Wildfires cause turmoil in CA property insurance market
5 years ago

Wildfires cause turmoil in CA property insurance market

India TV News  

Kent Michitsch seemed to be running out of traditional options to insure the home he’s lived in for more than 30 years northeast of San Diego as California’s massive property insurance market reels from three consecutive years of destructive wildfires. State Farm, the largest insurer in the state, Allstate and other insurers declined to renew roughly 350,000 policies in areas at high risk for wildfires since 2015 the California Department of Insurance said back in August, and the department has gotten “record numbers” of requests this year from insurers to increase the rates they charge property owners. While the insurance industry says the California property insurance market is resilient, state lawmakers and officials have had to scramble to keep the market from grinding to a halt from the unexpected additional risk. “The wildfires in California will likely make it more difficult for California homeowners to buy insurance,” said Stu Ryland, senior vice president of the Pacific Region at Sedgwick, an insurance claims management company.

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History of this topic

Tyler Perry calls out ‘appalling’ insurance company decisions in wake of LA wildfires
1 day, 17 hours ago

Tyler Perry calls out ‘appalling’ insurance company decisions in wake of LA wildfires

The Independent  

Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more Stay ahead of the curve with our weekly guide to the latest trends, fashion, relationships and more SIGN UP I would like to be emailed about …

Insurance cost of Los Angeles wildfires may be felt in Australia
2 days, 4 hours ago

Insurance cost of Los Angeles wildfires may be felt in Australia

ABC  

California's devastating wildfires have exposed an insurance crisis plaguing many disaster-prone areas around the world, and risk pushing up premiums in Australia. "We need to assume that there are more who are also underinsured or not insured at all in Australia because premiums have gone up so much, and due to cost of living," Professor Jarzabkowski said. "Insurance is basically …

California wildfire ‘biggest scam’: Insurance companies cancel millions of policies, says Hollywood actor-director
2 days, 18 hours ago

California wildfire ‘biggest scam’: Insurance companies cancel millions of policies, says Hollywood actor-director

Live Mint  

Hollywood actor-director Tyler Perry took to Instagram to express his frustration with insurance companies amidst the devastating California wildfire. According to the Los Angeles Times, insurance companies such as State Farm, Chubb and Allstate have either stopped renewing or writing new policies for homes in wildfire-prone areas. “Watching a daughter use a garden hose to try and protect her 90-year-old …

Will California homeowners relocate or rebuild? Both are costly
5 days, 4 hours ago

Will California homeowners relocate or rebuild? Both are costly

CNN  

CNN — Tens of thousands of California residents will decide whether to permanently relocate or rebuild their homes after the most destructive fires in Los Angeles’ history. “The policy is generally going to cover the cost of additional living expenses while you are out of your home, to maintain what is kind of your usual standard of living,” said Karen …

California bars insurers from dropping fire victims until 2026. What to know
Trending News
5 days, 10 hours ago

California bars insurers from dropping fire victims until 2026. What to know

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy California Insurance Commissioner Ricardo …

The LA wildfires will cause chaos for California’s home insurance market
5 days, 19 hours ago

The LA wildfires will cause chaos for California’s home insurance market

The Independent  

The latest headlines from our reporters across the US sent straight to your inbox each weekday Your briefing on the latest headlines from across the US Your briefing on the latest headlines from across the US SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The wildfires that destroyed …

In California's blazing trails, a financial inferno threat to insurance business
5 days, 20 hours ago

In California's blazing trails, a financial inferno threat to insurance business

Firstpost  

As premiums soar and coverage shrinks, Californians face a housing affordability crisis that could leave entire communities in ashes, both financially and socially Firefighters battle the fire in the Angeles National Forest near Mt. Insurance market in crisis California’s insurance industry is in a full-blown crisis with major companies pulling out and more homeowners relying on state-backed insurance programmes. According …

How the wildfires in Los Angeles area could affect California’s home insurance market
Trending News
6 days, 4 hours ago

How the wildfires in Los Angeles area could affect California’s home insurance market

Associated Press  

SACRAMENTO, Calif. — The wildfires that destroyed homes in multiple sections of the Los Angeles area will test California’s efforts to stabilize the state’s insurance marketplace after many insurers stopped issuing residential policies due to the high fire risk. California homeowners in wildfire-prone areas either go without insurance or join the Fair Access to Insurance Requirements Plan, which the state …

California lawmakers to consider expediting insurance claims after L.A. fires
6 days, 4 hours ago

