America’s Hidden Housing Crisis: 13.6% of Homes Are Uninsured

Imagine losing your home in a fire, hurricane, or flood — and having no financial safety net to rebuild. That’s the reality for more than 11.3 million homeowners across the United States.

According to a recent study from LendingTree, 13.6% of the country’s 82.9 million owner-occupied homes are completely uninsured.

That means nearly one in seven homeowners are living without any form of protection from natural disasters, theft, or structural loss. It’s a hidden crisis — one that’s growing more dangerous in a time of worsening climate disasters and rising costs.

Why are so many homes uninsured?

One of the biggest factors driving the rise in uninsured homes is climate change. As wildfires, hurricanes, and flooding become more frequent and destructive, insurance companies are facing mounting losses—leading them to either scale back coverage or withdraw from high-risk regions entirely.

This has been particularly evident in states like Florida, California, and Louisiana, where insurers have pulled out or dramatically raised premiums in response to escalating climate threats.

With fewer insurers in the market, homeowners are left with limited—and often prohibitively expensive—coverage options.

In some cases, premiums have doubled or even tripled in just a few years, making it financially unfeasible for many homeowners to maintain coverage. Some are forced to turn to last-resort state-run insurance plans with high costs and limited protection, while others opt to drop coverage entirely.

Beyond financial risk, owning an uninsured home can make it nearly impossible to sell. Most lenders require insurance, so buyers can’t secure financing for an uninsured property.

This mirrors Fannie Mae’s condo blacklist, where owners struggle to sell because buyers can’t get loans—trapping them in unsellable homes.

The costly gamble of skipping insurance

What’s especially concerning is that many uninsured homeowners are not necessarily struggling financially.

In some cases, homeowners who have paid off their mortgages choose to drop insurance to cut costs, assuming they can handle potential risks on their own. But without coverage, a disaster could result in devastating financial losses.

A common misconception among homeowners is that federal disaster aid will cover rebuilding costs in the event of a major catastrophe.

However, assistance from FEMA is typically limited to temporary housing and small grants—not nearly enough to replace a destroyed home. This gap in coverage can leave uninsured homeowners in a difficult position if disaster strikes.

Experts warn that going without insurance is a gamble few can afford.

“A lot of people think, ‘I’ll just rebuild with FEMA help if something happens,’ but FEMA doesn’t replace your house,” said Mark Friedlander of the Insurance Information Institute. “They offer temporary shelter and basic support. If you don’t have insurance, you’re starting over with nothing.”

Where the risk is highest

And yet, despite the warnings, a growing number of homeowners across the U.S. are going without insurance—some by choice, and others because they’re being dropped by their insurance companies.

A recent LendingTree study sheds light on the states with the highest percentage of uninsured homes. In some cases, more than one in five homes lack insurance coverage. That’s a staggering number at a time when extreme weather events are growing more frequent and more costly.

The table below highlights the twenty states with the highest rates of uninsured homes.

New Mexico tops the list, with more than 23% of homes lacking insurance. West Virginia (23%), Mississippi (22.9%), and Louisiana (21.1%) follow closely behind.

What’s striking is that even in high-risk states where natural disasters are a growing threat like Florida and Alaska, a significant number of homes remain uninsured.

What can homeowners do?

If you’re one of the millions who feel priced out of the insurance market, there are still options.

Some experts recommend looking beyond big-name insurers and seeking out regional or mutual companies, which may offer more flexible policies in underserved areas. Others suggest increasing deductibles to lower premiums or exploring state-backed plans — which exists specifically to cover those who can’t get private coverage.

It’s also crucial to understand the gaps in federal disaster relief. Homeowners should not assume FEMA or local agencies will fully fund rebuilding after a loss. Insurance is still the only guaranteed protection against financial devastation after a major event.

The bottom line

The American Dream of homeownership is built on stability — but for millions of households, that foundation is more fragile than it seems. Insurance isn’t just an expense; it’s a critical safeguard that homeowners only fully appreciate when it’s too late.

With climate risks growing, federal relief shrinking, and insurers pulling out of vulnerable markets, more than 11 million homeowners are just one disaster away from losing everything.

As policymakers debate housing affordability and climate resilience, the conversation must also include how we protect the homes people already own — before it’s too late.