Insurance companies have stopped renewing policies for residents in areas prone to wildfires in California, citing rising fire risks as the reason. The decision has left many homeowners concerned about their financial security.
According to Rick Dinger, president of Crescenta Valley Insurance, the company made the choice due to increasing costs associated with firefighting efforts and the high risk of devastating fires in the state. David Jones, former California insurance commissioner, disagrees, stating that insurance companies are abandoning their customers during a time of need.
The controversy has sparked debate among experts and regulators about the role of insurance companies in mitigating wildfire risks. While some argue that insurers have a responsibility to cover residents in high-risk areas, others claim that they should be incentivized to encourage more sustainable land use practices.
As wildfires continue to ravage California’s landscape, the decision by insurance companies to drop policies raises questions about the state’s ability to prepare for and respond to natural disasters.
Source: https://www.yahoo.com/news/why-did-insurance-companies-drop-024805353.html