If there are still any doubters, the apocalyptic images coming out of Los Angeles should be the proof everyone needs that climate change is not only real, it is an existential threat to our way of life.
National news night after night this past week has shown haunting images of fire destroying more than 10,000 homes, businesses, and schools. Residents of America’s second largest city are traumatized, many rethinking where they will call home.
Aside from tragic, it is unnerving.
If the fires were not enough, the turmoil of the nation’s insurance market should solidify any doubts when it comes to comprehending the magnitude of climate change. And the Island is starting to realize that climate change impacts the home insurance market firsthand.
We have not seen calamity on the scale of L.A., but there is an overwhelming fear that a Category 5 hurricane is only a matter of time. Insurance companies are adjusting rates and policies to reflect that. Our pocketbooks are taking a hit as much as anyone in the country.
A recent report from the U.S. Senate Budget Committee, detailed in last week’s paper, shows that Martha’s Vineyard had one of the highest nonrenewal home insurance rates in the country in 2023. That means that — similar to Florida, California, Louisiana, Colorado — major insurers are leaving the region, spooked by the high risk of doing business. The report, while drastic, warns of a financial crisis similar to the 2008 recession if something isn’t figured out, and soon. Without homeowners insurance, it’ll be impossible for most people to get a mortgage, and without a mortgage, only a select few with cash will be able to afford homes.
We haven’t reached that point, thankfully, or at least not yet. Municipal officials, bankers, and local insurance agents tell us that homeowners are for the most part still able to find coverage. But the insurance policies that residents have been able to acquire are either not nearly as good as they were, much more expensive, or a lot of effort and expense is required just to acquire basic coverage.
At The Times, we have begun to document the impact of the market on Island residents. Last week, we initiated an informal survey to gather your feedback. Within a week, some 500 people at least started the survey, with some 300 finishing it. We believe it is pretty significant amount for an informal survey, which we think is a testament to the importance of the topic to Islanders.
Strikingly, about 30 percent of respondents said that they had been dropped by an insurance provider over the past several years. As for cost, nearly half of respondents said that their insurance increased between 30 and 50 percent over the past several years, a remarkable number; a quarter of respondents said it increased by more than 50 percent, while only 2 percent said their insurance has not increased.
It is an informal survey, not a perfect science, but it certainly portrays a picture we have been seeing more and more on the Island. That it’s getting difficult to live here. As many of you have indicated, some live on a fixed income, and increased rates are pinching their pocketbooks even more.
As we go forward, it is important to place the blame in the right place. Local agents don’t appear to be trying to squeeze us. The problem is a warming climate that is leading to bigger and more intense storms hitting new places; wildfires are becoming more common and bigger, with more frequent and longer droughts.
What is maddening, we still have politicians — one about to become the most powerful man in the country — who still continue to doubt the science and the obvious. We can no longer afford to delay.
We leave you with a select few comments that readers sent our way, helping us understand the impact of the insurance market on you. We are planning to follow up with many of you for more in-depth coverage, but so far these comments remain anonymous:
“I live on Social Security. I have to start scraping money together six months before [insurance] is due. That cuts down on food, and cancels any participation in ‘fun’ such as a movie or lunch. It isolates.”
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“My insurance has gone up each year for the past three years, with this past year being an increase of 43 percent. I have never had or made an insurance claim, but I have been dropped. And now I am paying a fortune to insure my home. We on M.V. get slapped with insurance hikes due to the hurricanes down South. Very scary with how things are trending.”
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“Our insurer dropped us in 2024, and we did find a new one through our broker, but the rate went up $1,000 over the previous year. The price you pay for quality of life.”
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“My insurance premium has increased by 330 percent over the past five years.”
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“Luckily, I have MV Insurance Co., and they were able to find us house insurance. However, being that my husband and I are retired, and on a fixed income, it has been a struggle paying premiums that have nearly doubled in less than two years.”
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“Barnstable Insurance Co. nonrenewed my homeowners policy in 2023. Fortunately, I found coverage with USAA. I wonder if Dukes County can form a group captive on behalf of homeowners as a potential solution?”
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“Simply grind my teeth and pay the bill.”
EDITOR’S NOTE: We at the Times are interested in pursuing this story further. If your insurance wasn’t renewed recently, or if you are struggling to afford coverage, send us an email at editor@mvtimes.com or sam.houghton@mvtimes.com.
