Weekly Roundup: Climate Disasters Are Breaking America’s Insurance System And Dave Jones Has Been Sounding the Alarm
FOR IMMEDIATE RELEASE
September 12, 2025
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Weekly Roundup: Climate Disasters Are Breaking America’s Insurance System And Dave Jones Has Been Sounding the Alarm
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.
Insurance Journal: Former California Insurance Commissioner Carries on Climate Change Crusade
“I wanted to see if I could work with the insurance industry to demonstrate that nature and nature-based approaches to reducing risk can be accounted for in insurance modeling, insurance pricing and insurance underwriting,” Dave Jones said.
1/ TORT REFORM WON’T SOLVE THE PROPERTY INSURANCE CRISIS: Florida recently implemented legal changes aimed at reducing insurance litigation that may be hurting homeowners. The legal changes have not reduced litigation either: the number of lawsuits filed by policyholders in Florida remains high and is surpassing all other states.
Washington Post: Florida’s fix for its struggling insurance market hurt homeowners, data shows
“After disaster strikes, people can be desperate to get the money they need to rebuild, [and] in the past insurance companies have used that as a way to have lowball offers accepted,” said Anders Croy, a spokesman for Florida Watch, a progressive advocacy group for the state’s residents. “Now, companies are just trying to close those legitimate claims without paying a cent, which is leading people to contact an attorney to get what they are owed.”
INSURANCE FAIRNESS PROJECT PANEL: Experts Debunk Tort Reform Myths Amid National Home Insurance Crisis
Yesterday, the Insurance Fairness Project held a panel with experts to discuss how tort reform has failed to help homeowners. To watch a recording, click here.
“In 2024, a year marked by three major storms, insurers denied or closed without payment nearly 47% of all claims.... This isn’t frivolous litigation—it’s families being forced to fight back after insurers refused to pay,” said Dr. Martin Weiss, the founder of Weiss Ratings, a Florida-based ratings agency. “The data proves tort reform hasn’t fixed the problem—it’s made it worse. Families are paying more, getting less, and still being forced into court just to secure what they’re owed.”
2/ NORTH CAROLINA RESIDENTS RESIDED OUTSIDE OF FEMA’S DESIGNATED FLOOD ZONE: From 8 to 10 p.m. on July 6, tropical storm floodwaters transformed the streets of Carrboro's Weatherhill Pointe neighborhood, near Morgan Creek, into raging rivers. In under two hours, mailboxes were submerged and cars swept away by a torrent of mud, waste, and debris.
The News & Observer: FEMA’s flood insurance program is set to expire on Sept. 30. Then what?
If flood insurance becomes less available or affordable, this could lead to “more credit losses and deepen housing affordability and financing (shortages) in flood-prone regions,” First Street said.
The News & Observer: Carrboro residents didn’t live in a FEMA flood zone. Chantal still took everything.
The News & Observer: As shock subsides, Carrboro flood victims want answers over dam’s devastating overflow
“What’s the future here?” Burke asked, walking through his gutted home. “We’re in a precarious situation downstream from a lake. Even if we fix it all up, will people want to buy? At what prices?”
3/ NEW REPORT SHOWS WILDFIRES STRAIN HOMEOWNERS AND INSURANCE INDUSTRY: Wildfire risks are on the rise, leading to increased insurance costs, higher reconstruction expenses, and in some cases, a complete lack of insurance coverage for homeowners in affected areas.
ABC News: Western wildfires creating strain on insurance industry, homeowners: Report
“While it’s far from clear what the exact financial costs of this disaster will be, it is a stark reminder of the impacts of the growing magnitude of natural disasters on the U.S. economy,” said Janet Yellen, who served as the Treasury secretary under President Joe Biden.
4/ NEW REPORT FROM PUBLIC CITIZEN SHOWS URGENT INSURANCE REFORMS ARE NEEDED IN MINNESOTA: As risks escalate, access to comprehensive and affordable insurance is diminishing. Insurers are progressively withdrawing from high-risk areas, increasing rates, or canceling policies across Minnesota, from Minneapolis to Mankato. The lack of public disclosure regarding nonrenewals by ZIP code means homeowners are left without crucial information to anticipate or contest changes in their coverage.
Public Citizen: Insurance in Retreat: Climate Change Leaves Minnesotans Exposed
5/ NORTH CAROLINA’S RECOVERY EXPENSES ARE JEOPARDIZING FED. DISASTER AID: Helene's destructive impact contributes to a broader trend. Since 1980, the U.S. has experienced 403 weather and climate disasters, each incurring damages exceeding a billion dollars, totaling nearly $3 trillion, according to NOAA.
WRAL News: Federal disaster aid at risk as North Carolina faces growing recovery costs
“FEMA exists to bridge the gap between what insurance covers and actual losses,” John Council said. “But a lot of people fell through the cracks because the playbook wasn’t written for a hurricane that devastated the mountains.”
6/ NEW POLL: AMERICANS SEE CLIMATE CHANGE IS LEADING TO HIGHER HOME INSURANCE: Global warming is intensifying extreme weather events like heatwaves, floods, and wildfires, leading to increased homeowners insurance costs, particularly in vulnerable regions.
Yale Program on Climate Change Communication: About half of Americans understand that global warming is increasing homeowners insurance costs
Key takeaways:
82% say the cost of homeowners insurance is increasing, including about two-thirds (66%) who say it is increasing “a lot.”
69% think disasters such as hurricanes, floods, and wildfires contribute to increasing homeowners insurance costs, including nearly half (47%) who say such disasters contribute “a lot.”
48% think global warming contributes to increasing homeowners insurance costs.
7/ CA FAIR PLAN STILL DENYING SMOKE DAMAGE CLAIMS: California’s home insurer of last resort is still denying smoke damage claims from the January wildfires, even when homes have tested positive for toxic substances.
Los Angeles Times: California FAIR Plan continues denying smoke damage claims despite court loss and regulatory action
“This stuff is going everywhere and it’s not dirt — it’s toxic,” said attorney Dylan Schaffer, referring to smoke damage. “And you tell me that some 82-year-old is going to get up in the attic with a hazmat suit on, rip out the insulation and start vacuuming around?”
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
Revolving Door Project: Trump disaster policy tracker: Timeline and Map
Consumer Federation of America and Climate and Community Institute: Penalized: The Hidden Cost of Credit Score in Homeowners Insurance Premiums
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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.
