Weekly Roundup: Wildfires, Soaring Costs, and the Deepening Home Insurance Crisis
FOR IMMEDIATE RELEASE
May 1, 2026
Contact: contact@insurancefairnessproject.com
Weekly Roundup: Wildfires, Soaring Costs, and the Deepening Home Insurance Crisis
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/ WILDFIRES IN SOUTH GEORGIA RAISE URGENT INSURANCE CONCERNS: Fast-growing wildfires in south Georgia are continuing to spread, displacing families and destroying homes. The Pineland Road fire, which is only 23% contained, already has a current estimated cost of nearly $4 million, and the Highway 82 fire, only 6% contained, has a current estimated cost of nearly $5.5 million. Early reporting points to significant losses, and past disasters across the country give us an idea of the uphill battle that will ensue for recovery in these communities.
In July 2025, floods in Texas caused up to $22 billion in economic damage. Similarly, after the 2025 Los Angeles fires, costs soared past $130 billion, highlighting how insurance gaps can shape and stall entire communities' ability to rebuild.
A lack of adequate home insurance could prove devastating for those affected by the fires. A recent analysis shows that as of 2024, more than 380,000 Georgia homes were uninsured, with the state ranking 7th in the country for the highest increases in uninsured rates.
2/ NEW STUDY: AMERICANS OVERPAYING BY $150 BILLION A YEAR FOR INSURANCE: New reports from the Vanderbilt Policy Accelerator find that insurers are paying out far less than they used to, even as premiums keep rising nationwide. In 2024, companies returned just 62 cents for every dollar collected, down from about 80 cents in the 1980s and 1990s. That $150 billion gap isn’t just industry profit, it’s money being withheld from families, homeowners, and businesses when they need it most.
As climate disasters intensify and coverage becomes harder to secure, this growing imbalance raises serious questions about affordability, accountability, and whether the insurance market is still working for consumers. It’s crucial that policymakers act.
Vanderbilt Policy Accelerator: How to Lower the Insurance “Tax” By $150 Billion
Vanderbilt Policy Accelerator: Regulating Insurance as a Public Utility
Vanderbilt Policy Accelerator: Property Insurance Has a Greedflation Problem
“Politicians from both sides of the aisle are promising to address “affordability.” If they want to deliver on those promises, they’ll need policies that drop prices tangibly and quickly in at least a few markets. These reforms to the insurance sector would be a good start.”
AP: You’re probably paying more for insurance lately. A new study suggests federal action to cut costs
“The fact that the loss ratios are so low means that the insurance industry is charging too much,” said Brian Shearer, director of competition and regulatory policy at the Vanderbilt University think tank and a former senior adviser at the Consumer Financial Protection Bureau.”
3/ HIGH INSURANCE COSTS ARE NO LONGER JUST A COASTAL ISSUE: Home insurance is getting more expensive, and not just in coastal states. As wildfires, hailstorms, and other climate disasters grow more frequent, severe, and costly, premiums are rising across the country, with some inland areas seeing the sharpest increases. For homeowners, it’s a sign that higher costs and tougher coverage choices are becoming the new normal.
Wall Street Journal: Natural Disasters Are Rewriting Home-Insurance Costs. See How It Impacts You
“We’re seeing a new, higher level of pricing that’s here to stay,” said Jeremy Porter, chief economist at climate-research firm First Street.”
4/ UNINSURED? SHARE YOUR STORY: As climate disasters become more frequent and severe, rising premiums are forcing millions of homeowners to scale back coverage or drop their insurance altogether, leaving families and entire communities exposed to serious financial risk when disaster strikes.
NPR wants to hear about your experiences with insurance companies and how you’re navigating coverage decisions as costs continue to climb nationwide.
5/ COLORADO GOV. POLIS WANTS TO CUT INSURANCE COSTS: Colorado Governor Jared Polis and Insurance Commissioner Mike Conway recently introduced a plan designed to provide the average Coloradan with $800 in annual savings on homeowners insurance. Colorado currently faces some of the highest insurance rates in the U.S.
The Gazette: Gov. Polis unveils plan aimed at cutting Colorado home insurance costs by up to $800 a year
“‘Colorado is focused on expanding housing options Coloradans can afford, and homeowners’ insurance is a big cost for so many in our state,’ Polis said during a press conference on Thursday. ‘There is more we must do to lower the cost of homeowner’s insurance, and this roadmap outlines our plan to reduce insurance costs, making our communities safer and more resilient in the face of unpredictable weather conditions and natural disasters.’”
Insurance Fairness Project: NEW REPORT: Colorado Communities Are Priced Out of Disaster Protection as State’s Affordability Crisis Intensifies
It’s also worth noting that the Colorado Supreme Court ruled this week that state consumer protections requiring insurers to take certain steps before claiming a policyholder failed to cooperate do not apply when it is clearly written into the insurance policy.
6/ CALIFORNIA’S NEXT INSURANCE COMMISSIONER: CalMatters recently sat down with five leading candidates seeking to oversee California’s insurance market. Their perspectives offer an early look at how each would approach a role that directly affects millions of policyholders, the stability of the state’s insurance system, and the cost and availability of coverage.
7/ MAUI FIRE SURVIVORS FACING INSURANCE PAYOUT REALITY: The $4.03 billion settlement for Maui wildfire victims is finally nearing distribution, but many survivors won’t come close to recovering what they lost. Legal fees, insurance reimbursement claims, and potential taxes could consume a significant share of payouts, underscoring how disaster recovery often falls short of the damages, even for insured homes.
Honolulu Civil Beat: Maui Fire Lawsuit Payouts Are Near. Few Survivors Will Break Even
“‘People need to see what they’re going to get from the lawsuit before they rebuild,’ [Sherry Peterson, United Policyholders fellow] said. ‘If they don’t know what that’s going to look like, how do they plan?’”
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
Dave Jones, 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.
