Extreme weather is already a huge threat to homeowners. Which U.S. states are most at risk?
States facing the greatest exposure
Cotality ranked states with a model measuring the severity and likelihood of extreme-weather hazards. Louisiana had the highest exposure to severe storms, followed by Mississippi and Florida, where hurricane risk is a major factor.
Cotality estimates housing-market losses in Mississippi and Florida will rise by about 62% and 54%, respectively, by 2050. Louisiana has firsthand experience with severe weather damage, including from Hurricane Katrina.
Losses expected to increase
Cotality projects that the 10 least-exposed states will see weather-related losses rise nearly 38% by 2050. For the 10 states it ranks as riskiest, the increase is projected at about 47%.
California and Texas currently record the largest average annual financial losses from extreme weather: $18.2 billion and $11.5 billion, respectively. By 2050, Cotality projects those annual losses will reach $22.4 billion in California and $16.5 billion in Texas.
Insurance costs and storm damage
Insurers are raising premiums and, in some cases, withdrawing from high-risk markets, leaving some homeowners more exposed to weather-related costs. Cotality chief scientist Dr. Howard Botts said the most severe concentrations of risk may not be in the places people expect.
Separate research by climate risk modeling firm First Street found severe convective storms had generated $794 billion in insurance payouts over the past 25 years. The report said that was more than the combined losses from flooding, earthquakes and drought.
Key points
- Cotality ranks Louisiana first for exposure to severe storms, with Mississippi and Florida next.
- By 2050, housing losses are projected to rise about 62% in Mississippi and 54% in Florida.
- California and Texas have the highest current average annual losses, at $18.2 billion and $11.5 billion.
- First Street reported $794 billion in insurance payouts from severe convective storms over 25 years.