California lawmakers to consider expediting insurance claims after L.A. fires

LA Times  

More than 9,000 buildings have been damaged or destroyed in the Palisades and Eaton fires, including those shown here in Altadena. As lawmakers regrouped Thursday after fiery devastation across Los Angeles, Assembly Speaker Robert Rivas vowed to back legislation to help homeowners expedite insurance claims, while Senate leader Mike McGuire delivered a tearful floor speech addressing California’s “hellish week.” “Words …

The Los Angeles Fires Will Put California’s New Insurance Rules to the Test
55 years ago

The Los Angeles Fires Will Put California’s New Insurance Rules to the Test

Wired  

This story originally appeared on Grist and is part of the Climate Desk collaboration. Over the past five years, California has become a poster child for what climate-fueled weather disasters can do to a state’s home insurance market. “With input from thousands of residents throughout California, this reform balances protecting consumers with the need to strengthen our market against climate …

Insurers began leaving California years before latest wildfire
1 week ago

Insurers began leaving California years before latest wildfire

Salon  

As wildfires in California have worsened in recent years, some insurers have said they're done covering the damage. State Farm and Allstate said in 2023 and 2022 they would stop writing new policies in California due to fears of massive losses from wildfires and other natural disasters, NBC Bay Area reported. The Hartford said last year it would stop selling …

How the devastating Los Angeles fires could deepen California’s home insurance crisis
1 week ago

How the devastating Los Angeles fires could deepen California’s home insurance crisis

LA Times  

When raging wildfires tore through Pacific Palisades and other local communities this week, they not only left a path of destruction reminiscent of a World War II bombing campaign, but threatened to deepen a crisis that has already left hundreds of thousands of Californians struggling to find and keep affordable homeowners insurance. This just proves insurers’ point that the risk …

California Allows Reinsurance Cost in Rates as Fire Worry Grows
2 weeks, 2 days ago

California Allows Reinsurance Cost in Rates as Fire Worry Grows

Live Mint  

-- California approved new rules that let insurers account for reinsurance costs when they set rates, the last major step in a regulatory overhaul designed to halt an exodus of carriers amid rising concern over wildfires. All other states in the US already allow for such costs and reinsurance is the primary strategy insurers use to continue providing coverage in …

California will soon require insurers to increase home coverage in wildfire-prone areas
Trending News
2 weeks, 2 days ago

California will soon require insurers to increase home coverage in wildfire-prone areas

Associated Press  

SACRAMENTO, Calif. — Insurance companies that stopped providing home coverage to hundreds of thousands of Californians in recent years as wildfires became more destructive will have to again provide policies in fire-prone areas if they want to keep doing business in California under a state regulation announced Monday. The rule will require home insurers to offer coverage in high-risk areas, …

State takes final step to fix California’s troubled home insurance market
2 weeks, 3 days ago

State takes final step to fix California’s troubled home insurance market

LA Times  

The state released another regulation Monday aimed at easing California’s home insurance crisis that will allow insurers to charge homeowners higher premiums to protect themselves from catastrophic wildfire claims. The regulation was praised by the American Property Casualty Insurance Assn., a trade group for home, auto and business insurers, which called the step “one of several critically needed reforms to …

As Wildfires Rage, California’s Insurance Market Is in Crisis
3 months, 1 week ago

As Wildfires Rage, California’s Insurance Market Is in Crisis

Wired  

California is in the middle of a wildfire crisis. Just this past month, Southern California has seen three of the most severe fires in recent memory, while it recently took firefighters more than two months to contain the fourth-largest fire in the state’s history. Rates are also up at California’s largest insurer, State Farm, and it, too, has chosen to …

Insurance commissioner prohibits policy cancellations for fire victims
3 months, 3 weeks ago

Insurance commissioner prohibits policy cancellations for fire victims

LA Times  

A tattered U.S. flag hangs Sept. 11 on a Lake Elsinore property where a home and vintage cars were destroyed by the Airport fire. California Insurance Commissioner Ricardo Lara has barred insurance companies from canceling residential coverage of some 750,000 policyholders affected by the Airport, Bridge and Line fires. The order issued Thursday protects residents within the fire zones or …

L.A. consumer group calls FAIR Plan insurance reforms an industry ‘bailout’
5 months, 2 weeks ago

L.A. consumer group calls FAIR Plan insurance reforms an industry ‘bailout’

LA Times  

A new law that could force homeowners across California to cover billions of dollars of insurer losses caused by a catastrophic wildfire is generating pushback from a leading consumer group, which has called it an industry “bailout.” State Insurance Commissioner Ricardo Lara announced Friday he had reached an agreement with the California FAIR Plan that would allow losses suffered by …

Is this the solution to California’s soaring insurance prices due to wildfire risk?
5 months, 3 weeks ago

Is this the solution to California’s soaring insurance prices due to wildfire risk?

