Hurricane Insurance Statistics
KEY POINTS
- New York City has the most homes at risk of hurricane damage: 878,226 homes face storm surge danger and 3.8 million are at risk of wind damage.
- Eight out of the top 10 counties at risk of hurricane damage are in Florida.
- Homeowners insurance doesn't cover hurricane damage. Homeowners at risk should consider windstorm insurance and flood insurance.
Millions of homes are at risk of hurricanes which are becoming more frequent, more intense, and impacting larger areas due to climate change.
Armed with facts about hurricanes, homeowners can make better informed decisions about where to buy a home and what type of insurance to seek.
Hurricane damage is not covered by standard homeowners insurance. In fact, "hurricane insurance" doesn't exist. To cover hurricane risks, homeowners in hazardous areas should purchase a combination of windstorm insurance and flood insurance.
Read on for a roundup of the areas most at risk of hurricane damage and tips for shopping for homeowners insurance with hurricane risks in mind.
Hurricane insurance statistics by city
The cities most at risk of hurricane damage are concentrated on the East Coast and Gulf of Mexico, where powerful storms consistently make landfall.
Hurricanes generate two primary types of risks for homes:
- Storm surge leading to severe flooding
- Wind damage
Hurricanes are causing larger insured losses for two reasons: climate change increasing the chances of more severe storms and more Americans moving to at-risk coastal areas, bringing demand for housing with them.
Hurricane insurance: Storm surge risk by city
The cities most at risk of storm surge are New York, Miami, and Houston, and their surrounding metro areas, according to the Insurance Information Institute.
In New York, 878,226 homes are at risk of storm surge with an estimated reconstruction cost of $415 billion. Just over 509,000 homes face storm surge danger in Miami and the reconstruction cost estimate there is $124 billion. In Houston and its metro area, 192,937 homes are in danger from storm surge with an estimated reconstruction cost of $52.6 billion.
New Orleans and Virginia Beach round out the top five cities most at risk of storm surge.
Storm surge can cause flood damage, which is not covered by homeowners insurance but through separately purchased flood insurance.
Hurricane insurance: Wind risk by city
Millions of single-family homes are at risk of wind damage from hurricanes, including in New York City, Houston, Miami, Tampa, New Orleans, and Virginia Beach.
In New York City alone, 3.8 million homes are exposed to hurricane wind damage with an estimated reconstruction cost of $1.9 trillion, according to the Insurance Information Institute.
In the Houston metro area, 2 million homes face hurricane wind damage risk and reconstruction costs are estimated at $671 million. The Miami metro has 2 million homes at risk of hurricane wind damage as well. Reconstruction costs are estimated to be $511 million.
Homeowners in at-risk areas should purchase windstorm insurance, which can either be bought as an add-on to homeowners insurance or a separate policy.
Hurricane risk by county
Harris County, Texas has the highest hurricane risk index score from FEMA. Eight out of the top 10 counties at risk of hurricane damage are in Florida, with Charleston County, South Carolina being the only other exception.
FEMA Risk Index scores show the percentage of counties for which a county's hazard rating is higher. For example, Miami-Dade County in Florida has a higher hurricane risk index than 99.96% of all counties.
| County | Hurricane Risk Score |
|---|---|
| Harris, Texas | 100.00 |
| Miami-Dade, Florida | 99.96 |
| Broward, Florida | 99.91 |
| Palm Beach, Florida | 99.87 |
| Hillsborough, Florida | 99.82 |
| Lee, Florida | 99.78 |
| Brevard, Florida | 99.73 |
| Pinellas, Florida | 99.69 |
| Charleston, South Carolina | 99.64 |
| Pasco, Florida | 99.60 |
FEMA determines risk by incorporating factors including the expected annual economic loss from natural hazards, how vulnerable social groups are to the impacts of natural hazards, and how resilient and prepared communities are to deal with natural hazards.
The costliest hurricanes
Hurricane Katrina was the costliest hurricane, with an estimated insured loss of $89.7 trillion dollars, per the Insurance Information Institute.
Nine of the 10 costliest hurricanes have come since 2000, and six occurred after 2010.
| Year | Hurricane | Area(s) Most Affected | Estimated Insured Loss (2024 Dollars, Billions) |
|---|---|---|---|
| 2005 | Hurricane Katrina | Louisiana | $104,471 |
| 2022 | Hurricane Ian | Southwest Florida | $57,231 |
| 2021 | Hurricane Ida | Louisiana | $41,540 |
| 2012 | Hurricane Sandy | New York/New Jersey | $40,939 |
| 2017 | Hurricane Harvey | Houston/Southeast Texas | $38,571 |
| 2017 | Hurricane Irma | Florida Keys/Southwest Florida | $38,432 |
| 2017 | Hurricane Maria | Puerto Rico | $37,743 |
| 1992 | Hurricane Andrew | South Florida | $35,845 |
| 2008 | Hurricane Ike | Galveston/Houston | $26,259 |
| 2024 | Hurricane Milton | Florida panhandle | $20,000 |
How to get insured for hurricanes
Homeowners in hurricane-prone areas can take the following steps to get insured and prepared:
- Check to see if your homeowners insurance policy covers wind damage. Most policies will but some in high-risk areas may exclude windstorm damage.
- Purchase separate windstorm protection if necessary.
Purchase flood insurance either through the National Flood Insurance Program (NFIP) or a private flood insurance provider if available.
FAQs
-
Homeowners in hurricane-prone areas should double-check that their policy covers wind damage from hurricanes. If not, standalone wind damage insurance can be purchased. Homeowners insurance does not cover flood damage. Flood insurance can be purchased separately through the National Flood Insurance Program.
-
Hurricane season runs from June through the end of November.
-
The average cost of homeowners insurance is $1,787 per year, according to data from Quadrant. Flood insurance from the NFIP costs on average around $700 per year. In total, homeowners may spend around $2,500 on homeowners insurance and flood insurance, although that amount can vary by location.
-
Sources
- Insurance Information Institute. "Facts + Statistics: Hurricanes."
- Federal Emergency Management Agency. "Historical Flood Risk and Costs."
Our Research Expert
Jack Caporal is the Research Director for The Motley Fool and Motley Fool Money.