NEW REPORT: Ongoing Home Insurance Crisis Taking a Mounting Economic Toll
FOR IMMEDIATE RELEASE
July 30, 2025
Contact: contact@insurancefairnessproject.com
NEW REPORT: Ongoing Home Insurance Crisis Taking a Mounting Economic Toll
Midyear Assessment Shows Premiums Soaring Almost Everywhere, As Homeowners Lack Coverage and Insurers Slow-Walk Claims
Today the Insurance Fairness Project released its report The Home Insurance Crisis at Midyear, taking stock of the economic and personal toll climate change continues to wreak on people who struggle to get and afford the home insurance coverage they need.
As record climate-driven storms, fires, and floods hit American communities more frequently than ever, the insurance crisis is mounting in every state. The new report documents skyrocketing premiums, disappearing coverage, and a regulatory system that’s failing the people it’s supposed to protect.
“The property insurance crisis is no longer a slow burn, it’s an emergency,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project. “In community after community, we’re seeing the same story: premiums are soaring, coverage is shrinking, insurers are slow-walking claims, and families are stuck rebuilding on their own after disaster hits.
“This isn’t just about numbers on an insurance bill — it’s about families being told their homes aren’t worth protecting, or that they’re on their own after a flood, fire, or severe storm. As severe weather hits more and more often, if we don’t act now, we’re heading for an economic crisis that could rival 2008,” Helmstetter continued.
As the U.S. rides out hurricane season and Texas Hill Country residents are starting their long, slow recovery from July’s storms, the data collected by the Insurance Fairness Project in this report suggest we will see no respite anytime soon from the accelerating costs and impacts of the insurance crisis — unless we take action.
Some key findings from the report:
Premiums are spiking across the country.
Since 2019, average home insurance premiums have jumped 40.5%, with 2025 alone bringing 27% rate hikes in states like Illinois and Louisiana.
7.4% of U.S. homeowners now have no insurance, with the rate twice as high among households earning under $50,000.
The flood insurance system is failing Americans.
Floods are hitting places far outside FEMA’s maps, and most homeowners don’t realize their insurance won’t cover the damage.
In Texas’s Kerr County, 98% of homes damaged in July had no flood coverage.
A study from UNC found 43% of recently flooded buildings in North Carolina were outside official hazard zones.
Insurers are refusing to pay claims, while they make record profits.
Fourteen major insurance companies closed nearly half of all 2024 homeowner claims with no payout.
One fire survivor: “They have… given us lowball offers that in no way are a good-faith effort to settle our claims.”
Yet the industry made $166.8 billion in profit last year, up 91% from 2023.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