LA Times  

In the past several years, homeowners across the state have been either burdened with extremely high insurance premiums or have struggled to find coverage at all. Earlier this month State Farm’s cancellations of 30,000 homeowner policies mostly in high wildfire risk areas, took effect. She is one of the many California homeowners struggling to maintain home insurance as costs increase …

With fires burning again, is California becoming uninsurable?
6 months, 3 weeks ago

With fires burning again, is California becoming uninsurable?

LA Times  

Thursday marks the beginning of summer, but early wildfires have already scorched the outskirts of L.A. and the Bay Area. While the giant wildfires of 2017 and 2018 had a huge impact, requiring insurers to pay claims equivalent to more than 20 years of profits, the state’s insurance problems predate the fires. California’s failure to update the old rules governing …

Editorial: California’s next affordable housing crisis is the rising cost of property insurance
7 months ago

Editorial: California’s next affordable housing crisis is the rising cost of property insurance

LA Times  

Interior patio at Amani Apartments, build with funds from Proposition HHH to provide 53 permanent apartment homes to seniors who formerly experienced homelessness that opened in 2022. Now a growing problem for the state’s homeowners has hit affordable housing providers especially hard: skyrocketing property insurance rates. In the last couple of years, organizations that build and maintain affordable housing report …

Growing wildfire risk leaves states grappling with how to keep property insurers from fleeing
8 months, 2 weeks ago

Growing wildfire risk leaves states grappling with how to keep property insurers from fleeing

Associated Press  

BOISE, Idaho — Months after a catastrophic fire burned more than 2,200 homes in Hawaii, some property owners are getting more bad news — their property insurance won’t be renewed because their insurance company has deemed the risk too high. “I think most of the insurers, you know, I’m very grateful that they’re committed to the Hawaii market, so we …

California’s home insurance crisis: What went wrong, how it can be fixed and what owners can do
9 months, 2 weeks ago

California’s home insurance crisis: What went wrong, how it can be fixed and what owners can do

LA Times  

Sheri Marchetti-Perrault and James Benton embrace as they sift through the remains of their home, which was destroyed by the McKinley fire near Yreka, Calif. The crisis reached new heights last week when leading insurer State Farm General announced that it wouldn’t renew 72,000 property owner policies statewide, joining Farmers, Allstate and other companies in either not writing or limiting …

California’s home insurer of last resort sees enrollment surge, raising concerns over its finances
10 months ago

California’s home insurer of last resort sees enrollment surge, raising concerns over its finances

LA Times  

With home insurers scaling back coverage in the state, enrollment is surging in California’s backstop insurance plan — as is the plan’s risk of sustaining losses that it can’t cover. Insurance Commissioner Ricardo Lara’s response to the crisis is a set of new rules still being implemented that would allow insurers to raise rates to cover reinsurance costs and projected …

California insurer of last resort says it’s not prepared for a big disaster
10 months ago

California insurer of last resort says it’s not prepared for a big disaster

LA Times  

A California Highway Patrol officer checks the damage to cars that fell when the upper deck of the Bay Bridge collapsed onto the lower deck after the Loma Prieta earthquake in San Francisco on Oct. 17, 1989. The plan now faces $311 billion in potential losses, up from $50 billion six years ago, California FAIR Plan President Victoria Roach said …

Flood damage raises alarms about California’s next ‘disaster insurance gap’
11 months ago

Flood damage raises alarms about California’s next ‘disaster insurance gap’

LA Times  

Dakota Rivas, 32 — with husband Walter, 42, and daughter Maleeyah, 9 — inspects the family’s modular home in West Hills, which was damaged by a mudslide last week. That’s because in Los Angeles County, home to nearly 10 million people, there are just 14,580 flood insurance policies on the books. “Most insurance policies, typically, unless you have flood insurance, …

The vast majority of California flood victims’ losses won’t be covered by insurance
11 months, 1 week ago

The vast majority of California flood victims’ losses won’t be covered by insurance

CNN  

New York CNN — Many victims of the massive storms now battering Southern California about are to be hit with another heartbreak - discovering their insurance won’t cover the damage. Story highlights Less than 1% of homes in the affected area have flood insurance LA has over 10 million residents but fewer than 15,000 flood insurance policies Federal flood insurance …

How are people supposed to rebuild Paradise, California, when nobody can afford home insurance?
1 year, 2 months ago

How are people supposed to rebuild Paradise, California, when nobody can afford home insurance?

