| | Expected Annual Losses Per Person | Total Expected Annual Losses |
|---|
| Alabama | 5,014,878 | $251 | $1,258,522,551 |
|---|
| Alaska | 731,719 | $275 | $201,072,971 |
|---|
| Arizona | 7,144,933 | $65 | $463,611,382 |
|---|
| Arkansas | 3,007,951 | $254 | $765,123,389 |
|---|
| California | 39,501,350 | $385 | $15,198,194,732 |
|---|
| Colorado | 5,768,835 | $135 | $779,981,053 |
|---|
| Connecticut | 3,604,191 | $91 | $328,550,693 |
|---|
| Delaware | 989,008 | $120 | $119,146,271 |
|---|
| Florida | 21,506,751 | $416 | $8,942,382,953 |
|---|
| Georgia | 10,695,030 | $137 | $1,468,071,234 |
|---|
| Hawaii | 1,451,939 | $184 | $266,690,122 |
|---|
| Idaho | 1,837,016 | $114 | $209,463,669 |
|---|
| Illinois | 12,804,624 | $137 | $1,760,278,327 |
|---|
| Indiana | 6,779,864 | $113 | $762,901,126 |
|---|
| Iowa | 3,189,039 | $211 | $672,261,371 |
|---|
| Kansas | 2,936,286 | $219 | $642,734,014 |
|---|
| Kentucky | 4,501,790 | $173 | $778,945,347 |
|---|
| Louisiana | 4,652,126 | $547 | $2,545,476,847 |
|---|
| Maine | 1,361,498 | $114 | $155,519,056 |
|---|
| Maryland | 6,173,474 | $103 | $636,016,529 |
|---|
| Massachusetts | 7,021,936 | $84 | $592,617,634 |
|---|
| Michigan | 10,071,992 | $83 | $833,631,938 |
|---|
| Minnesota | 5,703,552 | $126 | $720,548,825 |
|---|
| Mississippi | 2,953,138 | $325 | $960,116,701 |
|---|
| Missouri | 6,147,636 | $231 | $1,417,632,451 |
|---|
| Montana | 1,082,451 | $172 | $185,942,434 |
|---|
| Nebraska | 1,960,023 | $253 | $495,643,607 |
|---|
| Nevada | 3,098,311 | $244 | $754,630,105 |
|---|
| New Hampshire | 1,377,074 | $95 | $131,040,734 |
|---|
| New Jersey | 9,282,999 | $174 | $1,613,676,521 |
|---|
| New Mexico | 2,112,636 | $113 | $238,656,341 |
|---|
| New York | 20,190,196 | $68 | $1,376,452,053 |
|---|
| North Carolina | 10,427,615 | $224 | $2,340,350,023 |
|---|
| North Dakota | 778,379 | $356 | $277,418,538 |
|---|
| Ohio | 11,793,992 | $63 | $737,432,196 |
|---|
| Oklahoma | 3,952,634 | $226 | $891,909,733 |
|---|
| Oregon | 4,229,068 | $337 | $1,427,122,137 |
|---|
| Pennsylvania | 12,994,073 | $72 | $930,885,847 |
|---|
| Rhode Island | 1,096,840 | $75 | $82,367,219 |
|---|
| South Carolina | 5,110,387 | $413 | $2,109,816,713 |
|---|
| South Dakota | 885,247 | $389 | $343,989,815 |
|---|
| Tennessee | 6,904,150 | $172 | $1,187,931,533 |
|---|
| Texas | 29,099,690 | $277 | $8,058,557,190 |
|---|
| Utah | 3,270,186 | $273 | $891,895,468 |
|---|
| Vermont | 642,541 | $75 | $48,092,503 |
|---|
| Virginia | 8,620,715 | $107 | $925,703,006 |
|---|
| Washington | 7,699,114 | $277 | $2,131,258,927 |
|---|
| West Virginia | 1,791,515 | $86 | $154,708,260 |
|---|
| Wisconsin | 5,888,183 | $100 | $591,657,336 |
|---|
| Wyoming | 576,110 | $160 | $92,100,970 |
|---|
1. Louisiana
Per capita expected annual losses: $547
Total expected annual losses: $2.5 billion
Average annual cost of home insurance (2024): $10,964
Louisiana homeowners pay more than triple the national average for home insurance, with extreme weather serving as a primary driver. Homeowners in Louisiana have to worry about danger from flooding, tornadoes, and hurricanes. In addition to standard home insurance coverage, residents in higher-risk areas of the state may need supplemental coverage for hurricane damage and a separate flood insurance policy.
