Climate Change Denial in Washington, But Insurance Companies Are Taking Action

As climate change worsens, the U.S. is facing more frequent and costly natural disasters. From devastating wildfires in California to destructive hurricanes in the Southeast, Americans are feeling the financial burden of an intensifying climate crisis. With the political climate in Washington largely resistant to meaningful action, insurance companies are stepping in to address the growing risks—and provide some much-needed stability.

Political Inaction and the Growing Financial Toll of Climate Change

Natural disasters are becoming more frequent and expensive. The recent wildfires in Los Angeles are among the most costly disasters in U.S. history, while Hurricane Helene this past September earned the dubious distinction of being North Carolina’s most expensive disaster, costing $80 billion. The U.S. is now experiencing 23 major climate-related disasters per year in the 2020s—double the rate from just a decade ago. The cost of damages from these events is projected to reach $150 billion annually.

Despite the undeniable evidence of climate change, political leaders, especially under the incoming Trump administration, are doubling down on policies that prioritize fossil-fuel production over climate action. The planned rollback of carbon emissions regulations and the planned U.S. exit from the Paris Climate Accord—as early as January 2026—will only exacerbate the situation, fueling more extreme weather events and increasing costs for everyday Americans.

The Strain on Insurance Providers

As natural disasters increase, insurance companies are facing mounting claims. To stay profitable, many are raising premiums or pulling out of high-risk areas entirely. In 2023, homeowners insurance rates surged by a national average of 21%, putting coverage out of reach for many. Even states that have traditionally been considered “safe” are now seeing rising insurance costs. The increase in premiums, combined with fewer coverage options, leaves many homeowners at risk of financial devastation should disaster strike.

How Insurance Companies Are Taking Action

While political leaders remain slow to act, the insurance industry is taking steps to adapt to the reality of climate change. Many insurers are incorporating climate risk into their pricing models and supporting efforts to build climate resilience (the ability of a system, natural or human, to anticipate, prepare for, and respond to climate-related hazards and disturbances, while maintaining essential functions and adapting to changing conditions). Some companies are even shifting investments toward sustainable practices, recognizing that addressing climate change is essential for both their long-term success and the security of their policyholders.

At Dayton Ritz + Osborne, we understand that these times can be overwhelming, especially as the impacts of climate change continue to affect communities across the country. Our team is here to guide you in finding the best coverage through our trusted network of insurers. If you have questions or concerns, reach out to your agent today. We’re committed to helping you navigate these uncertain times with confidence and peace of mind.

Dayton Ritz + Osborne Insurance proudly serves the Hamptons area. Call today at 631-324-0420 or visit our website.