Where Home Insurance Companies Are Pulling Out — 2026 Update
Which states and counties are losing home insurance carriers in 2026, what it means for homeowners, and where the stable markets are.
What's Happening and Why
The home insurance market in the United States is fracturing. Major carriers — State Farm, Allstate, Farmers, Nationwide — have stopped writing new policies or withdrawn entirely from high-risk states. This isn't temporary. It's a structural shift driven by climate change increasing the frequency and severity of natural disasters.
For anyone considering relocation, insurance availability is no longer a background detail — it's a make-or-break factor that should be part of every moving decision.
The Hardest-Hit States
California
The epicenter of the insurance crisis. State Farm stopped new homeowner policies statewide in 2023. Allstate followed. By 2026, the California FAIR Plan (the insurer of last resort) covers more than 400,000 policies — up from 270,000 in 2022. Premiums through FAIR are 2-3x the cost of standard coverage, with less protection.
Florida
Hurricane losses have driven carriers into insolvency. Six insurance companies failed in 2022-2023 alone. Citizens Insurance (the state-backed insurer) now covers 1.4 million policies. Private premiums average $4,200/year — triple the national average.
Louisiana
Post-Hurricane Ida, multiple carriers left the state. The remaining carriers have raised rates 30-60%. Coastal parishes are especially affected.
Colorado
Wildfire risk in the urban-wildland interface around Denver, Boulder, and Colorado Springs has prompted carrier pullbacks. Marshall Fire (2021) losses accelerated the trend.
What This Means for Homeowners and Buyers
- Higher costs. Where coverage exists, premiums are rising 15-40% annually in affected areas.
- Mortgage complications. Most mortgage lenders require homeowner's insurance. If you can't get a policy, you may not be able to get a mortgage — or you'll be forced into expensive surplus lines coverage.
- Property values. Areas with insurance availability problems are beginning to see property values stagnate or decline.
Safest Insurance Markets
Based on our analysis of carrier activity, premium trends, and natural disaster risk:
| Rank | State/Region | Key Factors | |------|-------------|-------------| | 1 | Nevada | Low natural disaster risk, stable carrier presence | | 2 | Utah | Low catastrophic loss history | | 3 | New Mexico | Limited wildfire exposure, affordable premiums | | 4 | Idaho | Growing market, competitive rates | | 5 | Montana | Low population density, manageable risk |
The Mountain West generally offers the best combination of insurance stability and affordability — which aligns well with the dry climates many health-relocators are seeking.
How to Check Before You Move
- Get insurance quotes for your target area before making an offer on a home
- Check the state insurance commissioner's website for carrier complaint ratios
- Ask local real estate agents about insurance availability — they hear about problems first
- Use the Felt That Relocation Tool to filter by insurance market stability
Data Sources
- State insurance commissioner annual reports (2024-2026)
- AM Best carrier financial stability ratings
- FEMA disaster declaration data
- News reports and industry analysis