High-Risk Homeowners: 67% Would Weather Climate Risk for a Good Deal on a House

Climate risk isn’t enough to discourage many current and future homeowners from taking advantage of a good deal on a home, according to insights from an Insurify survey.

Despite living in areas with moderate-to-high climate risk, 54% of surveyed homeowners bought homes unaware of their risk. Insurify surveyed 1,000 Americans aged 23 and older who own or are buying a home in moderate-to-high risk areas to learn how they perceive and experience climate risk. Among the remaining 46% who knowingly bought in risky areas, 48% reported later suffering severe weather damage to their property.

Still, more than two-thirds (67%) of surveyed current or future homeowners said they’d be willing to navigate severe weather if it means getting a good deal on a home.

Homeowners in high-risk areas are taking steps to insure against the probable risk of weather-related damage: 88% of surveyed homeowners without a mortgage have some home insurance, despite no requirement to maintain coverage.

But these homeowners may need additional coverage, like flood insurance, for complete protection. Close to half (46%) of surveyed homeowners who reported damage said their insurer didn’t fully cover their most significant insurance claim. As severe weather makes certain areas risky for companies to insure, insurance costs may affect who can afford to live there.

Key findings

• Risk appetite varies by peril: 41% of respondents to Insurify’s survey said they’d navigate severe thunderstorms for a good deal on a home, 36% said the same of hurricanes, and just 9% said they’d deal with wildfire risk. Severe thunderstorms and hurricanes caused a combined $93 billion in insured losses in 2024, and the Los Angeles wildfires alone caused $40 billion in insured losses this year, according to Munich Re.

• More than half of surveyed homeowners (54%) think the potential restructuring of the Federal Emergency Management Agency (FEMA) could affect them: 35% believe it may influence how quickly they receive assistance after a disaster, and 25% think it could reduce the support available to protect their home.

• Surveyed homeowners with a mortgage are more willing to navigate risk than homeowners without one: 72% of homeowners with a mortgage said they’d navigate severe weather for a better deal on a house, versus 62% of homeowners without a mortgage.

• Rising home insurance costs in high-risk areas can make a good deal on a home not so good: The average annual cost of home insurance in Florida is $14,140, per Insurify data.

• Just 35% of survey respondents said they could easily afford their insurance deductible if their home needed to be rebuilt due to damage from severe weather. And 43% said they could manage, but it would strain their finances or significantly deplete their savings.

46% of homeowners knew they were buying in areas with severe weather risks

From 2015 to 2024, the U.S. faced 172 different billion-dollar disasters due to flooding, severe storms, tropical cyclones, and wildfires, according to the National Centers for Environmental Information (NCEI).^[1] Fifty of those disasters occurred in 2023 or 2024, surpassing $252 billion in total losses.

Seemingly “rare” events have begun to feel routine to homebuyers living or looking to buy in some parts of the country. Nearly half of surveyed homeowners (46%) were aware of severe regional weather risks when buying homes, and 22% didn’t think it would be an issue for them.

But 48% of homeowners who were aware of weather risks ended up dealing with weather-related home damage, according to Insurify’s survey.

Regulators are making an effort to increase risk awareness for new homebuyers.

States like Florida, New York, and Texas have tightened flood disclosure requirements. And new, online tools are available to help homebuyers understand a property’s risk before closing.^[2] Still, climate risk is changing, and 7% of surveyed homeowners who were unaware of weather risks when they bought said risks in their region got worse after they bought their house.

“When we bought our home 50 [years ago], we had not seen how bad a hurricane could be — like Andrew,” one surveyed Florida homeowner wrote.

The southern part of the country remains the fastest-growing region of the U.S., according to the U.S. Census Bureau.^[3] In Florida, some people are moving inland away from the risks associated with coastal flooding and storm surges, according to Cotality’s 2025 Hurricane Risk Report.^[4] But American homeowners continue to dream of Florida’s warm weather and white sand beaches despite the probability of destructive storms.^[5]

54% of homeowners in at-risk Southern counties are willing to navigate hurricane risk for a good deal on a home

When it comes to climate risk, homeowners are more willing to tolerate conditions they already have experience with.

