Weekly Roundup: How Climate Change Is Pricing Americans Out of Coverage
FOR IMMEDIATE RELEASE
January 9, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: How Climate Change Is Pricing Americans Out of Coverage
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/ AS HOME INSURANCE COSTS RISE, CONSUMERS ARE BEING PRICED OUT: New data from Insurify shows that homeowners in the U.S. pay an average of $2,544 per year for home insurance. The average price varies by state, city and zip code. Those rising prices are not an accident. As Kenny Stacil of the Revolving Door Project reports, the climate-driven home insurance crisis is accelerating even as insurers post record profits. Companies are hiking premiums and issuing nonrenewals, making coverage unaffordable.
Dollars & Sense: Forsake Some, Fleece the Rest
2/ “POLITICAL BACKLASH” DRIVEN BY RISING COSTS: As a Forbes article featuring Caroline Spears, Executive Director of Climate Cabinet Action, notes, a “political backlash” is growing as voters connect affordability crises to climate inaction. Homeowners insurance premiums have jumped $648 since 2021, with another 8% increase expected this year, largely due to climate-driven disasters and most homeowners (72%) blame these increases on climate change-worsened natural disasters.
“Political candidates who offer clean, cheap alternatives to the federal government’s anti-energy policies will see success in lowering household bills and at the ballot box.”
Yale Climate Connections: Trump’s anti-climate policies are driving up insurance costs for homeowners, say experts
“At a time when homeowners are struggling to afford home insurance premiums, the Trump administration has a bunch of policies that are all driving up insurance costs,” said Michael DeLong, the Consumer Federation of America’s research and advocacy associate.
Data For Progress: Voters Want Their Government to Address the Property Insurance Crisis
The American Prospect: The Trump Regime Is Making Disasters Worse
3/ AMERICAN HOMEOWNERS READY TO RELOCATE IN 2026 DUE TO CLIMATE CONCERNS: A recent survey by Kin Insurance indicates that nearly half (49%) of U.S. homeowners are considering relocating in 2026. This move is largely driven by climate-related concerns, including extreme weather events. The study also highlighted the increasing cost of homeownership as another significant factor influencing decisions.
According to new data, U.S. disaster damage costs have exceeded $100 billion. This marks the fifth time in the past six years that costs have reached this level, notably occurring even without a single hurricane striking U.S. shores for the first time in a decade.
4/ ONE YEAR SINCE LOS ANGELES WILDFIRES: One year after the LA wildfires, survivors and community members gathered to mark the anniversary and to confront the reality that, for many families, the trauma didn’t end when the flames were extinguished. Insurance claims are still active, and insurers continue to drag survivors through red tape just to get what they’re owed. An event co-hosted by the Department of Angels and Extreme Weather Survivors, provided a healing space for survivors and community members.
New York Times: After the Los Angeles fires, their insurer told them they could return home.
“We don’t have the means to pay our mortgage and live somewhere else,” said Mr. Van Ness, 44, a waiter at a five-star hotel. “It’s a feeling of helplessness that is indescribable.”
Los Angeles Times: For fire victims, it’s a new year but the same old nightmare
“The fire was a shock,” one survivor said in a quote displayed at the exhibit. “But dealing with the insurance company is a hundred times more devastating and stressful and crushing because you feel so powerless.”
Meanwhile, recent reporting shows that climate change is accelerating the cost of living crisis in California. Global emissions and climate disasters are continuing to increase, directly worsening the climate and affordability crisis. Advocates are now emphasizing the immediate harms to consumers caused by climate change and demanding solutions.
5/ IDAHO’S HOME INSURANCE CRISIS IS ON THE RISE: Idaho's home insurance premiums have surged 37% from 2022 to 2024, rising from about $1,300 to $1,800, based on mandated data from the Idaho Department of Insurance. This increase coincides with a significant market contraction, the total number of homeowner policies dropped from 464,364 to 424,113 between 2022 and 2023, nearly 9% reduction, alongside widespread cancellations.
Boise State Public Radio: As evidence of Idaho homeowners insurance crisis mounts, so does bipartisan concern
“This is everybody’s problem,” said Dean Cameron, Idaho’s top insurance official. “And it’s a dramatic problem that’s impacting the entire state.”
Idaho Department of Insurance: Homeowners Insurance Market Data Call Findings
Unlocking America’s Future: Insurance Companies Abandon Idaho Homeowners as Premiums Spike 37%
Boise State Public Radio: Report: State legislators should learn from counterparts across the region as insurance crisis grows
6/ INSURANCE COMMISSIONER RACES ACROSS THE COUNTRY ARE SHAPING UP TO BE ABOUT AFFORDABILITY: Georgia State Sen. Nabilah Parkes and Kansas Senate Minority Leader Dinah Sykes both entered state races this week for insurance commissioner, and both are making affordability a key focus of their campaigns.
Atlanta Journal Constitution: State Sen. Nabilah Parkes launches campaign for insurance commissioner
“From health insurance to home and auto coverage, Georgia families are facing an affordability crisis on multiple fronts,” Parkes said.
Kansas Reflector: Kansas Senate minority leader challenges GOP House speaker for state insurance commissioner
“It’s simple: The cost of health insurance in Kansas is simply out of control,” Sykes said in the announcement. “Families and consumers can’t afford to keep up with the rise in premiums — on health care, auto, property or any other kind of insurance for that matter.”
7/ HIGH HOME INSURANCE RATES ARE STRAINING AMERICANS’ BUDGETS: New data from Insurify found that more than half of surveyed homeowners (57%) have made sacrifices to afford home insurance, including taking on debt (15%), borrowing from friends/family (12%), and skipping meals (10%).
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.
