Washington Homeowners Sue Big Oil Over Soaring Insurance Costs

Efforts to hold the fossil fuel industry accountable for the climate emergency continued in Washington state this week as homeowners sued oil giants and a trade association over their decades of lies and rising insurance premium rates.

"As natural disasters become more costly, homeowners foot the bill," explains the complaint, filed on Tuesday in the US District Court for the Western District of Washington against the American Petroleum Institute, BP, Chevron, ConocoPhillips, ExxonMobil, and Shell and its subsidiary Equilon Enterprises.

"In 2023, a significant number of natural catastrophes... impacted the United States, at an estimated cost of $114 billion, of which approximately $80 billion was insured," the filing notes. "In the state of Washington alone, homeowners' rates have increased by a total of 51% over the past six years. But climate change has driven insurance premium increases throughout the country because insurance generally operates by pooling risks."

There are two named plaintiffs in the proposed class action suit. Margaret Hazard lives in Carson, an "area that is very dry and prone to forest fires." Since she began paying for home insurance in 2017, her premiums have doubled, and she recently had to switch to a policy with less coverage. Richard Kennedy of Normandy Park has also paid for homeowner's insurance since then; his premiums have gone from $1,012.10 to $2,149.18, an increase of nearly 113%.

"This case is about holding the fossil fuel defendants accountable for the increased homeowners' insurance premiums that their coordinated and deliberate scheme to hide the truth about climate change and the effects of burning fossil fuels has brought about and for their conduct contributing to climate change; a cost the highly profitable trillion-dollar industry can easily afford, and one that it should not be permitted to simply pass along to the everyday people who are presently bearing the burden of these increased premiums," the complaint states.

The document highlights that "defendants have known since at least the 1960s, based on their own internal scientific research, that carbon dioxide and other greenhouse gas pollution caused by the unchecked sales of its highly profitable petroleum products would inevitably lead to 'catastrophic' weather-related consequences with 'considerable significance to civilization' and that only a narrow window of time existed in which to act before severe consequences would result."

Big Oil "took this internal calculus seriously," the filing details, but "rather than inform the public, or... undertake meaningful remedial steps, defendants chose instead to protect their profits by engaging in a massive, deliberate, decadeslong misinformation campaign intended to sow doubt in the minds of the media [and] business leaders, and deceive the public and consumers about the conclusions they themselves had reached about the substantial consequences that the sale of their products would have."

As journalists and academic researchers have revealed what fossil fuel companies knew, and when, over the past decade—while extreme weather, from rapidly intensifying hurricanes to historic wildfires, ravaged US communities—various climate liability lawsuits have been filed across the country by states, municipalities, tribes, and individuals.

According to the Center for Climate Integrity's national tracker, in Washington state alone, there are at least three other cases: two brought by tribes in December 2023 and a wrongful death suit filed in May by the daughter of Juliana Leon, who died during the extreme heatwave that plagued the Pacific Northwest in 2021.

The cases have often drawn comparisons to the tobacco industry's deception, and the one filed this week is no exception. In fact, the plaintiffs for the new federal suit in Washington are represented by the law firm Hagens Berman, whose managing partner and cofounder, Steve Berman, served as special assistant attorney general for 13 states against Big Tobacco.

"Big Oil took its playbook directly from the minds of Big Tobacco and think they can get away with the same deliberate disinformation campaign, coercing the public to pay for the very harms they suffer," Berman said in a statement. "We see a direct correlation between Big Oil's lies and the alarming increase of homeowners insurance due to the rising threat of natural disasters."