Weekly Roundup: 2026 Outlook – Prepare for Higher Insurance Rates as More Extreme Weather, Tariffs, and Inflation Drive Costs
FOR IMMEDIATE RELEASE
December 19, 2025
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Weekly Roundup: 2026 Outlook – Prepare for Higher Insurance Rates as More Extreme Weather, Tariffs, and Inflation Drive Costs
Each week, the Insurance Fairness Project highlights the latest developments in the national climate-driven property insurance crisis. For more insurance updates, follow us on LinkedIn, X/Twitter, and Bluesky.
This is the final Weekly Roundup for 2025. Thank you for reading! We look forward to seeing you when we return on January 9th, 2026.
1/ HOME INSURANCE OUTLOOK FOR 2026: Home insurance rates are projected to keep increasing in 2026, building on a trend that saw costs surge by 62% between 2022 and 2025. According to recent reporting, this increase is driven by a combination of factors: rising building costs, increased frequency and severity of severe weather events, and tariffs. Meanwhile, this climate-driven insurance crisis is putting retirement security at risk for seniors and future generations.
Forbes: Home Insurance Outlook 2026: Tariffs, Severe Weather, Building Costs Drive Higher Rates
“The cost of labor and materials will always be baked into the cost of insurance. Tariffs are currently a concern due to where we source many types of car parts and home materials,” says Andrew Biscay, president and insurance broker at Minnesota-based South Lake Agency.
In These Times: Climate Change Puts A Generation’s Retirement On The Line
2/ JUST SEVEN DISASTERS CAUSED ~$400B IN DAMAGE IN 2025: New estimates from AccuWeather indicate that seven major weather disasters in the United States caused between $378 billion and $424 billion in total damage and economic loss this year.
3/ POORER AMERICANS ARE DROPPING FEDERAL FLOOD INSURANCE: A new study from the Environmental Defense Fund published in the Journal of Catastrophe Risk and Resilience found that premiums are driving many homeowners, especially those with lower incomes, to drop NFIP coverage entirely. The same study also shows that Floridians are retaining their flood insurance despite rising costs, while the rest of the nation is dropping policies at a rate that could jeopardize the federal NFIP program.
Bloomberg: Poorer Americans Dropped Federal Flood Insurance When Rates Rose
“Flood remains the most under-insured physical risk in the US,” according to Firas Saleh, who oversees North American flood models at Moody’s Corp.
Miami Herald: Flood insurance costs are rising. Florida keeps paying, other states drop it
Real Estate News: Homeowners insurance realities set in after recent floods
Insurance News Net: FEMA's Risk Rating 2.0 Is Reshaping Flood Insurance, Leaving Many Households Financially Vulnerable To Growing Flood Risk
Meanwhile, U.S. Reps. Kathy Castor (D-Fla.) and Maria Salazar (R-Fla.) have introduced a new bill that would allow homeowners to pivot between private flood insurance and NFIP policies without premium increases.
4/ CA INSURANCE COMMISSIONER CRITICIZED FOR FAILING CONSUMERS: A recent press conference convened by Unlocking America’s Future featured former CA Insurance Commissioner (and current member of Congress) John Garamendi, who said that current Insurance Commission has "failed his obligations to the consumer." The press conference highlighted a new report from UAF and called for accountability for insurance companies.
ABC 10: Former Insurance Commissioner criticizes current commissioner amid insurance crisis
Unlocking America’s Future: WATCH: Rep. Garamendi, Disaster Survivor & Experts Call for Accountability as Insurance Companies Abandon California Homeowners While Reporting Massive Profits
5/ CLIMATE CHANGE IS RESHAPING INSURANCE MARKETS IN HI: A new report published by the Hawai’i Appleseed Center for Law & Economic Justice examines regulatory responses to climate disasters and poses the question “Who Pays for Climate Disasters?”
West Hawaii Today: Escalating climate disasters could make homes uninsurable, new report warns
“The question is no longer if another major climate disaster will strike Hawaii, but when,” White said. “Our report shows that our current financial and regulatory systems are unprepared. If we do not act decisively, the cost of recovery will fall disproportionately on those least able to bear it — working families, kupuna and fixed- income households.”
6/ CONSUMER ADVOCATES PUSH FL TO END UNFAIR FORCED ARBITRATION IN INSURANCE: The Consumer Federation of America and other advocates urged the Florida Office of Insurance Regulation and Gov. Ron DeSantis to act immediately regarding Florida’s Citizens Property Insurance Company.
Earlier this year, Rep. Maxwell Frost called for an investigation, for the CEO of Citizens Property Insurance defending the company’s forced arbitration process. As the Sun Sentinel first reported and ProPublica examined in depth, the arbitration process is seemingly stacked against policyholders.
Consumer Federation of America: Consumer Advocates Urge Florida to Eliminate Unfair Forced Arbitration System in Insurance
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
Consumer Federation of America and Climate and Community Institute: Penalized: The Hidden Cost of Credit Score in Homeowners Insurance Premiums
Americans for Financial Reform and Public Citizen: Rising Property Insurance Premiums: The Uneven Risks to Household and Systemic Financial Stability
Climate and Community Institute (CCI): Insurers of Last Resort: Why Today’s FAIR Plans Need a Redesign to Address the Home Insurance Crisis
Center for Climate Integrity: How Big Oil is Fueling the Insurance Crisis And Why State Policymakers Should Act
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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.
