As wildfires rage across Southern California, displacing families and devastating entire communities, another crisis is quietly unfolding: the collapse of the homeowner’s insurance market. Insurers, overwhelmed by years of catastrophic losses, are pulling out of high-risk areas or dramatically raising premiums, leaving middle-class homeowners with few options. The ripple effects are already reshaping California communities, pushing working families out and concentrating ownership in the hands of the wealthy few who can afford to self-insure.
Here on Cape Cod, the situation is not so different. While wildfires may not be our threat, rising seas, intensified storms, and coastal flooding are making our properties increasingly vulnerable. The insurance industry here is responding similarly to California, with premiums skyrocketing or coverage disappearing altogether. For the working-class families and small business owners who have defined the Cape for generations, this trend is alarming.
A U.S. Senate advisory committee report released in December details the rate at which insurance companies are not renewing homeowners’ insurance. Martha’s Vineyard (Dukes County) had the third highest non-renewal rates in the nation in counties with at least 10,000 policies in force – more than one in every 10 homeowners’ insurance policies were not renewed in 2023. Barnstable County had the third highest rate of non-renewals for counties with at least 10,000 policies in force.
Without a safety net, many of these residents will be forced to sell their homes—often to buyers who can afford to self-insure. Over time, this trend will reshape Cape Cod into a wealthy enclave, accessible only to those with significant means. What happens to our teachers, nurses, tradespeople, and fishermen? What happens to the lifeblood of our communities?
The answer lies in proactive action, and one solution is the creation of a Catastrophic Insurance Fund. Such a fund would function as a safety net, pooling resources to cover catastrophic events like major hurricanes or flooding. By spreading risk across a larger pool and providing reinsurance support, it can help stabilize the insurance market, making coverage affordable and accessible for all Cape residents—not just the wealthy.
Without intervention, the Cape risks becoming an exclusive “playground for the rich” until the inevitable happens: a Category 5 hurricane devastates the region, leaving it disposable in the eyes of those who can afford to rebuild elsewhere. A Catastrophic Insurance Fund isn’t just about protecting properties; it’s about protecting our way of life, our year-round communities, and the people who make the Cape what it is.
As a region, we must take a hard look at our vulnerability and commit to solutions that preserve our future. We need partnerships between local, state and federal governments, the insurance industry, and community organizations to create a fund that provides a buffer against disaster while maintaining the Cape’s accessibility for everyone.
Let’s take a lesson from California and act before it’s too late. Cape Cod’s resilience depends on it.