California's Insurance Crisis

California's insurance system is facing significant challenges as major insurers drop coverage for homeowners in high-risk areas, particularly following devastating wildfires. Residents in these zones are left to seek alternative options, such as the state's FAIR plan, which provides insurance but often at steep prices; some homeowners reported increases of up to 400% in their insurance costs. This situation puts pressure on consumers who have to either pay exorbitant rates, remain uninsured, or relocate entirely. With estimated insured losses reaching $30 billion, the viability of the state's ability to cover claims is under scrutiny, especially as concerns about insolvency grow.