Soaring Homeowners Insurance Costs Price Out Residents in High-Risk U.S. Cities

In many coastal U.S. cities, it’s not just hurricanes, wildfires, and floods putting homes at risk—soaring insurance costs are creating a crisis of their own.

Two decades after Hurricane Katrina and following recent disasters in California and Texas, protecting a home from climate-related events has become increasingly expensive and, in some areas, nearly unsustainable.

A recent analysis shows that over a quarter of U.S. homes—representing $12.7 trillion in value—face high risk from hurricanes, wildfires, or floods. In the cities most exposed to these threats, insurance premiums have skyrocketed, making homeownership a heavy financial burden.

For example, a house worth $400,000 with an annual insurance bill of $5,000 carries a premium-to-market value ratio of 1.25%, meaning homeowners pay a significant portion of their home’s value just to remain insured.

Some of the hardest-hit cities include: