WASHINGTON, DC – Unlocking America’s Future (UAF) is sounding the alarm on the rapidly escalating homeowners insurance crisis that threatens to leave millions of American families financially devastated in the wake of natural disasters. Recent investigations by Bloomberg and Scripps News have exposed a dangerous gap between what homeowners believe they’re covered for and the actual cost of rebuilding their lives after catastrophic events.
“Homeowners are facing a perfect storm of challenges with little to no help from state insurance commissioners and elected officials,” said Kyle Herrig, Unlocking America’s Future. “Not only are homeowners discovering they’re underinsured, but the cost of rebuilding is simultaneously skyrocketing due to inflationary costs driven by Trump’s tariff taxes.. This, added to Trump’s draconian FEMA cuts and soaring insurance rates, could prove financially catastrophic for millions of American families.”
State minimum insurance requirements often provide a false sense of security, leaving policyholders to discover—only after disaster strikes—that their coverage falls woefully short of what’s needed to rebuild. The hidden risk in these policies has created a ticking time bomb for families across the country, particularly as the instances of climate-related extreme weather and disasters rise.
North Carolina’s Stark Warning: 68% Rate Hike Proposal
The severity of the crisis is perhaps best illustrated by North Carolina Insurance Commissioner Mike Causey’s upcoming hearing on insurance corporations’ request for a staggering 68% rate increase for homeowners insurance and his recommendation to ‘not file claims.’ This dramatic hike, one of the largest ever proposed in the state’s history, reflects the mounting pressures facing the homeowners as climate-related disasters become more frequent and severe as the insurance industry focuses on maximizing profits.
Since 2019, North Carolina homeowners have experienced a 38% increase in insurance premium rates, with some insurers requesting rate increases of up to 99% in some areas. North Carolina State Insurance Commissioner Mike Causey has a track record of siding with home insurers, authorizing at least 16 rate increases during his tenure. The crisis has been exacerbated by major insurers abandoning the North Carolina market entirely and exploiting a regulatory loophole known as the “consent to rate,” which allows insurers to charge homeowners higher rates in certain areas with approval. North Carolina also allows insurance corporations to drop homeowner policies if their rates would need to increase by more than 250% to remain profitable.
FEMA Funding Cuts Leave Disaster Victims More Vulnerable
The Trump administration’s draconian cuts to FEMA disaster recovery funding threaten to eliminate a critical safety net for homeowners and their communities. Historically, FEMA assistance has helped bridge the gap between insurance payouts and actual rebuilding costs, providing grants and low-interest loans to disaster victims while on-the-ground responses help minimize damage.
However, budget proposals and staffing cuts that would significantly reduce FEMA’s capacity could leave homeowners entirely on their own when their insurance falls short and threaten communities ability to rebuild.
Trump Tariffs Threaten to Drive Rebuilding Costs Even Higher
Adding fuel to the fire, existing and proposed tariffs on construction materials under the Trump administration are pushing rebuilding costs to unprecedented levels. One estimate found home insurance costs were projected to jump nearly 40% in 2025 due to Trump’s tariffs. Tariffs on steel, aluminum, lumber, and other essential building materials continue to increase construction costs.
National Home Insurance Trend
The home insurance crisis is a national trend as insurance corporations experience massive profits. A recent report found at least six million policy holders have experienced rate hikes and an estimated 1.4 million policies have been canceled over just the last five years.
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