The Impact of Wildfires
Recent wildfires in , including the destructive , have caused significant property damage, with over 12,300 homes and structures destroyed and potential insured losses nearing $20 billion, making it one of the costliest wildfire events in 's history.
The fires have exacerbated California's insurance crisis, with major insurers like and limiting policies in fire-prone areas, leaving homeowners with fewer options for coverage.
Insurance Market Strain
The Fair Access to Insurance Requirements (FAIR) Plan, designed as a last resort for homeowners unable to secure insurance, has seen a dramatic increase in policies since 2020, putting additional strain on California's insurance market.
Recent rule changes allow costs from large-scale disasters to be passed onto all California homeowners through premium hikes, a move that could lead to further insurance market destabilization.