California fires are making global headlines. Scores of celebrities are speaking about losing their homes in the strong blazes, including Mandy Moore, Jeff Bridges, Miles Teller and Paris Hilton. The death toll in the disaster has reached 10.
In the period from 2020 to 2022, insurance companies in California declined to continue 2.8 million policies in the state, according to the California Department of Insurance. That includes tens of thousands of people in the places the latest fires are raging in.
Many people decided to not continue their policies. But most of these policies got cancelled but the insurers. The issue has continued to threaten numerous people in California. Insurers are hesitant to address policies in areas they consider to be at high risk of fires.
The problem of cancelled policies has forced some people to choose to not get fire insurance or to use a program set up by the state – but not including taxpayer support – called the California Fair plan. These policies, nonetheless, carry significantly higher premiums.
