The Cost of the LA Fires: Will Insurance Cover the Devastation? | Amanpour and Company

[@toastedkiwi4358]

speaking as an insurance expert, Leslie's take on the consequences of the LA fires has to be the most balanced & well-informed take i've encountered on YT. props to Hari, Amanpour & PBS for having her on the show

[@micro-jx8xb]

Sorry but clearly pro corporate insurance views….

[@williemo44]

Insurance is corporate. So your comment is redundant. Basically translates to pro-corporate corporate. Can you elaborate?

[@AstroGremlinAmerican]

Excellent questions and answers. In California, some fire risk is being put onto electric utilities and the rate payers. If we're all in this together, we should have the right to insist on risk reduction, brush clearing, and even cutting swaths through the precious forests that environmentalists love but aren't responsible for when they are naughty.

[@AstroGremlinAmerican]

@@micro-jx8xb Leslie actually said she wasn't keen on insurance companies.

[@livelyarts49]

I just need to know why our MULTI-TRILLION😧 DOLLAR military can't help with their notoriously quick response aerial bombardments , for OUR HOMELAND'S "fire-fight", with crucial equipment in manpower?! Keep in mind that their highly trained pilots are exquisitely able to do night missions IN PRETTY MUCH ANY SITUATION and weather!!! 🤔 🤨 So where are they when the citizens and taxpayers of our country are in grave need of crucial equipment and manpower??!! 🤨☹️🥴😠🧐😠😡🤬😓😢😰🔥 Comments?

[@Ms.Merotica]

Pacific Palisades has a long history of landslides and fires. They have been trying to get federal, state, and county assistance to stop landslides for years. Sometimes the landslides cause power poles to fall and cause a fire. People remove greenery to save water or protect from fire, but then rains come and wash the soil away. It's bothersome to see all the pools full of water in the Palisades backyards with the house burnt to the ground, yet they complain when their municipal well is dry. Ms. Kaufman couldn't bring herself to say, "NO, people shouldn't rebuild there," and "NO, taxpayers should not help rebuild in landslide/fire prone areas."

[@John-vz5un]

Toral redevelopment with large smart apt towers and spacious parkland about.

[@harrynamkoong3361]

But where do you draw the line? Only for fires? What about floods/hurricanes? That's much wider problem AND because the FEMA flood insurance, every US taxpayer is on the hook for floods/hurricanes damages whereas CA fire will only impact CA taxpayers/insurance rate payers not someone in NY or TX.

[@InvisibleWarrior279]

Right? Honestly this is just sheer hubris and idiocy to keep rebuilding in a place where nature clearly does not want houses .. yes compensate people this time to BUILD SOMEWHERE ELSE .. if you choose to build here again, you are uninsurable and on your own.

[@rockerjim8045]

if not there what new plot of land do you suggest?

[@dwaynejones1555]

@@rockerjim8045She said the Great Lakes. I assume states that are connected.

[@mrloanagentman]

If tax dollars go to rebuild , the tax payers should have a voice in what gets re built no mega mansions .

[@benjamindover4337]

What difference does it make to you? You just feel better if somebody lives in a tar paper shack?

[@EmEmEm579]

@@benjamindover4337no . Tax payers cannot even afford their own mortgage and property taxes. Help rebuild mega mansions are crazy ideas

[@PaulyDeezNuts77]

Are you new to California?

[@benjamindover4337]

@@EmEmEm579 the government exists to take from the poor and give the rich, that's how capitalism works

[@EmEmEm579]

@@PaulyDeezNuts77decades

[@mrloanagentman]

Want to live in a high risk area ? you will have to bear the cost.

[@diy-glamour]

A year ago when my house and car insurance went up dramatically, I called and asked why. Insurance agent told me it was because of natural disasters in other states. What? Wtf kind of crap is that? I choose to live in a low risk area on purpose so I wouldn’t have the high cost. This makes me so angry to think it will go up yet again because of fires 1500 miles away!

[@erics8302]

No......if you keep donating to the Dems they will shove cost onto the muppets who live in the flats. The million dollar lawyers in Pacific Palisades are getting bailed out and they will be fine.

[@williemo44]

Insurance companies are bookies. If everyone puts money on fighter A, that bet pays less, while the opposite bet pays more. In other words if I engage an insurance company affiliated with multiple states, all of these states come into play with my engagement of said insurance. The common denominator in these insurance companies is they all kick up to re-insurance for these type of catastrophic events. Re-insurance increases premiums, said increase will impact everyone.

[@scoobydoo3928]

​@@williemo44I think of them more like casinoes. They take your money, and when something happens, they try not to pay out. They will give you a settlement, that will only cover 50 to 60% of the true cost to repair. Then, if the risk goes up, they cancel you. We in Southern California just got a pre-existing condition.

[@goyam2981]

Agreed. But then fattest states probably should bear higher healthcare costs to make it fair.

[@GrimJerr]

It becomes obvious the Insurance Industry isn't about protecting your investment, it's about profitting on a promise they don't hope to keep.

[@lynnd6677]

Talk is cheap. Would insure my house for free?

[@jackandlill]

That's certainly the way it always seems to me.

[@PaulyDeezNuts77]

Insurance is a scam. Sadly thousands of people are about to learn the hard way that these companies don't have the assets or reinsurance required to cover 100 billion$ worth of property damage exposure. Right now people are in the "honeymoon" phase where the insurance companies pair them with a sympathetic shoulder to cry on while they promise them the world and keep them quiet and off the TV cameras. Softening you up when you are most vulnerable to build a fake sense of friendship and "cooperation". Then when the media attention dies down in 90 days they send in the REAL claims adjuster that gives you the bad news. "Oh you lost your $500,000 house? Here's a check for $75,000 take it or leave it. Go ahead sue us we'll delay your payment for another year and drag this all the way into deposition. Deny, Defend, Depose. Insurance fraud 101. They will even dip into the adjusters reports they originally sent out and change their wording outright committing fraud to avoid paying you. You have to sue them to reveal this. Happens every time. Get a lawyer ASAP and make sure they know it. They are NOT your friend in this.

[@mchelseama]

They're money-making businesses. This industry made sense once upon a time, but not anymore. Now what?

[@lucasjans]

Did you watch the same video I did? Leslie explains the dynamics pretty clearly, insurance carriers have left because the business was unprofitable. Businesses can't lose money.

[@AndreBelleque]

Wow, real conversation with civilized human beings... thank you.

[@GB-to2do]

Pacific Palisades was a bomb waiting to explode. I visited there (Getty Villa) in December and was astonished by the amount of vegetation. The people who lived there chose to ignore the risk. Moral hazard is out of control in the U.S. At some point, individuals must take responsibility for their decisions. Ultimately this means a LOT less consumption and a LOT more savings. This will be a bitter pill. Price inflation from out-of-control money printing will soon be intolerable.

[@davidharris7235]

Simple solution.....people can no longer live right on the beach or in a high risk fire district

[@goyam2981]

Agreed. Do it at your own risk.

[@admtahoe]

Same should be said for Hurricane and Tornado zones

[@mchelseama]

Where do you stop?? Wonder if multi-unit residences in lowest risk areas will be the future. Lowest risk for fire. Lowest risk for flood. Lowest risk for tornados. Lowest risk for convective storms. Who will build these structures that can endure extreme nature events? Who will own them?? How many more homeless people will we have?

[@bmoshareholderappleshareho855]

I remember I was listening to a Tony Robbin’s program. He said when bad things happen to you, don’t ask yourself, “Why does this always happen to me?” Instead ask yourself, “How could this incident have been avoided?” When you ask better questions, you get better answers. So all those people who lost their homes should be asking themselves, “How could this disaster have been avoided?”

[@InvisibleWarrior279]

Or if they do, they are on their own or part of a separate private risk pool (high risk insurance, private fire department, etc.) .. no way the public should be expected to keep paying for rich people’s ill-conceived fantasies.

[@GrimJerr]

The truth may be that many of these homes will not be rebuilt.

[@wthomas5697]

Yeah they will. The land is too valuable.

[@stevenmoss2152]

​@@wthomas5697California is a💩hole😂

[@simonlee498]

Some people will be paying a mortgage for a pile of ashes .. i imagine alot of poorer people will just be bought out an try an start again .. cant exspect or assume everyone can afford to build .​@@wthomas5697

[@AKAAAK]

And you think they'll be able to afford the new insurance rates after they rebuild?? Maybe only the richest of them will, but many of the older people living there won't be affording it.

