Time to panic? The home insurance market in California is collapsing because of climate change

As another legislative session draws to a close in Sacramento, the problem lawmakers failed to fix is one of the most urgent facing Californians: the slow-moving collapse of the property insurance market as costs from climate disasters mount.

It “is not even a yellow flag issue. This is a waving red flag issue,” Gov. Gavin Newsom said Tuesday night when asked about the failure of the Legislature to act.

This year, multiple companies, including the state’s largest home insurer, State Farm, have announced they are no longer taking on new residential and commercial properties, citing wildfire risk. In fact, seven of the 12 insurance groups operating in California — together, responsible for about 85% of the market — have pulled back.

Steve’s note<br>
Yes, this is California, but there is already talk about this happening in Canada. Of course, the federal and provincial governments will offer assistance — but for how long? Will they reach a point where they have so much infrastructure to fix from climate change, that they can’t afford to help all the people who lost thier homes and properties? I dunno'<br>

If only insurance were as cheap as talk.

It is painfully clear that the speed and ferocity of climate disasters has intensified. Only eight months into 2023, the U.S. has recorded 23 climate-related disasters, each with damages of at least $1 billion, according to the National Oceanic and Atmospheric Administration. That shatters the previous record of 22 such disasters the entire year of 2020.

It is increasingly uncertain who is going to pay for all that damage, to, as much as possible, make whole all those upended lives. |Read more https://www.latimes.com/california/story/2023-09-14/home-insurance-climate-change-cost-all-californians| www.latimes.com/california/sto…

#insurance #cost #politics #cdnpoli #policies #lost