A devastating wildfire in Altadena, California, has left a couple without insurance coverage for their destroyed home. Jeff and Jennifer Cohen are among over 100,000 Los Angeles homeowners whose insurance had been dropped before the latest wildfires.
The couple received a notice from their insurance company that their policy would not be renewed due to a fire hazard. The decision is part of a larger trend, as insurers face tens of billions of dollars in losses from natural disasters nationwide.
Analysts predict that insurers could pay out over $20 billion just from this latest wildfire disaster alone. To better prepare for such events, some companies are using computer-generated models to assess risk and potential losses.
One company, Verisk, offers models covering wildfires, tornadoes, and hurricanes. The models use factors like climate conditions, infrastructure, and local fire stations to simulate potential losses over the next year. California regulators have lifted a ban on using these models to set rates, but the state’s new policy may not be enough to cover expected claims for wildfire damage.
The Cohens eventually found coverage through a government-sponsored pool at a much higher cost than their previous insurance. However, they now live in limbo as they consider whether to rebuild their home of 23 years in California.
Source: https://www.cbsnews.com/news/altadena-couple-whose-home-burnt-down-among-thousands-dropped-by-insurance-before-wildfires