Republican legislators are wrapped around the finger of corporate insurance companies, according to advocacy group Unlocking America’s Future.

Getting past the barrier of simply purchasing a home is tough, but it’s not the end of the financial headache. Insurance is a necessity, especially during a time of climate emergency that’s created historic damages. 

Unlocking America’s Future hosted a May 20 virtual panel with natural disaster survivor Tony Dunn, North Carolina State Senator Natalie Murdock, and N.C. Democratic Party Chair Anderson Clayton to discuss what the group calls the “insurance crisis,” linking the political topics of climate emergency with corporate governance.

UAF representative Jayson O’Neill introduced a report published by the group which “exposes how North Carolina's congressional Republicans, Representatives Chuck Edwards and Greg Murphy, didn't just fail to address this crisis; they helped to create it.” 

“The home insurance crisis is devastating North Carolina homeowners, renters and businesses, impacting the housing market and making coverage unaffordable, unavailable or unattainable for working families and people across the state,” O’Neill said.

In 2018, the camp fire in Paradise, California, was the most destructive wildfire in the state’s history. Dunn lost his home and spent five years battling an insurance company over a property claim. They then tried to relocate to Western North Carolina. “We learned the hard way that nowhere is safe from climate risks now,” Dunn said.

Hurricane Helene affected historic damages on the region, which is experiencing a wave of policy denials and non-renewals. Dunn said his homeowner’s insurance premium has tripled since Helene despite not personally experiencing any property damage. After evaluating the value of his home listed on Zillow and Redfin, Dunn said he is now paying three times more than six months ago.

“Until Helene, they were valuing our house at about 20% over market, which is…that's fine, but it went up to 150% over market after Helene,” He said. “It's a problem everywhere.”

O’Neill said UAF analyzed profits for North Carolina insurers over the last decade and found over $100 billion in profits across the state. “So while your premiums are going up, their bottom line continues to go up as well,” he said. 

Reps. Edwards and Murphy voted to override a governor’s veto on the 2018 Consent To Rate Act, which made it legal for insurance companies to raise premiums above the state-mandated maximum without express consent from policyholders, impacting approximately 55% of N.C.’s homeowners.

Murdock said her mother was denied coverage on a home she has occupied since the 1980s. Murdock recently introduced Senate Bill 979 seeking transparency in insurance rates from companies. 

UFA’s report also cites that both Edwards and Murphy voted for a budget that cut $300 million from the Federal Emergency Management Agency, and Edwards has introduced legislation that would use federal funding for construction projects with outdated building codes. 

While N.C. insurers proposed a 42.2% rate increase, policyholders can expect a base rate 7.5% increase in June in a statewide adjustment approved by Commissioner of Insurance Mike Causey. 

Clayton said state Republicans have “a long track record of siding with insurance and fossil fuel companies.” Both representatives have accepted over $90,000 in campaign donations from those industries.

“North Carolina families are paying more to insure their homes or losing coverage entirely, while we've got Republicans in Congress that refuse to protect innocent families, and instead protect fossil fuel profits and block the emergency preparedness investments that could make the difference everywhere,” she said. 

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