[@PaulyDeezNuts77]

Blackrock will be cutting them checks for the land

[@drf834]

So. Cal is already over built, All the decent buildable land is gone yet they still keep building. Sometimes you just have to admit the reality and and stop building in these areas so open to fire , landslide and earthquakes. I feel bad for all the people who won't be able to rebuild at todays prices. Some will lose everything. Such a shame.

[@bonniejosavland3227]

#Hurricanes 🌀 Florida 😮

[@egdm1235]

While what you say may be true, some of the areas that burned were first built up in the 1880's. It's not like this is new construction that was recently thrown up at obvious risk. The average age of homes in Altadena is 40 years.

[@bonniejosavland3227]

@egdm1235 okay, I’m concerned about the people rebuilding multiple times! How many times is too many? More than 1 unless their entire property is now in a river or ocean has taken it?! Lots of contingencies to consider! Also not believing in Climate change should be a concern too, no Matter the political party! It still boils down to money! Also not being able to build a $60 million house home bc the insurance will only go as high as $10 million! Otherwise it costs the rest of us in increased premiums! Decisions will be needed! Perhaps using Eminent Domain to the family that owns the wonderful company to wet down the areas on a pre-determined basis would help?! 🤷‍♀️

[@NathanAnderson-o3i]

@egdm1235 Is a 40 year old house supposed to be old? I don't consider a home built in 1984 to be old.

[@goyam2981]

Before there might not have been houses too close to the forests.

[@wthomas5697]

You can build a house that won't burn. It costs more, but it can be done.

[@belladonnatook8851]

Yes. It's called an oven.

[@EdDunkle]

It can cost a lot more. The Getty Villa survived but they have very deep pockets.

[@rockerjim8045]

@@EdDunklethey were also not in the direct line of the fires

[@har8397]

9:00 ... yeah, us here in Connecticut. We pay a lot to live here and avoid extremes that many people have flocked to. Why should we be billed more.

[@thomastereszkiewicz2241]

very intelligent conversation, thanks for sharing.

[@sthr2110]

I live in a state with no hurricanes, no earthquakes, no wildfires and rarely, even a tornado (to the point where I have never seen or experienced one)...just a hail storm every 5-6 years...and I have never filed a claim, either. Why...the f!ck...should I pay more for people who, for the most part, CHOOSE TO live in states that experience these catastrophic events??? I could live in one of those states, however, I like to think I'm intelligent enough not to.

[@desmo8755]

Why should a low-risk property owner pay for high-risk? Why should those without student loans pay for those with? For example. And a lot of it is corruption .. someone in power sees the people getting the welfare as helping their political prospects. Of course Adam Schiff wants people in Michigan to help out his Cali constituents. We’ve become a profoundly entitled and unfair society.

[@ryanwalters6184]

Hail storms are a huge cost.

[@gc4847]

Interesting you don’t say which state. Do you live in Bot Land?

[@quackslikeaduck]

@@gc4847Pennsylvania or Ohio would be good guesses.

[@edbouhl3100]

Don’t worry, your ‘unprecedented’ weather event is most certainly in the pipeline, good bet it’ll be this decade. Enjoy.

[@cherylrleigh1912]

The video highlights the increasing financial and logistical challenges posed by natural disasters, particularly wildfires in California, against the backdrop of climate change. Here are the key takeaways and responses: Key Points: 1. Rising Costs and Insurability: - The wildfires in Los Angeles are projected to be among the costliest in U.S. history. - Insurance companies are increasingly withdrawing from high-risk areas, forcing homeowners onto the state-backed California FAIR Plan. However, FAIR is under significant financial stress. 2. Impact on Homeowners and Taxpayers: - The financial burden will be distributed among private insurers, public funds, and individual taxpayers. - Middle-class homeowners, not just affluent communities, are heavily impacted, highlighting the broader socioeconomic consequences. 3. Systemic Challenges: - The FAIR Plan is nearing its financial capacity and may require assessments-essentially taxes on all policyholders-to cover liabilities. - Reinsurance costs and climate unpredictability are driving insurance premiums higher. 4. Climate-Driven Relocation: - Long-term, there is an ongoing need for policies encouraging relocation from high-risk areas to safer regions. However, political, financial, and personal attachment barriers complicate this. 5. Global and National Implications: - Some policymakers suggest nationalizing disaster risks, akin to the National Flood Insurance Program, though this has its own financial pitfalls. - Broader systemic reforms are needed to address climate adaptation and disaster response more effectively. Response to the Issues Raised: 1. Policy Recommendations: - Expand Risk Sharing: Broaden programs like the FAIR Plan into a national framework to spread risk equitably across states. - Promote Resilient Infrastructure: Incentivize fire-resistant construction, updated building codes, and vegetation management in wildfire-prone areas. - Relocation Assistance: Implement buyout programs in high-risk areas, learning from models like New Jersey’s Blue Acres Program. 2. Insurance Market Stability: - Transparent Risk Communication: Educate homeowners about true risks and encourage diversified risk pools to maintain private insurance markets. - Encourage Innovation: Explore parametric insurance models that pay out based on disaster metrics rather than loss assessments. 3. Long-term Climate Action: - Invest in mitigation strategies like carbon reduction and renewable energy to address the root causes of climate change. - Support research into regional climate resilience to better predict and manage risks.

