WASHINGTON D.C.- A new report released today by Climate Integrity highlights a direct link between the escalating climate crisis, driven by fossil fuel industry practices, and a burgeoning insurance affordability crisis impacting millions of American homeowners. The report details how rising premiums and policy cancellations are increasingly tied to extreme weather events, leaving a growing number of residents uninsured and destabilizing local housing markets.
The number of U.S. homeowners forgoing insurance coverage has doubled as 2019, reaching 12% in 2024, according to a recent industry survey. This translates to roughly 15.6 million homes nationwide without insurance, based on the approximately 130 million homeowner-occupied housing units in the United States, as reported by the U.S. Census Bureau. The surge in uninsured properties is particularly acute in states frequently hit by climate-related disasters, including Florida, Louisiana, and California. Premiums in these states have risen by an average of 20-30% annually over the past three years, with some homeowners facing increases exceeding 50%.
Insurance companies are responding to increased risk by withdrawing coverage from entire communities deemed “high-risk.” Such as, Allstate announced in 2023 it would be non-renewing policies in California, impacting approximately 700,000 homeowners. State Farm followed suit, limiting new policies in several states prone to wildfires and hurricanes.this exodus is creating significant hurdles for potential homebuyers, as most mortgage lenders, including giants like Wells Fargo and Rocket Mortgage, require proof of insurance before approving a loan.
The report underscores that these escalating costs are not simply a natural consequence of climate change, but a foreseeable outcome deliberately downplayed by major oil and gas companies. Internal documents from ExxonMobil, dating back to the 1970s, demonstrate the company’s early awareness of the link between fossil fuel emissions and global warming. Despite this knowledge, companies like ExxonMobil, Chevron, and Shell invested heavily in public relations campaigns designed to sow doubt about climate science, as detailed in a 2023 Congressional inquiry led by Representative Jamie Raskin (D-MD).
While homeowners bear the financial brunt of climate-related damages, the oil and gas industry continues to generate record profits. The global insurance industry absorbed an estimated $140 billion in losses from extreme weather events in 2023, according to Insurance Journal. Though, the world’s largest oil and gas companies have averaged nearly $3 billion in profit *per day* in recent years – a figure calculated by The Guardian based on data from 2018-2022. Chevron reported a record $35.5 billion in profit for 2023, while ExxonMobil posted $36 billion.
The Climate Integrity report calls for increased accountability for the fossil fuel industry and a shift towards enduring energy solutions. It also advocates for policy changes to address the insurance crisis, such as government-backed insurance programs and stricter regulations on insurance companies operating in high-risk areas.
To learn more, read the full report here.
