Close Menu
Technology Mag

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    TikTok’s ‘ban’ problem could end soon with a new app and a sale

    July 6, 2025

    How to watch Summer Games Done Quick 2025

    July 6, 2025

    The Verge’s summer “in” and “out” list

    July 6, 2025
    Facebook X (Twitter) Instagram
    Subscribe
    Technology Mag
    Facebook X (Twitter) Instagram YouTube
    • Home
    • News
    • Business
    • Games
    • Gear
    • Reviews
    • Science
    • Security
    • Trending
    • Press Release
    Technology Mag
    Home » The Los Angeles Fires Will Put California’s New Insurance Rules to the Test
    Science

    The Los Angeles Fires Will Put California’s New Insurance Rules to the Test

    News RoomBy News RoomJanuary 13, 20253 Mins Read
    Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Email

    Lloyd and his wife later bought another home in Hidden Valley Lake, a town that has taken ambitious steps to reduce flammable vegetation, but their insurance premium is still more than $4,500 a year, more than triple what it was on their last home in Kansas. Lloyd is worried that his insurance company will hike his price further under the new rules.

    Other states across the West such as Colorado and Oregon are also seeing insurance coverage gaps emerge after big wildfires, though their problems are less acute than those in the Golden State. In Colorado, for instance, officials just recently established a state fire insurance backstop like California’s FAIR Plan, since it’s only in the past few years that customers there have been dropped en masse. California’s grand bargain with the insurance industry provides a blueprint for those other states: If you want to address coverage gaps, you need to give insurers broader authority to set prices.

    Firefighters battle the Eaton Fire near the Altadena area of Los Angeles County, California. The fire exploded in strength earlier this week amid a fierce Santa Ana windstorm.

    Photograph: JOSH EDELSON/Getty Images

    Even this might not be enough. The past few years have seen a reprieve from major wildfires like the ones that struck in 2017 and 2018, but this week’s blazes in the Los Angeles area could cause billions of dollars of damage, on par with an event like the Camp Fire.

    Joel Laucher, a former regulator and fire insurance expert at the consumer advocacy organization United Policyholders, said that the damage from the Los Angeles blazes could lead to further price hikes and more availability gaps.

    “These are going to be major losses, certainly,” he told Grist. “Certain areas are definitely going to have new challenges, to the degree that insurers are going to be able to charge to the rate they believe those areas deserve to pay.” Laucher said that insurance companies may not decline to renew as many policies as they might have under previous state rules, but they could still avoid selling policies in some of the affected areas.

    Frazier, of the insurance trade group, voiced similar concerns. He said that another round of monster blazes on the scale of 2017 and 2018 could drive the insurance industry away from the state once again, despite the commissioners’ reforms.

    “If we were to have a couple more unprecedented years, all bets are off,” he told Grist.

    Share. Facebook Twitter Pinterest LinkedIn WhatsApp Reddit Email
    Previous ArticleThe Best Automated Espresso, Latte, and Cappuccino Makers
    Next Article AI Financial Advisers Target Young People Living Paycheck to Paycheck

    Related Posts

    How to Travel to the Most Remote Office on Earth

    July 6, 2025

    With RFK Jr. in Charge, Insurers Aren’t Saying If They’ll Cover Vaccines for Kids If Government Stops Recommending Them

    July 5, 2025

    Feeling Hoarse? You Might Have the New ‘Stratus’ Covid Variant

    July 4, 2025

    A European Startup’s Spacecraft Made It to Orbit. Now It’s Lost at Sea

    July 3, 2025

    The Next Acetaminophen Tablet You Take Could Be Made From PET

    July 2, 2025

    How Much Energy Does AI Use? The People Who Know Aren’t Saying

    July 2, 2025
    Our Picks

    How to watch Summer Games Done Quick 2025

    July 6, 2025

    The Verge’s summer “in” and “out” list

    July 6, 2025

    GM’s Cruise Cars Are Back on the Road in Three US States—But Not for Ride-Hailing

    July 6, 2025

    Lenovo Chromebook Plus 14 review: the new king of Chromebooks

    July 6, 2025
    • Facebook
    • Twitter
    • Pinterest
    • Instagram
    • YouTube
    • Vimeo
    Don't Miss
    Gear

    How to Use Voice Typing on Your Phone

    By News RoomJuly 6, 2025

    Tap the small “i” icon on the left of the toolbar if you need more…

    How to Travel to the Most Remote Office on Earth

    July 6, 2025

    With RFK Jr. in Charge, Insurers Aren’t Saying If They’ll Cover Vaccines for Kids If Government Stops Recommending Them

    July 5, 2025

    I’m an Outdoor Writer. I’m Shopping These 55 Deals From REI’s 4th of July Sale

    July 5, 2025
    Facebook X (Twitter) Instagram Pinterest
    • Privacy Policy
    • Terms of use
    • Advertise
    • Contact
    © 2025 Technology Mag. All Rights Reserved.

    Type above and press Enter to search. Press Esc to cancel.