More than 46,000 Palestinians have been killed in the Israel-Hamas war, officials sayMore evacuations are ordered as another wildfire breaks out in the Los Angeles areaThe Afternoon WireSenate committee to hold confirmation hearing for defense secretary nominee Hegseth on Jan 14Las Vegas Raiders fire general manager Tom Telesco after just one yearNo more fact-checking for Meta.
Here’s what to know about California’s residential insurance crisis and how the ongoing wildfires may further disrupt the policy market:Of the top 20 most destructive wildfires in state history, at least 15 occurred since 2015. The data did not include the Los Angeles area fires this week. Many people purchase the FAIR Plan to satisfy their mortgage requirements, but the policies only cover basic property damage and carry a $3 million limit. Given the value of the real estate involved and the limited coverage, FAIR Plan policyholders who lost homes in this week’s fires may struggle to be made whole.
FAIR Plan spokesperson Hilary McLean said it could take years to tally total losses from the Los Angeles area fires. While it’s too soon for reliable loss estimates, the FAIR Plan anticipates being able to pay out claims from the wildfires, McLean said. The claims from the fires will be significant, Court said, “but this is not enough to put the industry out of business or the FAIR Plan out of business.”In a new tactic, state officials undertook a yearlong overhaul to give insurers more latitude to raise premiums in exchange for more issuing policies in high-risk areas.when setting their prices. California previously did not let insurance companies factor in current or future risks when deciding how much to charge.