Hurricanes caused $52 billion in insured losses in 2024 alone, according to Munich Re.^[6] And Southern homeowners were more likely to have sustained hurricane damage to their property (32%) than Northeastern homeowners (11%). Despite that, 54% of Southern homeowners say they would navigate hurricane risk for a good deal, versus 28% in the Northeast, according to the survey.

Since climate risks can significantly influence the cost of homeownership, accepting this risk for a lower home price is far from a guaranteed money-saver, as exorbitant home insurance premiums may price some buyers out of certain areas.

Most homeowners facing these risks are insured: 86% of surveyed homeowners who’ve experienced hurricane damage have home insurance. But standard home insurance doesn’t cover flood damage — often the most destructive element of a hurricane. And some policies in high-risk areas may have a separate deductible for wind damage.

Florida, for example, is the least affordable state for homeownership and has some of the highest home insurance costs in the country, according to a recent Insurify report.

Florida’s average annual home insurance premium for $400,000 of dwelling coverage is $14,140, per Insurify’s home insurance report. Sunshine State homeowners may also have a deductible of up to 10% for hurricane coverage.^[7] For $400,000 of dwelling coverage, a 5% or 10% deductible means homeowners will pay $20,000 or $40,000 out of pocket before insurance begins covering costs if a hurricane completely destroys the house.

That may be too much for many people, as 19% of surveyed Florida homeowners said they can’t afford their insurance deductible. Another 31% said they could, but it would strain their finances. After Hurricane Milton, insurance companies closed 40,684 homeowners’ insurance claims without payment because the cost of the damage was below the deductible amount, according to Florida’s Office of Insurance Regulation.^[8]

Nearly three-quarters (74%) of surveyed homeowners who reported hurricane damage said the most significant weather event to affect their house caused up to $30,000 of damage, meaning living in hurricane-prone areas forces homeowners to face higher premiums and out-of-pocket costs for deductibles.

It’s been almost three years since Hurricane Ian, and while Southwest Florida is rebuilding, the beach still doesn’t look the same, AccuWeather Public Relations Manager Bill Wadell told Insurify.

“A lot of it comes down to your wallet. … You’ve got to have deep pockets right now to rebuild in these areas that have been hit hard by weather disasters,” he said. “For some people and businesses, it’s worth the expense. That’s the cost of life at the beach. … But when you’re talking about the single-family homes … I don’t see a lot of those being built back in those high-risk areas.”

58% of homeowners were willing to brave the risks of severe thunderstorms

Nearly half (41%) of survey respondents said they’d be willing to navigate severe thunderstorms for a good deal on a home. Just 19% said they’d navigate hailstorms, and 14% said tornadoes — both possible features of severe thunderstorms.

Losses from severe convective storms, also called severe thunderstorms, include damage from straight-line winds, tornadoes, and hail. Convective storms are not as destructive as hurricanes but occur more frequently in affected areas, causing losses to add up.^[9]

Severe thunderstorms affect a much larger area of the U.S. than hurricanes. They’re primarily concentrated in the Midwest, South, and Northeast but also affect parts of the West, according to the National Weather Service.^[10]

More than half (58%) of surveyed homeowners who knew of area climate risks when they bought their homes were aware of severe thunderstorm risk. About a quarter were aware of tornadoes (27%) and hailstorms (25%).

Hail is significantly affecting insurance costs in states like Oklahoma, Colorado, Texas, Nebraska, and Kansas, which are all among the 10 most expensive states for home insurance, according to Insurify’s home insurance report. Hailstorms are also contributing to double-digit rate increases in certain states, as Insurify projects home insurance rates will increase by 19% in Iowa and 15% in Minnesota by the end of 2025.