Hurricanes are the most financially costly type of disaster, and eight have hit the state since the start of 2020.[3] Hurricanes account for $1.4 billion of the state’s expected annual losses, followed by river flooding, at $691 million. That includes about $99 million in expected losses from river flooding in Lafayette County alone.
Higher disaster losses cause insurance companies to provide larger payouts, and those companies tend to pass that financial burden on to homeowners through higher premiums. Louisiana has the second-highest home insurance premiums in the country, behind only Florida. Those costs put even more financial pressure on residents in a state with the third-lowest median household income.
To respond to rising risk and insurance costs, the state launched the Louisiana Fortify Homes Program in 2023, which offers a limited number of $10,000 grants for homeowners to upgrade to a more storm-resistant roof.
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2. Florida
Per capita expected annual losses: $416
Total expected annual losses: $8.9 billion
Average annual cost of home insurance (2024): $14,140
Florida’s frequent natural disasters contribute to homeowners there paying the highest home insurance premiums in the country. Researchers estimate the state faces a 35% chance of a major hurricane in 2025. Hurricanes bring wind damage and flooding, which can lead to costly repairs.
Since standard home insurance doesn’t cover weather-related flooding, many residents need additional flood insurance. In fact, Florida accounts for 38% of National Flood Insurance Program (NFIP) policies nationwide. The NRI rates 34 of Florida’s 67 counties as having very high or relatively high risk of hurricane damage.
Overall, Florida ranks second nationally for expected annual losses from natural hazards per capita. Not only is the state a hurricane hotspot, it also faces high losses from lightning, wildfires, tornadoes, and river flooding. Hurricanes are the biggest contributor to Florida’s $8.9 billion expected annual losses, at $7.7 billion, followed by tornadoes ($461 million) and wildfires ($269 million).
Actual losses have surpassed estimates in recent years. Major disasters impacting Florida have caused an estimated $240 billion in damages since 2020, with 2024 hurricanes Helene and Milton accounting for about $100 billion of those costs.
Following those storms, Florida launched the My Safe Condo program, a spinoff of the My Safe Home program. The My Safe Home program offers free wind inspections and matching grants of up to $10,000 for storm-resistant upgrades.
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3. South Carolina
Per capita expected annual losses: $413
Total expected annual losses: $2.1 billion
Average annual cost of home insurance (2024): $4,017
Homeowners in South Carolina are among the most threatened by natural disasters, mainly due to hurricane risk. Residents stand to lose the third most from severe weather on a per-person basis. Annual home insurance costs in the state are about 23% higher than the national average.
Of the state’s $2.1 billion in projected annual losses, nearly $1.5 billion would come from hurricanes. At a local level, Charleston County has the highest projected losses in the state. The costliest storm to hit South Carolina, Hurricane Hugo, made landfall in Charleston County in 1989. The storm contributed to more than 30 deaths in the state and caused nearly $23 billion in damages when adjusted for inflation.[4] [5]
To mitigate potential hurricane damage, the state has the South Carolina Safe Home Program. The initiative provides grants of up to $7,500 to coastal property owners to strengthen their homes against hurricanes and wind damage.
Other forms of severe weather affect the interior of South Carolina. Despite a relatively warm climate, South Carolina has comparatively high expected losses from ice storms, including about $33 million in projected building damage per year. Ice storms can cause a variety of problems for homeowners, putting roofs under immense strain and causing branches or entire trees to fall.
