Best cheap high-risk homeowners insurance companies in 2025

Best cheap high-risk homeowners insurance companies

In our review of major carriers around the country, State Farm has the lowest rates for homeowners insurance in high-risk areas, including those prone to wildfires, tornadoes and hurricanes.

Hurricanes, wildfires and tornadoes are increasing in frequency and severity in some regions of the country. Florida, for example, gets hit hard by hurricanes almost every year. California has seen a huge uptick in the size and scope of wildfires. Texas had over 100 tornadoes in the first half of the year. This increase in natural disasters translates to more claims against homeowners insurance.

“If extensive storm claims are being paid, premiums may go up and companies might tighten their risk and not write properties they feel would be a liability,” says Sonya Sellmeyer, consumer advocacy officer at the Iowa Insurance Division. “Companies may also stop writing in a state, thus tightening the market.” 

This means that obtaining coverage might be more difficult if you live in a high-risk area, and if you do find coverage, the prices might not be affordable.

How we chose the best high-risk homeowners insurance companies

We reviewed major carriers in several states prone to hurricanes, wildfires and tornadoes to see which had the best rates. State Farm consistently came out on top.

We used data from the Federal Emergency Management Agency, the Insurance Information Institute (Triple-I), and the National Oceanic & Atmospheric Administration’s (NOAA) Storm Prediction Center to select the states.

Best high-risk homeowners insurance companies by category

We broke down high-risk homeowners insurance by category. In some cases, more than one category applies to a state; Texas has areas prone to hurricanes, tornadoes and wildfires, so it’s included in all three lists.

We focused our choices on price because we know the choice is limited and prices are skyrocketing in high-risk areas. Read the full methodology to find out how we ranked the companies.

Here are the best cheap home insurance companies for high-risk homes by category.

Cheapest high-risk home insurance for wildfires: State Farm

Our analysis found that State Farm is the best insurance company in high-risk wildfire areas, followed by Nationwide. Wildfires occur most frequently in the following states: 

1. Arizona
2. California
3. Colorado
4. Idaho
5. Montana
6. New Mexico
7. Oregon
8. Texas
9. Utah
10. Washington

Our ranking system found these to be the cheapest companies for high-risk homeowners insurance. It’s important to note that State Farm doesn’t write new home insurance policies in California but still had $2.6 billion in in-force policies in the state in 2024, according to S&P Global. The rankings below pertain to price and availability in all wildfire-prone states, as shown in the map above.

1. State Farm
2. Nationwide
3. Farmers
4. Allstate
5. American Family

Look at the table below to see the rates for different carriers in wildfire-prone states. The cheapest company for you will depend on the state in which you live. 

For example, Colorado State Farm offers the cheapest rates, while in Oregon, it’s Nationwide. Not all carriers provide rates to our data source, Quadrant Information Services, in all states. Coverage may still be available in states even if an average rate is not shown below.

Cheapest high-risk home insurance for tornadoes: State Farm

State Farm again topped the list of the best homeowners insurance companies, based on rates and availability, in tornado-prone areas. Allstate came in second. The following states have the most frequent tornadoes:

1. Florida
2. Iowa
3. Illinois
4. Kansas
5. Louisiana
6. Missouri
7. Nebraska
8. Ohio
9. Oklahoma
10. Texas

Our ranking system, taking into consideration rates and availability in the highest-risk areas for tornadoes, found these to be the best options for low rates:

1. State Farm
2. Allstate
3. American Family
4. Nationwide
5. Farmers

The table below shows the rates for different national carriers in the states hit hardest by tornadoes. The cheapest company depends on the state in which you live; State Farm is the cheapest option in Kansas, while American Family is the cheapest in Nebraska. Again, not all companies report average rates to our data partner, Quadrant, but coverage may still be available.

Cheapest high-risk home insurance for hurricanes

State Farm is the best home insurance company in hurricane-prone areas for affordable rates, followed by Allstate. The following states are at the highest risk for hurricane activity:

1. Alabama
2. Florida
3. Georgia
4. Louisiana
5. Maryland
6. Mississippi
7. North Carolina
8. South Carolina
9. Texas
10. Virginia

Our comparison of rates and availability in hurricane-prone states found these companies to be the best overall choice:

1. State Farm
2. Allstate
3. Nationwide
4. Farmers
5. Progressive
6. Travelers

The table below shows the rates for the ranked national carriers in these hurricane-prone states. As with the risks, the cheapest company for you will depend on where you live. Travelers is the cheapest home insurance company in Florida, while Progressive is the cheapest in Louisiana. As noted above, not all companies provide our data partner with rates in every state; coverage may still be available.

