Some markets look like high-yield gold. A chunk of that yield is just the price you will quietly hand a hazard insurer every year. This page puts a dollar figure on that drag for every scored U.S. ZIP — and flags the “high-yield” markets that are really uninsured climate risk. It is a screen, not a quote.
Every number here is generated by
scripts/compute_climate_yield.py from
zip_master.json — the corrected absolute
FEMA National Risk Index hazard scores plus NAIC 2022 per-state landlord
insurance rates. The hazard→premium multiplier is a
labeled assumption, fully exposed below.
→ Have a portfolio? Try the Portfolio Risk Tool — paste your ZIPs, get the aggregate insurance-drag exposure across your book.
Gross yield is rent over price. Insurance drag is the slice of that yield a landlord pays for hazard coverage — expressed as a percent of home value per year, so it subtracts cleanly from yield.
From the NAIC 2022 Homeowners Insurance Report. We use the DP-3 landlord series — HO-3 premium ×1.20, itself a NAIC-noted labeled assumption since NAIC publishes no clean DP-3 average. Expressed as annual premium ÷ insured home value. Range runs roughly from Utah (~0.26%) to Louisiana (~0.99%) to Florida.
The NAIC rate is a state average. A wildfire-WUI or coastal-wind ZIP pays far more than an inland ZIP in the same state. We model that intra-state spread off the ZIP’s composite FEMA risk score. This curve is modeled, not measured — carrier filings are not public at ZIP granularity.
The curve is deliberately moderate and capped at 2.5×: it keeps the worst ZIPs inside a plausible-premium band rather than chasing surplus-lines extremes. The real spread between a high-WUI ZIP and an inland ZIP is large — CA FAIR Plan and Gulf wind pools routinely run 2–4× the voluntary market — but the exact ZIP-level curve is proprietary. Treat the multiplier as a relative ranking knob, not a premium.
Ranked by drag as a percent of home value per year — the cleanest apples-to-apples measure. Sortable; click any header. The drag bar is scaled to the worst ZIP on the page.
The headline callout. Every ZIP below sits in the top third of the country on raw gross yield — the kind of number that pulls an investor in. The drag eats column shows how much of that yield is quietly consumed by hazard insurance. A 6% gross yield that becomes a 4.4% climate-adjusted yield is not a 6% market.