California’s dreamiest housing markets are turning into an insurance coverage nightmare.
A brand new nationwide map from Insurify names California the least insurable state on the West Coast — with Los Angeles and Santa Cruz counties each scoring above 95 on the corporate’s 100-point House Insurance coverage Danger Index.
The index ranks greater than 3,100 US counties based mostly on pure catastrophe threats, house values, housing age and insurance coverage prices, measuring how tough and costly it may be to insure a house.
Los Angeles County landed the best rating of any main US housing market, incomes a 96.5 out of 100 — good for No. 35 nationally amongst all counties.
Householders in LA County pay a mean annual house insurance coverage premium of $4,173 ‚ 42% above the nationwide common — whereas the median house worth sits at $783,300.
Insurify pointed to the devastating Palisades and Eaton fires in early 2025, which the corporate mentioned grew to become the 2 costliest fires on file globally based mostly on insured losses, with estimated hits of $23 billion and $18 billion.
However the firm mentioned wildfires usually are not the one menace going through LA owners.
Los Angeles County can also be extra in danger for earthquake and inland flooding injury than some other county within the nation, based on FEMA knowledge cited within the examine. The company initiatives pure hazards will value the county $3.9 billion in a typical 12 months from deaths, accidents and property injury.
Santa Cruz County additionally posted one of many West Coast’s worst scores, with a 95.1, making California the one West Coast state with two counties above 95.
The Golden State additionally claimed three spots on Insurify’s checklist of 10 main housing markets going through excessive dangers for owners.
San Francisco County scored 93.7, rating No. 38 nationally, with an aveerafe annual house insurance coverage premium of $3,509 and a staggering median house worth of $1,380,500.
Whereas San Francisco might not carry the identical wildfire profile as different elements of the state, Insurify mentioned its danger is pushed largely by the specter of a significant earthquake — a peril that customary house insurnace insurance policies usually don’t cowl.
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Orange County adopted intently behind with a 93.6 rating, rating No. 79 nationally. Its common annual premium was $3,483, with a median house worth of $915,500.
Insurify famous that Orange County stays susceptible to a number of catastrophe threats, together with wildfires and landslides. From 2015 to 2018 alone, fires burned greater than 35,000 acres within the county, based on the report.
Regardless of the excessive danger scores, California’s premiums stay far under the jaw-dropping prices seen in hurricane-prone elements of Florida and the Gulf Coast.
Monroe County, Florida — house to the Keys — was ranked the least insurable county in America, with a near-perfect danger rating of 99.5 and a mean annual house insurance coverage premium of $22,436.
Insurify discovered that 19 of the 20 least insurable counties within the US are alongside the Gulf and Atlantic coasts, the place properties face excessive wind injury from hurricanes.
Nonetheless, California’s inclusion close to the highest of the rankings underscores the state’s personal insurance coverage disaster, the place wildfire hazard, earthquake danger, excessive house values and regulatory limits on fee hikes have collided.
Insurify mentioned insurers usually can not transfer ahead with main fee will increase in California with out regulatory approval — a system that may hold premiums decrease, however has additionally prompted some carriers to tug again from the state, decreasing competitors and making protection tougher to seek out.
The report discovered the common US house insurance coverage premium has soared 46% since 2021 to $2,948 yearly.
