The 18 States Where Climate Change Hammered Insurers

By Douglas McIntyre  •  May 14, 2024
Aldiyar Seitkassymov Pexels

The New York Times ran a long and exhaustive article about the effects of climate change insurance rates. Titled .” As Insurers Around the U.S. Bleed Cash From Climate Shocks, Homeowners Lose.” Higher insurance rates used to be most likely in states hit by wildfires and hurricanes–Louisiana, California, and Florida.  That has now spread to 18 states where insurers lost money in 2023. “The growing tumult is affecting people whose homes have never been damaged and who have dutifully paid their premiums, year after year.” 

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Climatecrisis247 believes that huge storms, including tornados and floods, have become more violent, particularly in the middle of the country. Additionally, as wildfires spread, the financial risk of them has spread with them. There is no better example than The Smokehouse Creek Fire in March, the largest in the state’s history.

Which States Have Trouble?

According to The New York Times, 18 states had unprofitable homeowners insurance companies last year: Arkansas, Colorado, Georgia, Hawaii, Iowa, Illinois, Indiana, Kentucky, Michigan, Minnesota, Missouri, Mississippi, Ohio, Oklahoma, Tennessee, Utah, Washington, and Wisconsin. 

This puts both state and federal government bodies in a bind. They cannot allow tens of millions of homeowners to be without insurance. That means they may become the insurer of last resort. People will still need to pay high premiums to limit state losses. Additionally, people who live in states without the home insurance problem won’t want to pay into a national pool meant to help people in climate-challenged states.

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