High cost home insurance penalizes everyone, but really takes a toll in states where there a lot of different kinds of losses.

The concept of insurance was created to spread risk of loss among a large group of people, so that each person bore a small portion of the risks. So, when we are discussing the kinds of risks that drive up homeowners insurance costs, that means that the person who pays premiums for his home in upper Michigan is partially subsidizing the person who has a home in coastal Louisiana.

Hurricanes and tornadoes are just big wind storms. But they are not the only disasters that make insurance premiums rise. Fires, hail and floods all work to drive up premiums, and insurance companies pay out more claims each year for the combined smaller risks than for hurricanes.

One huge risk that the insurance companies no longer fear is mold. Up until 2003, policyholders submitted about as many mold claims each year as fire claims. And, the trend on mold claims was increasing. But, after the September 11, 2001 tragedy, insurance companies quietly convinced all of the insurance commissioners in America to allow them to exclude mold claims for coverage.

But, despite the insurance companies getting rid of most mold exposures, they still have to insure the other risks to homes. So, here are the Top Ten most expensive states in which to insure a home. We’ll start with the least, and proceed to Number One.

10. Kansas – Author Frank Baum placed the book “The Wizard of Oz” in Kansas for a good reason…it’s considered “tornado alley.”

9. Alabama – This state experiences tornadoes, hail, big thunderstorms and hurricanes. Plus, its building codes are more strict than its neighbors, driving up repair costs.

8. Rhode Island – Small state, long coastal exposure. So, hurricanes that sweep up the Eastern Seaboard pound this state.

7. California – “Earthquake Central”, plus wildfires, mudslides and coastal storms make this state an expensive place to insure a home.

6. Florida – sticks out into the Caribbean like a sore thumb, and gets smacked by hurricanes often. One of the big reasons insurance is so expensive here is that scores of insurers have pulled out of Florida. The biggest player in the market there is Citizens Property, a high-risk fund operated by the state. Their numbers are not added into the Florida totals, or it would likely be Number One.

5. Mississippi – lax building codes increase risks, as well as being a coastal state with hurricanes, tornadoes, hail and floods.

4. District of Columbia – Building costs in DC are higher than most places in the nation, as well as being considered Ground Zero for terrorism risks.

3. Oklahoma – Big winds plus big tornadoes make this state one of the highest priced states.

2. Louisiana – shares the same challenges as Mississippi, but adds a large population center below sea level.

And, in First Place (or Worst Place!)…Texas! Here, you can find all of the disasters in one place. Hurricanes, floods, hail, windstorms, and earthquakes all make it rough for insurance companies to stay profitable writing business in Texas.

But, take heart, insurance company fans! With new policy language called the “Anti-Concurrent Causation Clause,” insurance companies can now deny ALL claims where two or more risks cause damage. To learn more, read “The Insurance Industry’s Latest Scam” at this forum.

If you have experienced a property loss, whether fire, wind, flood or other, you need to know winning insurance claim strategies. The insurance company will not tell you the claims process, but I will. I will show you how to take control of your insurance claim, and add hundreds or even thousands more dollars to your claim settlement. For more information, go to the website listed below.

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