The Independent  

For free real time breaking news alerts sent straight to your inbox sign up to our breaking news emails Sign up to our free breaking news emails Sign up to our free breaking news emails SIGN UP I would like to be emailed about offers, events and updates from The Independent. How is this the biggest thing we’re dealing with?” …

Wildfire-prone California to consider new rules for property insurance pricing
1 year, 3 months ago

Wildfire-prone California to consider new rules for property insurance pricing

Associated Press  

SACRAMENTO, Calif. — California will let insurance companies consider climate change when setting their prices, the state’s chief regulator announced Thursday, a move aimed at preventing insurers from fleeing the state over fears of massive losses from wildfires and other natural disasters. On Thursday, California Insurance Commissioner Ricardo Lara said the state will write new rules to let insurers look …

Column: Time to panic? The home insurance market in California is collapsing because of climate change
1 year, 4 months ago

Column: Time to panic? The home insurance market in California is collapsing because of climate change

LA Times  

As another legislative session draws to a close in Sacramento, the problem lawmakers failed to fix is one of the most urgent facing Californians: the slow-moving collapse of the property insurance market as costs from climate disasters mount. Throughout the United States, in different geographies, we’re reaching a point where climate change is driving to an uninsurable future,” said Dave …

The scramble to fix California’s home insurance mess failed. Here’s what will happen next
1 year, 4 months ago

The scramble to fix California’s home insurance mess failed. Here’s what will happen next

LA Times  

The remains of a home smolders during the Caldor fire in Twin Bridges, Calif., on Sept. 1, 2021. Since the beginning of the year, companies representing more than half of California’s $12-billion home insurance market have stopped or limited new policies, citing ballooning costs and risks. Since the beginning of the year, companies representing more than half of California’s $12-billion …

California insurance market rattled by withdrawal of major companies
1 year, 7 months ago

California insurance market rattled by withdrawal of major companies

Associated Press  

LOS ANGELES — Two insurance industry giants have pulled back from California’s home insurance marketplace, saying that increasing wildfire risk and soaring construction costs have prompted them to stop writing new policies in the nation’s most populous state. State Farm announced last week it would stop accepting applications for all business and personal lines of property and casualty insurance, citing …

In soaked California, few homeowners have flood insurance
1 year, 11 months ago

In soaked California, few homeowners have flood insurance

Associated Press  

ACAMPO, Calif. — On Sunday morning, Kyle Starks woke up to floodwaters that reached the door of his Jeep after yet another heavy rain storm drenched California. “People think the only people that need flood insurance are people who live right on the beach or on the banks of a river that has a history of flooding,” Bach said. When …

In soaked California, few homeowners have flood insurance
1 year, 11 months ago

In soaked California, few homeowners have flood insurance

LA Times  

Brenda Ortega, 15, salvages items from her flooded Merced, Calif., home on Jan. 10. “I didn’t think it would flood this bad,” he explained from an evacuation center, worried that water had damaged wiring and air conditioning equipment. “People think the only people that need flood insurance are people who live right on the beach or on the banks of …

California to require insurance discounts for property owners who reduce wildfire risk
2 years, 2 months ago

California to require insurance discounts for property owners who reduce wildfire risk

LA Times  

Firefighters battle the Coastal fire at Coronado Pointe in Laguna Niguel in May. New rules mandate that insurance companies reward consumers who take wildfire safety and mitigation actions under the state’s Safer From Wildfires framework, the Department of Insurance announced Monday. Under the new rules, insurance companies will have 180 days to submit rate filings that incorporate the wildfire safety …

California aims to lower fire insurance costs for homeowners
2 years, 4 months ago

California aims to lower fire insurance costs for homeowners

Associated Press  

SACRAMENTO, Calif. — California moved Wednesday to become the first state to lower insurance costs for property owners who make improvements to reduce their fire risk, the state’s insurance commissioner said as wildfires again flared across the heat-stricken state. Lara said in a statement that the new regulations “will help more Californians find insurance they can afford” and “will save …

