With extreme weather events increasing in recent years, homeowners insurance companies have raised premiums or stopped offering coverage completely. Many of the policyholders hit with nonrenewal or cancellation notices are the ones most in need of insurance coverage.

While the state of California and the broader insurance industry will handle the estimated $40 billion cost from the Los Angeles wildfires, homeowners will likely get burned by higher policy costs, S&P Global said in a research note.

Rising homeowner’s insurance costs could disrupt some financial plans in the coming years. Premiums rose by more than 20% last year in six states and are likely to keep rising nationwide thanks to an increase in weather-related disasters and rising building costs.

Devastating natural disasters are becoming a more common occurrence across the United States, often destroying personal property and homes. Learn More: 10 Things the Middle Class Won't Be Able