Looking for an Insurer That Isn't Driving the Climate Crisis? We've Got a Tool for That
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In the wake of the home mortgage crisis of 2008, Green America launched its Get A Better Bank map, listing hundreds of community development banks and credit unions as alternatives to the megabanks that tanked the economy and heavily finance fossil fuel projects.
Now in the wake of the home insurance crisis, Green America is launching a similar tool: its Climate Smart Insurance Directory to connect consumers with insurance companies that do not underwrite fossil fuel projects or invest heavily in the fossil fuel industry while leaving homeowners in the lurch when climate disasters strike.
With options in all 50 states, the District of Columbia and Puerto Rico, this first-of-its-kind directory lists local and regional home and auto insurance providers that offer competitive pricing and opportunities for policy-bundling, but without contributing to the climate crisis that is raising rates and limiting coverage options nationwide.
The directory provides consumers with climate-smart insurers that:
Offer home, renters and auto insurance (with very few exceptions), so consumers can save by bundling.
Do not insure fossil fuel projects (per publicly available information).
Have no indication of direct investments in the fossil fuel industry (Grade A), or have investments under $200 million (Grade B), as listed in Investing in Climate Chaos by Urgewald, a German environmental and human rights NGO.
Have a rating of A- or above for financial stability from AM Best.
Most states have at least four climate-smart insurers listed that consumers can compare. Many of the companies are local and regional mutuals that have been serving their communities for decades but do not spend large amounts of money on advertising.
Why This Directory?
In 2023, the United States experienced a record 28 climate-related disasters, causing a total of $95.1 billion in damages. So far 2024 has seen 20 such events, including tornadoes, hail storms, winter storms, wildfires, and a major hurricane, according to the National Oceanic and Atmospheric Administration (NOAA).
The insurance industry stands on the front lines of this crisis. Every time a climate-related fire, flood, or storm damages or destroys property, policyholders expect their insurance company to help foot the bill. Unfortunately, as climate events become more common, major insurance companies are canceling or restricting coverage in Florida, California, Louisiana, North Carolina, Iowa, Oregon, Colorado, Arizona, Nevada, Washington, Utah, Texas, and other states.
Despite increasing climate risks, the nation’s major insurance companies continue to support the chief cause of the climate crisis: the burning of fossil fuels. By insuring risky fossil fuel projects and investing billions of dollars in fossil fuel companies, major insurance companies are financially entangled with an industry whose interests conflict with the interests of its own customers.
Information about which companies insure fossil fuel projects is more difficult to find, but is available from organizations like Insure Our Future. For example, eight Gulf South LNG terminals, each the carbon bomb equivalent of dozens of coal plants, are insured by Liberty Mutual, AIG, Chubb, The Hartford, Travelers, Lloyd's of London, and more.
Premium Price Increases
Meanwhile, average property insurance premiums increased 21% nationwide, even in areas without heightened risk. Some states were hit harder than others. Homeowners insurance premiums increased the most in Florida (35%), Idaho (31%), Colorado (30%), South Dakota (28%), Louisiana (27%), Texas (27%) and Oklahoma (27%).
According to the Consumer Federation of America (CFA), 7.4% of all homeowners in the country are now uninsured, resulting in $1.6 trillion in unprotected market value. With so many people “going bare” -- forced to go without insurance because they can’t afford rising premiums -- CFA warned that the problem will worsen without investments in climate change adaptation and stronger oversight of the insurance industry.
While companies in the Climate Smart Insurance Directory were not vetted for price, several people have experienced saving hundreds of dollars by switching from a major national insurance company to a local or regional mutual that doesn’t pay advertisers.
What else can you do?
Take Action! Tell over 70 executives at Berkshire Hathaway/Geico/Guard, State Farm, AIG, Nationwide, Allstate, Liberty, Mutual, Travelers, and The Hartford to insure our communities, not fossil fuels!
Seek out regional mutual insurance companies: The best option for consumers seeking home and auto insurance is to shop in your local area. Call three independent insurance agents and ask them to quote costs and coverage for policies at regional mutual insurance companies, or speak with companies directly. Different agents work with different companies, so talking to more than one will give you a fuller picture of what is available in your area. Regional insurance companies are no more risky than large insurance and could save you money on your premium for the same coverage. Be sure to ask about a company’s holdings and policies before purchasing an insurance plan.