to some of the same dynamics, though its smaller housing market has kept statewide insurance costs lower for now.

A National Affordability Concern

Idaho’s relatively low premiums stand in sharp contrast to the national conversation around affordability. The Realtor.com 2025 Insurance Affordability Report found that 75% of Americans believe homeowners insurance could soon become unaffordable, and nearly half of respondents said they had already experienced challenges obtaining or renewing policies.

Those pressures are reshaping homebuying behavior. Nearly 30% of buyers said they had completely changed their geographic search due to insurance issues, while another quarter said they had overhauled their homebuying strategy entirely. Even more alarming, 58% of homeowners said they would consider dropping insurance altogether if costs rose too high, with younger generations the most likely to take that risk.

For now, Idaho homeowners remain shielded from these affordability challenges, benefiting from some of the lowest costs in the country. But with wildfire risk looming and national premiums rising, even relatively affordable states could face new pressures in the years ahead.

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