{"id":136030,"date":"2026-05-13T18:12:33","date_gmt":"2026-05-13T18:12:33","guid":{"rendered":"https:\/\/christiancorner.us\/index.php\/2026\/05\/13\/extreme-weather-this-summer-could-make-these-8-states-investable\/"},"modified":"2026-05-13T18:13:44","modified_gmt":"2026-05-13T18:13:44","slug":"extreme-weather-this-summer-could-make-these-8-states-investable","status":"publish","type":"post","link":"https:\/\/christiancorner.us\/index.php\/2026\/05\/13\/extreme-weather-this-summer-could-make-these-8-states-investable\/","title":{"rendered":"Extreme weather this summer could make these 8 states &#8220;investable&#8221;"},"content":{"rendered":"<p>\n<\/p>\n<div id=\"post-content\" :class=\"{ 'hidden': $store.proContent.showFullPrompt() }\">\n                            <!-- Table of contents: mobile --><\/p>\n<section class=\"px-4 relative border border-slate-200 mobile-toc lg:hidden\" x-data=\"{open:false}\">\n                    <button x-on:click=\"open = !open\" class=\"flex items-center gap-4 my-2 border-none w-full\"><br \/>\n                        <svg xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"h-6 w-6\" fill=\"none\" viewbox=\"0 0 24 24\" stroke=\"currentColor\" stroke-width=\"2\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" d=\"M4 8h16M4 16h16\"\/><\/svg><\/p>\n<p class=\"font-semibold text-slate-800 text-base m-0 js-toc-ignore\">in this article<\/p>\n<p>                    <\/button><\/p>\n<\/section>\n<p><span data-preserver-spaces=\"true\">If you thought El Nino was bad, it came in super size, and the resulting extreme weather pattern could wreak havoc for investors who own or plan to own property in the eight states that lie in its path.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Super El Nino blast in already stressed insurance market<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">According to meteorologists, <\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.usgs.gov\/faqs\/what-el-nino-and-what-are-its-effects#:~:text=The%20term%20El%20Ni%C3%B1o%20(Spanish,and%20eastern%20tropical%20Pacific%20Ocean.\"><span data-preserver-spaces=\"true\">El Nino<\/span><\/a><span data-preserver-spaces=\"true\">-Complex weather patterns caused by warming waters in the Pacific Ocean &#8211; could double this year, increasing the likelihood of extreme weather such as hurricanes, floods and storms in the Sunbelt, some of America&#8217;s most coveted new development and investment property locations.<\/span><\/p>\n<p><em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.newsweek.com\/super-el-nino-home-insurance-costs-floods-premiums-11919363\"><span data-preserver-spaces=\"true\">newsweek<\/span><\/a> <\/em><span data-preserver-spaces=\"true\">Insurance costs could rise dramatically in anticipation of the arrival of Super El Nino, report says <\/span><span data-preserver-spaces=\"true\">cash flow<\/span><span data-preserver-spaces=\"true\">    The states include:<\/span><\/p>\n<ul>\n<li><span data-preserver-spaces=\"true\">alabama<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Arizona<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Southern California<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">Florida<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">louisiana<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">mississippi<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">new mexico<\/span><\/li>\n<li><span data-preserver-spaces=\"true\">texas<\/span><\/li>\n<\/ul>\n<div class=\"justify-center \" x-data=\"{ IabAdad_block_: popAd(('r720x90'), '1') }\" :class=\"IabAdad_block_.linkURL ? 'flex pt-8' : 'hidden'\">\n<div class=\" hidden sm:block\"><\/div>\n<div class=\"block sm:hidden\">\n          <img class=\"m-0\" :src=\"https:\/\/www.biggerpockets.com\/blog\/IabAdad_block_.r320x50\" :alt=\"IabAdad_block_.r320x50Alt\" loading=\"lazy\" fetchpriority=\"low\"\/>\n        <\/div>\n<\/p><\/div>\n<h2><span data-preserver-spaces=\"true\">Insurance rates have increased 46% in five years<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Super El Nino couldn&#8217;t come at a worse time for homeowners and investors who have seen <\/span><span data-preserver-spaces=\"true\">Insurance costs rise rapidly<\/span><span data-preserver-spaces=\"true\">    In recent years.