[@scoobydoo3928]

These are all good suggestions. Insurance companies need some regulations. They are making way too much money, when they can afford to pull out of a State. I understand avoiding some really risky areas, where people have rebuilt 2 or more times. That is insane. They could save a lot of money if they just cut back on advertising. Have you seen all the Mayhem, Good hands, Jake from State Farm, Emu commercials? And primetime spots too. Just watch how many have Superbowl ads. Insurance Companies are making money hand over fist. I'm afraid all of us in California just got a pre-existing condition.

[@gc4847]

Amazing breakdown of the segment 👏🏻 applause 👏🏻

[@cherylrleigh1912]

@ ChatGPT

[@robertm4777]

And years of property taxes on destroyed property. Yes, even if the structures are a total loss.

[@margaretellis4164]

Great questions, Hari, and thoughtful, knowledgeable answers from Leslie. Lots of implications for my country, Canada.

[@khonzi4266]

I think that Californians should just say, screw you permits. Just rebuild. How are they going to enforce it?

[@contrarian604]

You're not very bright. The city has the right to make you take it down. Or fine you $1000 per day and eventually own your home. They can levy a per-day penalty on you, until you cry "uncle".

[@jarhead3038]

They still owe the mortgage on their destroyed homes.

[@Elena-rt9yu]

That’s insane. How will reg folk pay off a mortgage , rent and try to replace everything?

[@mrloanagentman]

Rebuild responsibly . Smaller , energy efficient homes with more space between them. Traffic circles , and local grocery and convenience stores . Public transport desirable

[@rRobertSmith]

Fire proof duplexes and 6-10 unit high end apt. complexes, NOT single family home sprawl.

[@newvideoplaylist]

Important discussion. Thanks for posting

[@giotto263]

$200 billion? Those people who lost their homes are not getting paid. It would be cheaper for the insurance companies to go bankrupt.

[@ryanyoung9202]

FRFR 🫣😬😢

[@dainasworldnumbers88]

Excellent commentary. I live in California it is so bad financially already here I can’t see myself staying much longer.

[@EdDunkle]

Try Mississippi. I hear it's wonderful.

[@geofflepper3207]

One article that covered similar issues after Hurricane Sandy explained that after a major disaster such as this the attitude of FEMA is that it makes no sense to rebuild in a disaster prone area so home owners should move and rebuild somewhere else and the original housing area should be left empty of structures but the attitude of municipalities is that home owners should rebuild in the same places their houses were located before because if everyone who lost a home moves away and the area is turned into parkland the municipality loses a significant part of its tax base. An area of expensive homes in particular produces a lot of tax revenue for a municipality but if it is turned into parkland or a naturalized area then it produces no tax revenue and will still cost some money for the city to maintain. And wealthy people who move to less disaster prone areas in other municipalities no longer pay any taxes to the original municipality. I'm not suggesting that it makes sense to rebuild in the same disaster prone areas. I'm just suggesting that municipalities that have been hit by disaster may be biased in favor of encouraging home owners to rebuild in the same disaster prone areas to keep them in the municipality and paying taxes.

