Homeowners Insurance
How Adults Fare After a Natural Disaster: Displacements, Mental Health and Possible Scams
Displacement may seem like a distant thought for many, but as the climate becomes more volatile and unpredictable, a growing percentage of Americans are forced to flee their homes in the wake of natural disasters.
According to the latest ValuePenguin study, 1.4% of adults said they were displaced in the past year due to a natural disaster. Here’s a look at where that’s more common — and how to best utilize your home insurance after being displaced.
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Key findings
- The percentage of U.S. adults displaced in the past year by natural disasters rose. In June 2024, 1.4% of adults said they were displaced in the past year, whether by a hurricane, flood, fire, tornado or other type of natural disaster. In June 2023, 1.2% of adults said the same. Respondents in June 2024 nearly evenly cited floods and hurricanes as the reason for displacement, while hurricanes were by far the top reason for displacement in 2023.
- Louisiana has the highest rate of adults displaced by natural disasters for the second year in a row, though that figure has dropped. In June 2024, 5.1% of Louisiana adults reported being displaced by a natural disaster in the past year. The states with the next highest displacement rates were Texas and Maine (both 3.7%). Louisiana also saw the largest percentage point drop in displacements, with a decrease of 4.1 points between 2023 and 2024. That’s followed by the District of Columbia (2.5 percentage points) and Nebraska (2.0 percentage points).
- About half of displaced adults remedied their displacement quickly. Of those who were displaced, 45.8% said it was for less than a week. But this group was fortunate, as 11.8% said they never returned home. That figure rises to 25.3% among displaced Americans with no high school education and 20.3% among those in single-person households.
- Not being at home significantly impacts mental health. Among displaced adults, 43.6% reported experiencing some or a lot of feelings of isolation, depression, anxiousness or nervousness in the month after they were displaced. The rate of displaced adults experiencing a lot of these feelings is high among those between the ages of 25 and 39 (43.4%) and Asian Americans (42.4%).
- Scams are a major concern for those displaced by natural disasters. Notably, 30.4% of displaced respondents reported experiencing a lot of scam offers in the month after the disaster. That was particularly true among those without a high school education (47.7%), Asian Americans (41.9%) and Black Americans (36.9%).
Natural disaster displacement has risen
The percentage of U.S. adults displaced in the past year by natural disasters has risen slightly, jumping from 1.2% of adults in June 2023 to 1.4% of adults in June 2024. Between 2022 and 2023, the U.S. experienced 46 different billion-dollar disasters, according to the National Oceanic and Atmospheric Administration (NOAA). And there were 47 between 2023 and August 2024.
Respondents in June 2024 nearly evenly cited floods and hurricanes as the reason for displacement, while hurricanes were by far the top reason for displacement in 2023.
To break it down, in 2023:
- 44.2% of displaced Americans were affected by hurricanes
- 22.7% were affected by floods
- 17.1% were affected by fires
- 9.9% were affected by tornadoes
- 23.8% were affected by other disasters
Meanwhile, in 2024:
- 27.9% of displaced Americans were affected by floods
- 27.5% were affected by hurricanes
- 21.5% were affected by tornadoes
- 10.1% were affected by fires
- 30.0% were affected by other disasters
According to ValuePenguin home insurance expert Divya Sangameshwar, it’s not surprising that flooding is now a common reason for displacement. "Flooding is the U.S.’s most common natural disaster, and becoming more common from climate change, increased urbanization and the failure of crucial infrastructure like dams," she says.
Displacement rates are highest in Louisiana
By state, Louisiana has the highest rate of adults displaced by natural disasters, with 5.1% of Louisiana adults reporting that they were displaced in the past year. Louisiana also ranked first when we conducted this study last year.
Texas and Maine tied for second, with displacement rates of 3.7%.
All three states faced several natural disasters between June 2023 and June 2024. More specifically:
- In May 2024, Louisiana and Texas experienced a derecho — a severe windstorm that can be as destructive as a tornado — causing an estimated $1.2 billion in damage.
- In a separate disaster in May 2024, central and eastern Texas and southern Louisiana experienced severe storm weather causing an estimated $4.8 billion in damage.
- In December 2023, Maine was impacted by a significant storm along the East Coast that caused flooding and other damage.
