Home insurance premiums are projected to skyrocket up to 14% this year in these 13 states as climate change causes an 'insurance crisis'

• Natural disasters like hurricanes are getting more destructive, thanks to climate change.
• Homeowners everywhere are feeling the impact as home insurance premiums skyrocket.
• Here are the top 13 states where home insurance premiums are expected to increase the most in 2024.

In the wake of Hurricanes Milton and Helene, homeowners across the US are facing an increasingly severe insurance crisis.

These two hurricanes are simply the latest in a growing list of natural disasters wreaking havoc across the US. Last year, 28 extreme weather events caused a total of $92.9 billion in damage nationwide.

According to Moody's RMS, which provides insurance risk management analytics, the combined losses from Hurricanes Milon and Helene could total $55 billion.

This hefty price tag will have drastic impacts on homeowners. According to the insurance company Insurify, it's actually already happening: from 2021 and 2023, homeowners saw a 20% increase in home insurance costs, and Insurify expects 2024 to bring even more price hikes.

Insurify examined weather patterns, historical premiums, local laws, state building codes, and insurer activity to find which states are seeing the biggest home insurance impact from natural disasters. As natural disasters increase in magnitude and property damage, insurance providers can become insolvent, terminate renewals on existing policies, or refuse coverage in certain states entirely. This leads to declining competition in the insurance market, and ultimately, higher premiums for homeowners.

Climate change is pushing these 13 states into an 'insurance crisis'

Florida, California, and Louisiana have been especially hard-hit in the last few years by climate disasters, and as a result, multiple insurers have declared insolvency, terminated policies, or left the state, the Insurify report said.

As hurricanes become more severe, neighboring states such as Alabama are seeing big increases in insurance prices.

Even so-called "climate havens"— typically Midwestern states insulated from severe hurricanes and wildfires — aren't safe from a climate or insurance crisis. Thunderstorms, hailstorms, tornadoes, and flooding are all causing property damage and driving up insurance costs. In fact, Insurify predicts that the Midwest will see some of the greatest insurance cost increases as insurance providers scramble to change their pricing strategies.

Luckily for homeowners in the Northeast, the effects of severe weather have not been as extreme and home insurance companies remain profitable, lessening the risk of insurance hikes. However, that doesn't mean the Northeast is safe from a future insurance crisis — flooding risk is increasing in severity, especially in Vermont, the report said.

Reducing carbon emissions and slowing climate change is of critical importance, but it could take years to see results. For many homeowners, more extreme weather, and subsequently, more expensive home insurance properties, is an imminent and inescapable reality.

"Even with mitigation efforts, American homeowners — especially in states on the verge of an insurance crisis — should expect weather-related damages to push up premiums and drive insurers out of high-risk areas in the near term," the report said.

Listed below are the 13 states with climate-induced insurance crises and their projected home insurance rate increase in 2024, according to Insurify.