Semafor – “JPMorgan said this morning, more than double an earlier estimate. That comes as those companies are still rebuilding their reserves from the 2017 and 2018 wildfire seasons, which included the deadly Camp Fire in California. Insurers have been fleeing California in recent years as weather-related catastrophes become more common, pushing more homeowners to a state-backed insurer of last resort. A state law requires the commissioner’s approval on annual rate increases above 7% for homeowners’ insurance, which isn’t enough to cover risk that continues to skyrocket, said Tim Zawacki, an industry analyst at S&P Global Intelligence. Allstate pulled out of California in 2022. State Farm stopped issuing new homeowners policies in 2023 and has been dropping existing customers. Insurers have also stepped up their non-renewals in high-risk zones like Miami and New Orleans, where the threat of hurricanes can be just as expensive as wildfires. [Pacific Palisades homeowners largely have no insurance]
- See also Wired – The Los Angeles Fires Will Put California’s New Insurance Rules to the Test – The state’s insurance industry was reformed in late 2024 to promote coverage in disaster-prone areas. Tens of billions in fire damage will stress-test the new regime.
- LA wildfire damages set to cost record $135bn
- See also California’s Fires Show How Climate Will Destabilize Our Politics and Daily Life. Climate has long been a tech and economic problem—it’s about to be a political one
- See also Dr. Crystal A. Kolden – Here’s the reality about the LA fires this week: this isn’t the first time ANY of these places have burned. Not even close. In 2018, we mapped CA fire history to look at fire frequency across SoCal. Santa Monica Mtns area burns more than anywhere else — up to once per decade in a given spot…”
- See also American Prospect –Trump’s Attack on Government Capacity Will Fan the Flames of the Home Insurance Crisis. The U.S. Forest Service is already underfunded and understaffed. Slashing its resources further is likely to unleash more severe wildfires.
- See also WSJ gift article – Raging Los Angeles Fires Wreak Destruction. Tens of thousands of acres burn; officials say death toll of five is likely to rise
- See also Here’s What You Should Do If Your Insurance Company Drops Your Fire (or Flood) Coverage
