Insurers are charging you for climate change risks
Rather than ditching fossil fuels, U.S. insurers are abandoning customers who live in the path of climate impacts. Insurers have increased premiums or withdrawn coverage from the regions most at risk to natural disasters, such as the coast of Florida or the wildfire affected counties in California.
As climate chaos increases, the gap between premiums and insurance claims will continue to grow, leaving growing parts of our economy and communities uninsurable.
Insurance companies need to address the root causes of climate change. It is unacceptable that they continue propping up fossil fuel projects while abandoning climate-affected communities.
Climate change is one of the biggest threats facing low-income and marginalized communities across the globe. These communities often bear the burden of dirty fossil fuel projects and are first to be hit by climate impacts.
Low-income communities are at greater risk of displacement and economic shocks due to extreme weather. They are often in places vulnerable to the impacts of extreme weather, and less able to mitigate its impacts.
Low-income people typically lack adequate insurance to replace possessions lost in storms and floods, making the impacts of climate chaos especially devastating.
In some cases, federal aid is tied to insurance policies that low-income communities can’t afford. Following Harvey, those that could not afford flood insurance were not eligible for FEMA assistance, leaving those living on the margin particularly hard hit.
The insurance industry has a legacy of shirking responsibilities to low income policy holders. For example, following Hurricane Katrina, insurers found ways to avoid paying out for flood damage.