California homeowners insurance policies are becoming fewer and farther between

California Homeowners Insurance Policies - House Fire - Fire fighters

As the state prepares for another dangerous wildfire season, coverage is in the spotlight. California homeowners insurance policies are becoming a serious subject at the moment. With the approach of the wildfire season, a growing number of property owners are losing their coverage. That said, the issue of spiking premiums and reduced availability isn’t anything new. A recent New York Times report looked at the issue of California homeowners insurance policies. It examined the way the state has been trying to manage these challenges for a long time. It pointed…

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Impact of climate change to make insurance prohibitively expensive, says Munich Re

Impact of Climate Change - Damage House

The largest reinsurance company in the world has cautioned that most people won’t afford coverage soon. For several years, insurance companies have been warning that the impact of climate change will be an expensive one. Munich Re, the largest reinsurance company in the world, is now warning that global warming will make insurance too expensive for most people. The reinsurer has already blamed climate change for $24 billion in California wildfire losses. Munich Re chief climatologist, Ernst Rauch, explained in a recent Guardian report that it won’t be long before…

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Last November’s California wildfires caused $11.4 billion in insured damage

California Wildfires - Damage from Fire

Residents of the state have filed many thousands of insurance claims from the Camp Fire. Last year’s record-breaking California wildfires have now generated $11.4 billion in insurance claims. This has made the fires in that month, which ripped their way through Butte County and Southern California, some of the most expensive the state has ever experienced. The Camp Fire killed 86 people and essentially burned the town of Paradise right off the map. Three quarters of the losses from California wildfires in November 2018 were the result of the Camp…

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Allstate wildfire losses from November in California reached $685 million

Allstate Wildfire Losses - Fire in forest

The insurance company has announced its November 2018 catastrophe loss estimate including fires. Allstate wildfire losses were recently announced for the month of November 2018. The insurance company estimated its catastrophe losses to be $685 million, at 679 million pre-tax, or $541 million after tax. The Allstate catastrophe losses included another $6 million in unfavorable reserve reestimtates. Initially, the Allstate wildfire losses were estimated to have been $202 million pre-tax, or $160 million after-tax for the month of October 2018. That said, the ongoing fires brought the October and November…

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Bankrupt California insurance company may face state takeover

Bankrupt California insurance company

Regulators move to take over an insurer unable to pay its wildfire claims following massive destruction. A California insurance company bankrupted by the Camp Fire and other wildfires may be taken over by the state. Regulators have made their first moves toward a takeover after wildfires raged through the state, destroying over 13,000 homes. Merced Property & Casualty Company was unable to keep up with the cost of its policyholder claims. The California insurance company was pushed into insolvency by the wildfire sparked on November 8, 2018. That same fire…

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Renters and Homeowners insurance coverage helps evacuated residents

Homeowners insurance coverage - Evacuation Route - Sign

Regardless of whether or not the California wildfires have caused damage, policies are still helpful. People affected by emergency evacuation orders may benefit from their homeowners insurance coverage regardless of whether their homes are damaged. Home and renters insurance policies cover more than just damage caused by wildfires in the area. “With sometimes only minutes to evacuate, residents often escape with only the clothes on their backs,” said California Insurance Commissioner Dave Jones. Hundreds of thousands of people in California have been affected by evacuation orders as a result of…

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California Legislature enacts homeowners insurance reforms regarding wildfires

california wildfire insurance - Homeowners insurance reforms

Victims of the fires that destroyed thousands of homes in 2017 will not benefit from the changes. The California Legislature has approved homeowners insurance reforms designed to boost consumer protections. This is particularly important as Californians battle with wildfire risks for yet another year. Devastating wildfires have become the new normal throughout the second half of every year. Wildfires are occurring statewide and the Legislature decided it was time to come to terms with these new trends. This was reflected in the new homeowners insurance reforms that have received approval.…

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