Top 10 States That Have the Highest Rates of Uninsured Homes

As recent headlines have made clear, climate change has led to more frequent extreme weather events which has led to a rise in homeowner insurance claims. As insurers deal with an increased number of claims, they pass those additional costs onto homeowners via higher premiums, regardless of whether you have filed a claim or not. 

Data from the U.S. Department of the Treasury shows that from 2018 to 2022, the average homeowners insurance premium rose 8.7% faster than inflation. As the cost of homeowners insurance continues to rise, some Americans have decided to drop their coverage and take their chances. 

According to a recent Lending Tree study, almost 1 in 7 homes across the U.S. are uninsured. The report used data from the U.S. Census Bureau and Federal Emergency Management Agency. Nationwide the study found that 11.3 million of 82.9 million owner-occupied homes are not covered by homeowners insurance which breaks down to 13.6% of homeowners are not protected by insurance. In some states and cities, the percentage is much higher.

In the recent GOBankingRates.com article, Rob Bhatt, a LendingTree home insurance expert and licensed insurance agent, expressed concerns about the percentage of homeowners now carrying coverage.

“For most people, your home is your most important investment,” Bhatt said in a March 17 press release. “It’s important to protect that investment with insurance. Insurance has become more expensive and harder to get in recent years. This is putting people just one disaster away from losing the physical and financial security their home provides.”

The number of homes not protected by insurance varies by state with states that are prone to severe weather seeing some of the highest rates of uninsured homes. 

Here is a quick look at the 10 states that have the highest rates of uninsured homes:

Many of these states experience frequent, severe weather events that often result in hail, wind and even hurricane damage which is why homeowners insurance is more expensive, the larger the risk, the larger your insurance premium. 

The Lending Tree report also looked at the 10 U.S. metro areas with the highest percentage of uninsured homes. Florida was the big loser with 4 cities in the top 10, the Sunshine State experiences severe weather on a frequent basis in addition to having a troubled insurance market. 

While dumping your homeowners coverage may seem like an easy way to save a bit of money, it can be a life changing decision if your home is severely damaged or destroyed. Unless you can easily afford to rebuild your home and replace all of your personal property, your home should be protected by a homeowner’s policy.