Although homes are frequently the largest investment made by Americans, many lack the necessary safeguards to keep them safe. According to recent LendingTree data, an estimated 12.2 million owner-occupied homes in the U.S. lack insurance, making these homeowners susceptible to natural disasters. A LendingTree analysis looked at the areas with the highest percentage of uninsured properties nationwide.
Some 12.2 million of the 86.6 million owner-occupied residences nationwide lack insurance. That represents 1 in 7 households, or 14.1% of all residences. Lindsay Bishop, a LendingTree home insurance specialist, believes that homeowners could not have insurance because it’s not necessary.
“Many people who go without home insurance aren’t ignoring the risks—they’re making a trade-off they feel they can’t avoid,” Bishop said. “Rising home insurance rates are making home insurance harder to afford, especially for people on fixed incomes.”
Note: This analysis includes owner-occupied homes in the 100 most populated U.S. metros. “Uninsured” was defined as spending less than $100 annually on home insurance.
Uninsured Homes Increase Across U.S. Metros
At approximately 23.9%, West Virginia has the highest percentage of uninsured homes by state. Louisiana comes in second at 21.2% and New Mexico at 23.0%. Bishop claims that all three states have problems with affordability.
“In Louisiana, frequent natural disasters have made home insurance expensive,” Bishop said. “Home insurance in West Virginia and New Mexico is typically much cheaper than in Louisiana, but insurance takes up a large share of household income in these states.”
At roughly 9.7%, Oregon and Colorado have the lowest percentage of uninsured homes. Vermont and Massachusetts are tied at 10.7%, followed by New Hampshire (10.0%).
Top 10 States with the Highest Rate of Uninsured Homes:
| Rank | State | Homes | Homes w/out insurance | % of homes w/out insurance |
|---|---|---|---|---|
| 1 | West Virginia | 559,415 | 133,773 | 23.9% |
| 2 | New Mexico | 608,986 | 140,285 | 23.0% |
| 3 | Louisiana | 1,258,598 | 267,270 | 21.2% |
| 4 | Alaska | 182,292 | 37,488 | 20.6% |
| 5 | Mississippi | 829,682 | 167,873 | 20.2% |
| 6 | Florida | 6,220,116 | 1,205,299 | 19.4% |
| 7 | Arkansas | 836,697 | 159,803 | 19.1% |
| 8 | Alabama | 1,461,271 | 276,614 | 18.9% |
| 9 | Oklahoma | 1,053,182 | 192,894 | 18.3% |
| 10 | Texas | 7,134,877 | 1,262,492 | 17.7% |
By metro area, McAllen, Texas, has the highest percentage of uninsured residences (41.5%) among the 100 biggest in the U.S. Compared to the second-ranked metro, Lakeland, FL, at 27.8%, that is almost 14 percentage points higher—followed by El Paso, Texas (24.0%).
On the other hand, only 8.4% of owner-occupied residences in Portland, OR, lack insurance. Denver (9.1%) and Poughkeepsie, NY (8.7%) come next. Only six of the 100 biggest U.S. metro areas have uninsured rates lower than 10%.
People who pay off their mortgage and are no longer required to have home insurance may also see home insurance as an ongoing cost that doesn’t deliver an immediate value. According to Bishop, “this is especially true in areas where disasters feel less likely, like Midwestern states, which don’t experience hurricanes or frequent wildfires.”
Top 10 U.S. Metros with the Highest Rate of Uninsured Homes:
| Rank | Metro | Homes | Homes w/out insurance | % of homes w/out insurance |
|---|---|---|---|---|
| 1 | McAllen, Texas | 186,412 | 77,334 | 41.5% |
| 2 | Lakeland, FL | 226,987 | 63,067 | 27.8% |
| 3 | El Paso, Texas | 194,929 | 46,868 | 24.0% |
| 4 | Miami | 1,448,616 | 325,927 | 22.5% |
| 5 | Baton Rouge, LA | 239,192 | 52,191 | 21.8% |
| 6 | Tampa, FL | 936,518 | 178,766 | 19.1% |
| 7 | Cape Coral, FL | 257,997 | 47,933 | 18.6% |
| 8 | Jackson, MS | 167,239 | 30,510 | 18.2% |
| 9 | Augusta, GA | 168,792 | 30,135 | 17.9% |
| 10 | Birmingham, AL | 337,779 | 60,003 | 17.8% |
The number of uninsured properties increased by 6.6% nationwide between 2023 and 2024. According to Bishop, rising premiums are undoubtedly a factor, but they’re not the sole one. “It helps explain the rise in uninsured homes from 2023 to 2024 more clearly than 2024 rate changes alone when you pair those higher costs with insurance taking up a larger share of household income,” she adds.
Vermont (21.5%), the only state with an increase greater than 20.0%, leads this category by state. South Dakota (16.3%) and Rhode Island (19.4%) come next.
At roughly 8.7%, Wyoming experienced the biggest drop in uninsured homes. Also on the list, Oregon (4.9%) and North Dakota (4.4%) rank second and third, with Alaska (2.1%) and Montana (1.5%) being the only other states with decreases.
“Even if you could easily cover the cost to fix your home after minor damage, most people can’t afford to fully replace their home after a major disaster,” Bishop said. “While home insurance usually costs a few thousand dollars per year, fully rebuilding a home will easily cost six figures.”
In numerous urban areas, the number of uninsured residences rose dramatically between 2023 and 2024. Lakeland, FL, led here, with the number of uninsured homes jumping by 45.7%. Compared to the following metro, Cape Coral, FL where the number of uninsured households increased by 29.6%, that is much greater. The final city in the top three is Baton Rouge, LA (23.9%). In Providence, RI (21.8%), Augusta, GA (20.6%), and Oxnard, CA (20.6%), the percentage of uninsured residences increased by more than 20%.
Contrarily, the number of uninsured homes decreased in some 15 metro areas. Toledo, Ohio (9.5%) had the worst decline, followed by Charleston, SC (8.3%) and Memphis, TN (9.0%).
“If you’re concerned about the cost of home insurance, one way to lower your bill is by choosing a higher deductible,” Bishop said. “A higher deductible means you’ll have to pay more money for home repairs before your insurance policy kicks in. But it can also significantly decrease the amount you pay for home insurance.”
Note: LendingTree researchers analyzed the U.S. Census Bureau 2023 and 2024 American Community Surveys (ACS) with one-year estimates to gather home insurance cost data.
