Idaho Homeowners Enjoy Some of the Lowest Insurance Costs in the U.S. — But For How Long?

Sarah Breck
Oct 30
3 min read

When it comes to owning a home in Idaho, there’s one bill that might actually make you smile (for now): homeowners insurance.While homeowners across the country are watching their premiums soar, Idaho remains one of the most affordable places to insure your home — even with our rising wildfire risks.

Let’s break down why Idaho’s insurance rates are holding steady, what’s changing behind the scenes, and how you can protect your home (and your wallet) as the climate shifts.

💡 Idaho Homeowners Insurance: The Surprising Good News

According to new data from the U.S. Census Bureau’s American Community Survey and the Realtor.com® 2025 Climate Risk Report, Idaho households enjoy some of the lowest insurance premiums in the country.

Homeowners with a mortgage typically pay $1,000–$1,499 annually for coverage.
Homeowners without a mortgage pay slightly less, averaging $800–$999 a year.
Altogether, Idaho has more than 538,000 insured homeowner households statewide.

To put that in perspective:In Montana and Wyoming, homeowners are paying closer to $1,500–$1,999 annually, while Colorado’s average is a jaw-tightening $2,000–$2,499. Idaho, meanwhile, stays comfortably in the $1,000–$1,499 range — placing it among the most stable markets in the Mountain West.

So yes — while the national headlines shout about “insurance crises” and “policy nonrenewals,” Idaho homeowners are quietly sipping their coffee in peace. ☕️

But Here’s the Catch: Wildfire Risk Is Creeping In

Before you celebrate, let’s talk about what’s simmering beneath the surface.Idaho’s forested beauty — the thing we all love about living here — also makes us vulnerable to wildfire.

Insurify found that Idaho’s homeowners insurance premiums rose by 17% last year due to increased wildfire exposure.
Droughts and heat waves have made wildfires more frequent and destructive.
Insurers have begun tightening coverage in high-risk areas, with some even declining to renew existing policies.

In other words: while Idaho remains affordable today, the warning lights are blinking.Our climate risk isn’t as severe as California’s (where some homeowners pay over $22,000 a year in premiums), but trends suggest that we may face similar pressures in the coming years — just on a smaller scale.

What This Means for Idaho Homeowners, Buyers, and Relocators

Whether you’re already a homeowner or planning a move to Boise, here’s how to stay one step ahead:

🏠 For Homeowners:

Review your insurance policy every year. Make sure coverage limits still match your home’s current replacement value.
Ask your insurer about fire-hardening discounts — some policies reward you for upgrading to non-combustible roofing or installing ember-resistant vents.
Keep documentation of improvements — it can help if you ever need to re-shop for coverage.

🏗️ For New-Construction Buyers:

Building from the ground up? You have control.Choose materials and landscaping that minimize fire risk. Builders across the Treasure Valley — from Eagle to Kuna — are starting to integrate climate-resilient design and energy-efficient upgrades that insurers love.

🚚 For Relocators:

Idaho’s affordability is one of your strongest financial advantages right now.Even if premiums tick up in the future, you’re starting from one of the lowest baselines in the country.
Factor in insurance costs early when comparing Boise vs. other relocation options — they can shift your monthly budget more than you think.

The Bigger Picture: A National Insurance Squeeze

The Realtor.com 2025 Insurance Affordability Report found that:

75% of Americans believe homeowners insurance could soon become unaffordable.
Nearly 30% of buyers have already changed where they’re shopping because of insurance.
58% of homeowners said they’d consider dropping insurance if prices rose too high (please don’t do that, by the way).

So far, Idaho has avoided the chaos. But as wildfire risk grows and national carriers reassess exposure, the landscape could shift quickly.

My Take: Stay Informed, Stay Empowered

As a relocation and new-construction specialist here in Boise, I see this every day: the most confident homeowners are the most informed ones.

Insurance isn’t the glamorous side of real estate — but it’s part of your home’s financial ecosystem. And in a market shaped by climate and construction trends, being proactive pays off.

Woman in dark clothing sits on a wooden cabinet, hands resting on lap, with a blackboard and lamp in the dimly lit room.

If you’re planning a move, building new, or simply want to future-proof your home, download my free New Construction Playbook — it walks you through smart building choices, financing strategies, and ways to protect your investment long-term.

Because when the landscape is changing, knowledge is the ultimate insurance policy.