California's insurance market is facing a crisis as insurers cut coverage and stop offering new policies due to the increasing risk of wildfires.
Several property insurers in California have cut coverage or stopped offering new homeowners policies in recent years to limit losses from wildfire claims. This has left many homeowners scrambling to find insurance at a time when the risk of devastating fires is increasing. Wildfires have become more frequent and severe in California due to climate change, putting communities at risk and straining the insurance industry.
Insurers are facing billions of dollars in potential damage claims annually and are struggling to raise premiums enough to cover the costs. As a result, the California FAIR Plan, which provides coverage to those who can't find it in the traditional market, is seeing a surge in demand. Major insurers like State Farm, Travelers, Tokio Marine, Nationwide, Farmers, USAA, and Chubb have all taken steps to reduce their exposure to wildfire risk in California. This has created an insurance crisis in the state, leaving many homeowners vulnerable and potentially facing catastrophic financial losses in the event of a fire
CALIFORNIA WILDFIRES INSURANCE PROPERTY INSURANCE FAIR PLAN CLIMATE CHANGE RISKS
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