Forget Florida and California: Utah homeowners are now the most likely in America to be dropped by their insurer, about 1 in 22 policies

However, in some parts of the U.S., getting homeowners insurance has become much harder due to the effects of climate change.

Florida and California are especially prone to natural disasters, with hurricanes and wildfires posing major risks, respectively. Insurance companies generally want to avoid covering homes that are more likely to generate claims. As a result, many insurers have chosen to leave these states.

But in 2025, the state with the highest percentage of homeowners insurance policies not renewed was a surprising one: Utah.

Why homeowners insurance companies stop offering insurance

As reported by KSL-TV, 4.45% of homeowners insurance policies weren’t renewed in Utah in 2025 — about one out of every 22.

According to the National Association of Insurance Commissioners, many states had fewer than 1% of policies that weren’t renewed. California ranked second at 2.93%. Rhode Island, Arizona, Arkansas and Texas also had at least 2%.

Florida was not far behind at 1.92%, with every other state except Nevada trailing it. Alaska had the lowest percentage of nonrenewed policies among U.S. states, at just 0.40%.

According to KSL-TV, several insurance companies also decided to stop offering policies in Utah.

Natural disasters and the cost of rebuilding homes are the biggest factors that cause insurance companies to stop offering homeowners insurance.

Inflation has increased the cost of rebuilding homes. High lumber prices due to tariffs have also been a concern in 2026. Those tariffs were reduced to around 35% on Oct. 13, 2026.