Today, Explained California is becoming uninsurable
Jun 7, 2023
Ben Christopher, a CalMatters reporter, covers California's housing and its insurance crisis, while Umair Irfan, a Vox science reporter, dives into climate change's effects on communities. They discuss how major insurers are pulling out of California due to the severe risks from wildfires. The conversation highlights the urgent need for innovative solutions in the face of climate threats, the challenges homeowners face without coverage, and the broader implications for housing dynamics in increasingly hazardous areas.
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Insurance Halt in CA
- State Farm and Allstate won't insure new homes in California.
- This shocked many homeowners, who didn't receive much warning.
Reasons for Insurance Halt
- State Farm stopped new policies due to increased construction costs, growing catastrophe exposure, and a challenging reinsurance market.
- These factors relate to increased wildfire risk.
Wildfire Risk
- Construction costs make rebuilding expensive, especially after large fires.
- Wildfires are the primary driver of increasing risk, surpassing earthquakes.