Rising Costs and Limited Access to Home Insurance in High Climate-Risk Areas

A Treasury Department report reveals soaring premiums and nonrenewals for homeowners in regions prone to climate disasters.

Homeowners in high climate-risk areas paid 82% more in insurance premiums between 2018 and 2022 compared to those in low-risk regions.
Insurance nonrenewal rates were approximately 80% higher in high-risk areas, making coverage less accessible for millions of Americans.
The report analyzed data from over 246 million policies, highlighting an 8.7% faster rise in premiums than the rate of inflation during the study period.
Wildfires, hurricanes, and severe storms have driven substantial financial losses, with average claims in high-risk areas significantly exceeding national averages.
The findings coincide with ongoing wildfires in Los Angeles, which have caused at least 25 deaths, displaced 180,000 homeowners, and destroyed thousands of buildings.