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4. South Dakota
Per capita expected annual losses: $389
Total expected annual losses: $344 million
Average annual cost of home insurance (2024): $3,596
Homeowners in South Dakota have to contend with a variety of hazards, including tornadoes, cold waves, wildfires, hail, and river flooding, among other risks. Standard home insurance coverage includes protection against tornadoes, but flood protection requires its own insurance policy.
Risk analysts project that tornadoes account for $107 million in expected annual losses in human and building costs. Minnehaha County, the most populous in the state and home to Sioux Falls, has the highest projected losses due to tornadoes. NRI analysts expect about two tornadoes to strike there every three years, or 0.7 events per year.
Hail is another major concern for South Dakota, causing a projected $35 million in damages across the state annually, according to NRI data. The hail season has reportedly grown longer in South Dakota over the past half century, up to 173 days annually compared to 138 days annually in the 1970s.[6] Again, the Sioux Falls area carries the largest share of the expected losses from hail.
Additionally, wildfires could cost the state $38 million annually, with counties in the western part of South Dakota facing the highest expected losses. Homeowners in this part of the state may have a harder time finding affordable home insurance due to some insurers declining to renew policies. Homeowners in Butte County and Fall River County, in particular, are twice as likely as other homeowners in the state to have their policy non-renewed.[7]
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5. California
Per capita expected annual losses: $385
Total expected annual losses: $15.2 billion
Average annual cost of home insurance (2024): $2,424
Wildfires remain a pressing problem for California homeowners, with the January fires in Los Angeles County serving as the most recent reminder. The Palisades and Eaton fires caused insured losses of up to $45 billion, according to a UCLA analysis.[8] Those losses will drive up insurance costs for homeowners. In the wake of the fires, state insurance officials approved a 17% rate hike for State Farm, the state’s largest home insurer. Soon after, State Farm requested a further 11% increase, citing the need to recover high losses.
Homeowners who want to prepare their homes for wildfire danger can take advantage of the Safer From Wildfires program. The program requires insurers to provide discounts for people who take certain fireproofing steps, such as installing a fire-rated roof or creating defensible space around the home.
Wildfires, however, aren’t the only risk facing California homeowners. Earthquakes, river flooding, heat waves, and tornadoes are among the most expensive hazards threatening the state. Earthquakes are the top driver behind California’s expected losses, estimated at $13.2 billion annually.
That estimate accounts for the potential of a large, outlier earthquake. In general, the state averages about two or three earthquakes large enough to cause moderate damage to buildings each year.[9] Homeowners in affected areas have to take extra financial precautions in case of earthquakes, as standard home insurance policies generally do not cover them.
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6. North Dakota
Per capita expected annual losses: $356
Total expected annual losses: $277 million
Average annual cost of home insurance (2024): $3,712
North Dakota doesn’t often grab headlines for natural disasters. But homeowners in North Dakota pay 14% over the national average for home insurance and face damage from river flooding, strong winds, hail, and winter weather.
Risk analysts have estimated the state’s annual losses from strong winds and tornadoes at more than $77 million per year. In January, the state’s insurance commissioner testified in support of a bill that would provide grants to insurers to incentivize them to expand property coverage. Commissioner Jon Godfread told the state Senate’s Industry and Business Committee that severe weather, limited insurer participation, and growing premiums make the legislation urgent.[10]
North Dakota homeowners are especially vulnerable to damage stemming from cold, as the state ranks third nationally in expected losses from winter weather. Cold weather puts homeowners at risk of burst pipes, power outages, falling trees, and roof damage from snow or ice buildup.
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7. Oregon
Per capita expected annual losses: $337
Total expected annual losses: $1.4 billion
Average annual cost of home insurance (2024): $1,617
The home insurance market in Oregon is more stable than in many states on this list. But that doesn’t mean homeowners there are immune to serious financial risks from natural disasters. Oregon is one of 15 states facing more than $1 billion in expected annual losses from hazards. The bulk of those losses comes from potential earthquake damage.
