Groups deliver petitions signed by more than 43,000 consumers to press for accountability, transparency as prices spike, policy cancellations rise
Washington, D.C. – Consumers across the U.S. are feeling the pinch of skyrocketing home insurance rates. As part of efforts to find solutions to this crisis, Consumer Reports joined with Public Citizen, Green America, and Americans for Financial Reform today to deliver a petition to the U.S. Department of the Treasury’s Federal Insurance Office (FIO).
The groups are asking the agency to release granular data on property insurance from the 300-plus insurers representing the majority of the U.S. homeowners and renters. The request follows a letter sent to FIO by Consumer Reports in December asking for a date when the data would be released, which did not receive a response. Over 43,000 individuals, including over 26,000 CR members, have signed a petition in support of the release of this important data.
A Consumer Reports nationally representative survey (PDF) of 2,146 U.S. adults in September 2024 found that 83 percent of homeowners who have had the same insurance policy for at least five years said their rates on that policy had increased over the past five years. Of those, about 1 in 10 said premiums were hiked 50 percent or more.
Stories shared by Consumer Reports members show that, with the increased frequency and severity of natural disasters, the cost of homeowners insurance is surging, and in some instances insurance companies are pulling out of coverage areas altogether, leaving homeowners with no options.
Experts have cited a number of factors, including the financial impact of extreme weather linked to climate change, the effect of inflation on building expenses, and the explosion in the number of homes built in areas where fires, floods and other disasters are most common.
Getting this data from the federal government is the first step in understanding access and affordability of homeowners insurance for millions of consumers nationwide. The release of the FIO data will help inform regulators and policymakers and allow the public to evaluate, so that we can move closer to finding solutions. This is part of CR’s longstanding effort to promote greater transparency and clarity for the processes that impact consumers.
“Consumers are seeing home insurance rates double from the previous year with no explanation – they hadn’t made a claim, and live in areas considered ‘climate-safe’ and nowhere near a flood zone. Some insurance companies are pulling out of certain regions altogether, leaving customers high and dry. The first step in solving this crisis is getting data from insurance companies to see where the biggest problems around access and affordability lie,” said Alexandra Grose, senior policy counsel for Consumer Reports.
“As communities across the country risk losing their insurance, tens of thousands of people are now demanding the Treasury Department release the data it has on this crisis,” said Rick Morris, insurance campaigner with Public Citizen’s Climate Program. “The Federal Insurance Office should not continue to drag its feet on releasing information vital to understanding this unfolding insurance crisis. The public needs this information from out of the shadows. Solutions to our climate-driven property insurance crisis must start with more transparency.”
“Our members across the country are paying ever higher rates for property insurance — and that’s when they can even get insurance if they live in a climate-vulnerable area,” said Cathy Becker, responsible finance campaign director at Green America. “Yet instead of addressing the climate crisis behind these increased costs, big insurance companies are insuring and investing in its chief cause — the burning of fossil fuels. The least the Federal Insurance Office could do is release the data it has gathered about insurance company practices, so we can hold them accountable.”
“Homeowners pay for insurance because they believe their insurance companies will protect them when disaster strikes. Far too often, homeowners end up footing the bill when their insurers unfairly deny claims, raise rates astronomically, and withdraw coverage altogether. While climate change is a factor, it is clear that there is more to the story.” said Jessica Garcia, senior policy analyst for climate finance at Americans for Financial Reform Education Fund. “The Treasury’s FIO and the National Association of Insurance Commissioners must publicly release their first-of-a-kind data collection so the public can better understand what is happening with homeowners insurance. Rising insurance prices make it harder for families to make ends meet and the incoming Trump administration should continue to support this annual data collection as well as community-driven policy solutions to address rising costs and declining coverage of homeowners insurance.”
For advice on what individuals and families can do when faced with an insurance non-renewal, and how to gather evidence and file an appeal, see Consumer Reports’ recent story, “Homeowners Insurance Not Renewed? Premium Skyrocketed? Here’s What to Do Next”. It includes resources if you need to find new homeowners insurance, including policies that are available as a last resort. And if you, your neighbors, friends, or family are experiencing frustrations dealing with home insurance, you can go here to Share Your Story with CR.
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Contact: David Butler, david.butler@consumer.org