Insurance companies are increasingly raising costs and dropping homeowners in New Jersey due to climate-related risks. A report from the U.S. Senate Budget Committee highlights a rise in non-renewals, linking them to the climate crisis. Nearly 2 million home insurance contracts across the nation have not been renewed since 2018.
New Jersey ranked eighth in non-renewal rate percent change from 2018 to 2023. Counties such as Cape May, Hudson, and Atlantic were among those with the highest non-renewal rate changes. Rutgers University professor Clinton Andrews stated, "There is a message that comes through, which is that insurers are leaving a lot of the riskier markets because they perceive it to be risky."
The report also noted that more than 200 U.S. counties saw rates for coverage triple or more during this period. Some critics argue that data has not been properly linked to the climate crisis, potentially impacting the insurance market adversely.
Andrews shared his personal experience of being dropped by an insurer despite not living in a flood plain, emphasizing coastal risks such as high winds and harsher weather. He mentioned Hurricane Sandy's impact on New Jersey's counties and questioned why some areas did not appear on federal reports.
Tim Evans from New Jersey Future highlighted challenges posed by continued development along vulnerable coastal areas like the Jersey Shore: "We have a lot of people living on barrier islands … that's what Superstorm Sandy showed us."
The report indicated regions beyond Florida experiencing similar issues, including Southern New England and parts of California where wildfire zones have seen insurers withdraw coverage. Andrews warned about potential impacts on real estate markets if proper measures are not taken: “In certain communities, sky-high insurance premiums and unavailable coverage will make it nearly impossible for anyone who cannot buy a house in cash to get a mortgage and buy a home.”
