Homeowners in California, Hawaii, and New York are struggling with skyrocketing insurance premiums as wildfires, floods, and storms become more frequent. Lawmakers in these states are proposing new laws that would allow state attorneys general to sue major fossil fuel companies to help cover these costs.
“These rising home insurance costs are a crisis,” said California State Senator Scott Wiener, author of the California bill. “We can’t let residents and small businesses bear the financial burden alone as climate disasters grow worse.”
California: Wildfires drive premiums higher
After the deadly Los Angeles-area wildfires in 2025 destroyed over 18,000 homes, many Californians saw insurance premiums jump or their policies canceled. Rasheed Ali, who lost his home in the Eaton fire, said insurance didn’t fully protect him. “Our policy was bought decades ago and didn’t cover the current cost of rebuilding,” he said, leaving families with large financial gaps.
California’s FAIR Plan, a state-backed insurance program, has grown dramatically as private insurers pull out of high-risk areas. The proposed law could allow recovered funds from fossil fuel companies to help support the plan and pay for measures to make homes more fire-resistant.
