NEW REPORT: Extreme Weather is Fueling A Nationwide Home Insurance Crisis

Home insurers have hiked rates for six million policyholders and have canceled 1.4 million policies altogether

As Trump’s policies make communities more vulnerable to disasters, insurance rates are skyrocketing alongside other household costs

Washington, DC – Climate Power released a new report on how climate change is driving a nationwide home insurance crisis, and Trump and congressional Republicans are only making matters worse. Since 2021, at least six million policyholders in the U.S. have seen rate hikes on their property insurance policies, and insurers have canceled at least 1.4 million policies. Insurers attributed more than one in four rate hikes, cancellations, and halts on new business to extreme weather or climate disasters. 

Climate Power Senior Advisor Noreen Nielsen issued the following statement: “Home insurers are hiking rates and canceling policies, further exacerbating the cost-of-living crisis that is already burdening working families. Under Trump, life has gotten more expensive – from energy costs, to health care, to groceries. Now, extreme weather and Trump’s reckless policies are driving a home insurance crisis that is raising costs even more and putting the dream of homeownership out of reach for many Americans.” 

The report’s findings include: 

• Since 2021, at least six million policyholders in the U.S. have seen hikes on their property insurance policies, and insurers have canceled at least 1.4 million policies.
• Insurers attributed more than one in four rate hikes, cancellations, and halts on new business to extreme weather or climate disasters.
• At least 36 insurers in seven states have announced plans to pause writing new policies or exit state markets altogether, including American National, which announced in 2024 its exit from the homeowners insurance market in all 50 states.
• Trump’s tariffs are projected to increase home insurance costs 38% faster by the end of 2025, with his tariffs on construction materials alone expected to increase annual premiums by more than $100 by the end of the year, with some states seeing a hike of more than $400.
• While raising rates and canceling critical coverage for millions, insurance companies are recording massive profits. In 2024, twenty-two publicly traded insurance companies reported profits exceeding $36 billion, and their CEOs received more than $220 million in compensation in total. 

Read the full report here.