States consider suing fossil fuel industry over insurance hikes

By Saqib Rahim | 01/12/2026 06:39 AM EST

New York and Hawaii could expand the legal battlefield and seek to hold companies liable for disasters that cause premiums to rise.

Hawaii state Sen. Jarrett Keohokalole wants legal action against fossil fuel companies.

Hawaii state Sen. Jarrett Keohokalole is sponsoring legislation that would let the state attorney general sue fossil fuel companies for disasters that cause insurance rates to increase. Audrey McAvoy/AP

Two states will consider empowering their attorneys general to sue fossil fuel companies if climate-related disasters cause property insurance rates to rise.

Bills in the New York and Hawaii state legislatures could open a new front in climate litigation by letting state prosecutors sue on behalf of residents who face higher insurance premiums after storms, wildfires and other events linked to climate change.

Similar legislation is being drafted in California, where insurance costs are soaring following years of major wildfires including the devastating Los Angeles fires a year ago.

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The measures aim to expand the fossil fuel industry’s liability for climate change to include rising insurance rates at a time when property coverage is becoming increasingly expensive and scarce.

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