Tornado risk is also driving up premiums in many of the same states, as well as Alabama and Arkansas. Homeowners in areas with severe wind and hail risk may also have separate, higher deductibles for related damage.

Increasing atmospheric moisture is amplifying storm intensity, leading to larger hail, stronger winds, and more destructive tornadoes, according to Cotality’s 2025 Severe Convective Storm Risk Report. In 2023, severe thunderstorms were the main contributor to U.S. insured losses, adding up to more than $50 billion in total losses, according to Swiss Re.^[11] Severe thunderstorms alone were responsible for $41 billion in U.S. insured losses in 2024, according to Munich Re.

“The future cost to maintain or repair your home is invisible to most homebuyers, and risk factors are often overlooked,” Tom Larsen, senior director of insurance solutions at Cotality, told Insurify. “There are good deals to be had on homes. The prudent homebuyer today leverages their access to proactive hazard and risk assessment insights to be informed and make the best decision.”

Just 9% of homeowners would deal with wildfire risk if it meant paying less for a house

As with hurricanes, a significant human and financial toll often follows a wildfire that burns through populated areas. Yet only 9% of surveyed homeowners said they’d navigate the risk if it meant a good deal on a home, far less than those willing to deal with hurricane risk.

California has the most homes and the highest reconstruction value with a moderate or greater wildfire risk, according to Cotality’s Wildfire Risk Report 2025.^[12] Strict insurance regulation has meant wildfire risk hasn’t affected California’s home insurance rates in the same way hurricane risk has affected costs in states like Florida and Louisiana.

This may change soon, though, as California insurance regulators recently approved new predictive risk modeling so insurers can estimate future climate risks when pricing premiums.^[13] Before that, insurers could assess only past data, which has become less useful as climate risk continues to shift toward more severe outcomes.

Insurify projects Golden State home insurance costs will rise 21% by the end of 2025 to an annual average of $2,930, with predictive analytics playing a role in the cost increases.

But wildfire risk is far from just a California problem. Colorado has more than 318,000 homes and $146 billion of reconstruction value at a moderate or greater wildfire risk, Cotality data shows. Colorado also has the fourth-highest home insurance costs in the country, averaging $5,984 per year, according to Insurify data.

In 2023, the deadliest American wildfire in more than 100 years devastated parts of Hawaii’s Maui Island. The Lahaina Wildfire caused more than $3.4 billion in total losses and more than $1.6 billion in insured losses, according to the Hawaii Department of Commerce and Consumer Affairs.^[14] As Hawaii insurers attempt to recover from those major losses, Insurify projects a 17% increase in average home insurance costs to $1,548 annually by the end of 2025.

A standard homeowners insurance policy covers fire damage, even from a wildfire. But in areas with high wildfire risk, home insurance policies may exclude wildfire damage, meaning homeowners have to find that specific coverage elsewhere if they want protection.

“A pretty consistent answer when you talk to people whose homes were burned is that their home burning was inconceivable,” Larsen said. “Yet … it does happen, so insurance for wildfires is really preparing for the inconceivable. Wildfires, versus many other perils, are typically a full loss. So that means having adequate insurance to restore the home to what you had before.”

That’s among the essential factors that determine what happens after a disaster.

“When it comes to these areas affected by storm surges or wildfires, if you do not have very significant wealth and good insurance coverage, it is very difficult for most people to rebuild,” Wadell told Insurify.

54% of homeowners expect that the potential restructuring of FEMA may affect them

In the aftermath of Hurricane Katrina, FEMA underwent significant changes to ensure the agency can deliver aid with expertise and efficiency and help communities prepare before disasters hit. But the Trump administration is reorganizing away from some of those changes.

In January, the administration announced a full-scale review to recommend improvements or structural changes to “promote the national interest and enable national resilience.” Between 2020 and 2024, about 78% of FEMA relief funds distributed went to states President Trump carried, according to a recent Insurify analysis.

