Many insurance companies are engaging in major cutbacks because of climate change events. They are refusing to accept new homeowners’ applications in many areas. They also are refusing their previous customers coverage for damage done by catastrophic climate events, listing them as exclusions. In California and Florida, for example, and in other areas across our nation, coverage is being denied. They have highlighted (redlined) 200 zip codes. It is now impossible for these homeowners to receive coverage. Three companies, State Farm General, Allstate Insurance Company, and American International Inc., as of July announced these major cutbacks.

Yet insurers contribute to our climate crisis. How? They continue to invest and underwrite fossil fuel companies. This means they support fossil fuel expansion and production. As consumers, we are being underserved, undermined, and deceived. We must become savvy about our coverage and how it is managed. Public Citizen is demanding insurers curtail and change their investments. They are securing allies to prevent this redlining. There is a new investigation currently by the Senate Budget Committee. This hearing has begun seeking answers about their practices. They want to learn how insurance companies invest, underwrite, and profit from the fossil fuel industry. It’s a good start and homeowners should follow suit.

Elaine Peters for the Green Sanctuary Blog