Lawmakers launch investigation as home insurance rates skyrocket: 'They post enormous profits year after year'

New York state lawmakers are investigating why residential property insurance has become prohibitively expensive.

What's happening?

As human activities, such as burning dirty energy, continue to release heat-trapping gases into the atmosphere, planetary overheating increases the occurrence of extreme weather events. In the wake of increased and/or intensified natural disasters that endanger our communities, property insurance companies are increasing premium costs or dropping coverage entirely in high-risk areas. 

However, the Times Union reports that in the state of New York, residential property insurance premiums have risen to such heights that residents of the state are complaining to lawmakers about cost-of-living concerns and the lack of affordability in owning and keeping a home. 

Meanwhile, as homeowners struggle to keep a roof over their heads, these insurance companies in New York are raking in the dough. Estimates in 2023 indicated that New York had over 1,100 property and casualty insurance companies with a total value of approximately $2.6 trillion. 

As state senator James Skoufis explained to the Times Union, "While the industry has lost money in many other states around the country, they post enormous profits year after year here in New York, an indication that our residents are being taken advantage of."

As such, state lawmakers are investigating the state's residential property insurance market to understand why costs have risen as much as they have. Lawmakers plan to hold a hearing later in the year that will feature testimony from impacted homeowners and developers, and review official data from the department responsible for regulating insurance companies.

Why are rising insurance costs concerning?

Rising property premiums mean less affordability and can leave homeowners having to decide whether they can afford to insure their home at all. According to the Times Union, a release about the lawmakers' inquiry stated that almost 500,000 New Yorkers are already uninsured. 

Without property insurance, homeowners will be on the hook for any damages that occur as a result of extreme weather events, which can be incredibly expensive. Eventually, between premium costs and the costs of being uninsured, fewer people will be able to afford homes.

As long as dirty energy continues to release heat-trapping gases into the atmosphere, natural disasters such as hurricanes, tornadoes, and wildfires will likely intensify, exacerbating the situation for insurance companies and further harming communities.

What's being done about New York premiums?

State lawmakers' stated goal for investigating rising premiums is to determine why exactly they've risen more than in other states. Once they have uncovered what is happening, they will hopefully be able to pass laws that rein in the insurance companies and lower premiums.

Do you think your city has good air quality? Definitely 🥰 Somewhat 😮‍💨 Depends on the time of year 😷 Not at all 🤢 Click your choice to see results and speak your mind.

Join our free newsletter for good news and useful tips, and don't miss this cool list of easy ways to help yourself while helping the planet.