6 Cities With the Highest Percentages of Uninsured Homes
Written by
Emily Fowler
Edited by
Cory Dudak
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Your home is likely to be one of your most valuable assets, so making sure it’s protected in the event of unexpected damages or disasters is important. Yet millions of U.S. homeowners are living without essential insurance coverage, according to a recent Consumer Federation of America (CFA) report, leaving $1.6 trillion worth of property at risk.
Around one in 13 homeowners had no insurance in 2021, leaving them to potentially face hefty out of pocket costs if something happened. Despite insurance being a top priority for homeowners, it seems many are willing to take the risk of not having coverage.
GOBankingRates looked at six cities with the highest percentage of uninsured homeowners, according to the report, as well as the average annual cost of homeowners insurance for a $350,000 dwelling and the annual cost of living in each state:
1. Miami, Florida
- Uninsured homeowners: 15%
- Average cost of insurance: $2,026
- Cost of living: $40,512
Miami’s exposure to extreme climate risks like hurricanes and flooding make insurance crucial for homeowners, yet increasingly expensive. Though homes in the Florida city have a 73% chance of experiencing a flood, the rising cost of living and insurance premiums may mean people are missing out on the coverage they need.
Miami’s diverse population could also be a factor in the high rate of uninsured homes. According to the CFA report, homeowners of color are less likely to have insurance.
2. Houston, Texas
- Uninsured homeowners: 10%
- Average cost of insurance: $2,226
- Cost of living: $37,582
Weather-related disasters are also an issue in Houston, with the city even being named the riskiest city in the U.S. by a ClaimGuide report, thanks to being “built on land that is prone to both extreme heat and extreme flood risk” and having a high property crime rate.
The average cost of homeowners insurance here is the highest of the six cities, so lower-income families might struggle to maintain insurance coverage.
3. Detroit, Michigan
- Uninsured homeowners: 10%
- Average cost of insurance: $1,713
- Cost of living: $37,111
While the average cost of insurance is relatively low compared to some other cities on the list, Detroit’s high poverty rates and low property values could play a part in the number of uninsured homes.
4. Philadelphia, Pennsylvania
- Uninsured homeowners: 6%
- Average cost of insurance: $1,082
- Cost of living: $40,066
While Philadelphia’s average insurance cost is the lowest out of these six cities, the cost of living here is relatively high. The city’s older housing stock and localized flooding risks can lead to higher premiums, causing some homeowners to miss out on insurance.
5. Phoenix, Arizona
- Uninsured homeowners: 6%
- Average cost of insurance: $1,401
- Cost of living: $39,856
Climate concerns are in issue for Phoenix, with the Arizona city’s exposure to extreme heat and the increasing risk of wildfires potentially driving up insurance costs for homeowners. The rising cost of living also contributes to the uninsured rate in Phoenix.
6. Riverside, California
- Uninsured homeowners: 6%
- Average cost of insurance: $1,129
- Cost of living: $53,171
With the highest cost of living of the six cities with the highest percentage of uninsured homes, it’s no wonder that lower-income Riverside residents might struggle to afford insurance. But as an area prone to natural disasters, wildfires in particular, skipping insurance could be catastrophic.
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