Fast-moving wildfires have wreaked havoc across Los Angeles in recent weeks. Following the outbreak of the Hughes fire, the structural toll of the January wildfires now exceeds 16,000. Early estimates place the economic toll of the fires between $250 billion and $275 billion. Now, property insurers in the state are facing a historic payout, an estimated $40 billion.
Several major property insurance companies, including the state’s largest insurer, State Farm, announced pullbacks in coverage in recent years. Some have restricted underwriting in high-risk ZIP codes, others have pulled out of the state all together. Homeowners who have lost their home insurance are largely turning to what is called the ‘insurer of last resort’, the California FAIR Plan.
Watch the full video to learn how state regulators are working with insurers to deliver coverage back to homeowners: https://youtu.be/klEgakT56c0
