WASHINGTON (NEXSTAR) – Lawmakers are taking a closer look at the rapidly rising cost of insurance as natural disasters continue to strike communities across the United States. The issue has sparked a bipartisan conversation about whether significant changes are needed to shield homeowners from financial ruin.
Jessica Pyska, Supervisor for Lake County, California, shared her personal experience with the devastating impact of insurance costs. “The Valley Fire burned 76,000 acres, nearly 2,000 structures, and claimed four lives,” she recalled. “I lost my home and most of my community that day.” Despite federal assistance and rebuilding efforts, Pyska emphasized that the escalating insurance costs remain a significant burden. “Despite these investments, we continue to be crushed by the insurance crisis plaguing our nation,” she stated.
The Senate is currently reviewing both home and flood insurance costs, recognizing the issue as a pressing concern. Sen. Elizabeth Warren (D-Mass.) highlighted the bipartisan nature of the problem. “Housing is already too expensive for many Americans, and even if families can afford to buy a home, they then get stuck with whopping insurance bills,” Warren explained. According to recent data from the Treasury Department, as of January 2025, insurance premiums in areas vulnerable to climate-related disasters were 82% higher than those in lower-risk regions. Warren further noted that “average home insurance rates across the nation have increased by double digits, 23% overall.”
However, not all lawmakers agree on the causes or solutions. Sen. Tim Scott (R-S.C.) pointed to overly complex regulations as a barrier for insurers operating in certain states. “We must be honest about the multiple factors driving the rise in catastrophic losses – from local mitigation and policy failures to market distortions created by counterproductive regulations,” Scott said.
Robert Gordon, Senior Vice President of the American Property Casualty Insurance Association, warned that insurers may withdraw from unprofitable markets. “They’re not going to keep putting new money into states where they’re not able to increase their capital, and they haven’t been profitable enough to attract new capital,” Gordon cautioned.
While lawmakers from both parties acknowledge the need for reform to ensure affordability and access to insurance, the specifics and timeline for these changes remain uncertain.
