09/01/2025
Besides the untold destruction to property and hundreds of thousands of lives, these fires will devastate the California homeowner's insurance market as it's likely they could bankrupt the California FAIR plan and further drive insurers from the state.
The Legislature and the insurance commissioner of California have dawdled for years on coming up with a viable backstop for this kind of tragedy. They have known that the FAIR plan is in extremely precarious position. It has nowhere near enough reserves or reinsurance to cover the billions and billions in damage caused in expensive enclaves like Pacific Palisades and Malibu.