Just weeks into the 2025 hurricane season, residents of numerous U.S. coastal cities are facing a new threat: the emerging homeowners insurance crisis. “Insurance companies don’t want to have to pay out. They would much rather insure homes in less-risky areas since their likelihood of having to pay out is far less.” says Adam Hamilton, CEO of REI Hub.
Beyond leaving countless homeowners vulnerable, provider drop-outs have broader implications for the nation’s housing market, particularly regarding the insurability of homes currently for sale in and around these high-risk areas.
We assessed the resilience of 117 coastal cities by analyzing natural disaster declaration data from the Federal Emergency Management Agency (FEMA), the Census, Zillow, Quadrant Information Services, and the Bureau of Economic Analysis. We considered the number of natural disaster declarations, homeowners insurance premiums, and economic indicators of beach towns located within five miles of the U.S. coastline or connected waterways to understand the impact of storms in these areas. We collaborated with industry experts to weigh in on the current insurance crisis and the impact of coastal resilience to homeowners nationwide.
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Key Takeaways
- North Miami, FL, ranks as the least resilient coastal city in America, with 11 FEMA disaster declarations in the past 10 years, an average home age of 55 years, and a high insurance premium of $4,704.
- Ten out of the top 15 least resilient coastal cities are located in Florida, underscoring the state’s disproportionate exposure to hurricanes and flooding.
- The average insurance premium of the 15 least resilient cities is $3,901, while the average for all cities we analyzed was $2,681.
- Total insured losses over the past decade and a half have increased by over 400%, from $15.36 billion in 2009 to $79.65 billion in 2023, according to the Joint Economic Committee.
- Wilmington, North Carolina, rivals some Florida coastal cities in terms of risk and exposure, and has an annual insurance premium of $6,314 – the highest of the 15 least resilient cities.
The 15 Least Resilient Coastal Cities
The following 15 cities are the least resilient in terms of not only their ability to recover quickly from a natural disaster, but also the depth of risk each faces during that recovery, as indicated by FEMA’s National Risk Index (NRI). Homeowners in these 15 cities pay an average insurance premium of $3,901. Two-thirds of the cities listed below, including North Miami, the least resilient city, are located in Florida, a state increasingly exposed to hurricanes and subsequent flooding.
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15. Largo, FL
Within the past decade, Largo has seen 13 FEMA hurricane declarations and one severe storm declaration. Largo’s expected annual loss from a hurricane is $3,475,905 per 1,000 people, while the average annual homeowners insurance policy is $3,140. The NRI characterizes Largo, Florida’s risk as relatively high, with a very high risk of hurricanes, relatively moderate risk for coastal flooding, and very low community resilience.
14. Mount Pleasant, SC
One FEMA flood declaration and 11 hurricane declarations reflect Mount Pleasant’s very high risk of hurricanes, according to the NRI, which also indicates a relatively moderate risk for riverine flooding and wildfires. The expected annual loss per 1,000 people for a hurricane is $3,865,758, which is $389,853 more than in Largo, FL. Insurance premiums average $2,042 annually, less than half the average annual premium of North Miami, the least resilient coastal city.
13. Bonita Springs, FL
Homes in Bonita Springs, Florida, average 27 years of age, with annual insurance policies costing homeowners the most so far, an average of $3,728. The expected annual loss in the event of a hurricane is more than twice that of Largo, at $7,075,079 per 1,000 people. Bonita Springs has had 10 FEMA hurricane declarations in as many years, with a very high risk of hurricanes and a relatively high risk of riverine flooding and wildfires, per the NRI.
12. Wilmington, NC
Wilmington’s risk of hurricanes is very high, with 9 FEMA hurricane declarations within the past decade. Annual homeowners insurance costs residents $6,314, though the expected annual loss—$2,087 or $175 per 1,000 people—is less than that of the listed coastal cities thus far. Wilmington ranks relatively high in risk overall per the NRI, despite only a relatively moderate risk assessed for wildfires beyond its very high risk of hurricanes.
11. Boca Raton, FL
Twelve FEMA hurricane declarations over the past 10 years have driven the average annual homeowners insurance policy up to $3,798 in Boca Raton, Florida. In this coastal city, there is a very high hurricane risk, a relatively high risk of riverine flooding and wildfires, and relatively low community resilience. Per 1,000 people, the expected annual loss for a hurricane is $8,740,106.
