On Point | Podcast The broken home insurance market -- in California and beyond
Jan 24, 2025
Carmen Balber, the Executive Director of Consumer Watchdog, and Dave Jones, former California Insurance Commissioner and Climate Risk Initiative director at UC Berkeley, delve into California's home insurance crisis. They discuss shocking trends, such as homeowners being dropped before catastrophic fires, and the challenges posed by climate change. The conversation highlights rising costs and coverage denials, emphasizing the urgent need for collaborative solutions to create a more sustainable insurance market that better protects consumers in disaster-prone areas.
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Homeowner's Loss and Positive Insurance Experience
- Michael Rothschild lost his home in the Los Angeles wildfires, a costly natural disaster.
- Despite the trauma, he had a positive experience with his private insurance carrier.
Widespread Insurance Non-Renewal
- Many Los Angeles residents, unlike Michael, were dropped by their insurance companies before the fires.
- This left them vulnerable and uninsured during the disaster.
National Insurance Crisis
- The insurance market's fragility is a national issue, impacting various states, not just California.
- Lawmakers acknowledge this as the most challenging home insurance market they have ever faced.