California's Insurance Challenges Deepen as Wildfire Risks Rise

Homeowners face unequal recovery efforts and rising costs as private insurers retreat from high-risk areas.

Thousands of California homeowners are turning to the state's FAIR Plan, an insurer of last resort, as private insurers drop policies due to wildfire risks.
The FAIR Plan offers limited coverage at higher premiums, leaving many underinsured and struggling to rebuild after devastating fires like the recent Eaton and Palisades wildfires.
Major insurers, including State Farm and Allstate, have reduced or stopped issuing new policies in California, citing unsustainable wildfire risks and regulatory restrictions on raising premiums.
Consumer advocates criticize insurers for record profits and investments in fossil fuels, arguing these practices exacerbate climate risks that drive insurance challenges.
Experts warn of a potential 'uninsurable future' as climate change intensifies natural disasters, forcing governments and homeowners to bear increasing financial burdens.