A couple whose home burned down in the Palisades Fire had just lost their insurance coverage for the property, highlighting a situation that could become more common.
What's happening?
"State Farm, California's largest homeowner insurer, announced plans last year to cancel approximately 30,000 policies for homes, rental units, and other properties in the state," Newsweek reported. That included 1,626 contracts in Pacific Palisades and over 2,000 elsewhere in the Los Angeles area.
On Jan. 7, the Palisades Fire ignited, killing at least 12 people and destroying almost 7,000 residential, commercial, and other structures.
State Farm, a week later, said it would renew the policies of those affected if they hadn't already lost coverage. This couple, who did not want to be named, was not among that group and had turned to a state-run insurance market as a last resort.
They used to pay $3,000 annually for homeowners insurance. Their policy under the less-inclusive FAIR Plan was $12,000. Newsweek reported the couple will get $2 million to $3 million for the $5 million home.
Why is this important?
The rapidly rising global temperature is driving an increase in extreme weather events — including wildfires — that are also more severe. Insurance companies are not renewing coverage, raising rates, and stopping business in disaster-prone areas, leaving homeowners high and dry.
It's not just State Farm or California, either. But this couple's experience was especially painful, as an agent called them to tell them they would be taken care of — not realizing that their policy had been canceled in 2024.
"I'm pretty sure that we were literally a month before the people that they just forgave; we were the last ones to get their policies canceled," one of the homeowners told Newsweek. "It's just an injury on top of an injury.
"We paid more than 25 years in premiums on this house and then we were dumped."
|
What would you do if natural disasters were threatening your home? Click your choice to see results and speak your mind. |
Move somewhere else 🌎 What's being done about the insurance crisis?
The insurance industry is clearly in a bad spot. Increasingly frequent and severe extreme weather — which is caused by human-produced pollution from the burning of dirty fuels, including coal and gas — paired with expanding development means more people and properties in harm's way. The answer, of course, should not include abandoning homeowners.
TCD Picks » Quince Spotlight
💡These best-sellers from Quince deliver affordable, sustainable luxury for all
One way to meet the issue head-on is by lowering the global temperature through the use of clean, renewable energy such as solar and wind power. This green transition can help rebalance the planet, which would not only save lives and properties but improve people's health, conserve remaining biodiversity, and put money back in pockets.
You can start simply by washing your clothes in cold water, swapping out your cleaning products, and eating plant-based meals. Bigger steps include using public transportation, installing a heat pump, and shopping secondhand.
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