Standard home insurance policies don’t cover earthquakes. If they did, Oregon’s home insurance costs would likely be significantly higher. About 20% of Oregon residents have earthquake coverage, which people must purchase separately from home insurance.[11]
After earthquake damage, wildfire is the next most expensive threat in the state, with annual expected losses of $67 million. Oregon requires home insurance policies to include wildfire coverage. Some residents may benefit from the Wildfire Prepared program. Under the program, homeowners who certify that they’ve mitigated fire threats to their home may be eligible for discounted insurance premiums.
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8. Mississippi
Per capita expected annual losses: $325
Total expected annual losses: $960 million
Average annual cost of home insurance (2024): $4,809
Mississippi homeowners face the seventh-highest home insurance costs in the country, with vulnerability to hurricanes and tornadoes contributing to high premiums.
Hurricanes are a major concern for people in coastal counties, where homeowners pay about twice as much in premiums as inland counties.[12] Since 2020, Mississippi has faced six hurricanes that caused at least $1 billion in damage.
With overwhelming risk, some insurers are pulling back from coastal counties in the state, making it harder for homeowners to maintain coverage. Insurers non-renewed about 5% of policies in Harrison and Jackson counties in 2023.[7]
Tornadoes account for the second-largest portion of expected losses for Mississippi, at $230 million. The state has seen an increase in tornado activity in recent years, going from about 30 per year to 45, according to state insurance officials. In March 2023, a tornado outbreak near the state’s eastern border saw winds of up to 195 mph. At that speed, the winds were strong enough to toss a school bus into nearby trees and ultimately caused 20 deaths and 170 injuries.[13]
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9. Texas
Per capita expected annual losses: $277
Total expected annual losses: $8.1 billion
Average annual cost of home insurance (2024): $6,005
Texas homeowners pay the fourth-highest price for insurance of any state, facing threats from hurricanes, tornadoes, flooding, hail, wildfires, and various other forms of extreme weather. From 2020 through 2024, the state experienced 68 individual disasters that caused at least $1 billion in damage — the most of any state. Its most expensive problem, according to risk analysts, is hurricane damage.
The most significant hurricane in recent memory was Hurricane Harvey, which caused $160 billion in estimated damages in 2017. Massive flooding from the storm destroyed or damaged more than 200,000 buildings. Harris County, home of Houston, saw severe storm impacts from Harvey. It’s the nation’s only county where the NRI projects more than $1 billion in annual expected losses from hurricanes.
Homeowners away from the coast face different types of disasters, including tornadoes and hail. Those natural hazards and others contribute to Texas’ home insurance costs being nearly double the national average ($6,005 versus $3,259).
State officials have to balance the need to tamp down rising premiums without driving insurers away. Texas is a file-and-use state, meaning insurers can raise rates before state regulators approve the hike. A new bill would require regulators to approve hikes of more than 10% before implementation.[14]
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10. Washington
Per capita expected annual losses: $277
Total expected annual losses: $2.1 billion
Average annual cost of home insurance (2024): $1,854
Like Oregon, Washington has exposure to natural disasters, but the state’s home insurance costs don’t always reflect that risk. Earthquakes, which standard homeowners policies typically exclude, account for the largest share of Washington’s expected losses from disasters, at about $1.7 billion in human and building costs.
The NRI also attributes $198 million in annual expected losses from volcanoes — another disaster that strikes infrequently but could cause overwhelming financial devastation. Home insurance does cover some damages from volcanoes, such as lava flow, but not associated earthquakes or landslides.
The state’s third most costly risk comes from wildfire damage, projected at $90 million annually. In 2023, two fires in the Spokane area burned 23,000 acres and destroyed 366 homes.[15] Home insurance typically covers wildfire damage, although state insurance officials believe many of those who lost homes in the fire were underinsured.
Homeowners who want to take extra steps to prepare can look into the Wildfire Ready program, where an expert will recommend steps for fireproofing their home.
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