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\"> <\/span><em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.latimes.com\/business\/story\/2026-03-18\/home-insurance-premiums-set-to-rise-again-as-extreme-weather-drives-costs-up\"><span data-preserver-spaces=\"true\">Los Angeles Times<\/span><\/a><\/em><span data-preserver-spaces=\"true\">An online insurance comparison site, using data from Insurify, reports that the average US homeowner&#8217;s insurance premium is <\/span><span data-preserver-spaces=\"true\">are projected<\/span><span data-preserver-spaces=\"true\">    The price is set to rise by a further 4% to around $3,057 in 2026 after rising 12% in 2025 and a whopping 46% since 2021, with extreme weather and reconstruction costs cited as key drivers. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">home insurance prices, <\/span><em><span data-preserver-spaces=\"true\">Times <\/span><\/em><span data-preserver-spaces=\"true\">According to the report, both inflation and income growth were lagging behind. <\/span><span data-preserver-spaces=\"true\">it<\/span><span data-preserver-spaces=\"true\">    tools for investors, <\/span><span data-preserver-spaces=\"true\">cap rates<\/span><span data-preserver-spaces=\"true\">    and cash flow is <\/span><span data-preserver-spaces=\"true\">was ruined<\/span><span data-preserver-spaces=\"true\">.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Flood insurance, which averages around $1,100 nationwide through the federally supported National Flood Insurance Program (NFIP) administered by FEMA, rising to more than $2,000 in high-risk areas, is usually purchased separately. Although it is <\/span><span data-preserver-spaces=\"true\">hit or miss<\/span><span data-preserver-spaces=\"true\">    Because the weather patterns remain unpredictable.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Natalie Lord, chief climate scientist at Fathom, a global flood risk intelligence provider, said: <\/span><em><span data-preserver-spaces=\"true\">newsweek<\/span><\/em><span data-preserver-spaces=\"true\">: :<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">\u201cIt&#8217;s hard to tell where the greatest risk is going to be until it actually happens. <\/span><span data-preserver-spaces=\"true\">But <\/span><span data-preserver-spaces=\"true\">I think<\/span><span data-preserver-spaces=\"true\">    He <\/span><span data-preserver-spaces=\"true\">probably means some time<\/span><span data-preserver-spaces=\"true\">    In general, insurance premiums are increasing, this is likely to be seen in the markets of those states. <\/span><span data-preserver-spaces=\"true\">more than the country&#8217;s average<\/span><span data-preserver-spaces=\"true\">    Premiums have increased to offset some of those losses (from El Nino).<\/span><span data-preserver-spaces=\"true\">    Problem <\/span><span data-preserver-spaces=\"true\">will be<\/span><span data-preserver-spaces=\"true\">    Not all of those states are expected to suffer significant damage.<\/span><\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">Investors&#8217; costs in high-risk areas<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Its effect is clearly visible in recent figures. <\/span><em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.newsweek.com\/map-shows-where-americas-home-insurance-crisis-is-hitting-hardest-11927472\"><span data-preserver-spaces=\"true\">newsweek <\/span><\/a><\/em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.newsweek.com\/map-shows-where-americas-home-insurance-crisis-is-hitting-hardest-11927472\"><span data-preserver-spaces=\"true\">reports<\/span><\/a><span data-preserver-spaces=\"true\">    that Arizona saw the fastest <\/span><span data-preserver-spaces=\"true\">Increase in homeowner&#8217;s insurance costs<\/span><span data-preserver-spaces=\"true\">    Nationally, average premiums soared 94% between 2021 and 2025, while Florida, Texas and Louisiana also saw steep increases due to severe weather losses and rebuilding costs.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For homeowners who want to trade the snowy Sunbelt for the icy north and lower their cost of living,<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.fidelity.com\/learning-center\/personal-finance\/cost-of-living-sun-belt\"><span data-preserver-spaces=\"true\">    fidelity investment<\/span><\/a><span data-preserver-spaces=\"true\">    Calculated that the better approach does not extend to the total cost of living, which is equivalent to insurance costs for property owners.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Citing Bankrate data, Florida was the worst among all Sunbelt states, with the combined annual outlay for homeowners (based on a $300,000 home) and car insurance totaling $9,550.