MoneyGeek Analysis:

States With the Most Climate Risk Today

Updated: November 11, 2024

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When it comes to climate change, one significant issue homeowners face is the increased risk of damage from inclement weather and natural disasters like earthquakes, hurricanes, tornados and floods. While these hazards vary based on location, some states have more climate risk than others.

MoneyGeek analyzed the Federal Emergency Management Agency’s (FEMA) National Risk Index dataset to assess the climate risks homeowners could face in every state. Our analysis breaks down climate risk for each state by expected per capita loss, expected total loss and greatest potential climate hazard. MoneyGeek also calculated the percentage of each state’s total expected climate losses due to building losses, injury and loss of life and agricultural losses. Here’s what we found.

Key Findings:

Louisiana has the highest expected natural disaster losses per capita of any state, with damages estimated to cost each resident $246; property damage constitutes 67% of all estimated climate-related losses in the state.
Texas has the highest expected losses due to injury or death caused by natural disasters at $1.1 billion annually.
California has the highest expected losses to property damage at $4.6 billion annually, with earthquakes expected to be the most costly natural disaster in the state.
Earthquakes pose the most annualized natural disaster risk in the United States overall. Despite occurring less frequently than tornadoes and hurricanes, their potential for damage is significantly higher.

The States With the Highest Climate Risk for Residents

It’s crucial that homeowners understand the climate risks that pose a threat to their area. These risks can impact personal finances, home insurance coverage and emergency preparedness plans.

To find the states with the most climate risk per capita, MoneyGeek analyzed natural disaster data gathered by FEMA and estimated the cost of climate-change-related damage for each resident. We ranked the 15 states with the most climate risk per resident below.

15 States With the Highest Climate Risk for Residents

	State	Expected Loss per Capita
1.	Louisiana	$246
2.	South Dakota	$243
3.	Nebraska	$225
4.	Mississippi	$203
5.	Kansas	$195
6.	Iowa	$195
7.	Alaska	$183
8.	North Dakota	$181
9.	California	$175
10.	Arkansas	$172
11.	Oklahoma	$158
12.	Texas	$154
13.	Missouri	$141
14.	Oregon	$139
15.	Washington	$130

States With the Highest Climate Risk by Type of Natural Disaster

MoneyGeek found that earthquakes, tornadoes and riverine flooding are the top three most expensive climate risks in the United States. However, some states bear more of the cost of damages from these natural disasters than others.

The following definitions are key to understanding the risks that each type of weather emergency represents:

State With Greatest Risk Overall: These are the states with the largest total expected losses due to each type of hazard.
State Loss as % of National Loss: Cost of damage the state is expected to incur due to that natural disaster as a percentage of the total national cost of the natural disaster type.
State Expected Annual Loss: Cost of damage that the natural disaster is expected to cause in the state.
National Expected Annual Loss: Cost of damage that the natural disaster is expected to cause nationally.

The States Most Impacted by Different Climate Hazards

Hazard	State With Greatest Risk Overall	State Loss as % of National Loss	State Expected Annual Loss	National Expected Annual Loss
Earthquake	California	64%	$4,570,000,000	$7,195,451,659
Tornado	Texas	17%	$845,000,000	$5,060,337,787
Riverine Flooding	Texas	28%	$1,330,000,000	$4,725,570,182
Hurricane	Texas	40%	$1,470,000,000	$3,659,671,779
Drought	California	39%	$1,290,000,000	$3,296,011,675
Wildfire	California	44%	$699,000,000	$1,571,712,057
Strong Wind	Minnesota	7%	$93,896,674	$1,276,808,741
Hail	Texas	28%	$353,000,000	$1,260,927,544
Coastal Flooding	New Jersey	40%	$488,000,000	$1,229,940,574
Heat Wave	Missouri	25%	$223,000,000	$876,938,848
Lightning	Florida	16%	$80,521,069	$499,817,558
Ice Storm	Oklahoma	11%	$50,607,995	$441,561,591
Cold Wave	South Dakota	9%	$40,484,986	$428,250,204
Winter Weather	Texas	11%	$32,481,160	$297,297,201
Landslide	Oregon	17%	$44,609,034	$266,896,652
Volcanic Activity	Washington	81%	$94,264,192	$116,574,215
Avalanche	Colorado	23%	$13,124,719	$56,276,856
Tsunami	Hawaii	72%	$3,725,913	$5,172,761

It’s More Important Now Than Ever for Homeowners to Financially Protect Themselves from Climate Risk

After gaining a better understanding of the climate risk in their area, it’s crucial that homeowners take steps to prepare for natural disasters before they happen.

PREPARING FOR CLIMATE RISK

The Federal Trade Commission recommends that residents take the following steps to prepare for climate risk:

Become familiar with your homeowner’s insurance coverage.
Get coverage in case of hazards, floods or earthquakes.
Take inventory of your assets and, when possible, store extra copies of important documents online.
Weatherproof your property.
Sign up for local alerts and weather warnings.
Work on your financial preparedness by establishing an emergency fund.
Keep an electronic and hard copy of FEMA’s Emergency Financial First Aid Kit.
Create a family safety plan.

Homes 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 homeowners insurance 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 homeowners insurance 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 a high-quality renters insurance policy. Purchasing this coverage can mitigate possible losses in the states with the worst climate change risk.

Methodology

MoneyGeek analyzed data from FEMA’s National Risk Index datasets to calculate and compare annual expected losses from climate-related disasters for each state. To calculate per capita risk, MoneyGeek utilized 2022 population estimates for each state using data from the United States Census Bureau.