10. Metairie, LA
FEMA has declared 13 hurricanes and three coastal storms in Metairie within the past decade. The expected annual loss per hurricane is relatively low at $1,326,588 per 1,000 people; however, the average annual homeowners’ insurance policy costs $3,751. The NRI indicates a relatively high risk of hurricanes, with a relatively high risk of riverine and coastal flooding.
9. Pompano Beach, FL
The average annual homeowners insurance policy in Pompano Beach costs residents $4,020. A very high risk of hurricanes, a relatively high risk of wildfires, and a relatively moderate risk of riverine flooding characterize the city, where FEMA has declared 12 hurricanes and one flood over the past decade. The hurricane expected loss totals $7,974,506 annually per 1,000 people.
8. Pinellas Park, FL
Located between Clearwater and St. Petersburg, Pinellas Park experiences a very high risk of hurricanes, a relatively moderate risk of coastal flooding, and very low community resilience, per the NRI. Twelve FEMA hurricane declarations over the past decade have pushed the hurricane expected annual loss to $5,368,156 per 1,000 people. Homeowners pay an average of $3,070 in insurance annually.
7. Boynton Beach, FL
Expected annual loss due to a hurricane in Boynton Beach is nearly double that of Pinellas Park, at $10,717,124 per 1,000 people. The same number of FEMA hurricane declarations as Pinellas Park, 12, have pushed the average homeowners insurance policy to $3,891 annually in Boynton Beach. In addition to a very high risk of hurricanes, this Florida city experiences a relatively high risk of riverine flooding and wildfires, with an NRI evaluation of relatively low community resilience.
6. Delray Beach, FL
Delray Beach’s expected annual loss—of $12,904,256 per 1,000 people—is the fourth-highest among the top 15 least resilient coastal cities. Similar to Boynton Beach and Pinellas Park, Delray Beach has seen 12 FEMA hurricane declarations within the last decade. The NRI indicates a very high risk of hurricanes, a relatively high risk of riverine flooding and wildfires, and relatively low community resilience, and annual homeowners insurance policies average $3,959.
5. Jupiter, FL
Jupiter ranks the highest among the top 15 cities for expected annual loss of $14,138,352 per 1,000 people due to hurricanes. FEMA has declared 12 hurricane disasters in Jupiter within the last 10 years, and the area has relatively high riverine flooding and wildfire risk. Homeowners pay an average of $3,406 annually for their insurance policies.
4. Deerfield Beach, FL
The NRI assessment of Deerfield Beach identifies a very high risk of hurricanes, a relatively high risk of wildfires, and a relatively moderate risk of riverine flooding. Deerfield has had one FEMA flood and 12 hurricane declarations within the last decade, and the expected annual loss costs $10,316,056 per 1,000 people. The average homeowners insurance policy costs Deerfield Beach residents $3,974 annually.
3. Kenner, LA
The annualized cost per 1,000 residents for coastal flooding in Kenner, Louisiana, ($157,291) is nearly twice that of Metairie ($73,684), the city with the next-highest expected annual loss from coastal flooding. However, the average homeowners insurance policy costs $3,779 annually, and the hurricane expected annual loss averages $2,831,833 per 1,000 people. The NRI indicates a relatively high risk of coastal flooding, hurricanes, and riverine flooding.
2. Baytown, TX
In the past decade, Baytown had the highest number of FEMA flood disaster declarations (4), alongside four hurricane declarations and one severe storm declaration, among the top 15 cities. Expected losses due to hurricanes total $13,652,885 annually per 1,000 people, while the average homeowner pays $4,942 annually for insurance coverage. The NRI’s assessment of Bayton’s very high risk of hurricanes and riverine flooding became a reality in 2017 with Hurricane Harvey and the resulting above-average rainfall. Two-thirds (66%) of all properties in Baytown are at risk for major flooding, according to First Street.
1. North Miami, FL
Topping the list of the 15 least resilient coastal cities in the U.S. is North Miami, a Florida city that bears a very high risk of hurricanes and riverine flooding, according to the NRI. A total of 10 FEMA hurricane declarations in as many years informs the hurricane expected annual loss figure of $13,995,550 per 1,000 people. Homeowners insurance in North Miami costs residents an average of $4,704 annually.
In addition, the aged housing stock in North Miami puts homes at greater risk for building damage and loss, while driving up homeowners premiums. North Miami has the most aged housing stock compared to other cities in the top 15 least resilient coastal cities (an average of 55 years versus the average of 51 years across all 117 cities).
Where Does North Carolina Land?
