California is experiencing an insurance crisis, with its most desirable housing markets becoming increasingly difficult and expensive to insure, according to a new map from Insurify. The analysis ranks U.S. counties based on natural disaster threats, home values, the age of housing stock, and insurance costs.
Los Angeles County received a Home Insurance Risk Index score of 96.5 out of 100, placing it 35th nationally among all counties and highest among major U.S. housing markets. Homeowners in Los Angeles County pay an average annual premium of $4,173, which is 42% above the national average, while the median home value is $783,300. Insurify cited the 2025 Palisades and Eaton fires, which incurred billions in insured losses, as significant factors. Beyond wildfires, Los Angeles County faces substantial risks from earthquakes and inland flooding, with FEMA data projecting annual natural hazard costs of $3.9 billion for the county.
Santa Cruz County also posted a high risk score of 95.1. California was the only West Coast state with two counties scoring above 95. The state also accounted for three of the ten major housing markets identified as facing high risks for homeowners.
San Francisco County scored 93.7, ranking 38th nationally, with an average annual home insurance premium of $3,509 and a median home value of $1,380,500. Insurify noted that San Francisco's risk is largely attributed to the threat of a major earthquake, a peril typically not covered by standard home insurance policies.
Orange County followed with a score of 93.6, ranking 79th nationally. Its average annual premium was $3,483, and the median home value was $915,500. The county is vulnerable to wildfires and landslides; fires alone burned over 35,000 acres in Orange County between 2015 and 2018.
Despite these high risk scores, California's insurance premiums remain significantly lower than those in hurricane-prone areas of Florida and the Gulf Coast. Monroe County, Florida, home to the Florida Keys, was ranked the least insurable county in the U.S. with a score of 99.5 and an average annual premium of $22,436. Nineteen of the 20 least insurable counties nationwide are located along the Gulf and Atlantic coasts, facing high wind damage risks from hurricanes.
The report highlights that California's insurance challenges stem from a combination of wildfire danger, earthquake risk, high property values, and regulatory limitations on rate increases. Insurers in California generally require regulatory approval for major rate hikes, a system that can suppress premiums but has also led some carriers to reduce their presence in the state, diminishing competition and making coverage harder to obtain. Nationally, the average home insurance premium has increased by 46% since 2021, reaching $2,948 annually.