U.S. Senator Elizabeth Warren addressed the issue of rising property insurance rates at a recent Senate Banking, Housing, and Urban Affairs Committee hearing. The senator, representing Massachusetts and serving as the Ranking Member, highlighted the adverse effects of former President Trump’s tariffs and cuts to disaster relief initiatives on insurance costs across the United States.
During her opening statement, Warren stressed the importance of bipartisan efforts to tackle the growing home insurance cost issue, stating, "The rising cost of home insurance is serious and it is a growing problem – and one that we’ve got to work on together in a bipartisan way." She noted that while housing is already costly, homeowners face additional burdens with high insurance bills.
Warren pointed out the nationwide impact of increased insurance rates, mentioning instances in Massachusetts, California, Louisiana, Florida, and other regions affected by natural disasters. Despite this, she emphasized that rate increases are not confined to disaster-hit areas, as the average home insurance rates have risen by 23% over the past two years.
The issue extends beyond high costs. Warren warned of the emerging difficulty for homeowners to secure insurance and thus mortgages. Federal Reserve Board Chair Powell recently indicated that homeowners in certain regions might soon be unable to obtain necessary insurance coverage.
Furthermore, Warren criticized Trump’s policies, attributing the exacerbation of the property insurance crisis to his tariffs, which have made rebuilding materials more expensive. She cited a National Association of Home Builders estimate that these tariffs could increase new home construction costs by $10,900.
Warren also denounced Trump's intentions to eliminate the Federal Emergency Management Agency (FEMA) and cut disaster aid, which would leave numerous communities without necessary federal support. The senator shared concerns about recent changes to the eligibility requirements for HUD’s Community Block Development Grant Disaster Relief funds.
Warren pointed out the administrative termination of FEMA’s Building Resilient Infrastructure and Communities program, a critical initiative for hazard mitigation funding. She argued that Trump's efforts to dismantle FEMA could result in further elevating the flood and property insurance burden on Americans.
"If we’re going to make good on our promise to make housing more affordable," she said, "Banking Committee members on the other side of the aisle need to push back forcefully against the costly and dangerous policies peddled by President Trump."
The senator concluded her remarks by expressing her willingness to work collaboratively to address these financial challenges and make housing more affordable.