California’s Insurance Crisis: Travelers Insurance, a major insurer has raised rates instead of exiting due to wildfire risks, leaving many without coverage as insurers withdraw.
California’s FAIR Plan Struggles Financially as Residents Face Rising Insurance Costs and Wildfire Risks
People rely more on the FAIR Plan, the state’s last-resort insurer. But it’s struggling financially because it can’t raise premiums enough to cover costs. This puts policyholders at risk of high assessments during catastrophes, according to the report of Just The News.
High insurance costs push workers out and could hurt the state’s credit rating. This could harm California’s economy and long-term finances. Policymakers need to make changes to protect residents and the economy.
Rain is fueling future fires despite efforts to fight them. Governor Newsom’s budget focuses more on firefighting than preventing fires. California needs to prioritize preventing wildfires to avoid future devastation.
(photo: Los Angeles Times)
Rising Premiums and Limited Insurance Options Pose Economic Threat, Urgent Policy Action Needed
Furthermore, as California faces wildfires, limited insurance options, and higher premiums burden residents, reliance on the FAIR Plan adds financial risk, while workers leaving due to costly insurance jeopardize the state’s economy and credit rating. Swift action from policymakers is needed to address these issues and prioritize wildfire prevention to protect communities and the environment.
