Weekly Roundup: Private Insurers Are Cashing In On The Government Shutdown, Turning Crisis Into An Opportunity
FOR IMMEDIATE RELEASE
October 31, 2025
Contact: contact@insurancefairnessproject.com
Weekly Roundup: Private Insurers Are Cashing In On The Government Shutdown, Turning Crisis Into An Opportunity
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/ FL AND CA TOP THE LIST OF NON-RENEWALS: Last year, more homeowners in Florida and California were dropped by their insurance companies than in any other state, according to a Weiss Ratings analysis of official NAIC data.
Weiss Ratings: Homeowners in Florida and California Dropped by Their Insurance Companies at Highest Rate in Nation
2/ PRIVATE INSURERS CASHING IN ON THE GOVERNMENT SHUTDOWN: With the National Flood Insurance Program (NFIP) frozen during the shutdown, new reporting shows that private insurers are rushing to fill the gap and are turning a crisis into a profit opportunity.
The Lever: Amid The Shutdown, Flood Insurance Profiteers Are Riding The Wave
The fact that Neptune’s partners “are able to become insolvent and leave policyholders holding the bag… makes them far less protective” than National Flood Insurance Program policies, said Jordan Haedtler, policy adviser to the Insurance Fairness Project, a group advocating for sustainable and equitable solutions to the climate-driven property insurance crisis.
3/ MAPS SHOW HOW HOME INSURANCE PREMIUMS HAVE CHANGED AT THE ZIP-CODE LEVEL: New interactive maps from the Revolving Door Project show home insurance premium changes in key states broken down by ZIP codes from 2018-2022. The data reflects average annual primary market costs, excluding coverage levels and FAIR/Citizens Plan premiums.
MAPS: California | Louisiana | Minnesota | North Carolina
Revolving Door Project: Mapping the Home Insurance Crisis
4/ SUBMISSIONS WANTED FOR NATURAL CATASTROPHE RESILLIENCY STUDY: The California Earthquake Authority (CEA), acting as Wildfire Fund Administrator under SB254, has issued a call for contributions to its Natural Catastrophe Resiliency Study. Critical deadlines and submission requirements linked below.
California Earthquake Authority (CEA): Call for Contributions in Support of Study on New Models and Approaches to Complement or Replace the Wildfire Fund
5/ NEW “LONG-TERM SOLVENCY REGULATION” PROPOSAL IN CA: Earlier this week, the California Department of Insurance announced draft regulation aimed at safeguarding California’s insurance market from escalating climate impacts, catastrophic risks, and emerging technological threats.
Our Take: “Insurance regulators' most important responsibility is promoting solvency. By joining the IAIS in expecting insurers to responsibly manage climate risks in their portfolio, CA DOI is fulfilling this vital responsibility and asserting its leadership nationally as a state regulator overseeing climate risk supervision.” – Jordan Haedtler, policy advisor for the Insurance Fairness Project
Meanwhile, USAA has requested a 7.3% average rate increase for California homeowners. If approved, this change would impact nearly 350,000 customers upon their first renewal date.
6/ NEW NEVADA LAW ALLOWS HOME INSURANCE THAT EXCLUDES WILDFIRE COVERAGE: Effective January 1, a new Nevada law creates a four-year "sandbox" for insurers to test wildfire policies. This comes as wildfire-related insurance issues surge in Nevada; from 2022-2023, home insurance cancellations or non-renewals due to wildfire risk rose 82%.
Reno Gazette Journal: New Nevada law allows home insurance that excludes wildfire coverage — what to know
7/ HOMEOWNERS INSURANCE BILL OF RIGHTS: A recent Consumer Reports survey reveals that over 50% of homeowners experienced increased insurance premiums in the past year. In response, the nonprofit consumer advocacy organization has drafted a "Homeowners Insurance Bill of Rights," which it hopes states nationwide will adopt.
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.
