California Wildfires Threaten Insurers Already Teetering From Climate Shocks

"The California insurance market has been balanced on a knife edge... As homeowners begin filing claims, insurers that cover large numbers of dwellings in Southern California could see a drain on their financial reserves, forcing them to drop customers, be punished by investors or exit the state."

"If insurers keep leaving California, it would drive up insurance rates that are already elevated and make coverage harder to find..."

"In the areas hit by this week's fires, many homes are insured through a state-backed system called the California FAIR Plan, designed to be a last resort for homeowners who cannot find insurance coverage on the private market. The plans are more expensive and provide less coverage than commercial versions."

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