Updated: July 17, 2024
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When it comes to climate change, one significant issue homeowners face is the risk of natural disasters. While hazards vary based on location, some states are more likely to be impacted by these destructive events than others.
MoneyGeek analyzed Federal Emergency Management Agency (FEMA) data on climate risk to illustrate the current climate risks that homeowners face and determine the states most and least impacted by natural disasters today.
It’s crucial that homeowners understand the climate risks that pose a threat to their area. These risks can impact personal finances, insurance coverage and emergency preparedness plans.
To find the states with the most and least climate risk, MoneyGeek analyzed natural disaster data gathered by FEMA. We assessed annual expected losses, expected loss per capita and the greatest potential hazards in each state.
Known for earthquakes — and more recently, wildfires — California has the most climate risk of any state. California's expected annual loss per capita is $183, but the state’s expected annual losses are $6.8 billion. Trailing after are Texas and Florida, both with hurricanes as their most significant climate risk.
Rhode Island is at the top of the list of states with low climate risk, with $16 million in total expected losses and $15 lost per capita. Next on the list is Washington, D.C., where strong winds are expected to cause $28 in losses to each resident and $17 million to the state. In third place is Vermont, whose riverine floodings are expected to result in $40 in annual losses per person and $25 million for the state.
MoneyGeek found that earthquakes, tornadoes and riverine flooding are the top three climate risks in the United States. California and Texas have the greatest overall risk of these hazards. However, Alaska (earthquakes), South Dakota (tornadoes) and Louisiana (riverine flooding) have more risk per capita.
The following definitions are key to understanding the risks that each type of weather emergency represents:
Hazard | State With
Greatest Risk
Overall | State With
Greatest Risk
Per Capita | # of
States'
Greatest
Risk | % of
National
Risk |
|---|---|---|---|---|
Earthquake | California | Alaska | 9 | 22.3% |
Tornado | Texas | South Dakota | 14 | 15.7% |
Riverine Flooding | Texas | Louisiana | 7 | 14.6% |
Hurricane | Texas | Louisiana | 5 | 11.3% |
Drought | California | Kansas | 7 | 10.2% |
Wildfire | California | Idaho | 1 | 4.9% |
Strong Wind | Minnesota | Iowa | 2 | 4.0% |
Hail | Texas | Nebraska | 1 | 3.9% |
Coastal Flooding | New Jersey | New Jersey | 2 | 3.8% |
Heat Wave | Missouri | Missouri | 1 | 2.7% |
Lightning | Florida | Florida | 0 | 1.5% |
Ice Storm | Oklahoma | North Dakota | 0 | 1.4% |
Cold Wave | South Dakota | South Dakota | 1 | 1.3% |
Winter Weather | Texas | North Dakota | 0 | 0.9% |
Landslide | Oregon | Oregon | 0 | 0.8% |
Volcanic Activity | Washington | Washington | 0 | 0.4% |
Avalanche | Colorado | Wyoming | 1 | 0.2% |
Tsunami | Hawaii | Hawaii | 0 | 0.0% |
As homeowners learn more about climate risks in their area, it’s important that they take steps to prepare for the possibility of natural disasters.
The Federal Trade Commission recommends that residents take the following steps to prepare for climate risk:
Homes that are considered high-risk can be more difficult to insure in the voluntary insurance market. With the Fair Access to Insurance Requirements (FAIR) Plan, people who live in the worst states for climate change can get affordable coverage through their state administrators. While these plans may be more expensive than private insurance, they limit homeowners' liability and offer coverage that wouldn’t otherwise be available.
Homeowners who aren’t sure if they have adequate coverage can also use Ready.gov’s Insurance Coverage Discussion Form to work with their agents to protect their homes from climate risk.
Renters who want to protect their personal belongings can also benefit from renters insurance. Purchasing this coverage can mitigate possible losses in the states with the worst climate change risk.
Lack of information and extreme weather can have a negative impact on people who live in the worst states for natural disasters. MoneyGeek interviewed a panel of climate risk experts to help homeowners and renters learn more about potential risks and safeguard their assets and families.
MoneyGeek's full data set provides a high-level understanding of the study results. Its state-by-state analysis paints a picture of the country’s overall climate risk. It also offers perspective on the states with the highest and lowest risk of natural disasters.
