Problem with insurance: Homeowners in fire-affected areas have a huge problem with insurance. Insurers often simply refuse policy renewals in Los Angeles Countywhich has been a huge fire hazard for years. This is why American authorities they made a decisive move.
Insurance moratorium: “California Department of Insurance introduced a moratoriumwith retroactive date of January 7, upon notice and non-renewal of insurance contracts in areas affected by fires. This means that you cannot terminate or not extend someone's insurance” – writes on social media Grzegorz Idziak, ecological activist. Add that State Farm, Allstate and other major insurers have stopped selling new home insurance policies in California in recent years, citing the growing risk of wildfires.
California FAIR Plan: CNN reports that in 2020-2022 insurance companies refused to renew 2.8 million California homeowners policies. That includes 531,000 in Los Angeles County, where they are currently rampant fires. This problem has been growing for years. Policy of insurance companies and the growing threat forced thousands of local residents to take advantage of the California FAIR plan. These policies have higher premiums than traditional insurance and a smaller scope of protection, but the demand for them has recently increased significantly. However, there are also many residents who have completely given up on insurance.
Huge losses: JP Morgan recently doubled its forecast of total losses from the disaster to $50 billion dollars. Whereas insurance losses could exceed $20 billion, making the Los Angeles fires the most expensive in history USA. “FAIR only has $2.5 billion in reinsurance, so policy holders may have a bumpy road to insurance payments” – I'm writing among others Morning Brew website. Latest fire record in Los Angeles that's 11 deaths and over 10,000 destroyed. buildings.
See also: Why are the Los Angeles fires so devastating? More on this subject in the text entitled “Los Angeles Fires and Devilish Santa Ana Winds. 'Atmospheric Hair Dryer'”.
Sources: CNN, Morning Brew.