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For interested investors <\/span><span data-preserver-spaces=\"true\">flip houses<\/span><span data-preserver-spaces=\"true\">The Rust Belt has eclipsed the Sunbelt, which has been hit hard by the &#8220;affordability economy,&#8221; with insurance costs no doubt playing a role as well. according to<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/fortune.com\/2026\/04\/11\/housing-prices-by-city-2026\/\"><span data-preserver-spaces=\"true\">Luck<\/span><\/a><\/em><span data-preserver-spaces=\"true\">US housing is experiencing a historic &#8220;reversion to the mean&#8221;. Or to put it more bluntly: &#8220;Formerly hot metropolises have gone cool, and unsexy plodders are back in vogue.&#8221;<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">According to a report by<\/span><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/firststreet.org\/research-library\/property-prices-in-peril\"><span data-preserver-spaces=\"true\">    first Street,<\/span><\/a><span data-preserver-spaces=\"true\">    Home values \u200b\u200bwill decline by $1.47 trillion by 2055 due to rising premiums, the insurance sector and buyers shying away from high-risk areas, according to a climate-risk research firm.<\/span><\/p>\n<h2><span data-preserver-spaces=\"true\">Choosing investments with insurance in mind is an increasing process<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">Selecting areas for investment while controlling insurance costs is becoming increasingly difficult as weather patterns affect the underwriting business.<\/span> <em><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.nytimes.com\/2025\/11\/20\/climate\/home-prices-climate-change-insurance.html\"><span data-preserver-spaces=\"true\">new York Times<\/span><\/a><\/em><span data-preserver-spaces=\"true\">    Last year it was reported that home insurance premiums had increased by more than 20% since 2017 due to underinsurance.<\/span><\/p>\n<aside class=\"my-10 xl:my-4\">\n<p class=\"font-bold mt-0 mb-4 text-xl text-slate capitalize\">You might also like<\/p>\n<\/aside>\n<h2><span data-preserver-spaces=\"true\">A basic cash flow calculation with today&#8217;s insurance rates<\/span><\/h2>\n<p><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/finance.yahoo.com\/economy\/policy\/articles\/true-cost-home-insurance-2025-080000083.html\"><span data-preserver-spaces=\"true\">bankrate<\/span><\/a><span data-preserver-spaces=\"true\">The 2026 rankings show that Louisiana homeowners pay an average of $6,274 per year. This amounts to $523 per month, which is the highest state average in the country. <\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For a simple back-of-the-envelope cash flow calculation on a $300,000 property, this is equal to:<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">monthly rent:<\/span> <\/strong><a rel=\"noopener\" target=\"_blank\" class=\"editor-rtfLink\" href=\"https:\/\/www.zillow.com\/la\/rent-houses\/\"><span data-preserver-spaces=\"true\">$2,200<\/span><\/a><span data-preserver-spaces=\"true\">    (from tenant)<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Other operating expenses (repairs, management, etc.): <\/span><\/strong><span data-preserver-spaces=\"true\">$400<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Mortgage payments (principal and interest):<\/span><\/strong><span data-preserver-spaces=\"true\">    $1,000<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">property taxes: <\/span><\/strong><span data-preserver-spaces=\"true\">$400<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Homeowner&#8217;s Insurance:<\/span><\/strong><span data-preserver-spaces=\"true\">    $600 (about $7,200 per year, slightly above the statewide average of $6,274 but within the range for Orleans Parish)<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Total housing costs (mortgage, taxes, insurance):<\/span><\/strong><span data-preserver-spaces=\"true\">    $2,000<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Insurance portion of housing cost: <\/span><\/strong><span data-preserver-spaces=\"true\">$600 \u00f7 $2,000 = 30%<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">So, in simple cash flow terms:<\/span><\/p>\n<ul>\n<li><strong><span data-preserver-spaces=\"true\">Gross Fare:<\/span><\/strong><span data-preserver-spaces=\"true\">    $2,200<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Operating Expenses (except mortgage, taxes and