Storms Hitting Central U.S. Raise Fears of Hard Recovery, Higher Home Insurance Costs
FOR IMMEDIATE RELEASE
April 10, 2025
Contact: contact@insurancefairnessproject.com
Storms Hitting Central U.S. Raise Fears of Hard Recovery, Higher Home Insurance Costs
Washington, D.C. — The devastating storms that swept through the Midwest and South last week have claimed at least 24 lives. They have caused an estimated $90 billion in damage, leaving a trail of destruction that will take years to repair. As communities begin to recover, concerns are growing about how insurance, or lack thereof, will leave gaps in rebuilding. One in seven homes in the U.S. are uninsured, with Texas, Kentucky, Arkansas, and Oklahoma having among the highest rates of uninsured properties, putting impacted communities at more financial risk.
Some of the most impacted states have also experienced some of the highest home insurance increases nationally. Kentucky, Arkansas, and Illinois have seen premiums rise over 30% in the past three years, as a new report from the Consumer Federation of America (CFA) reveals. Nationwide, home insurance premiums have increased 24% over the past three years, putting more people at risk as destructive extreme weather events become the norm.
“As insurance premiums skyrocket and make coverage unaffordable, it has the same effect as insurance companies pulling out of communities. Unaffordable insurance is unavailable insurance,” said Douglas Heller, CFA’s director of insurance. “So many states and communities in the Central U.S. have been impacted by spiking rates, and it’s leaving homeowners dangerously uninsured or underinsured as many turn to lower quality coverage that will not provide enough money to rebuild after a disaster. That not only devastates families and makes homeownership less sustainable, it transfers more and more risk to taxpayers and our beleaguered national disaster response effort."
“These storms are another wake-up call that insurance isn’t just an issue confined to coastal states. People are at risk everywhere. Access to affordable insurance is a critical factor in helping inland states deal with these damaging and dangerous storms,” said Jordan Haedtler, policy advisor for the Insurance Fairness Project. “State legislators have their mandate: protect our communities by making sure we are covered and protected. Inaction is unacceptable when communities need to rebuild.”
Polling
The Insurance Fairness Project’s recent poll found that insurance is top of mind for American voters keenly aware of their vulnerability:
78% of voters are at least somewhat concerned about rising property insurance prices, with 40% saying they are “very concerned”;
66% are concerned about increasing extreme weather events;
74% have either been personally impacted by extreme weather or know someone else who has;
A majority of voters think the federal government and state governments are doing too little to protect consumers and hold insurance companies accountable.
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The Insurance Fairness Project is an information hub dedicated to offering insights into the home insurance crisis, exploring its drivers and highlighting solutions alongside issue experts and community advocates.