[@jeremy2875]

Interesting idea to expand risk categories under the flood insurance program. The national flood insurance program mostly benefits Republican states in the South, and as Leslie said it is usually in debt because Republican politicians refuse to allow premiums to reflect actual risk (which means the rest of the country pays the difference).

[@jamesgleeson6538]

When insurance is based on profit motive. Shareholders win

[@JimBarcelona]

Tax the millionaires & billionaires in the state.

[@heregoeseverythiing]

Excellent conversation. Lots of food for thought. Thank you.

[@gc4847]

Amazing breakdown of the segment!

[@cherylrleigh1912]

An insurance assessment is a financial charge imposed by an insurance provider, group, or government-backed program to cover unexpected or extraordinary losses. It often occurs when the insurance entity does not have sufficient reserves or funds to pay for claims following a catastrophic event, such as a wildfire, hurricane, or earthquake.

[@rayzimmerman2242]

Early 1990's, recurrent floods on the Mississippi River. Homes in the flood plain were flooded and salvaged at least twice. FEMA told the homeowners FEMA will not rebuild their homes unless the people agreed to move 20 miles away from the river. Too bad everybody wants to live by the water, whether Pacific Ocean, Florida Coast or the Mississippi River. As Ms Kaufman explained, the job of property insurance companies is to appraise home owners of the risk of living there... too bad that will now amount to astronomic property insurance prices.

[@DutchInman]

According to what we understand, is our families here in Maui Lahaina, Hawaii, fema did nothing for the family there, and I think they receive $700. Let’s see what they do for the rich people in California with the fires affecting them.. two years later, my family is still suffering in Maui. The way it looks were all on our own and FEMA is not gonna be a part of helping us get back in the feet so far nothing is happening..😢😢

[@Karen-i8w1n]

Really enjoyed it! Looking forward to more videos! 😚🍒

[@TobinMiller-e4l]

I think I heard Ms. Kaufman say that California residents voted to prohibit insurers from using climate change risks to price their insurance. If true, the foolishness of that choice will become more apparent as time goes on.

[@DavidOrr-b1x]

But climate change does not exist

[@rockerjim8045]

that’s just politicians kicking the can down the road to gain office.

[@smb-zf9bd]

Thank you, Ms Kaufman! Most Americans are unaware of assessments or even risk. Our beach condo was assessed after a hurricane. It's the penalty for low premiums. Slightly higher rates would have been sufficient. I hope the issue of geographic safety is addressed. Building in a forest in a desert climate, in a flood plain or on a sea coast should be viewed as exception. My cousin was in FEMA in numerous Iowa floods where taxpayers rebuilt up to three houses /family. They simply rebuilt in the same area. Their (FEMA"s) protest was ignored each time. Hope everyone is able to build back and start over.

[@lauraturner7048]

Most of the Middle Class and Working Class won’t be able to recover so easily. A lot were dropped from their Fire Insurance Policies last year due to higher risk and a law preventing Insurance Companies from raising rates to accommodate that risk. BlackRock and others will be waiting to buy up valuable land for a deep discount. These Corporations and the Wealthy are the only ones who will be able to afford to rebuild. There will be a ton of Gentrification going on in the next few years.

[@drf834]

I lived in Cali when auto insurance wasn't required. Drivers just took the risk or didn't. Let people carry enough to back the amount of the mortgage if they want to risk it.

[@toastedkiwi4358]

unfortunately the public isn't expected to understand insurance contracts in detail & allowing a fool to take out an insurance policy on their mortgage debt only to save $$$ will inevitably lead to lawsuits from said fool when he has a total loss and loses his equity.

[@bonniejosavland3227]

The problem is the mortgage would be paid off to banks but then the people would not be paid anything (except for possibly their land) to rebuild. New laws would have to be in place for additional upgrades or special buildings if buildings are allowed at all?! But there are ppl who’ve rebuilt 20 times in Louisiana or Florida! Unless they build without insurance & then it’s only the rich?!

[@tdbarton7712]

I like Ms. Kaufman a lot.

[@pagangod-m4p]

People will have to leave the state and start over

[@bonniejosavland3227]

Wait so one fire & they have to leave 😮how about Florida or NC do they also have to leave?in NC the River carved a whole new area for many with property lines gone or now in the river due to so much water & the power of the water 💦

[@cherylalt101]

And most people thought of this area as being pretty safe I think. Florida is so built up along the coasts it's crazy. I lived in Colorado 30 years ago and the tornado warnings, crazy lightning and hail storms were scary, plus it was so dry that fires were also a risk. Then I moved to central Florida and the flooding was insane, hurricane and tornado warnings, and forest fires. Colorado seemed like a dream suddenly, but don't forget the people driving like maniacs in the snow!

