CALIFORNIA'S TOP INSURER CANCELLED HUNDREDS OF POLICIES MONTHS AHEAD OF LOS ANGELES WILDFIRE: REPORT

California insurer State Farm spokesperson confirmed to Newsweek that the insurer canceled hundreds of homeowners' policies last summer in the Pacific Palisades area, which is now grappling with severe wildfires.

State Farm insurance company's decision to cancel policies last summer in the Pacific Palisades area, which is now grappling with severe wildfires, has sparked concern as the blazes continue to ravage Southern California, leaving residents in desperate need of coverage as they face the aftermath of the disaster. The company defended the move, citing the increasing frequency and intensity of wildfires in the Golden State and its efforts to avoid "financial failure" due to the rising risks, Newsweek reported.

State Farm emphasized its commitment to assisting those affected, stating, “Our number one priority right now is the safety of our customers, agents and employees impacted by the fires and assisting our customers in the midst of this tragedy,” the news publication quoted a company spokesperson as saying.

The ongoing wildfire crisis has revealed a wider issue in California’s property insurance market. Many private insurers have withdrawn coverage in high-risk areas, leaving homeowners scrambling for alternatives. As a result, California’s FAIR Plan, which acts as the insurer of last resort, has seen its policy numbers soar. From 2020 to 2024, the number of policies issued by the FAIR Plan has more than doubled, reaching a total of 452,000, according to CapRadio, the news report stated.

The withdrawal of private insurers stems from the rising risk of wildfires coupled with regulations in the state that limit how much insurers can raise premiums to cover those risks. Faced with growing losses and higher liabilities, many companies have opted to cut coverage, triggering an ongoing property insurance crisis.

This growing issue has put California homeowners in a precarious position, making it harder for them to secure coverage just when they need it most. As the wildfires continue to spread, the financial safety net provided by insurers has become increasingly uncertain for many residents.

Newsweek said it reached out to the office of California Insurance Commissioner Ricardo Lara for comment early Wednesday morning, though no response was received outside of standard working hours.

Los Angeles wildfires: Thousands of acres burned, multiple fires still raging

The fires currently ravaging Los Angeles County have caused catastrophic damage, with thousands of acres burned and significant loss of structures. As of Thursday evening, officials reported that the Palisades Fire, Eaton Fire, Hurst Fire, Lidia Fire, and Kenneth Fire are still burning, while the Sunset Fire has been contained.

Palisades Fire

The Palisades Fire has scorched over 19,978 acres and is currently 6% contained. It has caused extensive damage, with more than 5,300 structures either damaged or destroyed. Evacuation orders and warnings remain in effect for the affected areas. The fire continues to pose a major threat to residents, and officials are working tirelessly to contain it.

Eaton Fire

The Eaton Fire has burned through more than 13,690 acres and is not yet contained. As of Thursday, it stands at zero percent containment, and it is estimated that over 5,000 structures have been destroyed. Chief Deputy Jon O'Brien of the Los Angeles County Fire Department confirmed the extensive damage and the ongoing battle to control the blaze.

Other Fires

Hurst Fire: This fire has consumed more than 771 acres and is currently 37% contained.

Lidia Fire: The Lidia Fire has burned over 394 acres and is 75% contained.

Kenneth Fire: Burning through 960 acres, this fire is 45% contained. However, all evacuation orders and warnings for the Kenneth Fire have been lifted as the fire continues to diminish.

Sunset Fire

The Sunset Fire has been fully contained with no structures destroyed. All evacuation orders for this fire have been lifted, bringing some relief to the impacted communities.

Evacuations and casualties

As of Thursday evening, nearly 180,000 people have been ordered to evacuate due to the wildfires. The fires have taken a tragic toll on lives, with at least 10 confirmed fatalities, according to the medical examiner’s office. The death toll is expected to rise as more information becomes available.

Ongoing efforts

Firefighters continue to battle the flames across the region, focusing on preventing further destruction while working to bring the fires under control. Authorities urge residents to follow evacuation orders and to stay informed through local media and emergency alerts.

The situation remains dire, and officials are stressing the importance of safety and cooperation from the public as the fires continue to spread across Los Angeles County.

2025-01-10T14:26:55Z