Weekly Roundup: New Investigation Exposes How California’s Attempt To Bring Insurers Back Into Wildfire Zones Has Fallen Apart
FOR IMMEDIATE RELEASE
November 7, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: New Investigation Exposes How California’s Attempt To Bring Insurers Back Into Wildfire Zones Has Fallen Apart
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/ INSURERS EXPLOIT CA’S “85% RULE,” LEAVING HOMEOWNERS EXPOSED: A New York Times investigation exposes how California’s attempt to bring insurers back into wildfire zones has quietly fallen apart. The 2023 compromise required insurers to cover at least 85% of their statewide market share in high-risk areas, but industry-negotiated loopholes have rendered that promise nearly meaningless. L.A. fire victims are now calling for the resignation of Insurance Commissioner Ricardo Lara, saying he has allowed insurers to delay and deny claims.
New York Times: California Promised Insurance Relief, But Delivered Loopholes
“I can’t go to the grocery store or walk into a coffee shop or go to a Rotary meeting where there isn’t a couple or three folks who have a horrific story about being nonrenewed,” said Mike McGuire, the California State Senate leader, who represents Lake County.
Los Angeles Times: L.A.-area fire victims demand resignation of state’s top insurance regulator
Eaton Fire Survivors Network: L.A. Fire Survivors Urge Governor Newsom to Call for Commissioner Lara’s Resignation
2/ SKYROCKETING HOME INSURANCE COSTS ARE THREATENING THE U.S. HOUSING MARKET: Housing demand is shrinking as affordability collapses under the combined weight of high borrowing costs, rising property taxes, and surging insurance premiums, according to Newsweek. Treasury Secretary Scott Bessent has similarly warned the economy is “at the tipping point” of a potential recession.
Newsweek: Scott Bessent Issues Recession Warning Over Housing Market
Yahoo Finance: Top economist sounds the alarm even louder on the housing market and says homebuilders are ‘giving up’
3/ JAMAICA’S HURRICANE “CAT BOND” FACES FIRST MAJOR TEST AFTER HURRICANE MELISSA: Jamaica’ recent $150 million catastrophe bond (“cat bond”) is expected to trigger a payout after Hurricane Melissa made landfall as a Category 5 storm, one of the strongest ever recorded in the Atlantic. The bond, issued in 2024, is part of a broader effort by Jamaica to pre-finance disaster response.
"Jamaica's strategy is, in my perspective, one of the most comprehensive of any country globally at the minute," said Conor Meenan, a risk financing adviser at the U.K.-based Centre for Disaster Protection.
4/ PEOPLE ARE MOVING OUT OF FLOOD-PRONE NEIGHBORHOODS IN THE U.S.: New data reveals a continuing trend of residents departing American neighborhoods with the highest flood risk. An analysis examined 310 high-flood-risk counties cross-referencing with the U.S. Census Bureau population estimates from July 2023 to July 2024. While 178 of these counties experienced net inflows, 132 saw net outflows, with the total number of people leaving exceeding those arriving.
5/ THE FULL COST OF HURRICANE SEASON BY PUBLIC CITIZEN: Homeowners in coastal areas face a difficult dilemma during hurricane season, as detailed in a new Public Citizen blog post. They are caught between the escalating threat of severe, unpredictable weather due to climate change and the increasingly high costs imposed by insurance companies, who profit from this precarious situation.
Public Citizen: The Full Cost of Hurricane Season
This crisis isn’t just about premiums and policies. This is about whether we will let entire communities be destroyed, not by hurricanes, but by an industry that prioritizes its bottom line over human lives and livelihoods. These aren’t just Gulf Coast problems; they’re a warning about what’s in store for the rest of the country. And they demand solutions, before more families are forced to choose between their homes and financial survival.
6/ FL RESIDENTS ARE CONSIDERING LEAVING THE STATE: Many Floridians are experiencing "affordability anxiety," with a quarter of residents seriously considering leaving the state due to the high cost of living. This concern is exacerbated by soaring home insurance premiums. Florida's insurance market has seen an increase of private carriers, driven away by rampant fraud, excessive litigation, and the growing threat of more frequent and severe natural disasters.
Newsweek: Quarter of Florida Residents Are Considering Leaving State
"I got tired of my homeowner’s insurance not being renewed and being moved to Citizens, the four point and wind mitigation inspections, not to mention the price increases every year," she said.
7/ FLOOD FUNDS FOR MILWAUKEE DENIED BY TRUMP ADMINISTRATION: U.S. Rep. Gwen Moore is sounding the alarm after the Trump administration, through FEMA, denied Wisconsin crucial flood mitigation funds. This denial comes after record-breaking floods hit southeastern Wisconsin in August, highlighting the state's need for assistance to prepare for such events.
The Bradenton Times: Trump administration denies flood mitigation funds for Milwaukee
“The risks of severe flooding will only increase due to climate change, and our community needs to be prepared,” Moore said in a statement Thursday. “FEMA’s ill-conceived decision denies our state the opportunity to take proactive efforts to prevent future flooding and damage, which saves homeowners and taxpayers dollars in the long run.”
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
###
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.
