These Are the Most Challenging Regions in the United States to Obtain Homeowners Insurance

Resulting in a significant financial dilemma.

Importance of Home Insurance

Homeowners insurance is not just a safety net in times of disaster, but a necessity for obtaining a mortgage. Without insurance, the ability to purchase a home becomes challenging, as most individuals rely on mortgages for home ownership. If an insurance carrier decides to cancel coverage, it can leave homeowners stranded. This situation not only impacts the individual homeowner but can also negatively affect the property value and the surrounding community. When entire neighborhoods face insurance coverage cancellations, the area’s overall desirability and value can decline.

Concerns Raised by Senate Report

A recent report from the Senate budget committee staff highlighted a worrisome trend of insurance carriers increasingly opting not to renew policies over the last few years. This trend poses a significant threat to homeowners, mortgage holders, and the stability of communities.

This is What’s Happening Right Now

Currently, the challenge of obtaining homeowners insurance is not limited to just coastal or wildfire-prone regions. Surprisingly, landlocked counties like those in North Carolina, Oklahoma, and New Mexico are also facing difficulties in this area. Keep reading to discover the most affected locations.

1. Florida

Ranking as the top state, Florida is no stranger to challenges, especially during hurricane season. The Home Designer highlighted a significant 280 percent rise in non-renewals in Florida from 2018 to 2023, leading to growing concerns. These concerns prompted a congressional investigation, with specific focus on Florida’s insurance industry exodus due to heightened hurricane losses and the projection of premiums skyrocketing by 40 percent or more in 2023. The escalating premiums and limited coverage are beginning to impact the Florida real estate market significantly.

2. Louisiana

Louisiana comes in second after Florida concerning the total number of insurance policy non-renewals, experiencing a 267% surge from 2018 to 2023. A study referenced in the report, conducted by the nonprofit journalism organization Grist, revealed that nearly 20 insurance companies withdrew from Louisiana’s market within the last two years.

3. North Carolina

North Carolina’s extensive coastline exposes it to hurricanes, leading to significant non-renewal rates. Surprisingly, in 2023, 13 inland counties in North Carolina ranked among the top 100 nationwide for the highest non-renewal rates for counties with a minimum of 10,000 policies in force. These counties include Cumberland, Mecklenburg, Guilford, Union, Alamance, Nash, Bladen, Lenoir, Duplin, Columbus, Robeson, Sampson, and Martin. The impact of landfalling hurricanes extends far beyond the immediate coast, affecting insurance markets hundreds of miles inland. The 2023 data did not anticipate the devastation caused by Hurricane Helene, and it is expected that non-renewal rates in these inland counties will continue to rise in response to such events.

4. California

The areas with the highest rates of non-renewals in 2023 in California were inland counties, where the risk of wildfires is elevated. However, the tragic wildfires in early 2025 demonstrated that even regions previously deemed safe are now susceptible to significant damage.

5. Massachusetts

Massachusetts, known for its coastal counties, saw a higher rate of non-renewals compared to inland areas. The report did not highlight any significant anomalies in this region.

6. Mississippi

Located east of Louisiana, Mississippi boasts a prime Gulf Coast location but also faces an annual hurricane risk. The 2023 data highlights the impact of Hurricane Ian on both states in 2021, leading to significant flooding.

7. Oklahoma

This may come as a surprise, but Oklahoma is facing some insurance challenges. Despite being land-locked, it ranked 7th out of 10 states in terms of non-renewal rates in 2023 and 5th in the highest increase in non-renewal rates between 2018 and 2023. The reason behind this is the state’s location in tornado alley. The report attributes the rise in non-renewals to severe “convective storms” causing damage from wind and hail. Additionally, Oklahoma is seeing a rise in the number of days with a high risk of wildfires each year.

8. Rhode Island

Rhode Island, known for its 400 miles of coastline, is highlighted in the report for Newport County’s rapid and recent surge in insurance unavailability, making it a prime example of coastal challenges.

9. Connecticut

Rhode Island’s neighboring state to the south, Connecticut, boasts over 600 miles of coastline and sits just below it in terms of non-renewal numbers.

10. Hawaii

Many believe that Hawaii is a place where everything comes with a higher price tag, including homeowners insurance. Recently, a growing number of residents are facing challenges when it comes to securing adequate coverage.

11. New Mexico

New Mexico, despite being far from any coastline, is experiencing a rise in non-renewals due to wildfires, similar to states like North Carolina and Oklahoma. The trend is also observed in Utah, Montana, Idaho, Colorado, Virginia, and South Carolina, where unprecedented wildfire damage is leading to an increase in non-renewals.