Impact of Wildfires on California's Home Insurance Market

Reported about 11 hours ago

The recent wildfires in the Los Angeles area are set to challenge California's insurance market as many insurers have already limited or stopped providing coverage due to high fire risks. The most affected area, Pacific Palisades, which has suffered significant property damage, is experiencing a shortage of available insurance. Homeowners are increasingly turning to the FAIR Plan as a last resort, although its basic coverage may leave them underinsured. The state's attempts to stabilize the insurance market could lead to higher premiums, as new regulations allow companies to factor climate change into pricing. While it remains uncertain how this will affect the overall market, higher costs for homeowners seem likely.

Source: YAHOO

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