400 Words / 2 min. Read
As the effects of climate change worsen, property insurance is becoming a canary in the coalmine for the most risk-prone areas of the country.1 Without insurance, it can be difficult (if not impossible) for areas to recover and rebuild following environmental catastrophes. As such, property insurance can directly affect the long-term viability of a region, which in turn becomes a driver of climate migration.
With all this in mind, we wanted to create a resource to track how climate change and natural disasters are affecting people's ability to insure their homes. To start, we're created a map of average property insurance rates by state;2 while this isn't a direct representation of climate threats, it provides a broad picture of risk as it relates to property values and insurance claims.
(You can hover your mouse over each state to see the values; you can tap if you're on a phone, but it's easier with a laptop or tablet.)
As insurance companies adjust their risk models to account for climate change, premiums have risen an average of 21% across the nation.1 This map shows approximate rate increases for property insurance since 2015.
FEMA has also updated their risk models, leading to increases in flood insurance premiums across the country.3 This map shows rate increases under the new risk methodology.
In some cases, major insurance companies have begun withdrawing coverage entirely. Allstate, Farmers, and State Farm have ended contracts in California and Florida,4 and as climate risks increase, more providers are likely to follow.5 In a survey conducted by the National Association of Insurance Commissioner, at least five large U.S. property insurers (including Allstate, American Family, Nationwide, Erie Insurance Group and Berkshire Hathaway) have told regulators that extreme weather patterns caused by climate change have led them to exclude protections from weather events and stop writing coverages in some areas.6
In the map below, we're tracking the number of major insurance providers7 that have withdrawn coverage from US states.
In the following sections we've listed insurance providers that have withdrawn coverage by state, along with our sources for this data. We’ll continue to update this page as more news emerges.
Chubb has withdrawn coverage for multi-million dollar homes.13
Homeowners in wildfire-prone regions have had trouble renewing their policies,14 but national insurers have not yet withdrawn from the state.
Additionally, over 15 small insurers have undergone liquidation.17
Large reinsurers have pulled out of Iowa following flood and wind damage from a derecho in 2020.18
Over 20 small insurance providers have become insolvent or submitted withdrawal notices.19
Nationwide has pulled out of high-risk coastal areas.21
Nationwide has pulled out of high-risk coastal areas.22
We're living in a pivotal time. From the environment to the economy, we're facing a laundry list of crises, and if you've been feeling hopeless or overwhelmed, you're not alone.
We can't predict the future, but we can prepare for it, so we're creating a comprehensive guide to building security and sustainability before it's too late. It's called How to Survive the Future.
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