Weekly Roundup: New Report Shows The State of Home Insurance in 2026
FOR IMMEDIATE RELEASE
January 30, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: New Report Shows The State of Home Insurance in 2026
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 REPORT SHOWS THE STATE OF HOME INSURANCE IN 2026: A recent Insurance.com report says that despite improving market conditions, most policyholders shouldn't expect a drop in renewal rates this year. The report blames “severe weather and natural disasters” and increased construction costs among the factors causing rates to climb.
Insurance.com: The state of home insurance in 2026: Increasing rates, climate change, and consumer frustration
Scenes of homes engulfed by fast-moving flames and washed away by hurricane-driven floodwaters have horrified viewers across the nation, and in their wake, billions of dollars in insurance claims have been filed.
More and bigger insurance claims have caused insurance companies to file rate increases, while in some areas, insurers have pulled back or even gone out of business.
2/ NATIONAL FLOOD INSURANCE ON THE BRINK – AGAIN: Once again, Congress is waiting until the last minute to reauthorize the National Flood Insurance Program (NFIP), putting a vital program that provides flood coverage to more than 4.7 million Americans at risk. Unless Congress acts, authorization for the NFIP is set to expire today, which would immediately cut off access to new and renewed flood insurance policies nationwide.
Realtor.com: National Flood Insurance Program Is on the Brink—Again
No, this isn’t déjà vu. The National Flood Insurance Program, which insures nearly 5 million properties nationwide, is once again nearing its expiration date.
Unless Congress acts by Jan. 30, 2026, the NFIP’s authorization will lapse, putting coverage and renewals in limbo, and potentially disrupting as many as 1,400 home sales a day that require flood insurance to close.
3/ ILLINOIS OFFICIALS CONTINUE PUTTING HEAT ON STATE FARM: State Farm has resisted handing over nationwide data to the Illinois Department of Insurance, which says it has the authority to review the data to ensure Illinois residents are being treated fairly. Meanwhile, Governor Pritzker has continued pushing for increased regulatory authority.
WBEZ Chicago: Gov. Pritzker pushes back at State Farm in escalating fight for tighter insurance regulations
Under a stalled legislative plan that Pritzker wants to revive, insurers like State Farm could still propose whatever premium increases they want, but state insurance regulators would be empowered to force consumer refunds if the price hikes are deemed “unfair or excessive.” [...]
In his letter, Pritzker said eight states have regulatory frameworks in place similar to what he’s pushing, and 41 have more restrictive standards.
Insurance Journal: Illinois Sues State Farm for Refusal to Release Homeowners’ Insurance Data
Relatedly, Illinois lawmakers are preparing to introduce “climate change superfund” legislation – the latest in a series of “Make Polluters Pay” efforts that would force fossil fuel companies to pay for the financial fallout of climate change.
4/ CLIMATE AND ECOLOGICAL RISKS ARE DRIVING UNINSURED LOSSES: A new white paper from the World Wildlife Fund “warns that degrading ecosystems are amplifying climate risks and driving uninsured losses across advanced economies.”
World Wildlife Fund: Climate and nature risks fuel multi-billion insurance protection gaps
The white paper analyses the insurability challenge beyond property insurance, demonstrating how climate and nature risks are also driving losses across health, agriculture, liability, business interruption and infrastructure [...]
Also of note, the World Economic Forum's Global Risks Report 2025 ranked extreme weather events #2 among current global risks and #1 as the most severe threat over the next 10 years, and a new study from Utility Rates found that severe weather heavily influences homeowners’ insurance prices.
5/ A FIVE STEP GUIDE FOR STATES ON THE HOME INSURANCE CRISIS: A new blog post by Public Citizen highlights steps states can take now to offer immediate relief, reduce costs, and ensure corporate accountability while home insurance prices and climate threats are on the rise.
Public Citizen: Five Steps for States on the Home Insurance Crisis
To address climate change, the root cause, states should act now to shift industry profits towards resilience and mitigation, directing fees towards loss reduction and shifting insurance from an obstacle to an accelerator for the energy transition.
6/ WINTER STORM’S POTENTIAL $100B+ ECONOMIC IMPACT ON THE US: Storm Fern is predicted to be the most expensive severe weather event since the Los Angeles area wildfires, with experts warning that the financial fallout from the storm could exceed $100 billion. AccuWeather recently updated its forecast, with experts now projecting total damages and economic losses from the storm to fall between $105 billion and $115 billion.
Newsweek: Winter Storm Fern Could Inflict $100 Billion‑Plus Hit on US Economy
"Historically, ice storms in these regions have generated outsized insured losses because many homes and businesses are not designed for sustained subzero temperatures over extended periods of time," she said.
7/ LA WILDFIRES EXPOSED THE US’S BROKEN INSURANCE SYSTEM: New reporting shows the LA wildfires have exposed deep failures in the U.S. home insurance system as many survivors are facing long delays, lowball settlements, and straight up denials from insurers after losing all of their belongings.
The Guardian: ‘Delays, lowballs, outright denials’: how the LA wildfires have exposed the US’s broken insurance industry
“It was all delays and denials,” Jessica Conkle, a public education administrator, said. “It felt like someone was training these people not to answer our questions.”
Vox: America’s wildfire risk data quietly puts millions of homes in danger
San Francisco Chronicle: New bill asks state to craft urgent wildfire smoke safety standards after Chronicle investigation
New reporting also shows that California’s FAIR Plan enrollment hit another record number of policies before the end of 2025.
Consumer Watchdog’s ongoing podcast series titled “Smoke and Mirrors” dives into survivor stories from the LA wildfires and insurance industry abuses. Listen here!
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
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.