[@stevenmoss2152]

​@@bonniejosavland3227Florida and NC are not 💩holes like commiefornia

[@GarthGoldberg]

Climate change is not the reason that insurance companies pulled out of California. It is that the now-elected Insurance Commissioner has not allowed rates to keep up.

[@user-ym3up6gz7x]

Why tf should taxpayers bail out millionaires who lived in a FIRE ZONE WITHOUT INSURANCE?!! They should have evaluated the risk and sold if they couldn’t self insure. They had options.

[@mchelseama]

Look up severe convective storms, smug ones. Research how you likely will be affected according to the insurance actuaries, regardless of your place of residence or zip code. A complete national systemic collapse is not out of the question.

[@paulchristopherriley7503]

If we see this as the result of 1.5 degree increase in world temperature consider when we go to 3. And we will go to 3. I had though if we build huge ocean water reservoirs upwind of the Santa Anna winds and evaporate enough water to keep these fires from happening. But then I saw how many other fires like that in Paridise were happening thought how much greater is the magintude of the problem. Except I understand the annual rainfall in South California is > 32 inches and building catchment basins might be a solution also. But I live here in Dallas TX and know I need to prepare for wildfires happening here. A global problem? Respectfully

[@earthjustice01]

What about moral hazard? Why should the rest of U.S. support people building houses in fire-prone areas? or hurricane prone areas like Florida? Go north young man!

[@belloucif9330]

Insurance will never ever pay that’s why Luigi got rid of that CEO he was right

[@birdthompson]

dustbowl refugees, where will you go?

[@bruce4130]

13:40 😮

[@butdoyou1970]

As a blue collar, working class member............I'm not paying for it..........

[@benjamindover4337]

Then you won't have home insurance. So you won't have a mortgage loan either.

[@EdDunkle]

The working class always pays, and the billionaire masters never do.

[@BloomByCC]

12:18 were considering Asheville for that reason... No more😢

[@M00Nature]

They obviously did not do their homework. There was good material available about the 1916 flood in that same area. If they had studied that they would have known the potential for flooding. Flooding along the blue ridge escarpment is a well documented phenomenon.

[@lanabyk8012]

Lets make the fire destroyed area into a National Park! ok....?

[@robertzshapiro]

I believe this is the answer.

[@mickygarcia4251]

Are we really considering rebuilding in a disaster area? You won't even get those sticks framed out before they catch fire again. We'll end up in a cycle of build, burn, repeat. You'd have to completely change the way homes are built. For instance, you could use excavators to dig into the earth and cover it with concrete impregnated fabric, then let it harden, so that if you do get embers, then they land on fireproof roofs. That way 70 to 80 percent of the home is underground, minimizing the amount of timber used.

[@seriouslyyoujest1771]

If you’ve been in San Diego, or live there like I did in East County you would understand that fires are not a rare event. And you would understand Santa Ana wins, and the havoc they could cause. When the fires periodically went through on the hills, we looked down at, everyone in the neighborhood was out on the roof with the hose going. Burning leaves fell from the sky, like rain. Not one house caught fire or was lost. Can’t expect government to be the great protector. If you look at I-8 an 805 there is a huge hill. The person whose house was at the edge of the hill had planted ice plant, or pickle weed. A fire burned up the hill, leaving the house with the vegetation untouched. Our daughter owns our house in San Diego. Everyone on the street has green grass, or fake grass like we do. We have a tile roof. Now, as a teacher she’s gonna be paying higher rates because people don’t prepare or protect their own homes.

[@aprilg3299]

Very good interview

[@timbly5824]

They better or we need to go after these corrupt insurance companies. Our congress needs to require them to pay up.

[@stevenmoss2152]

They don't have that kind of money

[@Mkundera]

Someone didn't pay attention to the interview.

[@PaulyDeezNuts77]

They cancelled the policies 3 months before the fire though. Good luck getting them to pay on a cancelled policy. They will have to threaten to boot them from the state and hope other companies want to come in and bear the increased risks.

