Even before this week's devastating wildfires left thousands of structures in smoldering ruins across some of the most affluent Los Angeles neighborhoods, the state of California faced an existential insurance crisis. Carriers have been fleeing the state in recent years, driven out by increasingly costly weather events, including previous fires that have wiped out company profits.
It's too soon to know the full cost of repair following this week's disaster, which has already destroyed entire neighborhoods and killed at least five. More homes will likely be destroyed as the fire continues to burn, and many victims who lost homes will find themselves in financial distress. As big insurers try to protect their profits from natural disasters, the Southern California homeowners are left with inadequate or nonexistent coverage, industry experts say.
