Weekly Roundup: Homeowners Face New Attacks on Accountability and Rising Insurance Costs
FOR IMMEDIATE RELEASE
October 17, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: Homeowners Face New Attacks on Accountability and Rising Insurance 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.
1/ ILLINOIS HOMEOWNERS INSURANCE SHOWDOWN IS HEATING UP: Illinois’s Attorney General has filed a lawsuit to force State Farm to turn over detailed homeowners insurance data to the Department of Insurance (IDOI), accusing the company of obstructing an ongoing regulatory examination initiated last November.
Meanwhile, Gov. Pritzker called on lawmakers to give the state stronger authority to regulate the homeowners insurance market, especially after State Farm’s average rate hike of 27% across Illinois. Pritzker called the rate hikes "unfair and arbitrary." The legislature is back in session and is expected to take up the issue.
CBS News: Illinois Attorney General Kwame Raoul suing State Farm over homeowners insurance data
KFVS 12: Pritzker seeks more regulatory authority over homeowners insurance business
2/ FL CITIZENS’ CEO DEFENDS FORCED ARBITRATION: Following Rep. Maxwell Frost’s calls for an investigation, the CEO of Citizens Property Insurance (Florida’s insurer of last resort) is 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.
Citizens’ response seems to be an attempt to steer the conversation away from their flawed process, back toward plaintiffs’ lawsuits and tort reform. As we know, that’s a distraction – and Florida’s tort reform has already proven to “backfire”.
South Florida Sun Sentinel:A ‘stacked deck’: Citizens’ alternative dispute system unfair to policyholders, attorneys say
3/ NEW CA PROPOSAL THREATENS PUBLIC OVERSIGHT OF INSURANCE RATE HIKES: A new proposal by California Insurance Commissioner Ricardo Lara would make it harder for consumer groups to challenge insurance rate increases, leaving homeowners underrepresented. The proposal would impose stricter funding rules for consumer protection groups that act as “intervenors” in the process.
LA Times: Insurance commissioner proposes controversial changes to landmark insurance law
“Attacking California’s public intervenor program is a short-sighted attempt to scapegoat consumer advocates for what is clearly a national crisis,” stated Carly Fabian, senior insurance policy advocate at Public Citizen.
Quote from Lizzy Price, a spokesperson for the Insurance Fairness Project:
"Californians need stronger protections, not fewer opportunities to hold insurers accountable. Consumer groups play a critical role in public oversight, preventing corruption, and advocating for homeowners against predatory practices. [...] Insurance is already an opaque industry, and this proposal would shroud even more of the decision-making process in secrecy.”
4/ STATE FARMS NEW “WILDFIRE FEE” IN CA SHIFTS COSTS TO HOMEOWNERS: State Farm will soon impose supplemental wildfire fees on California policyholders. In response, Consumer Watchdog filed a lawsuit which was approved by a Los Angeles Superior Court judge.
Consumer Watchdog: Court Greenlights Consumer Lawsuit Challenging Insurance Commissioner’s Unlawful Pass-Through Surcharges Under FAIR Plan
Be Insure: State Farm to add wildfire fee on California policies after $1 bn FAIR Plan hit
Quote from Charles Slidders, Senior Attorney at the Center for International Environmental Law:
“Insurers helped create the crisis they’re now making homeowners pay for. They’ve known for decades that climate change would drive more frequent and intense wildfires, yet continue to invest in fossil fuels and underwrite the very oil and gas projects driving the crisis.”
Quote from Lizzy Price, a spokesperson for the Insurance Fairness Project:
“The insurance system is set on squeezing people for every last cent. California can’t build a fair or sustainable insurance market if we keep asking homeowners to shoulder the costs of the industry’s climate exposure.”
5/ GOV. SHUTDOWN CUTS OFF FLOOD INSURANCE DURING PEAK STORM SEASON: With the government shutdown now in its second week and no resolution in sight, the gap in insurance coverage is expected to grow. The National Flood Insurance Program stopped writing new policies on Oct. 1 and can't resume until it's reauthorized by Congress. That may force buyers to postpone or cancel home sales. The NFIP, administered by FEMA, covers more than 4.7 million Americans.
Los Angeles Times: Government shutdown cuts off flood insurance program during storm season
NPR: For private flood insurance companies, the government shutdown is good for business
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
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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.
