This Could Be the Beginning of the End for Fire Insurance in California
9th January 2025
Politico, a Voice of the Crust.
Wednesday’s firestorm in a wealthy area of Los Angeles could be the final straw that breaks California’s insurance market.
The state’s insurance market has been teetering on the edge of insolvency for years thanks to catastrophic wildfires that have driven many insurers to stop writing new policies and drop existing ones. Wednesday’s wind-driven wildfires in a part of Los Angeles packed with multimillion-dollar homes could accelerate its collapse.
“It’s obviously going to be bad,” said Rep. Brad Sherman, the Democrat who represents the neighborhood between Malibu and Santa Monica where the Palisades Fire — one of six burning uncontained across the region — had destroyed more than 1,000 buildings as of Wednesday afternoon. “We’ve already seen big increases. And we’ve seen these increases not only in houses that are close to the brush, but in areas where you’re surrounded by other homes.”
Ane why is that: How long does it take to get approval for prescribed burns in California?
UPDATE: Los Angeles Fire Budget Cut, Hundreds of Hydrants Stolen for Scrap Before Fires
“These fire hydrant thefts are yet another sign of how crime is out of control in Los Angeles County,” said Los Angeles District Attorney Nathan Hochman to The Center Square before his November election. “Thieves know they’ll face little or no consequences if they are caught, so they’re willing to risk the public’s safety for a small profit.”
Los Angeles Mayor Karen Bass, who has been away on a taxpayer-funded trip to Africa as a member of a Biden administration delegation, recently cut the fire department’s budget by $17.6 million.