American Homeowners Thinking Twice About Moving to California, Florida

Miami Herald

26-05-2025

The growing risk of more frequent and more severe natural disasters is forcing many Americans to reconsider where they want to live, a new survey found, and it is increasingly steering them away from vulnerable states like California and Florida.
According to a poll conducted by Kin Insurance, 52 percent of U.S. homeowners would consider moving homes or leaving their state because of the increased threat of extreme weather events like hurricanes, tornadoes, wildfires and floods.
The top two states they would avoid are also some of the most at-risk, though they are among the most populous in the nation: 30 percent would keep away from Florida, while 27 percent would steer clear of California.
While California and Florida have long been vulnerable to extreme weather events like wildfires, flooding and hurricanes, climate change is worsening their impact, making them more devastating as well as more unpredictable. More frequent and more damaging natural disasters not only pose a threat to life in those states, but they are also fueling a home insurance crisis, making the cost of rebuilding and coverage more expensive.
In both states, the cost of home insurance has surged in recent years and availability has become limited, as insurers went bankrupt or cut coverage in the most vulnerable areas to avoid going insolvent. These combined factors are pushing residents to consider moving elsewhere, while prospective homebuyers are starting to turn away from the states entirely.
Nearly half of all U.S. homeowners (48 percent) said they would avoid buying a home in states at high risk of natural disasters. California, Florida and Louisiana were the top three states that homeowners would avoid.
Coincidentally, they are also the ones that have faced a spike in home insurance premiums over the past five years-showing the importance that the cost and availability of home insurance can have for homeowners.
Not by chance, a staggering 72 percent of homeowners surveyed by Kin said that home insurance has become unaffordable.
The high cost of home insurance can even be more consequential in keeping homeowners away than natural disasters. Fifty percent of Americans who once considered buying a home in a coastal area said they'd reconsider because of the threat posed by extreme weather events. But slightly more-53 percent-said the cost of coastal home insurance premiums would prevent them from buying there anyway.
"People have historically given too little thought to the insurability, and the cost of insuring, their homes. As a result, they often buy homes that are riskier than they realize-maybe a home in a flood plain, or maybe a home in a hail region with an old roof," Sean Harper, co-founder and CEO of Kin Insurance, told Newsweek. "That can be a nasty surprise down the road."
However, things are changing, with the company now reporting a significant increase in awareness of the risks.
"This is good because, even within a state where insurance is more difficult, like Florida or California, there is a wide range between cities, neighborhoods and even individual homes," Harper said.
"What we'd like to see is a shift towards smarter building and buying. Homes should be built and renovated with resilience in mind, and buyers should prioritize risk mitigation. That's how we ensure these desirable areas remain both affordable and livable for the long haul."
Cotality Chief Economist Selma Hepp, in a recent report on Florida: "The last 25 years have seen home prices, homeowners' insurance and property taxes surge in Florida. When you add in the unflagging migration that is straining the state's public services and inflated costs across the board, the pressure on the quality of life has become so great that it is beginning to tip the balance. Many households are finding it increasingly difficult to stay in the state."
The Senate Budget Committee, in December 2024 report: "In certain communities, sky-high insurance premiums and unavailable coverage will make it nearly impossible for anyone who cannot buy a house in cash to get a mortgage and buy a home."
Historically, home insurance has played a minor role in Americans' decision of where to buy a home.
"Mortgage payments and property taxes were far bigger concerns. And, with current mortgage APRs [annual percentage rates], mortgages should still be a top concern," Harper said. "But home insurance may grow as a factor in that equation."
As the threat of natural disasters likely extends to more Americans, home insurance could increasingly become something homeowners factor in when deciding on a purchase.
"What we're witnessing with the cost of home insurance right now, especially in states like Florida and California, is a necessary market adjustment," Harper said.
"Prices are recalibrating to reflect the true risk. This will lead to a stable, competitive market where homeowners have many choices, and insurers can operate sustainably. That's good news for homeowners."
But in some extreme cases, he said, "we'll need to be realistic about where we build." Oceanfront areas facing the threat of erosion, for example, probably just shouldn't have housing.
"Home builders and home buyers need to keep that in mind," Harper added. "The dream home may need to be a little more inland, but they can still have the lifestyle they desire."
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