States with the highest percentages of adults displaced by natural disasters
Rank | State | Total respondents | Adults displaced in past year | % of adults displaced in past year |
|---|---|---|---|---|
| 1 | Louisiana | 2,815,962 | 143,754 | 5.1% |
| 2 | Texas | 19,046,056 | 711,246 | 3.7% |
| 2 | Maine | 1,003,271 | 36,769 | 3.7% |
| 4 | Florida | 15,565,521 | 465,857 | 3.0% |
| 5 | Oklahoma | 2,540,580 | 73,050 | 2.9% |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024.
Sangameshwar says these displacements can have an impact on the homeowners insurance market.
"While flooding-related damage is covered by flood insurance, most disasters often include more than one covered peril (like wind damage and water damage from a storm)," she says. "In this situation, insurers will have to pay out two types of claims: repairs and additional living expenses for those displaced. This will add up and get passed down to their policyholders — even to those who weren’t displaced and whose houses weren’t destroyed."
Despite the high percentage of displaced Americans, Louisiana also saw the biggest percentage point drop in displacements. Between June 2023 and June 2024, the percentage of displaced Americans fell by 4.1 points. The District of Columbia and Nebraska had the next biggest drops, at 2.5 and 2.0 percentage points, respectively.
States with the highest percentage point increase in population displaced by natural disasters
Rank | State | % displaced in 2023 | % displaced in 2024 | Percentage point change |
|---|---|---|---|---|
| 1 | Maine | 0.2% | 3.7% | 3.5 |
| 2 | Texas | 1.1% | 3.7% | 2.6 |
| 3 | Oklahoma | 0.6% | 2.9% | 2.3 |
| 4 | Hawaii | 0.2% | 2.2% | 2.0 |
| 5 | New York | 0.4% | 1.8% | 1.4 |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024.
Meanwhile, Maine had the biggest percentage point increase, with the number of displaced adults rising by 3.5 percentage points. That’s followed by Texas (2.6) and Oklahoma (2.3).
Full rankings
States with the highest/lowest percentages of adults displaced by natural disasters
Rank | State | Total respondents | Adults displaced in past year | % of adults displaced in past year |
|---|---|---|---|---|
| 1 | Louisiana | 2,815,962 | 143,754 | 5.1% |
| 2 | Texas | 19,046,056 | 711,246 | 3.7% |
| 2 | Maine | 1,003,271 | 36,769 | 3.7% |
| 4 | Florida | 15,565,521 | 465,857 | 3.0% |
| 5 | Oklahoma | 2,540,580 | 73,050 | 2.9% |
| 6 | Hawaii | 993,068 | 21,686 | 2.2% |
| 7 | Oregon | 2,988,414 | 63,911 | 2.1% |
| 8 | Arkansas | 1,929,699 | 38,484 | 2.0% |
| 9 | Vermont | 471,490 | 8,716 | 1.8% |
| 9 | New York | 12,419,018 | 222,011 | 1.8% |
| 11 | Michigan | 6,623,249 | 112,627 | 1.7% |
| 11 | Missouri | 3,913,036 | 65,787 | 1.7% |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024. Note: Data wasn't available for North Dakota and Wyoming.
States with the highest percentage point decreases/increases in population displaced by natural disasters
Rank | State | % displaced in 2023 | % displaced in 2024 | Percentage point change |
|---|---|---|---|---|
| 1 | Louisiana | 9.2% | 5.1% | -4.1 |
| 2 | District of Columbia | 2.9% | 0.4% | -2.5 |
| 3 | Nebraska | 2.3% | 0.3% | -2.0 |
| 4 | Florida | 4.8% | 3.0% | -1.8 |
| 5 | Colorado | 1.9% | 0.2% | -1.7 |
| 6 | West Virginia | 1.6% | 0.4% | -1.2 |
| 7 | Montana | 1.9% | 0.9% | -1.0 |
| 8 | Wisconsin | 0.7% | 0.0% | -0.7 |
| 8 | Maryland | 1.0% | 0.3% | -0.7 |
| 10 | Mississippi | 1.5% | 0.9% | -0.6 |
| 10 | Arizona | 1.0% | 0.4% | -0.6 |
| 12 | Connecticut | 0.8% | 0.3% | -0.5 |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024. Note: Data wasn't available for North Dakota, Vermont and Wyoming.
Majority didn’t stay displaced for long
There’s some good news, though — about half (45.8%) of those who were displaced were able to return home in less than a week.
However, a significant 11.8% said they never returned home, while 11.5% were displaced for more than six months. Those with no high school education (25.3%) and those in single-person households (20.3%) were particularly likely to say they never returned home.
