New Jersey Homeowners Face Insurance Crisis Due to Climate Change
NEW JERSEY — A alarming federal report reveals that increasing climate-related risks are leading to rising insurance premiums and widespread policy cancellations for homeowners in New Jersey. The Senate Budget Committee’s report, titled "Next to Fall: The Climate-Driven Insurance Crisis is Here—And Getting Worse," indicates that many families may struggle to secure affordable coverage, impacting their ability to obtain mortgages.
The report warns of a potential "systemic shock" to the economy akin to the 2008 financial crisis if current trends continue. It highlights that as climate change intensifies, insurance markets face mounting pressures that threaten property values and mortgage markets. In total, over 1.9 million people have lost insurance coverage nationwide since 2018, with states like New Jersey experiencing significant impacts.
New Jersey ranks eighth in the nation for non-renewal rate increases, climbing 69.54% from 2018 to 2023. Key areas such as Cape May, Hudson, and Atlantic counties recorded some of the highest changes in non-renewal rates. The findings, drawn from data from 23 out of 41 U.S. private insurance companies, suggest that many regions, including parts of New England and North Carolina, are increasingly at risk.
For a detailed look at the report, click here.
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