Memo of Support for S.186/A.3842 “Insure Our Communities Act”
Stop Insurance Companies from Pricing Us Out of Our Homes
Insurance Companies Raise Rates and Cut Coverage Due to Climate Risk They
Cause By Insuring and Investing in Oil, Gas & Coal Projects
Senate Prime Sponsor: Brad Hoylman-Sigal (D-Manhattan)
Senate Co-Sponsors: as of 1/31/25
Assembly Prime Sponsor: Phara Souffrant Forrest (D-Brooklyn)
Assembly Co-Sponsors: none as of 1/31/25
New Yorkers, especially low and low-middle income homeowners of color, are being slammed
with home insurance rate hikes and coverage cuts due to climate change. Insurers are leaving
states such as California and Florida due to rising climate risks. In New York, they are raising
rates, ending policies, and limiting coverage. Not-for-profit housing developers are finding it
difficult or impossible to purchase affordable coverage. Insurance rate hikes also lead to rent
hikes. Some New Yorkers are already on the verge of losing their homes. It is only a matter of
time before rising sea levels and other climate effects cause much wider disruption.
At the same time, insurers cause the climate crisis by insuring large new oil, coal and gas
projects, such as drilling, fracking, pipelines, LNG terminals, refineries and other fossil fuel
infrastructure. They also invest policyholder funds into coal, gas and oil companies. Insurance
company investment funds are, along with asset managers, banks, and pension funds, top
sources of fossil finance capital, including for oil and gas companies. They profit from heating
the climate, causing the extreme weather and relentless sea level rise that destroys homes.
The Insure Our Communities Act helps hold down insurance rates, prevents discrimination, and
stops New York-based insurance companies from causing climate change by insuring and
financing more new oil and gas projects.
Insure our Communities Act provisions:
1. Establishes requirements for insurers to make community investments in disadvantaged
communities, akin to the Community Reinvestment Act provisions that apply to banks.
2. Prohibits New York-based insurers from insuring new oil, gas and coal projects and
follow science-based climate targets, as embodied in the Paris climate agreement and
existing New York state law (CLCPA). Because New York-licensed insurers operate
globally, this provision could rule out private insurance for super-polluting projects not
just in New York, but some projects worldwide, depending on their insurer.
3. Requires public disclosure by insurance companies of the rates they charge and the
coverage they provide by census block. Currently, no state requires this level of data
disclosure from home insurers, enabling them to discriminate and raise rates with little or
no scrutiny.
4. Prohibits New York-based insurers from investing in oil, gas and coal companies. This
provision would lock off a major source of finance to oil and gas companies, such as
Exxon, that destroy New York’s future.
5. Prohibits discrimination by insurers based on climate risk aka “bluelining”.
6. Prohibits insurers from dropping coverage for a year after a disaster.
Co-Sponsor and Pass S186/A.3842 to Stop Insurance
Companies from Pricing Us Out of Our Homes