Severe storms seem more frequent than ever before. What does that mean for your home insurance policy?
PICS: Getty Images
It’s hard to turn on the news these days without seeing footage of a storm battering down on our coastlines, flash flooding, or downed power lines from wind.
And the storms aren’t letting up. Registered nonprofit organisation Climate Central found that billion-dollar storms, or storms that have caused damage worth more than $1 billion USD, have been increasing in both severity and frequency.
The severe storms aren’t just damaging property—they are potentially making it uninsurable, including your home. Hurricanes, hail, wildfires, and flooding are costing insurance companies billions of dollars each year. It’s now reaching the point where they are no longer willing to insure properties in regions at high risk of storm damage and flooding.
Coastal regions are at particular risk of property damage and loss. The National Oceanic and Atmospheric Administration estimates that the country’s coastlines could see up to a foot of sea level rise by 2050. This is likely to cause increased flooding, excluding flooding already brought on by storms.
Within the US, low-lying coastal areas within Florida, Louisiana, and the southern East Coast are already suffering from the impacts of more intense hurricane seasons and storms. A 2026 study by Insurify ranked Monroe County, Florida, home of the Florida Keys, as the least insurable county in the country. This is due to its high risk of natural disasters.
Insurance is one of many aspects of modern-day life being impacted by climate change. “Insurance is where many people are feeling the economic impacts of climate change first,” Environmental Defense Fund economics researcher Carolyn Kousky told The New York Times.
If a property becomes uninsurable, the consequences can be devastating. Banks are unwilling to mortgage homes without insurance. This, in turn, makes it difficult or even impossible for homeowners or potential buyers to finance or refinance. This effectively creates a cash-only buyers market and can tank property values. And if disaster does strike, uninsured homeowners are responsible for any damage repairs.
“The insurance protection gap is the canary in the coal mine for the U.S. economy, and it’s a warning rooted in the loss of nature’s protective systems. When ecosystems are degraded, communities lose their first line of defense against extreme weather,” said Marcene Mitchell, SVP of Climate Change, WWF-US.
Even if homeowners are still able to insure their property, they may face higher premiums. Homeowners insurance is assessed and calculated on a yearly basis. So, skyrocketing rates can push yearly costs to unmanageable levels for many.
Is there anything that can be done to protect homeowners already living in regions at risk of natural disasters?
If you’re considering buying a new home, take the time to do your research first. Contact some insurers early on in the purchasing process to obtain quotes. This is to make sure you’re able to get affordable insurance. Also, note that some coastal areas may also require purchase of a separate flood protection plan.
Talk to your potential neighbours, if you can, to see if they’ve had any issues with insurance or can offer any recommendations. It’s also important to check FEMA flood zone maps. These can help you predict how climate change may impact your land in the future before purchasing.
A home inspector should also look over the condition of the home. They’ll check its structural integrity and the strength of the roof. This helps you understand how well the home might fare in a disaster and suggests potential safety improvements that you could make.
If you already own your property, there may still be insurance options if you’re declined by private property insurance companies. Some homeowners are turning to last resort insurance, known in the US as FAIR (Fair Access to Insurance Requirements) Plans. These are state, rather than private, funded insurance plans designed for homeowners with no other insurance options.
As of October 2026, FAIR Plans, or a comparable equivalent, are available in 33 US states. They’re designed to provide limited, rather than comprehensive, insurance coverage to homeowners with no other options. However, they do come at a much higher cost than other insurance plans. FAIR plans usually exclude other property risks such as theft, personal liability, and water damage.
Some last resort plans reward proactive homeowners willing to make their property more resilient to disasters. This could be done through updates to the roofing, plumbing, or electricity systems.
In the rare case where you’re not able to obtain last resort insurance, it can help to contact your state’s insurance commissioner. Insurance is generally managed on a state, rather than national, level. They may be able to suggest some alternate ways of protecting your home.
On a larger scale, we need to look more at how we mitigate risk in a world increasingly impacted by coastal flooding and storms. Research by the World Wildlife Fund indicated that stronger solutions as a whole are needed when it comes to how we live in high-risk areas. This can help ensure our homes meet stringent standards so they can better cope with extreme weather.
Their research also calls for improved public and private partnerships and improved insurance regulation, providing more protections for homeowners.
And the time to take action is now, with climate change and coastal storms showing no signs of slowing down.
