As communities across the country face increasingly severe and frequent climate disasters, this guide released by the Equitable & Just Insurance Initiative offers a slate of actions local and state governments can take to protect renters, homeowners, communities, and insurance policyholders.
The guide includes a broad list of actions elected officials and regulators can take to better protect people and avert the financial scarring that often comes from a climate disaster. Written by Americans for Financial Reform Education Fund and Public Citizen with input from partners in the Equitable & Just Insurance Initiative, the guide draws on recent experience and needed protections in the wake of climate-driven catastrophes.
Among the recommendations, which include proposed protections for renters, homeowners, insurance policyholders, and for the communities impacted by disasters, the guide suggests:
- Implementing a one-year moratorium on rent increases, evictions, and mortgage foreclosures for nonpayment.
- Prohibiting unsolicited bids on homes for an amount less than fair market value of property before the disaster for 120 days to prevent corporate takeovers by entities like private equity firms that drive up housing costs.
- Prohibiting post-disaster price gouging on insurance premium rates and banning insurance cancellations or nonrenewals for one year in affected areas.
- Increasing insurer penalties for unfair claims settlement practices for one year following the disaster.
- Avoiding bailouts paid for by insurance consumers or the public.
- Rigorously expanding anti-fraud enforcement against contractor fraud and insurance claims adjusters.
- Prohibiting price gouging for physical materials needed for disaster preparation and recovery (including anticipatory stockpiling pre-disaster).