insurance):<\/span><\/strong><span data-preserver-spaces=\"true\">    $400<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Net before mortgage, taxes and insurance:<\/span><\/strong><span data-preserver-spaces=\"true\">    $1,800<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Subtract mortgage ($1,000), taxes ($400), and insurance ($600): <\/span><\/strong><span data-preserver-spaces=\"true\">$2,000<\/span><\/li>\n<li><strong><span data-preserver-spaces=\"true\">Cash flow after all housing costs:<\/span><\/strong><span data-preserver-spaces=\"true\">    $2,200 \u2013 $400 \u2013 $1,000 \u2013 $400 \u2013 $600 = $200<\/span><\/li>\n<\/ul>\n<p><span data-preserver-spaces=\"true\">In any other market, a $1,000 mortgage payment and $2,200 of upcoming rent would be a &#8220;deal!&#8221; Would scream &#8211; assuming the neighborhood was halfway decent. <\/span><span data-preserver-spaces=\"true\">However, <\/span><span data-preserver-spaces=\"true\">to make<\/span><span data-preserver-spaces=\"true\">    Only $200 in monthly cash flow, which can easily be drained due to an unexpected repair <\/span><span data-preserver-spaces=\"true\"><\/span><span data-preserver-spaces=\"true\">    Monthly expenses are a marginal deal, at best.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">Should insurance climb above $600\/month, that <\/span><span data-preserver-spaces=\"true\">highly likely to be given<\/span><span data-preserver-spaces=\"true\">    With anticipated cost increases, this will further weaken the economics of ownership and investment.<\/span><\/p>\n<p><em><span data-preserver-spaces=\"true\">If you want to calculate these numbers for a deal or for one of your properties, check out <\/span><span data-preserver-spaces=\"true\">BiggerPockets&#8217; Investment Calculator<\/span><span data-preserver-spaces=\"true\">    And get accurate reports in minutes.<\/span><\/em><\/p>\n<h2><span data-preserver-spaces=\"true\">final thoughts<\/span><\/h2>\n<p><span data-preserver-spaces=\"true\">These days the usual cash flow metrics are being impacted by rising costs, including purchase price, interest rates and, especially, insurance. What is often not taken into account in these cash flow equations is the financial stress tenants face amid the affordability crisis.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">As deals increasingly languish, the possibility of missing a rental payment or two increases and the deal could suddenly turn into negative cash flow.<\/span><\/p>\n<p><span data-preserver-spaces=\"true\">For investors, making the most money with the fewest doors <\/span><span data-preserver-spaces=\"true\">has to be<\/span><span data-preserver-spaces=\"true\">    The safest way, simply because it minimizes the risk. Yes, <\/span><span data-preserver-spaces=\"true\">Appreciation<\/span><span data-preserver-spaces=\"true\">    And leverage are great concepts in theory, but not in today&#8217;s market unless you have a lot of cash to absorb potential losses.<\/span><\/p>\n<\/p><\/div>\n","protected":false},"excerpt":{"rendered":"<p>in this article If you thought El Nino was bad, it came in super size, and the resulting extreme weather pattern could wreak havoc for investors who own or plan to own property in the eight states that lie in its path. Super El Nino blast in already stressed insurance market According to meteorologists, El<\/p>\n","protected":false},"author":1,"featured_media":136031,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[60],"tags":[2385,30705,2247,1686,952],"class_list":{"0":"post-136030","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-meditation","8":"tag-extreme","9":"tag-investable","10":"tag-states","11":"tag-summer","12":"tag-weather"},"_links":{"self":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/136030","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/comments?post=136030"}],"version-history":[{"count":1,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/136030\/revisions"}],"predecessor-version":[{"id":136032,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/posts\/136030\/revisions\/136032"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media\/136031"}],"wp:attachment":[{"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/media?parent=136030"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/categories?post=136030"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/christiancorner.us\/index.php\/wp-json\/wp\/v2\/tags?post=136030"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}