State Farm, California’s largest home insurance company, shook residents last year by announcing it would not renew 30,000 policies. That included about 8,100 homeowners in communities ravaged by the current wildfires, state officials said.
But facing pressure from the wildfires that caused catastrophic damage, the insurer said Wednesday it would offer affected homeowners the opportunity to renew policies that were in place when the fires broke out last week. The move comes after California’s insurance commissioner imposed a one-year moratorium preventing insurance companies from canceling their policies or issuing non-renewal notices to homeowners living near fire areas. caused by the wind were triggered last week.
The cost and availability of home insurance after wildfires is a major concern for residents in California and Western states hit by larger, more destructive wildfires.
In Los Angeles, tens of thousands of people began filing claims to get payments for their homes, cars and businesses. These total losses could reach $35 billion or more, according to an analysis by CoreLogic.
About 12,000 structures were damaged or destroyed in the fires that ravaged the areas surrounding the Palisades and Eaton fires. State Farm said it has received 7,400 home and auto claims – a number that is expected to continue to grow.
The staggering cost of the fires could add new strain to California’s already struggling insurance sector. As people wonder whether to rebuild or move, many worry about whether their insurance rates will skyrocket or whether they risk losing their coverage altogether.
