Southern California wildfires, threatening over 17,000 acres, highlight insurance crisis as major insurers withdraw.

Wildfires in Southern California, notably the Palisades Fire, have burned over 17,000 acres and killed at least five people. The fires threaten California's insurance system, as major insurers have withdrawn, leaving the state's FAIR Plan as the insurer of last resort for over one million homeowners. With FAIR facing potential insolvency due to high exposure and limited funds, homeowners may face steep assessment fees or uncovered losses. The crisis highlights the need for forest management to mitigate future risks.

January 08, 2025
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