WASHINGTON, DC – Last week, legislators in California introduced groundbreaking legislation that will hold fossil fuel companies financially accountable for the soaring homeowners insurance costs driven by climate change. The proposed bill represents a watershed moment in the fight to make polluters pay for the climate crisis they created while California families struggle with insurance premiums that have become unaffordable.
“For decades, oil and gas companies have reaped massive profits while fueling the climate crisis that is driving excessive and devastating extreme weather disasters. Worse, many insurance corporations are still invested in and are underwriting the very sector, fossil fuels, undermining their business models and creating this chaos,” said Kyle Herrig, Unlocking America’s Future. “Because of escalating risks and disappearing options for affordable insurance, Californians are facing one of the most challenging insurance markets in the nation. This legislation finally holds these corporate polluters accountable for the financial burden they’ve imposed on California families who are watching their insurance costs skyrocket through no fault of their own.”
California’s Insurance Crisis Reaches Breaking Point: Even before devastating wildfires ravaged Los Angeles last year, insurers covering homes in the region’s foothills were threatening to abandon the state. Major private property insurers in the state have either stopped writing new policies entirely or severely restricted new coverage in California. In 2023, private insurers issued fewer than 750,000 new residential insurance policies, the lowest number since at least 2015.
On top of that, the Trump administration cut wildfire mitigation funding by 34% in California and the state’s last-resort insurer is seeking a 36% rate increase.
Unlocking America’s Future has called on California state regulators and the state insurance commissioner to champion policies that put policyholders first and shield homeowners, families, businesses, and communities from industry loopholes and predatory practices. The proposed legislation would establish a mechanism to recover costs from fossil fuel companies whose products and deceptive practices contributed directly to climate change driving these insurance market disruptions.
By making polluters contribute to covering the rising costs of climate-related insurance claims and market instability, the bill would provide critical relief to California homeowners while establishing a precedent for corporate accountability.
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