Two homeowners in Washington state faced with rising home insurance premiums have filed a lawsuit against major oil and gas companies. This unprecedented case seeks to hold Big Oil accountable for climate-related insurance cost increases.
The lawsuit, initiated in the U.S. District Court’s Western District, claims that oil industry deception about fossil fuels’ climate impact has significantly contributed to a climate crisis, leading to an insurance crisis for homeowners facing soaring rates and reduced access in high-risk areas.
Home insurance rates in Washington state have jumped 51% in six years. Richard Kennedy from Normandy Park and Margaret Hazard from Carson both saw their premiums more than double since 2017, prompting them to file a class action for homeowners who have purchased insurance since 2017 statewide and nationwide.
Climate change is intensifying extreme weather, driving up insurance rates. These disasters raise costs, making homeowners’ insurance costlier and less accessible, as noted in a Department of the Treasury report showing that home insurance premiums rose nearly 9% faster than inflation from 2018 to 2022.
The lawsuit, Kennedy v. Exxon et al., is a pioneering challenge to fossil fuel companies over these escalating costs. It seeks accountability for increased insurance premiums due to deceptive climate practices by defendants, as outlined in the complaint.
The suit alleges violations of the Racketeer Influenced and Corrupt Organizations (RICO) Act and state law claims like fraudulent misrepresentation and civil conspiracy. It argues that defendants conducted a decades-long campaign to obscure the links between fossil fuels and climate change, misleadingly promoting themselves as climate solution providers to delay clean energy transition and protect profits.
Defendants include ExxonMobil, BP, Chevron, ConocoPhillips, Shell, and the American Petroleum Institute (API). API’s Ryan Meyers labeled the lawsuit “baseless” and called climate policy a matter for Congress.
Efforts to stop these legal actions are ongoing, with oil companies petitioning the Supreme Court in another climate deception case from Boulder, Colorado, which could impact other pending climate cases.
Original Story at insideclimatenews.org