And when the state of California goes bankrupt, the Federal government will likely step in to bail them out.
"California residents would be forced to pay billions of dollars to bail out the state’s insurer of last resort if a major wildfire hits, the insurer’s president warned last week in a startling admission that speaks to the growing cost of climate change.
The comments are the latest and perhaps starkest indication of how intensified disasters due to global warming are eroding the U.S. property insurance industry and shifting rebuilding costs from insurers to the general public.
In California and hurricane-prone Gulf Coast states, property insurers are retreating from risky areas, forcing people to buy coverage from state-chartered insurers that can impose surcharges on insurance policies statewide to pay claims.
The California FAIR Plan has been overwhelmed by a surge of new policyholders and would need to impose charges on millions of insurance policies of varying types throughout the state after a major wildfire."
"California residents would be forced to pay billions of dollars to bail out the state’s insurer of last resort if a major wildfire hits, the insurer’s president warned last week in a startling admission that speaks to the growing cost of climate change.
The comments are the latest and perhaps starkest indication of how intensified disasters due to global warming are eroding the U.S. property insurance industry and shifting rebuilding costs from insurers to the general public.
In California and hurricane-prone Gulf Coast states, property insurers are retreating from risky areas, forcing people to buy coverage from state-chartered insurers that can impose surcharges on insurance policies statewide to pay claims.
The California FAIR Plan has been overwhelmed by a surge of new policyholders and would need to impose charges on millions of insurance policies of varying types throughout the state after a major wildfire."