Exploring the surge in demand for insurance in California amid increasing natural disasters and the financial preparedness questions arising. The chapter also delves into the impact of regulations on rate increases, challenges faced by insurance companies, and the cessation of offering new policies in high-risk wildfire areas.
As climate risks grow, some private home insurance providers are retreating from US regions most vulnerable to catastrophe. And homeowners who can’t get coverage through the private market are increasingly turning to insurance “plans of last resort,” created by states.
The amount of liability taken on by these types of insurance plans is staggering, and growing: by some estimates, they’re holding more than $1 trillion of risk.
On today’s Big Take podcast, climate reporter Leslie Kaufman and California reporter Nadia Lopez share an investigation into how skyrocketing enrollment in state-created plans could create the conditions for a financial crisis.
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