MATTER OF FACT, WE KNOW CLIMATE CHANGE IS TRIGGERING MORE INTENSE AND FREQUENT NATURAL DISASTERS LIKE HURRICANES AND WILDFIRES AND THOSE, IN TURN, ARE CREATING A CRISIS OF THEIR OWN SOARING HOMEOWNER INSURANCE RATES. PEOPLE HAVE LIVED IN THEIR HOMES FOR YEARS. ARE GETTING PRICED OUT BY RISING INSURANCE BILLS, LOOKING AT YOU, STATE OF FLORIDA, IN SOME PLACES, INSURERS ARE DROPPING COVERAGE COMPLETELY. OUR CORRESPONDENT, DAN LIEBERMAN, HAS BEEN COVERING THE HOMEOWNERS INSURANCE CRISIS. FOR MATTER OF FACT, IT’S SO NICE TO HAVE YOU IN OUR STUDIO. WHY DON’T WE START WITH THE NATIONAL PICTURE? WHAT DOES IT LOOK LIKE? SURE. WELL, TRADITIONALLY THIS CRISIS HAS BEEN IN STATES LIKE CALIFORNIA, LOUISIANA AND FLORIDA. BUT THEN WE’RE SEEING NOW THAT THIS IS SPREADING TO OTHER PARTS OF THE COUNTRY, PLACES LIKE IOWA, ARKANSAS, WASHINGTON STATE, EVEN SO, THIS PROBLEM IS GETTING WORSE. WHEN YOU LOOK AT SOME OF THE DATA IN LOUISIANA FOR EXAMPLE, 63% OF HOMEOWNERS SAW AN INCREASE LAST YEAR NEARLY 20% HAD THEIR INSURANCE COMPANIES CANCEL ON THEM IN FLORIDA, 61% INCREASE IN WINDSTORM INSURANCE SINCE 2016. SO THESE ARE JUST STAGGERING NUMBERS. THAT’S AFFECTING MORE AND MORE AMERICANS. SO WHEN YOU DID A PIECE FOR US LAST YEAR, YOU FOCUSED ON CALIFORNIA AND CONDO OWNERS WHO’D BEEN AFFECTED BY WILDFIRES. I WANT TO START BY RUNNING THAT PIECE FIRST. THIS ISN’T WHAT 73 YEAR OLD SHERRI LOVE THOUGHT HER RETIREMENT YEARS WOULD LOOK LIKE. DO YOU PAY THE ELECTRIC BILL OR DO YOU PAY THE GAS BILL NOW I HAVE TO PICK AND CHOOSE. DURING HER 40 YEAR CAREER AS A SECRETARY, SHERRI WAS CAREFUL TO SET ASIDE ENOUGH MONEY TO LIVE COMFORTABLY IN HER MODEST TWO BEDROOM CONDO IN ORANGE COUNTY, CALIFORNIA. BUT THERE WAS ONE COST SHE DIDN’T PREPARE FOR A DRAMATIC SPIKE IN HER MONTHLY HOA FEES DUE TO THE INCREASING COST OF HOME INSURANCE. IN TOTAL, USED TO BE PAYING $240, AND NOW WE’RE PAYING 725. THAT’S A HUGE INCREASE. IT’S A STRUGGLE. THE CONDO COMMUNITY WHERE SHERRI LIVES WAS DROPPED BY THEIR INSURANCE COMPANY IN 2021 BECAUSE THE RISK OF A WILDFIRE HAD BECOME TOO HIGH SINCE THEY REQUIRED TO HAVE INSURANCE, THEY HAD NO CHOICE BUT TO SETTLE ON A NEW POLICY WITH LESS COVERAGE AND A HUGE PRICE TAG. I DON’T GO OUT. I DON’T GO SHOPPING, AND I SHOULDN’T HAVE TO BE IN THAT POSITION AT THIS POINT IN MY LIFE, RIGHT AROUND THE CORNER FROM SHERRI, AMBER LOOR LIVES WITH HER HUSBAND AND THREE KIDS. EVERY TIME I GET THE BILL IN THE MAIL, I JUST LOOK