Weekly Roundup: Increased Flooding + Cuts to FEMA & NFIP + Tariffs = Growing Disaster for Homeowners
FOR IMMEDIATE RELEASE
May 2, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: Increased Flooding + Cuts to FEMA & NFIP + Tariffs = Growing Disaster for Homeowners
Each week, the Insurance Fairness Project highlights the latest developments in the national climate-driven property insurance crisis.
As states across the country deal with heightened flood risks due to climate change, the federal government is taking away critical safety nets with cuts to FEMA and the National Flood Insurance Program – and private insurers aren’t ready to fill the gaps. Meanwhile, a new study revealed that President Trump’s proposed tariffs could mean even higher premiums for policyholders.
From the coasts to the heartland, increased flood risk is impacting every region of the country.
Washington Post: More heavy rain and flooding possible as storms in the Plains begin to shift east
The Hill: Climate change is ramping up flood risk in the Pacific Northwest
ABC 4 Salt Lake City: Utahns should assess flood risk and insurance now, emergency management says
Which means cuts to FEMA and the planned end of the National Flood Insurance Program (NFIP) will put even more people at risk of financial ruin when floods hit.
The NFIP is a lifeline for 4.7 million Americans in flood-prone areas who can’t afford or can’t access private flood insurance. The program is set to expire on September 30 unless Congress takes action.
Palm Beach Post: With Florida's most popular flood insurance set to run out, here's what to know on FEMA
USA Today: Amidst FEMA staff cuts, worries grow about summer hurricane, tornado seasons
NOLA.com: Budget battles put federal flood insurance at risk. Louisiana leaders want to change that.
Now about those tariffs…
Newsweek: Home Insurance Costs Could Soar Amid Trump Tariffs
Insurify: Tariffs Could Raise Home Insurance Costs up to 38% Faster
From Insurify’s study: “Tariffs have raised those costs, making repairing or replacing a home more expensive and, consequently, driving up the cost of claims that insurers must cover. Insurance companies are likely to pass this risk on to homeowners by charging higher premiums.”
Our statement: “The home insurance crisis is already hitting families hard across the country, and tariffs will make insurance even more expensive,” said TJ Helmstetter, spokesperson for the Insurance Fairness Project. “A majority of voters say the government is not doing enough to address this crisis, and it’s no wonder why. It’s not fair to expect homeowners and business owners to bear the cost of ever increasing weather disasters on their own.”
Resources
Insurance Fairness Project and Data For Progress: Polling – Voters Want Their Government to Address the Property Insurance Crisis
78% of voters are concerned about rising property insurance prices, with 40% saying they are “very concerned”
Public Citizen: Letter to Congress Opposing Cuts to Federal Emergency Management Agency
Public Citizen and the Revolving Door Project: Mapping the Home Insurance Crisis
New interactive maps reveal the widespread nature of the U.S. home insurance crisis with seven metrics of availability and affordability.
Consumer Federation of America: Overburdened
The Dramatic Increase in Homeowners Insurance Premiums and its Impacts on American Homeowners
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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.
