Home insurance rates have gone up for 6 million people. How climate change and Trump are making the affordability crisis worse

"Since 2021, at least 6 million policy holders across the country have seen rate hikes to their property insurance policies, according to a new report from environmental advocacy group Climate Power. Insurers have also canceled at least 1.4 million policies in that time. One big reason is the worsening climate crisis, which is driving more and more instances of extreme weather. Inflation, labor shortages, and supply chain issues are also factors, as they drive up the costs to rebuild a home."

"The Trump administration's policies may exacerbate this crisis. Trump's tariffs could make home insurance prices rise 38% faster, one insurance agency estimated. And since beginning his second term in office, Trump has also gutted the country's abilities to forecast extreme weather, as well as the government's ability to respond to disasters. Less information means insurance companies may raise premiums even more, or pull out of high-risk areas altogether."

"In Louisiana in 2023, Citizens Property Insurance customers saw a 63% rate increase on their home insurance. That move affected more than 100,000 homeowners, who were "forced" to take out policies with Citizens after Hurricane Laura and other recent storms, the Times-Picayune reported, because other insurance companies went insolvent or left the state because of its disaster risks. And more companies are leaving especially risky states, or halting their coverage."

Since 2021, at least 6 million policyholders nationwide have experienced property insurance rate hikes, and insurers have canceled at least 1.4 million policies. Rising extreme weather linked to the climate crisis is a major driver of these changes. Inflation, labor shortages, and supply chain disruptions are increasing rebuilding costs and premiums. Federal policy changes, including tariffs, could accelerate insurance price increases by as much as 38% faster, while reductions in forecasting and disaster-response capacity reduce information insurers use to price risk. Insurers are raising premiums and exiting high-risk markets; some states have seen companies stop new business or scale back coverage.

Read at Fast Company