Insurance and Climate Change

Costs and Consequences

Why we think it’s a problem worth addressing

4 ways climate change is impacting home insurance, putting us at risk

When Insurance Stops Covering Risk, Who’s Holding It?

Consumer Resources & Advocacy

If you are a homeowner or small business owner seeking practical advice on managing your coverage in a changing climate:

  • United Policyholders (UP): Offers a "Roadmap to Recovery" program with specific units on rebuilding "green" and more resiliently after disasters like wildfires.

  • National Flood Insurance Program (NFIP): Managed by FEMA, this remains the primary source for flood coverage, though recent "Risk Rating 2.0" updates have shifted it toward more actuarial pricing.

  • California Department of Insurance: Provides a "Climate Smart Insurance Database" and specific resources for residents in high-risk wildfire zones.

  • Liberty Mutual Resources: Offers educational guides on concepts like the "80% rule" to help consumers avoid being underinsured. 

Research & Policy Reports

For a deeper dive into how climate risk is being integrated into financial systems:

  • Ceres Climate Risk Reporting: Publishes progress reports on how the U.S. insurance sector discloses climate risks and their exposure to fossil fuel assets.

  • Woodwell Climate Research Center: Recently released "Rebuilding Insurance for a Climate Future," a policy guide focused on finding solutions for declining insurability.

  • Environmental Defense Fund (EDF): Focuses on "inclusive insurance" for climate-related disasters and the evolution of state-run "insurers of last resort".

  • Congressional Budget Office (CBO): Analyzes the systemic impact of climate change on home prices and the fiscal stability of state-sponsored insurance plans. 

Global & Industry Initiatives