Design Highlights
- Insurers reported record profits of $71 billion in 2024, raising concerns about corporate greed over extreme weather impacts.
- Rising premiums, like California’s 55% increase since 2019, highlight affordability issues driven by profit motives rather than climate factors.
- State Farm and Allstate dropped over 250,000 policies in high-risk areas, exacerbating affordability problems for homeowners.
- Regulators often approve steep rate hikes, enabling corporate interests to dominate without sufficient oversight or consumer protection.
- Many families face economic instability, with 43% of American homeowners uninsured due to skyrocketing insurance costs.
California is a poster child for this madness, where premiums have surged by a staggering 55% since 2019. North Carolina isn’t far behind, with increases over 38% in recent years. Meanwhile, the same insurers are raking in record profits, pocketing a cool $71 billion in 2024 alone. Not a dime of that is going back to consumers, of course.
Instead, the biggest home insurers generated over $9 billion in underwriting profits just in one quarter. Shareholders must be having a party!
The largest home insurers raked in over $9 billion in profits in just one quarter—shareholders must be thrilled!
But it gets worse. Insurers are dropping customers in high-risk areas like it’s a hot potato. In California, State Farm and Allstate non-renewed over 250,000 policies from 2020 to 2023. Meanwhile, 43% of American homeowners are uninsured, citing unaffordability.
Cutting back on coverage is the new norm—talk about risky business! Families are forced to sell their homes or let coverage slide. All this while claims denials spike after disasters. Remember those devastating LA fires? State Farm lowballed fire claims, offering just $30,000 when private estimates reached $150,000.
Regulators? They’re just rubber-stamping these outrageous rate hikes, like it’s a form of entertainment. In North Carolina, the law allows for a staggering 250% of regulatory maximums through implied consent.
Commissioners can reject hikes, but they don’t. It’s a cozy little arrangement, if you ask consumer advocates. They’re calling out the blatant corporate greed and the regulators who look the other way. The national average premium for homeowners insurance has already climbed to approximately $2,424 in 2025 for $300,000 in dwelling coverage, with some states like Arkansas reaching a jaw-dropping $7,247 annually.
“Insurance companies are exploiting families while regulators look away,” says Kyle Herrig from Releasing America’s Future. Meanwhile, insurance reimbursement delays are negatively affecting healthcare providers, adding to the overall financial strain on families.