California sets home, community standards to lower fire risk
2 years, 11 months ago

California sets home, community standards to lower fire risk

Associated Press  

SACRAMENTO, Calif. — A fire-resistant roof, at least 5 feet of defensible space around a home, a clearly defined evacuation route in a neighborhood and the removal of vegetation overgrowth in a community are some of the new statewide insurance standards to reduce the wildfire risk of older homes, California officials announced Monday. Dubbed “Safer from Wildfires,” the new standards …

Don’t Look Up director Adam McKay says home insurance cancelled over climate-linked disasters
2 years, 11 months ago

Don’t Look Up director Adam McKay says home insurance cancelled over climate-linked disasters

The Independent  

Sign up to the Independent Climate email for the latest advice on saving the planet Get our free Climate email Get our free Climate email SIGN UP I would like to be emailed about offers, events and updates from The Independent. Read our privacy policy The director of thinly-veiled climate crisis allegory Don’t Look Up has said that his home …

California bans insurers from dropping coverage to another 200,000 fire-prone homes
5 years ago

California bans insurers from dropping coverage to another 200,000 fire-prone homes

LA Times  

The Sandalwood fire at the Calimesa Mobile Home Park left several people killed and many homes ruined. California on Wednesday expanded its one-year ban on home insurers dropping policies in wildfire-hit areas to include 200,000 more homes, including in San Bernardino County and Northern California, the Department of Insurance announced. “This wildfire insurance crisis has been years in the making, …

Column: California fires will result in higher insurance rates for homeowners
5 years, 2 months ago

Column: California fires will result in higher insurance rates for homeowners

LA Times  

The insurance industry says “three historically bad years for wildfires” will lead to rate hikes for most homeowners. Rates going forward have to reflect past losses.” Michael Soller, a spokesman for the state Department of Insurance, said his office has heard reports of rates tripling for some homeowners. “Homeowners insurance companies are imposing extreme rate hikes and abruptly non-renewing homeowners …

Parts of California are too wildfire-prone to insure
5 years, 4 months ago

Parts of California are too wildfire-prone to insure

Salon  

California is facing yet another real estate-related crisis, but we’re not talking about its sky-high home prices. Last winter when we wrote about home insurance rates possibly going up in the wake of California’s massive, deadly fires, the insurance industry representatives we interviewed were skeptical. But now, the data is in and it’s really happening: Insurance companies aren’t renewing policies …

California insurers drop policies in high-fire risk areas
5 years, 4 months ago

California insurers drop policies in high-fire risk areas

Associated Press  

SACRAMENTO, Calif. — New California data shows insurance companies declined to renew nearly 350,000 home insurance policies in areas at high risk for wildfire since the state began collecting data in 2015. But the insurance industry noted the number of non-renewed policies remained fairly steady year-over-year and said many insurers are still offering policies in high-risk fire areas. “This data …

Column: Earthquake insurance: Is it worth it?
5 years, 6 months ago

Column: Earthquake insurance: Is it worth it?

LA Times  

Glenn Pomeroy, head of the California Earthquake Authority, spent the weekend in Ridgecrest, near the epicenter of Friday’s 7.1-magnitude quake and its day-earlier, 6.4-magnitude baby brother. “To buy or not to buy earthquake insurance is one of the harder decisions for homeowners,” said Amy Bach, executive director of United Policyholders, a San Francisco advocacy group. “I think most California homeowners …

California needs a big pot of money for wildfires. But how big? And who pays?
5 years, 6 months ago

California needs a big pot of money for wildfires. But how big? And who pays?

LA Times  

Gavin Newsom speaks at the California for All: Emergency Management Preparedness Summit on June 3 in Sacramento. Stock analysts predict that Southern California Edison could follow Pacific Gas & Electric into bankruptcy if Newsom fails to calm the energy markets and a major wildfire hits in Southern California, leaving victims across the state struggling to recoup their losses from insolvent …

California plans takeover of property insurer overwhelmed by Camp fire claims
6 years, 1 month ago

California plans takeover of property insurer overwhelmed by Camp fire claims

LA Times  

An aerial view of a neighborhood in Paradise, Calif., shows the destruction from the Camp fire, which burned nearly 14,000 homes. California officials will take over a small insurance company that has been overwhelmed by claims from property owners in Paradise whose homes were leveled by the Camp fire. According to a Department of Insurance handout on the liquidation process, …

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