Late last year, the Senate Budget Committee held a hearing on the unfolding homeowners insurance crisis due to climate change. In the hearing the Senators reviewed their committee report, Next to Fall: the Climate Driven Insurance Crisis is Here - and Getting Worse.
Florida joins California and Louisiana as the “canaries in the coal mine” regarding the impact of increasingly severe weather patterns on homeowner insurance costs and non-renewals. The portfolio of climate change weather impacts include hurricanes, wildfires,severe convective storms, hail, extreme precipitation, and sea level rise.
Homeowner Insurance Cancellations in Florida - and Sarasota
Florida had the highest average statewide non-renewal rate for homeowners insurance in the United States in 2023, the highest non-renewal rate change between 2018-2023, and the highest non-renewal rate percent change between 2018-2023 (Tables 5, 6 and 7, pdf pages 40-42 of the report). Simply put, homeowner insurance providers are bailing on Florida.
Of the top 100 counties in the US with the highest homeowner insurance non-renewal rates (and > 10,000 policies) in 2023, Sarasota Country ranks #29 (see Table 1 on pdf p. 15 and 32 of the report).
Of the top 100 counties in the US with the highest increase in homeowner insurance non-renewals between 2018-2023 (and > 10,000 policies) , Sarasota County ranks #17 (see Table 2 on p. 34 of the report).
Bear in mind, this data was gathered BEFORE our 2024 storm season, when Sarasota County saw four (4) historic weather events - a no-name storm in June, Tropical Storm Debby in August, Hurrican Helene in September and Hurricane Milton in October. Note: Debby was a Tropical Storm when it hit Sarasota, and became a hurricane as it moved north, proving how a storm doesn’t have to be a hurricane to do serious damage.
Climate Change Lies are proving costly
The Gulf of Mexico is still overheating. Politicians with their heads in the sand, or politicians who are just fine with lying about climate change realities - these elected leaders have thwarted any real effort to address the problem. They are fine with kicking the can down the road forever.
But insurance companies know the problem is real. And they are not in business to lose money. When climate change related risks are too high, they cancel policies, decline to issue new ones, and hike rates.
What is the role of government?
On the local level, government is supposed to prevent building in high-risk areas, modify building codes to deal with the realities of changing weather, and protect human property and life. At the local level, we have government that has catered to developers, rarely telling them no.
At the state level, government regulates the insurance industry and also supports local government in making wise development decisions which take climate risk into account. Insurers are bailing on Florida, with good reason. For too long we have been overdeveloping without considering the risks of climate change. Florida state government is heavily, disproportionately influenced by development interests, just like our local governments.
At the national level, government can lead the way in clean energy investment, research and development. Government can implement policy to reduce dependence on atmosphere heating fossil fuels.
climate change chickens are coming home to roost
At every level of government we can commit to reforestation. Planting trees reduces the amount of carbon in our atmosphere. High levels of carbon due to fossil fuel use is causing the overheating of our atmosphere, leading to more serious and frequent catastophic weather events.
There’s a fantastic non-profit in Sarasota which is employing proven forestry planting protocols that create a 100 year growth forest in 10 years. Yes, that’s right, 10 years. Why aren’t we doing this as a nation in all of our communities? Check out SURF: Suncoast Urban Reforesters.
What will the economic impact of a homeowners insurance collapse be on high risk counties?
If you can’t get homeowners insurance, you can’t get a mortgage. If you can get homeowner insurance but it is expensive, there’s less money left to cover the mortgage, so you won’t have the same spending capacity to purchase a home. These dynamics will reduce an already shrinking pool of eligible home buyers. Even when home prices come down (which they will) many Americans will still not be able to to borrow to buy a home because they won’t be able to get or afford homeowners insurance.
As the Senate Budget Committee reports concludes, climate change isn’t just an environmental crisis, it is a looming economic crisis.
We need leadership that takes the environmental and economic impacts of climate change seriously.
And while we’re on the subject….
Given these realities, does it make sense for Sarasota to locate a new performing arts hall on the bayfront? Or - would higher ground make more sense?
Just sayin’.
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