[@mikehollowayuk]

Great sound man. 👍

[@GarthGoldberg]

Banks and other lenders holding a mortgage or trust deed (California) can put "forced insurance" if the borrower does not keep insurance in place. Forced insurance is always more expensive than a homeowners insurance.

[@DBCooper-r3l]

High risk area, actually means too expensive for you area.

[@maxpower-u1t]

well, considering the cheap and shabby condition the neighborhoods were in. one can safely assume that 2/3 of the realty value was probably due to the land itself rather than poorly designed wooden sheds. but the land itself didn't actually go anywhere, just the poorly designed aged structures out of super flammable plywood in the fire hazard ridden zones.

[@bruce4130]

If you don’t prevent high risk fire zones, the insurance companies will obviously charge more or stop it all together! Watch everyone else’s insurance in less risk fire zones go through the roof!

[@texasrefugee7888]

Billionaire capitalists see opportunity here

[@micro-jx8xb]

She forgot to mention that insurance companies cancelled coverage BEFORE the fire. Before the risk. Before any damage to a house, they deny coverage? What a scam.

[@Elena-rt9yu]

I thought the Luigi event made it clear to everyone, insurance is not there to help, but to steal your premiums, and deny bc they can.

[@noelhall945]

A California Case years ago broke the tradition of "The Names" at Lloyds, to be broken. This showed itself with the US Treasury having to underwrite the 2008 US Banking collapse and pay large sums to the Bank of England. - never for embarrassment openly stated at the time. US investors were willing to take the profits, but not the liability of underwriting Insurance, even to personal Bankruptcy.

[@ShakespeareCafe]

I don't know if I'd go on national tv with a radiator peeling paint in the background

[@rockerjim8045]

it’s a picasso

[@ruralangwin]

I thought it was charming shabby chic.

[@Ronriko1]

This is all related on high house prices. The knock on effect is placed on insurance.

[@alanhoeffler9629]

Excellent interview! The thing is climate is going to get us whether we accept it or not. And the people that do their best to fight climate change, for example the people in the state of California, are going to have to deal with the consequences unless the whole world makes changes. EVERY YEAR, the world use of fossil fuels goes UP. The only recent exception being a short period during the COVID crisis.

[@markwriter2698]

Short answer, no way. You are not at all in the good hands of a friendly neighbor. You’re in the hands of over-promise and under-deliver. How else do you pay a single executive ten million dollars a year? All insurance policies, regardless of type, will go up across the country starting today or sooner. Good luck American dream. No bank will loan to the uninsured. No new car, no new house, no hospital care. We will pay cash only or forget it just like when I was a youngster.

[@lupemerrit]

Insurance companies will just increase rates all over the place.

[@isaacmcpherson3329]

Patty Maholmes better win the SB for Farmers sake!!

[@harryknickerbocker9889]

These areas that are burning have a long history of bush fires, and any company that insures buildings constructed in these hills is going to lose a lot of money. People should not be allowed to build in these areas, especially if taxpayers are going to end up picking up the tab. It's irresponsible. If they build back this same thing will just happen again.

[@chinesecrested9528]

I live in Thailand, 15 hours ahead of thjs broadcast. Of course, the insurance companies will bail on the responsibility. Its either the little guy suffers or the share jders and the CEO does. Lead poisoning after this disaster may become common place.

[@Westpark16]

Sorry but living in flood zone in a swamp living in a mansion on coast ....i live in inner city mid west i dont want to share risk they need to build hurricane proof and fire proof mansions

[@user-ih5gd1ww2u]

It's not risk, its' smart building and building materials, like other countries do. We are stupid.

[@HoneyBadger80886]

South and North Dakota, Idaho, Wyoming are all able to shoulder some of the risk.

[@hhwin2198]

It’ll increase home insurance on the rest of the country also, which I’m pissed about. We should have a say in who the CA vote for and what they do there.

[@KenKovash]

Gavin Newsome should seize Southern California Edison's current net worth of 31 billion dollars and distribute it to the 12,000 homeowners that lost their buildings and belongings. This equates to 2.5 million dollars to each property. Require solar installation in all new buildings to inhibit the opportunity for Edison's above ground power lines to continue to start these fires. Homeowners who have solar can close their buy back backflow to the system when the Santa Ana's blow and would still have electricity to maintain communication to know if there are emergency warnings to evacuate.