Full Data Set

MoneyGeek’s full data set provides a high-level understanding of the study results. Our state-by-state analysis paints a picture of the country’s overall climate risk and offers perspective on the states with the highest risk of natural disasters.

The table below uses the following terminology to evaluate climate risk across the country:

Expected Loss per Capita: Total expected losses per person based on population size and greatest potential hazards.
Annual Expected Loss (Millions): A forecast of how much natural disasters will cost each state in one year.
Greatest Potential Hazard: The hazard that represents the largest expected loss for each state.
% Building Loss: The percentage of the state’s Annual Expected Loss associated with building damage and destruction.
% Life Loss: The percentage of the state’s Annual Expected Loss associated with injury and loss of life, using a FEMA-determined value of statistical life of $7.4 million.
% Agricultural Loss: The percentage of the state’s Annual Expected Loss associated with loss of agricultural production.

State	Expected Loss per Capita	Annual Expected Loss (Millions)	Greatest Potential Hazard	% Building Loss	% Life Loss	% Agricultural Loss
Alabama	$108	$547,000,000	Tornado	52%	39%	10%
Alaska	$183	$134,000,000	Earthquake	75%	25%	0%
Arizona	$41	$302,000,000	Wildfire	49%	18%	33%
Arkansas	$172	$523,000,000	Tornado	36%	46%	18%
California	$175	$6,820,000,000	Earthquake	67%	13%	19%
Colorado	$83	$485,000,000	Tornado	71%	25%	5%
Connecticut	$16	$58,810,567	Tornado	47%	34%	19%
Delaware	$33	$33,506,285	Coastal Flooding	56%	36%	8%
District of Columbia	$25	$16,993,808	Strong Wind	49%	51%	0%
Florida	$76	$1,690,000,000	Hurricane	65%	27%	8%
Georgia	$57	$625,000,000	Tornado	47%	40%	12%
Hawaii	$110	$159,000,000	Earthquake	77%	24%	0%
Idaho	$76	$148,000,000	Drought	34%	23%	43%
Illinois	$68	$850,000,000	Tornado	42%	48%	10%
Indiana	$67	$460,000,000	Tornado	42%	44%	13%
Iowa	$195	$623,000,000	Drought	35%	26%	39%
Kansas	$195	$574,000,000	Drought	26%	35%	39%
Kentucky	$107	$485,000,000	Tornado	41%	54%	6%
Louisiana	$246	$1,130,000,000	Hurricane	67%	30%	3%
Maine	$39	$54,466,892	Drought	47%	24%	29%
Maryland	$36	$221,000,000	Drought	43%	33%	24%
Massachusetts	$18	$126,000,000	Riverine Flooding	50%	40%	10%
Michigan	$36	$365,000,000	Riverine Flooding	60%	37%	3%
Minnesota	$89	$508,000,000	Drought	44%	25%	31%
Mississippi	$203	$596,000,000	Hurricane	61%	32%	7%
Missouri	$141	$870,000,000	Heat Wave	35%	57%	8%
Montana	$79	$88,871,526	Earthquake	37%	42%	21%
Nebraska	$225	$442,000,000	Hail	36%	26%	38%
Nevada	$109	$347,000,000	Drought	53%	14%	33%
New Hampshire	$30	$41,637,117	Earthquake	53%	42%	4%
New Jersey	$92	$851,000,000	Coastal Flooding	82%	17%	1%
New Mexico	$78	$165,000,000	Drought	39%	31%	30%
New York	$25	$487,000,000	Riverine Flooding	51%	46%	4%
North Carolina	$95	$1,020,000,000	Hurricane	50%	27%	23%
North Dakota	$181	$141,000,000	Riverine Flooding	50%	27%	23%
Ohio	$38	$448,000,000	Tornado	61%	35%	4%
Oklahoma	$158	$634,000,000	Tornado	44%	41%	15%
Oregon	$139	$591,000,000	Earthquake	63%	36%	1%
Pennsylvania	$32	$413,000,000	Riverine Flooding	45%	46%	10%
Rhode Island	$14	$15,522,631	Riverine Flooding	67%	31%	1%
South Carolina	$86	$453,000,000	Earthquake	53%	40%	7%
South Dakota	$243	$221,000,000	Tornado	27%	50%	23%
Tennessee	$112	$787,000,000	Riverine Flooding	58%	39%	2%
Texas	$154	$4,610,000,000	Hurricane	69%	25%	7%
Utah	$88	$296,000,000	Earthquake	68%	30%	2%
Vermont	$38	$24,736,387	Riverine Flooding	72%	24%	4%
Virginia	$37	$320,000,000	Drought	48%	38%	14%
Washington	$130	$1,010,000,000	Earthquake	65%	34%	1%
West Virginia	$56	$99,879,427	Riverine Flooding	52%	47%	1%
Wisconsin	$45	$267,000,000	Riverine Flooding	45%	45%	10%
Wyoming	$111	$64,394,783	Avalanche	30%	55%	15%

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.

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sources

Federal Trade Commission Consumer Information. "Dealing with Weather Emergencies." Accessed November 11, 2024.
FEMA. "Emergency Financial First Aid Kit (EFFAK)." Accessed November 11, 2024.
FEMA. "National Risk Index." Accessed November 11, 2024.
Insurance Information Institute. "What if I can’t get coverage?." Accessed November 11, 2024.
Ready. "Insurance Coverage Discussion Form." Accessed November 11, 2024.
United States Census Bureau. "State Population Totals and Components of Change: 2020-2022." Accessed November 11, 2024.