Climate change is making homes uninsurable. How is your state affected?

As climate change worsens, a property insurance crisis is unfolding across America.^1,2 From rising costs to dropped policies, insurance is becoming both unaffordable and unavailable for homeowners in vulnerable areas.^3,4 In this post, we’re taking a look at three key factors - premiums, nonrenewals, and withdrawals - and how they’re distributed on a state-by-state basis.

Home Insurance Premiums

As disasters become more frequent and costly,⁵ insurers have aggressively increased premiums to maintain their profits.⁶ Homeowners who can’t afford to shoulder the cost are faced with a difficult choice; going without coverage, or leaving their homes behind and potentially selling at a loss.³

A 2025 report from the National Bureau of Economic Research found that average home insurance premiums have risen over 30% since 2020, while regions at risk from climate-fueled disasters saw much larger increases.

Benjamin Keys and Philip Mulder, the authors of the study, have called these swift changes “a reinsurance shock.” For some Americans, these changes have made it unaffordable to remain in homes they have lived in for decades.

“Homeowners don’t appreciate or don’t understand that we are living in a much riskier world than we were 25 years ago,” Dr. Keys said. “And that risk? They have to pay for it.”³

We’ve visualized that data below; this map shows average yearly home insurance premiums by state from 2020 through 2024. (You can read more about this report here; this data is also available in our free collection of climate risk maps.)

This table shows premiums and rate increases between 2014 and 2024. (You can click on any column to sort by that value.)

Home Insurance Nonrenewals

When the cost of disasters rise, insurers may choose to drop homeowners once policies expire.⁸ State-run insurance (FAIR) plans have been launched to cover the gap, also known as “insurers of last resort.”⁹ But these plans are often more expensive (and provide less coverage) than commercial options, and are themselves at risk of bankruptcy when disaster strikes.¹⁰

A 2024 report by the Senate Budget Committee found that over 1.9 million home insurance contracts have been dropped since 2018, with climate change identified as a primary driver.¹¹ Nonrenewal rates surged over 20% between 2018 and 2023, showing how rapidly this crisis is escalating.¹¹

We’ve visualized that data below; this map shows home insurance nonrenewal rates by state from 2020 through 2023. (You can read more about this report here; this data is also available in our free collection of climate risk maps.)

This table shows nonrenewal rates by year, along with 6-year averages. (You can click on any column to sort by that value.)

Insurer Withdrawals

In some cases, insurers have chosen to withdraw from states entirely.¹² This is often due to a combination of disaster risk and state insurance regulations, both of which can make it unprofitable to maintain policies.¹²

“Climate-caused uninsurability has the potential to trigger cascading failures that undermine our entire economy,” Senator Sheldon Whitehouse, Democrat of Rhode Island and the committee chairman, said in a statement.

Banks typically require insurance when writing a mortgage. If insurance becomes unavailable in a particular community, it becomes hard for most potential buyers to purchase a home, leading to a drop in real estate values. Mr. Whitehouse compared the accelerating withdrawal of insurance companies with the 2008 housing crash, saying a broad insurer pullback “will have similarly grave economic effects.”¹²

In the map below, we’re tracking instances where major insurers have limited or discontinued home insurance policies on a statewide level. (Last checked as of January 2026; we’ll be continually updating this map as new data emerges.)

Below is a list of withdrawals mapped above, along with references.

California: AIG,¹³ Allstate,¹⁴ Chubb,¹⁴ Farmers,¹⁴ Liberty Mutual,¹⁵ Nationwide,¹⁴ State Farm,¹⁴ Travelers,¹⁴ USAA¹⁴
Colorado: AIG¹³
Delaware: AIG¹³
Florida: AAA,¹⁶ AIG,¹³ Farmers,¹⁷ Progressive¹⁸
Idaho: AIG¹³
Louisiana: AIG¹³
Montana: AIG¹³
New York: AIG¹³
North Carolina: Farmers,¹⁹ Nationwide²⁰
Texas: Farmers,²¹ Progressive²²
Wyoming: AIG¹³

Footnotes & References

The Uninsurable Future: The Climate Threat to Property Insurance, and How to Stop It (Dave Jones, The Yale Law Journal)
Climate change is upending homeowners insurance nationwide (Bill Ainsworth, Susan Milligan, Harvard Business School)
A Climate ‘Shock’ Is Eroding Some Home Values. New Data Shows How Much. (Claire Brown, Mira Rojanasakul, The New York Times)
Insurers Are Deserting Homeowners as Climate Shocks Worsen (Christopher Flavelle, Mira Rojanasakul, The New York Times)
U.S. Billion-Dollar Weather and Climate Disasters (Climate Central)
US insurers’ profits double as price rises exceed extreme weather claims (Lee Harris, Financial Times)
Property Insurance and Disaster Risk: New Evidence from Mortgage Escrow Data (Benjamin Keys, Philip Mulder, NBER)
California isn’t the only place where insurers are dropping homeowners (Todd Frankel, Washington Post)
State insurers of last resort: How FAIR plans work and which states have one (Mel Duvall, Insurance.com)
Will California’s FAIR Plan Have Enough Cash for Its Wildfire Claims? (L.S. Howard, Insurance Journal)
New Data Reveal Climate Change-Driven Insurance Crisis is Spreading (Senate Budget Committee)
As Climate Shocks Grow, Lawmakers Investigate Insurers Fleeing Risky Areas (Christopher Flavelle, The New York Times)
Home Insurers Curb New Policies in Risky Areas Nationally (Jean Eaglesham, The Wall Street Journal)
These California Insurers Cut Policies Before Devastating Wildfires (Giulia Carbonaro, Newsweek)
California Major Insurer Cuts All Condo and Rental Policies (Aliss Higham, Newsweek)
AAA Joins List of Insurers Restricting Coverage in Florida (Esther D’Amico, Kiplinger)
Farmers Insurance Further Reducing Florida Business (William Rabb, Insurance Journal)
Progressive Drops Some Agents, Non-Renews 100,000 HO and DP Policies in Florida (William Rabb, Insurance Journal)
Farmers Insurance to Pull out of North Carolina Homeowners’ Market (Brian Kern, Insurance Journal)
Agents, Insureds Said Surprised by Nationwide’s 10,000 Nonrenewals in NC (William Rabb, Insurance Journal)
This major home insurance provider is scaling back renewing some policies in Texas (Erica Grieder, James Osborne, Houston Chronicle)
Texas Home Insurance Problem Worsens As Insurer Halts New Policies (Giulia Carbonaro, Newsweek)