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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.

New York: Premiums climb statewide

In New York, insurance costs have steadily risen over the past several years. State Senator Brian Kavanagh introduced legislation allowing lawsuits against large fossil fuel companies, aiming to reduce premium increases and protect residents from extreme weather losses.

Hawaii: Insurance crisis after Maui fires

Hawaii faces similar challenges. The 2023 Maui wildfires alone generated more than $2 billion in insurance claims, leading to sharp premium increases. State Senator Jarrett Keohokalole said, “Residents shouldn’t be forced to cover damages caused by climate change that fossil fuel companies contributed to.”

Hawaii’s bill would also allow insurers to recover costs from major polluters after climate-related disasters.

How the proposals would work?

The laws focus on large fossil fuel companies worth at least $500 million operating within each state. Any money recovered could be used to:

• Offset rising insurance premiums

• Support state insurance programs like California’s FAIR Plan

• Strengthen disaster resilience for homes

Industry pushback

Oil industry groups, including the American Petroleum Institute and Western States Petroleum Association, oppose the bills. They argue that lawsuits could harm the economy, raise costs for consumers, and set a precedent of retroactive liability.

Broader movement

These bills are part of a growing trend in the US. States and cities have increasingly sought to hold polluters responsible for climate-related damages. Some have even passed “climate superfund” laws requiring oil companies to fund disaster adaptation programs.

Hawaii State Senator Keohokalole said, “It’s time for big polluters to pay their fair share. Residents shouldn’t be left footing the bill for risks they didn’t create.”