California wildfire survivorsgot a rude surprise that could hit more Americans

"Since the 1990s, American homes have been systematically underinsured in the event that they are completely destroyed. Study after study shows that, counter to the public's understanding, many home insurance policies are not required to cover total replacement of homes. The trend, though decades old, has been somewhat hidden. But climate-driven events that cause massive destruction, especially wildfires, are revealing just how pervasive and severe the problem has become."

"Global warming is creating a hotter and drier world. Combined with more construction in areas with lots of flammable vegetation the wildland-urban interface it's led to a rise in damaging fires in the US. Researchers at the University of Colorado Boulder in 2023 found that wildfires in Western states destroyed 243% more buildings in the decade between 2010 and 2020 than in the previous decade. The fires in LA claimed in excess of 15,000 structures."

"United Policyholders, an advocacy group, was formed in part to help homeowners not being adequately covered for rebuilding costs after the Oakland firestorm of 1991. The group began sending surveys to wildfire survivors in 2007, and since then, an average of two-thirds of respondents said they had found themselves underinsured, by an average amount of $200,000 or more. Studies have confirmed what the surveys indicated."

Since the 1990s, many American homes have been systematically underinsured for total destruction. Many home insurance policies are not required to cover full replacement costs, leaving homeowners with significant rebuilding shortfalls. Climate change is creating hotter, drier conditions and, combined with more construction in the wildland-urban interface, has increased damaging wildfires. Wildfires in Western states destroyed 243% more buildings between 2010 and 2020 than the previous decade, and Los Angeles fires destroyed more than 15,000 structures. Advocacy surveys find about two-thirds of wildfire survivors underinsured by an average of $200,000 or more. Studies and disaster losses continue to reveal the scope of the problem.

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