Length of displacement among displaced Americans
Length of displacement | % of displaced Americans |
|---|---|
| Less than a week | 45.8% |
| More than a week but less than a month | 21.7% |
| 1 to 6 months | 9.1% |
| More than 6 months | 11.5% |
| Never returned home | 11.8% |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024.
While Sangameshwar says those who can’t return home are often underinsured or uninsured, they do have options.
"If the disaster that struck them gets a presidential disaster declaration, FEMA may provide money, housing assistance and other assistance to repair their cars or to purchase emergency supplies," she says. "However, without enough insurance, homeowners will still be on the hook to pay for the cost of rebuilding or repairing their homes to make them inhabitable."
Across all displaced Americans, 33.9% reported some damage to their homes, while 23.9% reported a lot of damage.
Displaced Americans face mental health impacts
Understandably, displaced Americans face mental health challenges. In the month after displacement, 43.6% of displaced adults reported some or a lot of feelings of isolation, depression, anxiousness or nervousness. That was particularly true among displaced adults ages 25 to 39 (43.4%) and Asian Americans (42.4%).
Feelings of isolation and depression among displaced Americans
Frequency of feelings of isolation and depression | % of displaced Americans |
|---|---|
| Not at all | 30.3% |
| A little | 26.1% |
| Some | 16.1% |
| A lot | 27.4% |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024.
The increased vulnerability may be attractive to some bad players — in fact, 30.4% of displaced respondents reported experiencing a lot of scam offers in the month after they were displaced. Those without a high school education (47.7%), Asian Americans (41.9%) and Black Americans (36.9%) are particularly likely to experience this.
Scam offers can include fraudsters pretending to be a FEMA housing inspector requesting bank information and those falsely offering grants in return for payment.
Possible scam experiences among displaced Americans
Frequency of possible scam offers | % of displaced Americans |
|---|---|
| Not at all | 32.2% |
| A little | 21.4% |
| Some | 16.0% |
| A lot | 30.4% |
Source: ValuePenguin analysis of U.S. Census Bureau Household Pulse Survey data, fielded from May 28 to June 24, 2024.
Weathering the storm: Top expert tips before and after displacement
When a natural disaster strikes, displacement is understandably a disorienting experience. Still, it’s important to utilize your home insurance to the best of your ability. Particularly, we recommend:
- Documenting everything immediately. Before a disaster strikes, keep a thorough inventory of your belongings, including photos, receipts and appraisals for valuable items. After displacement, document the damage to your property as soon as it's safe, taking photos or videos of every affected area. This will be crucial when filing a claim, as clear evidence of pre- and post-disaster conditions will help speed up the claims process and maximize your payout.
- Understanding your policy coverage. Review your insurance policy to understand what it covers, especially regarding natural disasters. Some policies exclude certain types of events, like floods or earthquakes, so you may need additional riders or separate policies. Knowing your coverage limits, deductibles and what expenses are reimbursable (like temporary housing) will help you plan and avoid surprises when you file a claim.
- Communicating promptly with your insurer. Contact your insurance company as soon as possible after the disaster to start the claims process. Keep detailed records of all communications, including dates, names of representatives and what was discussed. Prompt communication ensures that your claim is prioritized, and staying organized helps resolve disputes quickly if any issues arise during the settlement process.
Methodology
ValuePenguin researchers analyzed U.S. Census Bureau Household Pulse Survey data to estimate the percentage of adults displaced in the past year by natural disasters.
Specifically, researchers compared the number of adults who reported being displaced in the past year by natural disasters (hurricane, flood, fire, tornado or other) to the total reporting population.
Researchers ranked the U.S. states from highest to lowest based on the percentage of adults displaced. We also estimated the displacement rate from a year ago to show annual changes.
Analysts also estimated national rates based on the following categories:
- Length of displacement (from less than a week to never returned home)
- Damage to property and possessions (from no damage to a lot of damage)
- Feelings of isolation, depression, anxiousness or nervousness one month after disaster (from not at all to a lot)
- Possible scam offers one month after disaster (from not at all to a lot)
Researchers utilized Phase 4.1, Cycle 6 of the Household Pulse Survey, conducted from May 28 to June 24, 2024. For the purposes of our study, we’ll reference this period as June 2024. Comparisons are from Week 58 of the survey, conducted from June 7 to 19, 2023.