Weekly Roundup: New Investigation in California, Financial Scrutiny for Insurers, and Scattershot Solutions (Copy)
FOR IMMEDIATE RELEASE
June 20, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: Insurance Premiums Driving $1 Trillion Climate Tab; FEMA and NFIP at the Brink; Another California Lawsuit
Each week, the Insurance Fairness Project highlights the latest developments in the national climate-driven property insurance crisis.
1/ STEALTH CLIMATE COSTS: Climate costs in the U.S. have risen to almost $1 trillion a year — with major repercussions for consumer spending and the economy — and escalating insurance costs are one of the primary drivers.
The US has spent nearly $1 trillion dollars on disaster recovery and other climate-related needs over the 12 months ending May 1 [...] The biggest drivers of this trend in the US are insurance premiums — which have doubled since 2017 — post-disaster repair spending and federal aid.
The New Republic: The $1 Trillion Climate Problem Republicans Are Ignoring
2/ BRACING FOR IMPACT: Across the country, Americans are waiting for extreme weather to strike, from hurricanes to wildfires to flooding — as home insurance becomes more expensive, harder to pay out, and stingier with payouts.
Newsweek: Hurricane season could spell disaster for Florida condos
For its position on the coast, Florida is particularly vulnerable to hurricanes and likely to be hit by several of these projected storms. Homeowners in the state are already paying some of the most expensive home insurance premiums in the nation, in part because of the rising catastrophe exposure for carriers in the state.
The New York Times: California’s fire season forecast shows more extremes ahead
With Los Angeles still recovering from the devastating fires that killed at least 30 people and destroyed thousands of homes, California’s residents are being warned that the summer, typically the worst season for wildfires, could be especially brutal this year.
The Guardian: The US is woefully underprepared for wildfire season, say insiders: ‘The stakes are life and death’
3/ TAKING A WRECKING BALL TO FEMA: A draft memo secured by Bloomberg reveals details of the Trump Administration’s proposals to slash FEMA’s services and suspend enrollment in the National Flood Insurance Program (NFIP), a lifeline for over 4.7 million Americans.
Bloomberg: Abolishing FEMA? Memo outlines ways for Trump to scrap the agency
Disaster experts, including ex-FEMA officials, say the plans would overwhelm state budgets and lead to longer recoveries [...] Potential changes included eliminating long-term housing assistance for disaster survivors, halting enrollments in the National Flood Insurance Program and providing smaller amounts of aid for fewer incidents.
4/ NEW LAWSUIT ALERT: L.A. wildfire survivors allege that State Farm deliberately deliberately undervalued homes to grow the company’s market share in California — at the expense of policyholders whose payouts aren’t big enough to cover the costs of rebuilding.
San Francisco Chronicle: Underinsured? Lawsuit accuses State Farm in California coverage failure
In a complaint filed Monday with the Los Angeles Superior Court, attorneys alleged State Farm’s California subsidiary and one of its agents ‘deliberately’ misused reconstruction cost estimation programs to undervalue how much its policyholders’ homes would cost to rebuild after a disaster. [...] The tactics formed part of a ‘race to the bottom’ pricing strategy, through which State Farm captured more than 20% of the California insurance market, according to the complaint.
5/ INSURANCE CRISIS DEEPDIVE: New analysis and an interactive map from the Brookings Institution confirms that zip codes across America are seeing policy cancellations and premium increases due to hurricane, flood, and wildfire risks.
Resources
Insurance Fairness Project: Polling – Voters Want Their Government to Address the Property Insurance Crisis
Public Citizen and the Revolving Door Project: Mapping the Home Insurance Crisis
Consumer Federation of America: Overburdened: The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners
Brookings Institution: Homeowners insurance in an era of climate change
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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.