How much is high-risk homeowners insurance?

The cost of high-risk homeowners insurance varies widely. One of the most significant determining factors is the state where you live. The rates below are drawn from State Farm, the top company in each of the high-risk areas.

For example, if you live in one of the states prone to hurricanes, you can expect to pay:

• $1,126 in Maryland
• $3,067 in Mississippi
• $6,231 in Florida 

For a wildfire-prone area, here are the rates you might be looking at:

• $1,522 in Washington
• $2,561 in Montana
• $4,087 in Texas

In states with a lot of tornadoes, here are some typical rates:

• $1,807 in Ohio
• $2,490 in Missouri
• $4,527 in Nebraska

Things to look for in high-risk homeowners insurance

If you are purchasing homeowners insurance in a high-risk area, be sure you have enough coverage. Notice any special deductibles, such as a hurricane or windstorm deductible, that might apply in some states; this deductible is usually a percentage of your dwelling coverage. 

Look for exclusions. Remember that a homeowners insurance policy does not cover flooding – you must purchase a separate flood policy. Also, ask your carrier about cash value vs. replacement cost value. Replacement cost coverage will pay the actual cost to replace an item (or your home) new, while actual cash value 

“Understand what you are buying,” Sellmeyer says. “Is it a policy with actual cash value v. replacement, is the exterior on actual cash value, or is the roof on a schedule? Increasing your deductible may help with higher premium payments.”

Other issues that might arise due to a storm aren’t covered, like sewer backups and swimming pool overflows. Ask about any possible endorsements that can be added to your policy.

How to save on high-risk homeowners insurance

There are a few proven ways to save money on home insurance in a high-risk area:

• One of the best ways to save on high-risk homeowners insurance is to shop around for multiple quotes. 
• Consider raising your deductible, which can decrease costs, but ensure you can afford it if you need to pay it.
• Complete preventative maintenance on your home and weatherproof it as much as possible. Insurers sometimes give credits or discounts for hurricane-proof shutters, reinforced roofs, and high-impact-resistant windows. Homes with fire-resistant materials like stucco can sometimes better withstand a wildfire and earn a wildfire mitigation discount.
• Bundle your home and auto insurance for a discount.

Always ask your insurance carrier if you can do anything to get your rates down.

Methodology

We focused on 10 states with elevated exposure to each major hazard. To choose these states, we used FEMA’s National Risk Index (Census Tract View) for Hurricanes, the Insurance Information Institute’s Facts + Statistics on Wildfires for that hazard, and data from NOAA’s Storm Prediction Center regarding tornados.

From there, we moved our focus to insurance carriers that wrote in at least 5 of the selected 10 states for each hazard. Carriers were ranked against each other by average policy premium in each state using data from Quadrant Information Services, with their placements across applicable states averaged together. 

Their average placement was increased by .5 for each state the carrier did not write in out of the selected 10. For example, Nationwide writes in 9 of the 10 states chosen for wildfire risk and averaged a 2.0 placement across those states; because they did not write in one of the 10 states, a .5 point penalty was tacked on for a final score of 2.5. Carriers were ranked against their final score for each of the hazards, with the lowest score in each getting first place.

Rate data is based on a home with $300,000 in dwelling and liability coverage and a $1,000 deductible. A 2% hurricane deductible is included where applicable.

Sources:

• FEMA. “Hazard Risk Map” Accessed November 2024
• Insurance Information Institute. “Facts & Statistics: Wildfires.” Accessed November 2024
• National Oceanic and Atmospheric Administration. “Storm Prediction Center.” Accessed November 2024
• iweathernet.com. “How Many Tornadoes Have Been Confirmed in Texas So Far in 2024? Accessed November 2024
• California Office of Environmental Health Hazard Assessment “Wildfires.” Accessed November 2024
• Florida Climate Center. “Hurricanes.” Accessed November 2024National Centers for Environmental Information. “Billion-Dollar Weather and Climate Disasters | Florida Summary.” Accessed November 2024

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