Yesterday, 10:57 AM
(This post was last modified: Yesterday, 11:10 AM by StickierBuns.)
LA fire damage could reach $57B
By Andrew Barker, Editor at LinkedIn News
With major wildfires still raging in the Los Angeles area, the disaster is already taking an economic toll. Preliminary estimates from AccuWeather say the cost of the damage could range from $52 to $57 billion, while its impact on an insurance market already under strain remains to be seen. Underwriters had already begun dropping customers in areas deemed at risk for wildfires before this week's conflagration. Regulators were pushing carriers to reopen business in the state.
And the situation was already tumultuous before these fires:
California Was Already in Home-Insurance Crisis Before Los Angeles Infernos
Industry officials warn of widespread economic damage on par with some of biggest fire disasters in recent memory
https://www.wsj.com/finance/california-home-insurance-los-angeles-palisades-fire-3cce96a9?st=nS6v8V&reflink=desktopwebshare_permalink
'State legislation has artificially suppressed home-insurance premiums in California, disregarding the true risks and replacement costs. The devastating fires now raging in Southern California should finally push even the most shortsighted politicians to recognize the urgent need for reform. It's time to allow insurance companies to set rates based on actual risk rather than restrictive regulations.
Many insurers have already stopped writing policies in California, while others are dropping clients altogether. This leaves homeowners with no choice but to turn to the state's 'Fair Plan,' which is both significantly more expensive and offers far less coverage.'
By Andrew Barker, Editor at LinkedIn News
With major wildfires still raging in the Los Angeles area, the disaster is already taking an economic toll. Preliminary estimates from AccuWeather say the cost of the damage could range from $52 to $57 billion, while its impact on an insurance market already under strain remains to be seen. Underwriters had already begun dropping customers in areas deemed at risk for wildfires before this week's conflagration. Regulators were pushing carriers to reopen business in the state.
And the situation was already tumultuous before these fires:
California Was Already in Home-Insurance Crisis Before Los Angeles Infernos
Industry officials warn of widespread economic damage on par with some of biggest fire disasters in recent memory
https://www.wsj.com/finance/california-home-insurance-los-angeles-palisades-fire-3cce96a9?st=nS6v8V&reflink=desktopwebshare_permalink
'State legislation has artificially suppressed home-insurance premiums in California, disregarding the true risks and replacement costs. The devastating fires now raging in Southern California should finally push even the most shortsighted politicians to recognize the urgent need for reform. It's time to allow insurance companies to set rates based on actual risk rather than restrictive regulations.
Many insurers have already stopped writing policies in California, while others are dropping clients altogether. This leaves homeowners with no choice but to turn to the state's 'Fair Plan,' which is both significantly more expensive and offers far less coverage.'
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