Lloyd and his wife then bought another house in Hidden Valley Lake, a town that has taken ambitious steps to reduce flammable vegetation, but the insurance premium is still more than $4,500 a year, more than three times the last house in Kansas. Lloyd’s is concerned that insurers will see their prices rise under the new rules. Other states in the West such as Colorado and Oregon have also seen insurance coverage gaps emerge after large wildfires, although the problem is less acute than the one in the Golden State. . In Colorado, for example, officials recently created a state fire insurance backstop like California’s FAIR Plan, because just a few years ago, customers were losing customers. California’s big deal with the insurance industry provides a blueprint for other states: If you want to address the coverage gap, you need to offer more insurance to set prices. Firefighters battle the Eaton Fire near the Altadena area of Los Angeles County, California. Fires erupted violently earlier this week amid strong Santa Ana winds. Photo: JOSH EDELSON / Getty Images Even this may not be enough. The past few years have seen a reprieve from large wildfires like those that struck in 2017 and 2018, but this week’s blazes in the Los Angeles area could cause billions of dollars in damage, on par with events like the Camp Fire. Joel Laucher, former regulator and fire insurance expert in consumer advocacy organization United Policyholders, said the damage from the Los Angeles fires could lead to further price increases and increased availability. gap. “These will be major losses, of course,” he told Grist. “Certain areas are going to have new challenges, to the extent that insurers are going to charge the rates they believe the area should be paying.” Laucher said that insurance companies may not refuse to renew as many policies as they can have under the previous state rules, but they can still avoid selling policies in some affected areas. Frazier, of the insurance trade group, voiced similar concerns. He said that another round of monster blazes in the size of 2017 and 2018 can drive the insurance industry away from the country once again, despite the reform of the Commissioner. ” said Grist.
Los Angeles Fire Will Test California’s New Insurance Rules
