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10 Places Where Homes Are Becoming Uninsurable Due to Climate Change

Climate change is reshaping home insurance, leaving some regions with soaring premiums and growing affordability risks.

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Updated Oct. 1, 2025
Fact check checkmark icon Fact checked

Climate change is quietly reshaping where Americans can afford to own a home. Reinsurers and private carriers are pulling back from regions with repeated catastrophes, leaving homeowners facing non-renewals, steep premium hikes, or state-run "insurer of last resort" plans that cost more and offer less. 

This matters whether you're buying, selling, or planning to relocate: insurance availability and price are now core elements of a home's long-term affordability and resale value.

To prepare yourself financially, you need to know where insurance is fraying before you buy.

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New Jersey and New York Coastal Fringes

haveseen/Adobe montauk lighthouse and beach

The Northeast saw what major storms could do in 2012. Since then, stronger nor'easters and sea-level rise have gradually increased coastal flood risk. 

Insurers in some shore towns have become more selective, and flood insurance rates for certain properties have risen. Buyers near bays and low-lying shorelines should factor insurance shock into long-term affordability calculations.

North Carolina and South Carolina

David/Adobe Charlotte north carolina skyline

The Carolinas' long coastline faces chronic hurricane risk, increasing storm surge, and chronic erosion. 

Insurers have tightened coastal exposures, and non-renewals have risen in some beach and barrier-island communities. Inland buyers should also check updated flood maps; properties once thought safe are being reclassified and repriced for insurance.

Colorado

Sean/Adobe colorado springs mountains and greenery with sun rise

Colorado's mountain communities face both wildfire and post-burn flooding risks that compound one another. 

After major fire seasons, insurers have reassessed exposure in foothill towns and mountain resort counties. Homeowners there are seeing tougher underwriting and pricier renewals tied to the cost of rebuilding in remote or difficult terrain.

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Arizona and New Mexico

TomR/Adobe sonoran desert in scottsdale arizone

Desert states are experiencing hotter, drier conditions that increase wildfire spread, even near population centers. Roof, landscape, and building-material standards are becoming competitive advantages for insurers. 

Otherwise, buyers in vulnerable foothill neighborhoods may be quoted much higher premiums or forced into more limited policies.

Oregon and Washington

somchaij/Adobe volcano mountain mt hood in oregon

The Pacific Northwest used to be thought of as mostly safe from extreme wildfire risk, but recent multi-year droughts and western fire seasons have expanded exposure into suburban and exurban communities. 

Insurers are tightening underwriting in high-vegetation zones, and homeowners near timber and brush corridors are seeing higher rates and more non-renewal notices than a decade ago.

Hawaii

Alexander Demyanenko/Adobe kauai Island adobe

Hawaii's 2023 Lahaina wildfires were a wake-up call: insurers scaled back offerings and non-renewal rates spiked. The state has passed emergency measures to stabilize the marketplace, but homeowners are still seeing rising quotes and limited capacity, especially in areas with wildfire or coastal exposure. 

Expect premiums in vulnerable ZIP codes to continue rising as carriers reassess island catastrophe risk.

Texas

jdross75/Adobe austin texas skyline during sunset

Texas homeowners face a convergence of risks: hurricanes on the coast, intense hail and tornado seasons inland, and localized flooding. 

Insurers' loss ratios climbed after major storm years and inflationary repair costs, prompting some carriers to shrink footprints or exit altogether. That has increased reliance on last-resort options and driven sharp premium volatility in coastal and some central counties.

Louisiana

Fang/Adobe Baton Rouge downtown

Repeated storms and shifting flood maps have forced steep NFIP repricings under Risk Rating 2.0, while private carriers have limited exposure in many parishes. 

Louisiana homeowners have experienced big premium swings (some facing catastrophic increases), so many now rely on state programs or pay far more for private coverage. The mix of sea-level rise and frequent tropical storms makes certain coastal ZIP codes increasingly expensive to insure.

Florida

frank peters/Adobe sunset at clearwater beach in venice florida

Florida's exposure to hurricanes and storm surge has driven private market exits and rising non-renewal rates. Homeowners who lose private coverage often end up with Citizens Property Insurance Corporation. 

Even when private carriers return, many policies carry higher deductibles and faster rate glide paths approved by regulators, and Citizens itself has been on a multi-year rate increase path designed to rebalance its book. That combination has pushed coastal and some inland buyers to rethink affordability.

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California

Luciano/Adobe laguna beach during day time

California remains the poster child for insurance retreat. After consecutive destructive fire seasons and the large 2025 Los Angeles fires, many carriers either stopped writing new policies in high-risk zones or sharply limited renewals. 

The California FAIR Plan has ballooned as an insurer of last resort, and the state asked carriers to share billions to cover claims. Homeowners in foothill and brush-adjacent neighborhoods are seeing double-digit premium jumps and fewer private options.

Bottom line

Pixelbliss/Adobe house insurance protection concept

Climate risks are reshaping the housing market, and insurance is one of the first signals that a region may be harder to afford long-term. As premiums rise or coverage disappears, buyers and homeowners alike are being forced to factor climate resilience into their financial decisions.

According to the Consumer Federation of America, home insurance premiums jumped nearly 24% over the last three years, outpacing both inflation and wage growth. Ignoring these hidden costs can be one of the most surprising financial mistakes for homeowners, especially in areas where climate change is making insurance less reliable. If you're planning to retire or relocate, be sure to factor in the cost of housing insurance before you make the leap.

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