Insurance Exodus And Wildfire Fallout: California’s Crisis Deepens

Southern California is facing devastating wildfires, including the Palisades and Eaton Fires, which have burned over 25,000 acres, destroyed 1,000 structures, and displaced 49,000 residents. The disaster coincides with a collapsing insurance market, as major insurers like State Farm and Allstate exit the state, leaving nearly 500,000 residents reliant on the state’s FAIR Plan, which is now exposed to $458 billion in potential damages. AccuWeather estimates wildfire damages and economic losses between $52 billion and $57 billion, highlighting the massive financial burden. With insurers fleeing, the state and taxpayers are increasingly responsible for covering the costs of rebuilding and recovery. California’s strict caps on insurance rate increases have driven insurers out of the market, as they cannot adjust premiums to reflect rising wildfire risks. This

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