Weekly Roundup: As Insurance Costs Soar, Consumers Face Mounting Pressure Nationwide
FOR IMMEDIATE RELEASE
May 8, 2026
Contact: contact@insurancefairnessproject.com
Weekly Roundup: As Insurance Costs Soar, Consumers Face Mounting Pressure Nationwide
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.
1/ NEW SURVEY SHOWS 71% OF HOMEOWNERS SAY THEIR HOME INSURANCE COSTS HAVE GONE UP: A new survey from the Pew Research Center finds that rising homeowners insurance costs are hitting families hard across the country, with 71% of homeowners reporting premium increases in recent years and 42% calling those increases significant. Respondents say price increases are driven by insurers seeking larger profits, the growing costs of construction and repair, and worsening climate disasters.
Pew Research Center: 71% of U.S. homeowners say their home insurance costs have gone up
2/ GEORGIA’S FALSE CLAIMS ON “TORT REFORM SUCCESS”: A recent op-ed from Georgia Insurance Commissioner John King claims Georgia’s lawsuit reforms (tort reform) are “paying off,” despite no evidence proving that Georgia’s 2025 law is delivering lower premiums or meaningful relief for consumers. The changes do not guarantee taxpayer savings and may even strip consumers of their legal rights without tackling the root causes of rate increases.
Georgia is following the same failed playbook as other states like Florida, where similar reforms resulted in less legal protections for policyholders, surges in denied claims, and provided no solution to rising repair costs, especially following increasingly frequent climate-related disasters.
3/ STATE FARM FACES POSSIBLE LICENSE SUSPENSION: The California Department of Insurance is seeking to suspend State Farm’s license for a year. California state officials are pursuing millions of dollars in fines from State Farm due to mishandled insurance claims following the 2025 L.A. wildfires, highlighting the growing urgency of California’s insurance crisis.
Washington Post: California could seek to suspend State Farm’s license over ‘mishandling’ of fire claims
“Californians pay their premiums with the expectation that coverage will be there when disaster strikes, not delayed, denied, or mishandled. Strong oversight like this is essential to restoring trust and ensuring the system works for consumers, and not just insurers.”
As climate disasters and rising premiums accelerate demands for accountability, advocacy group Consumer Watchdog released insurance commissioner candidates’ answers to their questionnaire on insurance issues. The organization also highlighted the “Blueprint to A.C.T,” an expert-backed roadmap for reform. For more on the race, see the CalMatters 2026 California Voter Guide.
4/ INSURANCE COSTS DRIVE INCREASE IN U.S. FORECLOSURES: Rising insurance costs are playing a growing role in the recent increase in U.S. foreclosures, with filings reaching nearly 119,000 in the first quarter, a 26% jump from the same period in 2025. Surging home insurance premiums, which averaged $2,948 last year after a 12% increase, are stretching budgets and making it harder for homeowners to keep up with mortgage payments.
Wall Street Journal: High Housing Costs Are Pushing Foreclosures to a Six-Year High
“They’re having payment shocks from taxes and insurance…along with potential job distress,” said Marina Walsh, an economist at the Mortgage Bankers Association. Especially for homeowners who bought recently, “it’s this layering effect that could create distress,” she said.
Unlocking America’s Future: Home Foreclosures Hit Six-Year High, UAF Research Documents How Rising Insurance Costs Are Crushing American Homeowners
“Insurers are taking advantage of homeowners by gaming regulations and working with climate-denying politicians to make sure they come out on top — while working families pay the price.”
5/ HAWAIʻI “MAKE POLLUTERS PAY” BILL STALLS: SB 1166, which grants Hawaiʻi insurers the right to pursue damages from Big Oil for its role in climate-related disasters, stalled in the State Legislature last week. The bill aimed to shift the burden of rising insurance costs to the fossil fuel companies that have caused climate- and environment-related harms. It, or a similar measure, is expected to be reconsidered next legislative session.
Honolulu Star-Advisor: Bill stalls to allow insurers to sue fossil fuel companies
“With Hawaii families still picking up the pieces after historic flooding and home insurance premiums continuing to climb, it’s disappointing that SB 1166 didn’t pass so close to the finish line this session,” Kayla Economou, organizer for the Polluters Pay Hawaii coalition [....]
[....] “hard-working Hawaii residents shouldn’t be forced to pay more for home insurance due to climate change, while Big Oil corporations most responsible for the problem pay nothing.”
6/ TWO MAJOR INSURERS SEEK MIXED RATE CHANGES IN CALIFORNIA: The Auto Club of Southern California’s affiliated insurer is requesting an 11.2% rate increase for homeowners while proposing rate cuts of 20.5% for condo owners and 27% for rental properties, and Travelers is seeking a 6.9% homeowners rate increase alongside rate reductions of 17% for renters, 22.8% for condo owners, and 19.6% for condo landlords. The filings are good news for renters but highlight a highly uneven pricing landscape and signal ongoing market instability.
San Francisco Chronicle: Two of California’s largest insurers seek new rate hikes
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
Dave Jones, Yale Law Journal: The Uninsurable Future: The Climate Threat to Property Insurance, and How to Stop It
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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.