AT IT AND IT’S DISGUSTING. AMBER WORKS AS A HAIRDRESSER AND HER HUSBAND’S IN IT. TOGETHER THEY EARN ABOUT $100,000 A YEAR. THE MEDIAN HOUSEHOLD INCOME IN THEIR AREA. THAT’S NOT A LOT FOR A FAMILY OF FIVE IN ORANGE COUNTY. SO THIS IS ABSOLUTELY IT’S HUGE. IF MY INSURANCE IS REALLY HIGH, I NEED TO ASK MYSELF, WHY IS THAT? SEREN TAYLOR IS THE VICE PRESIDENT OF THE PERSONAL INSURANCE FEDERATION OF CALIFORNIA, AN INDUSTRY TRADE GROUP. EIGHT OF THE TEN MOST COSTLY FIRES ON THE PLANET HAVE HAPPENED IN CALIFORNIA IN THE LAST SIX YEARS. AND OF COURSE, INSURERS HAVE PAID OUT TENS OF BILLIONS OF DOLLARS IN CLAIMS. THOSE LOSSES FACTOR INTO FUTURE RATES. INSURERS ARE NOW STRUGGLING JUST TO KEEP UP. WHAT ARE YOU GOING TO DO? I MEAN, IF THESE COSTS DO KEEP GOING UP, WHAT’S YOUR PLAN? I’M GOING TO HAVE TO KEEP CUTTING BACK IN OTHER AREAS. I CAN’T MOVE RIGHT NOW WHILE MY KIDS ARE IN SCHOOL. WHAT MAKES YOU WANT TO STAY HERE? IT’S JUST HOME. PEOPLE LIVE IN A IN A SMALL TOWN AND THEY’LL LIVE THERE THEIR WHOLE LIVES. AND THAT’S THEIR HOME. AND THIS IS MINE. SO THEN WHAT HAPPENS TO PEOPLE LIKE THAT? I MEAN, WHAT WHAT SOLUTIONS ARE THERE TO HELP THEM? WELL, THE PROBLEM IS IT’S REALLY GOING TO TAKE CONGRESS GETTING INVOLVED. THAT’S WHAT STATES ARE INCREASINGLY CONCERNED ABOUT. IT’S WHAT LAWMAKERS ARE CONCERNED ABOUT THAT THE BILL IS ULTIMATELY GOING TO START TO FALL ON TAXPAYERS ACROSS THE COUNTRY. WHEN YOU LOOK AT BANKS, FOR EXAMPLE, AND MORTGAGES, BANKS WON’T GIVE MORTGAGES IF PEOPLE AREN’T ABLE TO GET INSURANCE. AND THAT COULD LEAD TO A WHOLE NEW FORECLOSURE CRISIS. THINK ABOUT TAXES. IF YOU CAN’T HAVE A HOUSE, WELL, THEN THE TAX BASE IN THAT COMMUNITY MEANS LOSS OF BASIC SERVICES. SO THIS IS REALLY A GROWING PROBLEM THAT NEEDS TO BE TAKEN MORE SERIOUSLY. WE DID RECENTLY SPEAK TO CRAIG FUGATE, WHO WAS THE FEMA DIRECTOR FOR MANY YEARS. TAKE A LISTEN TO WHAT HE HAD TO SAY. AND I THINK WE’RE AT THAT TIPPING POINT WHERE WE’RE CONTINUING TO SEE MORE OF THIS RISK TRANSFERRED TO THE FEDERAL TAXPAYER AND THE HOMEOWNERS AND THE PEOPLE THAT LIVE IN THESE COMMUNITIES WILL FIND THAT THESE PROGRAMS THAT ARE ADMINISTERED BY FEMA, HUD SMALL BUSINESS IN MANY CASES, WILL NOT ALLOW THEM TO REPAIR AND REBUILD THEIR HOMES WITHOUT INSURANCE. AND SO THAT GAP IS SOMETHING WE NEED TO ADDRESS. SO WHEN YOU LISTEN TO WHAT HE HAS TO SAY, THAT’S REALLY, REALLY ALARMING BECAUSE THE PROBLEM IS GETTING WORSE AND THE SOLUTIONS AREN’T SO CLEA