Home insurance rates have gone up for 6 million people. How climate change and Trump are making the affordability crisis worse

If your home insurance rate has spiked lately, you’re not alone. And President Trump’s policies could make it even more expensive.

Since 2021, at least 6 million policyholders across the country have seen rate hikes to their property insurance policies, according to a new report from the environmental advocacy group Climate Power. Insurers have also canceled at least 1.4 million policies in that time.

One big reason is the worsening climate crisis, which is driving more and more instances of extreme weather. Inflation, labor shortages, and supply chain issues are also factors, as they drive up the costs to rebuild a home.

The Trump administration’s policies may be exacerbating this crisis. Trump’s tariffs could make home insurance prices rise 38% faster, one insurance agency estimated.

And since beginning his second term in office, Trump has also gutted the country’s ability to forecast extreme weather, as well as the government’s ability to respond to disasters. Less information means insurance companies may raise premiums even more, or pull out of high-risk areas altogether.

Climate change and the home insurance crisis

When it comes to rate hikes, cancellations, and the cessation of new business, insurers attribute more than one in four of those actions to extreme weather or climate disasters, according to Climate Power.

In Louisiana in 2023, Citizens Property Insurance customers saw a 63% rate increase on their home insurance. That move affected more than 100,000 homeowners who were “forced” to take out policies with Citizens after Hurricane Laura and other recent storms, The Times-Picayune reported, because other insurance companies went insolvent or left the state because of its disaster risks.

And more companies are leaving especially risky states, or halting their coverage. State Farm and Allstate stopped insuring homes in California because of climate risk. And Farmers and Progressive have scaled back their coverage in Florida.

It’s not just coastal states at risk, however. While Florida and California are the two top states impacted by insurance cancellations, per Climate Power’s report, the top 10 list also includes Iowa, Oklahoma, and Oregon.

Cost-of-living and affordability issues don’t hurt profits

At the same time that Americans are facing higher premiums or being left without any coverage, insurance companies are still profitable and paying their CEOs millions.

In 2024, 22 publicly traded insurance companies reported profits that exceeded $36 billion combined, per Climate Power. Together, they gave their CEOs more than $220 million.

One example is Allstate, which reported $4.7 billion in profits and compensated CEO Thomas Wilson with $26.7 million in 2024. That’s the same year the company raised rates for 350,000 California policyholders by 34%.

“Insurance companies are raking in profits, paying CEOs millions, but still canceling policies and hiking rates, which is leaving Americans—especially those facing extreme weather—hung up to dry,” said Lizzy Ganssle, Climate Power’s national press secretary.

No help from Trump

The property insurance industry has also supported Trump to the tune of more than $1.3 million for his presidential campaigns, through donations from individuals and political action committees (PACs). But as Climate Power points out in its report, Trump isn’t addressing the insurance crisis issue—and may actually be making it worse.

Trump’s tariffs, cuts to disaster relief, and elimination of Federal Emergency Management Agency (FEMA) programs all mean that homeowners will have to bear more of the burden when it comes to extreme weather events and the cost of rebuilding their homes.

Many Americans are already dealing with a cost-of-living crisis and struggling to pay for groceries, housing, and skyrocketing energy bills. As they become more pessimistic about the economy, though, Trump has called affordability issues a “con job” and a “fake narrative.”

Climate Power hopes its report helps Americans to understand the scope of the insurance problem, as well as why their prices may continue to rise.

“It’s very important for us that Americans understand the impacts that extreme weather is having on their real lives,” Ganssle said. “It’s also important for us that folks understand that Donald Trump is doing nothing to address this issue.”