California has had a state-sponsored insurance company of last resort since the 1960s. The Fair Plan is funded by putting fees on private insurers that are doing business in California. State Farm would want to pay her back its overall exposure in California, not just in high risk areas.
Two insurance giants will stop issuing new policies for California homes. CalMatters reporter Ben Christopher and Vox’s Umair Irfan say insurers have determined what homeowners refuse to accept: Climate change has made some parts of the country too risky to live in.
This episode was produced by Avishay Artsy, edited by Matt Collette, fact-checked by Laura Bullard, engineered by Michael Raphael, and hosted by Noel King.
Transcript at vox.com/todayexplained
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