Best cheap high-risk homeowners insurance companies in 2026

What is high-risk homeowners insurance?

High-risk home insurance refers to policies written in areas with an elevated risk of a claim being filed. Many high-risk homes are in areas prone to severe weather or natural disasters, while other homes are categorized as high risk due to age, condition or other property-specific risks. In some cases, it’s not the home itself but factors about its occupants that make it high risk, such as dangerous dog breeds or poor credit.

Location-based high-risk homes include:

• Wildfire-prone areas
• Coastal homes with high hurricane risk
• Areas with frequent severe storms
• Home in “tornado alley”, where tornado risk is higher
• Homes in remote locations

Property-based high-risk homes include:

• Older homes, particularly if they have not had major systems updated
• Homes with older or deteriorating roofs
• Homes in need of major maintenance or repairs
• Multiple claims in the property’s history

Occupant-based high risks include:

• Poor credit (in most states)
• Multiple claims in the homeowner’s history
• Dangerous dogs, either based on breed or bite history
• Some types of home-based business

Best cheap high-risk homeowners insurance companies in disaster-prone areas

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, leading to more homeowners insurance claims and carriers choosing to leave or limit coverage in the highest-risk areas.

“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.

Best high-risk homeowners insurance companies by natural disaster 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 on price because we know the options are 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,  with the lowest average rates, 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 carries 20% of the property and casualty market share in the state.

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, in Colorado, Allstate offers the cheapest rates, while in Oregon, it’s State Farm, unless you qualify for USAA. 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.

*USAA is only available to military members, veterans and their families.

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

The table below shows rates for different national carriers in the states hardest hit 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.

*USAA is only available to military members, veterans and their families.

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

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. State Farm is the cheapest home insurance company in Florida, while Allstate is the cheapest in Louisiana, unless you qualify for USAA. As noted above, not all companies provide our data partner with rates in every state; coverage may still be available.

*USAA is only available to military members, veterans and their families.

How much is high-risk homeowners insurance in natural-disaster-prone areas?

The cost of high-risk homeowners insurance ranges from $1,344 in Oregon to $9,008 in Louisiana, with State Farm. Rates vary by carrier and factors about your home that impact risk. 

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

• $2,242 in Maryland
• $2,602 in Mississippi
• $8,471 in Florida 

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

• $1,766 in Washington
• $3,221 in Montana
• $1,653 in California

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

• $2,109 in Ohio
• $3,783 in Missouri
• $5,513 in Nebraska

What to look for in a high-risk homeowners insurance policy

If you are purchasing homeowners insurance in a high-risk area, be sure you have enough coverage. Review the type of policy, the deductibles, exclusions and coverage limits.

1. 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. For example, if you have a 2% hurricane deductible on a policy with $300,000 in dwelling coverage, your deductible is $6,000.
2. Look for exclusions. Remember that a homeowners insurance policy does not cover flooding – you must purchase a separate flood policy. 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.
3. 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.
4. Ask if you are being issued an HO-3 or another policy form. Some high-risk homes don’t qualify for a standard HO-3 policy and may instead be issued an HO-8 policy. It’s usually reserved for older homes, rather than location-based risk, but it’s important to know what type of policy you have.

“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.”

What are FAIR plans and when should you choose one?

FAIR plans are state insurance plans of last resort, available to homeowners who have been unable to obtain affordable homeowners insurance on the standard market. These plans offer limited coverage and are expensive, and should only be selected when there’s no other option.

FAIR plan coverage varies by state, but these policies generally cover:

• Fire
• Lightning
• Windstorms and hail
• Smoke, explosions and vehicle-related damage
• Vandalism and riots

They commonly exclude:

• Water damage
• Theft and burglary
• Personal liability

The following states, among those included in our high-risk rankings, have a FAIR plan or equivalent; in Florida, for example, Citizens Property Insurance is the insurer of last resort. Arizona, Idaho, Montana, Nebraska, Oklahoma and Utah do not have a FAIR plan.

How to lower your risk profile and your premium

To save money on homeowners insurance in a high-risk area, first lower your risk profile with home-hardening steps and upgrades. Then shop around, ask about discounts, and increase your deductible to the highest amount you can afford.

Reduce your risk profile by:

• Completing preventative maintenance on your home, including clearing debris and gutters and creating defensive space. 
• Upgrading your home to harden it against the risks in your area. 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.

Reduce your rates by:

• Shopping around and comparing quotes; work with a local agent who knows the market in your area.
• Raising your deductible, which can decrease costs, to the highest amount that you can afford.
• Bundle your home and auto insurance for a discount.
• Ask about other available discounts.

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 August 2026
• Insurance Information Institute. “Facts & Statistics: Wildfires.” Accessed August 2026
• National Oceanic and Atmospheric Administration. “Storm Prediction Center.” Accessed August 2026

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