Lawsuit says Big Oil’s decades of climate deception fueled Washington’s soaring home insurance costs

A new federal lawsuit alleges that some of the world’s largest fossil fuel companies knowingly misled the public for decades about the dangers of climate change, ultimately driving up homeowners’ insurance premiums across Washington and the rest of the country, according to a complaint filed Tuesday in U.S. District Court for the Western District of Washington.

The proposed class action, brought by Washington residents Richard Kennedy of Normandy Park and Margaret Hazard of Carson, claims oil companies including ExxonMobil, Shell, Chevron, BP, and ConocoPhillips engaged in a long-running campaign to obscure what they knew internally about the consequences of burning fossil fuels.

Plaintiffs argue those actions delayed the transition to clean energy and directly contributed to extreme weather events that have forced insurers to raise rates.

Kennedy and Hazard both say their premiums have surged since 2017.

Kennedy’s yearly cost rose from about $1,012 to more than $2,149 — an increase of roughly 113%.

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Hazard says her premiums doubled, pushing her to switch to a policy with less coverage, which she finds especially risky because she lives in an area prone to wildfires.

They also say they routinely purchased gasoline from Shell, Chevron, or other defendant-branded stations in Washington but were never informed that fossil fuel companies’ own research had long identified the potential for “catastrophic” climate impacts tied to their products.

The complaint says internal scientific research from as early as the 1960s warned oil executives that burning petroleum products would drive severe climate outcomes.

Instead of disclosing those findings, the suit alleges the companies launched a coordinated misinformation campaign modeled after Big Tobacco’s strategy of denying the health impacts of smoking.

According to the filing, oil companies and trade associations funded misleading studies, promoted doubt about climate science, targeted universities and journalists, and continued green-themed advertising that downplayed the environmental effects of their core business.

The complaint also alleges industry groups pressured policymakers and attempted to undermine congressional investigations.

The lawsuit links those actions to today’s insurance marketplace, citing federal data showing the United States has faced record-breaking natural disasters in recent years.

Plaintiffs argue these events — including wildfires, floods, major storms, and extreme heat — have driven significant losses for insurers, who pass the cost on to homeowners nationwide.

In Washington, the filing says homeowners’ insurance rates have climbed 51% over the last six years.

Because insurers pool risk across states, homeowners who have not personally experienced climate-driven disasters still pay more due to the rising number and severity of events elsewhere.

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The suit notes that Exxon, Shell, Chevron, BP, and ConocoPhillips collectively operate more than 1,000 branded gas stations across Washington, where they market and promote fossil fuel products.

The complaint also highlights past advertising and public commentary targeting Washington residents, as well as industry efforts to influence local and state policy debates over climate regulation.

Plaintiffs are not asking the court to restrict the production or sale of fossil fuels.

Instead, the complaint seeks damages tied to the increased insurance premiums they say were caused by decades of deception.

The suit also asks the court to block companies from continuing what it describes as misleading marketing practices.

Kennedy and Hazard are pursuing claims under federal racketeering laws and several Washington state laws, and they seek to represent all U.S. homeowners who purchased insurance after 2017.