Senate Budget Committee Debates Causes of Rising Homeowners Insurance Premiums

The U.S. Senate Budget Committee held a hearing on the insurance crisis affecting homeowners, with Democrats and Republicans offering differing explanations. Democrats, led by Committee Chair Sheldon Whitehouse, attributed the crisis to climate change, citing increased extreme weather events leading to higher premiums and insurers dropping coverage. Whitehouse pointed to Florida as a key example, where residents face high premiums and reliance on the state-backed insurer Citizens. The issue extends beyond Florida, with insurance companies reporting losses in 18 states in 2023.
Democrats emphasized the need to address climate change to mitigate future insurance crises, while Republicans blamed rising government spending and inflation. GOP members like Chuck Grassley and Ron Johnson argued that inflation and regulatory costs are the primary drivers of increased premiums. However, Mitt Romney acknowledged climate change as a factor but stressed that addressing it requires global cooperation.
As extreme weather events are predicted to increase, the committee underscored the urgency for a bipartisan solution. Whitehouse called on Republicans to recognize climate risk as a fundamental issue impacting the federal budget and millions of Americans.