Los Angeles wildfire increases insurance crisis in California: Californians are facing loss in Los Angeles after the huge wildfire from 7 January 2025. Thousands of citizens are displaced from the city this week. As per the reports more than 12000 Buildings burnt in this Wildfire in a week and the number of burnt houses are continuously increasing.
As most of the citizens living in Los Angeles have already applied in insurance programs to cover their risks. But now insurance companies are focusing to ensure their own budget instead of providing the insurance cover to the insurers in the City.
Los Angeles wildfire increases insurance crisis in California
According to the reports more than 12 well valued insurance companies have stopped their insurance renewal program to the citizens living in Los Angeles from last 1 year. So home owners are not able to claim their insurance to fulfill their recoveries from this wild fire disaster.
High Valued Homes are getting difficulty
Los Angeles is one of the most expensive cities in America. It is also known as Hollywood City where people are living in highly expensive homes in the City. Since the Los Angeles is highly risked city in California where the chances of wildfire are high. Insurance companies have evaluated the accepted disaster earlier and making them safe with not providing insurance to the highly valued homes in the City.
Because by doing this these companies will have to pay the amount of the entire destroyed house as covers. So people who have highly expenses houses in the City do not have Insurance of their home and are forced to leave his ruined home without claiming covers.
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More than 30000 homeowners do not get renewal
According to the official reports by one of the famous insurance company in the City State Farm General, They do not renew insurance of the approximately 30,000 home owners in the state from last year. Other insurance company are also following the same pattern and do not offering Home Insurance to people living in Los Angeles since last year.
As per the reports, one in seven house had Insurance plan before the Wildfire disaster. but after following not renewing strategy of the companies, more than thousands of homeowners cannot claim their Home Insurance covers
Federal statements on misbehaves of insurance companies
The vice president of the Federal government has shared this issue that insurance companies are not coping up with insurers During this Wildfire disaster in the City. This behaviour is increasing stress among affected people in the City.
The president of USA has also responded on this incident and Suggested that government should provide the cost of 6 months to the state two overcome the financial burden. He is also told that Federal government would 100% of disaster cost in Los Angeles.
State government intervened in this case
California’s Insurance Commissioner Lara used moratorium powers to prevent insurance companies from canceling or non-renewing policies in wildfire-impacted areas. It will help to the affected people in the city to apply for new insurance or renew their insurance without any problem which will insure the risk covers of their home.
The statement is very clearly addressing insurance companies in the state to help to the people in the City to renew their insurance. Now companies cannot delay to renew the applications of the applicant for next 1 year after issuing this new Moratorium.
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Loss in Los Angeles
Financial Agencies are continuously updating the reports about the loss in the City from Wildfire from 7 January 2025. Till now more than 12000 homes have been destroyed in this fire which captured approximately 60 square Mile area and continuously spreading in the City.
25 people have been identified dead in this Disaster. Report is updating continuously and the final report will be prepared after controlling the situation in the City. However more than $150 billion valued assets have been burnt in this wildfire.