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Wilmington and Jacksonville, North Carolina, appear on the list of least resilient coastal cities in the U.S., both with nine FEMA hurricane declarations in the past decade. Homeowners insurance in Wilmington averages $6,314 annually, the highest among the top 15 least resilient coastal cities. Jacksonville’s average annual premium of $5,010 is $1,109 more than the average annual premium among the top 15 coastal cities, but still $1,304 less than Wilmington’s yearly premium.
In addition, Wilmington ranks higher based on a $489 greater expected flooding loss per capita ($1,318.66) compared to Jacksonville ($829.66), despite the latter having a higher expected annual loss to hurricanes ($2.59 billion) than the former ($2.09 billion). Regardless, both figures indicate how significantly hurricanes and flooding affect these North Carolina cities, yet the disparity in downpayment-to-income ratios between Jacksonville and Wilmington provides greater insight into the local economy and affordability. Wilmington’s downpayment-to-income ratio tops that of Jacksonville, at 51.7% and 36.2%, respectively.
Furthermore, forecasts for the above-average 2025 Atlantic hurricane season, combined with the devastating effects of past storms on the sandy coastline, may cause more North Carolina cities to join this list. The National Oceanic and Atmospheric Administration’s (NOAA) National Weather Service anticipates landfall of anywhere from 13 to 19 named storms this year, with three to five of those storms expected to evolve into major hurricanes. While coastal resilience programs such as Beach Nourishment and Sand Sifting & Redistribution work to restore and preserve the natural sand dunes, these projects require extensive community resources and supplementary natural resources (i.e., more sand).
Is the Home Insurance Crisis Coming to NC?
Coastal North Carolina may be on the brink of a homeowners insurance crisis- following states like Florida, California, Texas, and Arizona. North Carolina’s recent legislature undermines climate resilience. Specifically, House Bill 488 works against climate resilience initiatives like updating building codes and banning inspection of “exterior sheathing in structures exposed to winds of 140 mph or less,” according to CoastalReview.org.
The “rare” natural disasters traditionally covered by homeowners insurance have become increasingly common in the last decade. These increases cause the carefully woven web of insurance coverage to unravel as insurance providers pay out more frequently and in larger amounts than they have in the past. Total insured losses across the nation in 2023 nearly hit $80 billion, more than five times the $15.36 billion in insured losses in 2009, according to the Joint Economic Committee.
In response to these conditions, insurance carriers have begun issuing nonrenewal notices that limit their liability, leaving homeowners in one of three positions: uninsured, underinsured, or paying significant premiums for any coverage they can obtain, despite a potential reduction in that coverage. In addition, more homeowners are forced to draw on Fair Access to Insurance Requirements (FAIR) policies, which puts added strain on these state-funded resources.
One of the more surprising characteristics of these nonrenewal notices is that they’re not necessarily isolated to natural disaster-prone areas, but spread across much of the U.S. For example, although the entire state of North Carolina may not have been directly hit by Hurricane Helene, the storm still caused excessive rainfall and severe flooding. Despite claiming a profit in nine of the last 10 years, per the Center for International Environmental Law, the North Carolina Rate Bureau proposed increasing rates anywhere from 42.2% to 99.4%; however, the Insurance Commissioner reached an agreement with the North Carolina Rate Bureau to reduce home insurance rate increases to 7.5% for the next two years, according to the North Carolina Department of Insurance.
Methodology
To understand the resiliency of coastal areas, this analysis combines data from the Federal Emergency Management Agency, U.S. Census American Survey, Zillow, Quadrant Information Service, and the Bureau of Economic Analysis to evaluate disaster risk, housing characteristics and affordability, and insurance costs.
- Identifying Coastal: We focused on communities located within 5 miles of the U.S. coastline or a connected body of water. This was established using geospatial data from the U.S. Census TIGER/Line files.
- Disaster Risk Assessment: To measure risk exposure, frequency, and annual losses, we used FEMA data on disaster declarations from the past 10 years, specifically focusing on events related to coastal flooding, hurricanes, and tsunamis.
- Housing Data: To capture home values & characteristics, we combined Zillow Data and the 2023 American Community Survey (5y ACS) to see home value, home age, and rental prices.
- Insurance Estimates: Annual insurance premiums were estimated using Quadrant Information Service data for each town.
- Affordability & Cost of Living: To account for broader economic conditions, we included Regional Price Parities from the Bureau of Economic Analysis
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Guardian Service
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