More than a third (35%) of survey respondents think any potential restructuring of FEMA could affect how quickly they receive disaster assistance. And 25% believe it may reduce the support available to protect their home.

Florida and Louisiana, which have the highest average home insurance rates in the U.S., received the most FEMA relief from 2020 to 2024, but California, Georgia, New York, North Carolina, and Texas also received more than $1 billion each in disaster assistance.

Nearly a third (31%) of surveyed homeowners in areas with moderate or greater hurricane, flooding, or wildfire risk reported receiving FEMA assistance. This assistance can be critical when it comes to flood risk because 80% to 90% of at-risk households are underinsured or without coverage, according to a report from private flood insurer Neptune.^[15]

Even with insurance, 43% of survey respondents said they could afford their deductible, but it would strain their finances or significantly deplete their savings.

Tips: How homeowners can navigate and withstand severe weather

Though climate risk is reshaping who can afford to buy and stay in some parts of the U.S., certain areas remain desirable despite the risk. Investing in stronger, more resilient construction can change the game for homeowners who want to remain in higher-risk areas.

A University of Alabama study found that homes with roofs or upgrades built to the FORTIFIED standard from the Insurance Institute for Business and Home Safety suffered significantly less damage from Hurricane Sally in 2020.^[16] In addition, home-hardening measures, such as rebuilding or renovating a home with fire-resistant materials like non-combustible siding or installing storm shutters and hurricane-proof doors, can help prevent costly damage.

“The future cost to maintain or repair your home is invisible to most homebuyers, and risk factors are often overlooked,” Larsen said. “Building design, especially risk-mitigation features, silently work as guardians of your home — and their absence leaves the home susceptible to elevated damage levels from an event.”

Homeowners should review their insurance policies to confirm they have sufficient coverage, back up important documents digitally, and photograph or video their property before disaster strikes to simplify insurance claims, Steve Leasure, vice president of operations at Rainbow Restoration, told Insurify.

“Disasters often leave physical destruction and emotional strain on families and communities, as loss of homes, belongings, and stability weighs heavily,” Leasure said. “[We’ve] seen how proactive preparation lessens the toll and how timely restoration helps families regain a sense of normalcy faster.”

Marshall Moss, Accuweather senior meteorologist and senior director of strategic projects, told Insurify that preparedness is key. While the weather warnings can be overwhelming, fires can escalate in minutes. This year’s warm waters can lead to rapid storm intensification, so homeowners in at-risk areas should have a go-bag ready, he said.

“Nobody that I talked to after Helene was expecting this. … I have yet to meet someone in a disaster zone who said, ‘Yes, I expected this disaster,’” Moss said. “Even people who thought they were prepared — preppers in the mountains — when those people admit they were not prepared enough, it’s a wake-up call. We all need to do a better job of being prepared.”

Methodology

The proprietary data featured in this study comes from an online survey that Insurify commissioned. The survey respondents comprised 1,000 U.S. residents aged 23 and older who live in a county with a very high, relatively high, or relatively moderate FEMA estimated annual loss risk index for hurricanes, wildfires, coastal flooding, or riverine flooding, including 960 who self-reported as homeowners and 40 who reported as being in the homebuying process. Respondents answered up to 15 questions about their views on climate risk and homeownership. The survey fieldwork took place from Aug. 7 to Aug. 12, 2025.

Insurify’s team of data scientists analyzed millions of home insurance quotes from partner carriers and aggregated rate filings from Quadrant Information Services to determine average home insurance rates. Unless otherwise noted, rates in this report represent the average cost of an HO-3 insurance policy for homeowners with good credit and zero claims within the past five years, covering a single-family frame house with the following coverage limits: $400,000 dwelling, $25,000 personal property, $30,000 loss of use, $300,000 liability, a 5% wind deductible, 2% hail deductible, and a $1,000 general deductible. The 2025 prices reflect rates as of July 2025.

For media inquiries or questions about our study, please contact the author here.