The past year has seen a surge in catastrophic weather events across the U.S., with Southern California experiencing severe wildfires in January 2025, causing an estimated $150 billion in damage so far and claiming at least 11 lives. Hurricane Milton struck Florida in October 2024, causing $50 billion in damage. Hurricane Helene devastated North Carolina in September with severe flooding. While the South and Midwest have handled heat waves and tornado outbreaks.
It all makes it seem that much more pressing to make sure your insurance coverage is up to date — but for some regions, insurance may be hard to find precisely because of the natural risks typical to the area, making insurance companies averse.
If you live in a state where insurers are leaving the market, you still have options, says Loretta Worters, spokeswoman for the Insurance Information Institute.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you already have a policy with an insurer that leaves the state, you won’t lose your coverage and should be able to renew it. Worters also says that in most parts of these states, there are still insurers competing for your business.
Finding coverage can be more challenging in a high-risk region, such as a forested area recently hit by wildfires. Worters suggests first contacting a broker representing your area’s remaining insurers.
It’s possible that even if standard policies are unavailable, you could buy something called excess and surplus insurance. These policies charge higher premiums, but that’s not uncommon in high-risk areas. The premium increase is set on a case-by-case basis and depends on the level of risk in your area and your past insurance claims history, Worters says.
To offset the higher premiums, State Farm spokesman Dave Phillips recommends taking every risk-mitigation step possible, such as rebuilding your roof with fire-resistant materials and maintaining a defensible zone around your property by removing leaves, debris and other flammable materials. You may qualify for an insurance discount while protecting your home.
Finally, if you can’t buy from private insurers, state agencies such as the California FAIR Plan and Citizens Property Insurance in Florida operate as insurers of last resort. The FAIR Plan, for example, offers a basic policy that pays for damages caused by fire, lightning and smoke, Worters says.
However, these plans are expensive and offer less coverage. The California FAIR Plan costs three to four times the price of a typical homeowners policy and doesn’t include coverage for standard risks, such as earthquakes, theft and personal liability.
Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. Subscribe to help you make more money and keep more of the money you make here.
Related Content
-
ESPN to Acquire NFL Network and RedZone in Exchange for 10% Equity StakeESPN will take control of NFL Network and RedZone, while the NFL secures a 10% stake in ESPN — a move that could change how fans watch football.
-
Stocks Rally on Apple Strength: Stock Market TodayThe iPhone maker will boost its U.S. investment by $100 billion, which sent the Dow Jones stock soaring.
-
Think Twice Before Co-Signing or Guaranteeing a Lease for Your KidsIf you co-sign or guarantee a lease for your kids, make sure you understand the risks.
-
How to Guard Against the New Generation of Fraud and Identity TheftIdentity Theft Fraud and identity theft are getting more sophisticated and harder to spot. Stay ahead of the scammers with our advice.
-
12 Ways to Protect Yourself From Fraud and ScamsIdentity Theft Think you can spot the telltale signs of frauds and scams? Follow these 12 tips to stay safe from evolving threats and prevent others from falling victim.
-
Watch Out for These Travel Scams This SummerIdentity Theft These travel scams are easy to fall for and could wreck your summer. Take a moment to read up on the warning signs and simple ways to protect yourself.
-
You Need to Have This Financial Talk With Your SpouseWomen are poised to inherit significant wealth from their husbands. Here's how they can prepare for it.
-
Three Ways to Find Deals in Your Investments This YearLooking for ways to save because of tariffs? Don't forget to look for deals in your investments. Here are three expert tips for making a little extra this year.
-
Surprising Ways to Find Deals on Cars Despite TariffsLooking for a new car? Tariffs will make good deals harder to find, so use these expert tricks to get a lower purchase price and keep long-term costs down.
-
Don't Miss Out on These Four Credit Card BenefitsCredit card benefits aren't always limited to cash back, points and miles. Check whether your existing card offers these valuable extras — or switch to one that does.
