The U.S. home insurance landscape is experiencing a seismic shift as climate risks transform the industry’s approach to coverage. A groundbreaking investigation by the Senate Budget Committee, led by Senator Sheldon Whitehouse, reveals a disturbing trend: insurers are systematically abandoning homeowners in high-risk regions.
The Numbers Tell a Stark Story
Since 2018, over 1.9 million home insurance contracts have been dropped nationwide. More than 200 counties have seen nonrenewal rates triple, signaling a profound transformation in how insurance companies assess risk.
Beyond the Typical Hotspots
The insurance exodus extends far beyond California and Florida. Nonrenewal rates are spiking across:
- Gulf Coast states
- Atlantic seaboard, including the Carolinas and Virginia
- Plains regions
- Intermountain West
- Hawaii
In Teton County, Wyoming, which includes Jackson Hole, nonrenewal rates have increased by 1,394% since 2018.
The Human Cost: A Silver City Case Study
Richard D. Zimmel’s experience in Silver City, New Mexico, epitomizes this crisis. Despite meticulous fire prevention measures—gravel buffers, fire-resistant stucco, steel roofs—his insurer, Homesite, still canceled his policy, citing unacceptable wildfire risks.
Systemic Challenges Driving the Exodus
Multiple interconnected factors contribute to this insurance crisis:
- Decades of fire suppression leading to overgrown forests
- Climate change intensifying natural disaster risks
- Continued home construction in vulnerable areas
- Inadequate building and zoning regulations
In Grant County, which includes Silver City, there are no zoning or wildfire building restrictions outside city limits, according to Roger Groves, the county fire chief.
Economic Implications
The consequences extend beyond individual homeowners. Without insurance, mortgages become impossible, potentially destabilizing entire communities and reducing property values and tax revenues. Senator Sheldon Whitehouse captured the essence of this transformation: “The climate crisis is not just about polar bears—it’s coming through your mail slot in the form of insurance cancellations.”
The unfolding insurance crisis represents a critical intersection of climate change, economic policy, and community resilience, with potential far-reaching consequences for the American housing market.