“Unveiling the New Map of the Climate Crisis: Insurance Companies Dropping Homeowners Across the Country”
The impact of climate change on homeowners facing risks of hurricanes, wildfires, and other disasters is becoming increasingly evident as insurance companies are dropping coverage for those in high-risk areas. A recent congressional investigation, shared exclusively with The New York Times, has shed light on the growing trend of insurance policy nonrenewals, creating a new map of the climate crisis.
According to the data revealed in the investigation, nonrenewal rates have been steadily rising since 2020 in states like California, driven primarily by the increased risk of wildfires. In some counties, rates have even doubled compared to 2018. The map provided in the report allows individuals to explore their state and identify areas with the highest rates of home insurance nonrenewals, particularly in states like California and Western states facing wildfires, as well as Eastern Seaboard states like Florida and the Carolinas with elevated hurricane risk.
The insurance crisis is not limited to coastal regions, as rates of dropped policies have surged in many U.S. counties over the past few years. These spikes in nonrenewals may occur after a major disaster, but in some cases, they coincide with rising premiums. The consequences of these nonrenewals extend beyond just losing insurance coverage, as communities deemed too risky to insure may experience a decline in property values, local tax revenue, and essential services like schools and police departments.
As insurers retreat from areas exposed to climate change risks, the nonrenewal of policies serves as a key indicator of the disruption to come. The report highlights the need for proactive measures to address the impacts of climate change on the insurance industry and the broader implications for homeowners and communities across the country.
The data presented in the investigation shows that nonrenewal rates rose in 46 states in 2023, a year marked by a record number of high-cost disasters. The charts provided in the report offer a state-by-state comparison of nonrenewal rates, emphasizing the need for a shared scale to accurately assess the impact of these trends nationwide.
Overall, the findings of the congressional investigation underscore the urgent need for comprehensive strategies to address the challenges posed by climate change on the insurance industry and the resilience of homeowners and communities in the face of increasing environmental risks.