The table below uses the following terminology to evaluate climate risk across the country:
State | Expected Loss per Capita | Annual
Expected Losses
(Millions) | Greatest Potential Hazard | % Building Losses | % Life Lost | % Agricultural |
|---|---|---|---|---|---|---|
California | $183.07 | $6,820 | Earthquake | 67% | 13% | 19% |
Texas | $183.53 | $4,615 | Hurricane | 68% | 25% | 7% |
Florida | $90.00 | $1,692 | Hurricane | 65% | 27% | 8% |
Louisiana | $248.78 | $1,128 | Hurricane | 67% | 30% | 3% |
North Carolina | $107.39 | $1,024 | Hurricane | 50% | 27% | 23% |
Washington | $150.54 | $1,012 | Earthquake | 64% | 34% | 1% |
Missouri | $145.29 | $870 | Heat Wave | 35% | 57% | 8% |
New Jersey | $96.84 | $851 | Coastal Flooding | 82% | 17% | 1% |
Illinois | $66.26 | $850 | Tornado | 42% | 48% | 10% |
Tennessee | $123.97 | $787 | Tornado | 58% | 39% | 2% |
Oklahoma | $168.95 | $634 | Tornado | 44% | 42% | 15% |
Georgia | $64.50 | $625 | Tornado | 47% | 40% | 12% |
Iowa | $204.67 | $623 | Drought | 35% | 26% | 39% |
Mississippi | $200.85 | $596 | Hurricane | 61% | 32% | 7% |
Oregon | $154.29 | $591 | Earthquake | 63% | 36% | 1% |
Kansas | $201.15 | $574 | Drought | 26% | 35% | 39% |
Alabama | $114.43 | $547 | Tornado | 52% | 39% | 10% |
Arkansas | $179.20 | $523 | Tornado | 36% | 46% | 18% |
Minnesota | $95.84 | $508 | Drought | 44% | 25% | 31% |
New York | $25.15 | $487 | Riverine Flooding | 50% | 46% | 4% |
Colorado | $96.53 | $485 | Hail | 70% | 25% | 5% |
Kentucky | $111.74 | $485 | Tornado | 41% | 54% | 6% |
Indiana | $71.01 | $460 | Tornado | 42% | 44% | 13% |
South Carolina | $98.01 | $453 | Earthquake | 53% | 40% | 7% |
Ohio | $38.79 | $448 | Tornado | 61% | 35% | 4% |
Nebraska | $242.24 | $442 | Tornado | 36% | 26% | 38% |
Pennsylvania | $32.49 | $413 | Riverine Flooding | 45% | 46% | 10% |
Michigan | $36.94 | $365 | Strong Wind | 60% | 37% | 3% |
Nevada | $128.41 | $347 | Earthquake | 53% | 14% | 33% |
Virginia | $39.94 | $320 | Tornado | 48% | 38% | 14% |
Arizona | $47.29 | $302 | Wildfire | 49% | 18% | 33% |
Utah | $107.21 | $296 | Earthquake | 68% | 30% | 2% |
Wisconsin | $46.88 | $267 | Tornado | 45% | 45% | 10% |
South Dakota | $271.72 | $221 | Tornado | 27% | 50% | 23% |
Maryland | $38.31 | $221 | Drought | 43% | 33% | 24% |
New Mexico | $79.90 | $165 | Drought | 39% | 31% | 30% |
Hawaii | $117.16 | $159 | Earthquake | 76% | 23% | 0% |
Idaho | $94.31 | $148 | Drought | 34% | 23% | 43% |
North Dakota | $209.17 | $141 | Cold Wave | 50% | 27% | 23% |
Alaska | $188.54 | $134 | Earthquake | 75% | 25% | 0% |
Massachusetts | $19.28 | $126 | Riverine Flooding | 50% | 40% | 10% |
West Virginia | $53.90 | $100 | Riverine Flooding | 52% | 47% | 1% |
Montana | $89.82 | $89 | Earthquake | 37% | 42% | 21% |
Wyoming | $114.25 | $64 | Avalanche | 30% | 55% | 15% |
Connecticut | $16.45 | $59 | Tornado | 47% | 34% | 19% |
Maine | $41.00 | $54 | Drought | 47% | 24% | 29% |
New Hampshire | $31.63 | $42 | Riverine Flooding | 53% | 42% | 4% |
Delaware | $37.31 | $34 | Coastal Flooding | 56% | 36% | 8% |
Vermont | $39.53 | $25 | Riverine Flooding | 72% | 24% | 4% |
District of Columbia | $28.24 | $17 | Strong Wind | 49% | 51% | 0% |
Rhode Island | $14.75 | $16 | Riverine Flooding | 67% | 31% | 1% |
MoneyGeek utilized data from FEMA’s National Risk Index datasets to calculate and compare the annual expected losses for each state. To calculate per capita risk, MoneyGeek utilized the population as of 2016.
About Lucia Caldera
Lucia Caldera, the founder of Corporate Media Lab, has 10 years of experience in financial planning, management and advising. She writes finance content for MoneyGeek, using her personal finance background to help readers achieve financial wellness.
Lucia holds a master’s degree in international political economy and development from Fordham University and a bachelor’s degree in economics from Clark University. Her work reflects her passion for using financial education to reduce the wealth gap for women and minorities.
