The inferno in the Los Angeles area has already claimed 10 lives and destroyed or damaged about 10,000 buildings. The insurance problem now makes the situation even worse.
Horrified US President Joe Biden said they were the most destructive fires in California’s history. California Insurance Commissioner Ricardo Lara called for swift financial support for those affected: “My biggest concern now is that wildfire survivors receive theirs as quickly as possible. receive the insurance benefits to which he is entitled.”
Providers have withdrawn protection!
As US media reports, some major providers already had limited insurance coverage last spring in the area now affected by the high risk of forest fires and have completely withdrawn it for certain new buildings. This means that some homeowners may be left without adequate insurance coverage.
Although the US federal government has promised financial assistance, these measures do not solve the fundamental problem. The central question remains: who will bear the costs of the growing damage caused by extreme weather events in the future: the private sector, the government or ultimately those affected themselves?
Increasing risks due to floods, storms and fires
Lara emphasized that current challenges require modernization of the insurance system and targeted disaster prevention measures. He also called on insurers to maintain coverage in high-risk areas – especially if they use catastrophe-related models to calculate premiums.
The construction of many homes in the US is a major factor: they are often made of wood, which not only means they burn down quickly but can also fuel fires. This structural vulnerability makes comprehensive insurance coverage even more important. Meanwhile, the climate crisis is exacerbating the challenges facing insurance companies across the country. Increasing risks from floods, storms and fires are making it increasingly difficult for the industry to provide viable policies and raise fundamental questions about protection against natural disasters.
Source: Krone
I am Wallace Jones, an experienced journalist. I specialize in writing for the world section of Today Times Live. With over a decade of experience, I have developed an eye for detail when it comes to reporting on local and global stories. My passion lies in uncovering the truth through my investigative skills and creating thought-provoking content that resonates with readers worldwide.