[@shee3073]

Maybe this will give California residence more empathy for homeless people.

[@yootuub301]

Let’s Nationally Socialize the risk!

[@KTravRuNEr]

Hellllooo same thing happened in southern states with hurricanes. This isn’t new thing. Californians need to wake up.

[@kayamann321]

What happens when the good insurance denies your claim? It’s worse than a single pay or system…

[@brianburgess3231]

I don't know of any insurance companies helping wars

[@jodiburnett6211]

No, insurance will not replace all of architectural marvels, gardens, art collections, neighborhoods, communities. My friends in LA were barely hanging on financially. I was stretched thin with EQ and Fire insurance. Rent is nuts. But I’m watching surfers in 70 degrees in January.

[@bruce4130]

Insurance companies have historical records and modelling for risks! They know more than the government knows!

[@rockerjim8045]

so does NASA and the US Military. those that hide the truth are the ones to blame.

[@bruce4130]

You can live in the lowest risk area and still pay high insurance premiums! Fact!

[@LostFoundRestored]

Insurance companies are gamblers. They will only insure what the odds show they will not have to cover. They are a business precisely because they make money and usually beat the odds. California made it impossible for insurance companies to accept the risk of bankruptcy. I also agree that people in high risk areas should be required to have mortgage insurance, at least.

[@larryCatford]

| Insurance companies dropped fire coverage across US before the wildfire begins | - NewsNation Prime

[@drf834]

Yesss..Rochester NY will rise again..

[@cherylalt101]

I grew up in the suburbs of Buffalo and I was just thinking the same thing lol.

[@douglaswallace7680]

Please Correct Me If I Am Wrong ! Stop Gap Insurance ? $100K homeowner gets $30K////$250K homeowner gets $60K////$2Mn homeowner gets $500K

[@diy-glamour]

Insurance already went up a couple times in last couple years. Not sure if health, car, and house insurance all go up at once again, it might be a problem. I live in an area with low risk, so I don’t really think it’s fair. Plus my raise at work has not kept up with inflation for the last 10 years. Every year I take home less money, even though I get a raise. At some point…..we will be out of extra money to make up the difference. Then what? All because people decided to live in California and Florida risky areas?

[@egeneauditor7380]

Poor forest mangement plus poor governance plus incompetence equals catastrophic failure.

[@nightwaves3203]

Being a government held insurance fund it's going to be funny to see if the less rich get an "inclusive" treatment for the insurance money paid out.

[@yootuub301]

Make insurance companies Do It For Their Health!

[@21silvermoon]

People who lost their homes will stiil have to pay mortgage every month and taxes to what a pile of ashes.

[@minimaxmiaandme.4971]

Personally, I would leave the state for at least a few years if employment situation allows it.

[@skontheroad]

FAIR is only for homes less than $3 million a home!

[@larryCatford]

WHAT A SICK COUNTRY !

[@Slide61]

Simple, California self insures. Cost plus system. Take out the private insurance and profit motive.

[@Honest-liars]

What I did to mitigate my insurance risk in the United states, is I grabbed my Australian passport and my American passport and I went back to Australia. While I appreciate the fact that this isn't an option for everybody but in 2015 and 16 that's what I decided to get the hell out of the country because Donald Trump was going to crap all over the whole of the United states and every citizen and illegal person in the country. Donald Trump and his cronies are going to bleed America dry and leave husks of the nation for scraps.

[@mitsu4176]

It's time to stop building houses in the desert.

[@rockerjim8045]

forest! deserts don’t burn

[@charlespatrick8650]

also remember that the Pacific Palisades NIMBYs now complaining about no water in hydrants and not enough LAFD firefighter/fire trucks and engines, fight tooth-and-nail against any change or repeal of Prop 13, which gives them a nearly free ride on property taxes

[@mainesail3097]

NEW ENGLANDAND THE NORTHEAST, in general-DO NOT FACE MUCH ADDITIONAL CLIMATE, GEOLOGIC, FIRE ETC. RISK---it's only those areas that have been allowed to build up housing and businesses in vulnerable area. THEY ARE RESPONSIBLE FOR THEIR OWN LOUSY DECISION MAKING----I HAVE NO SYMPATHY AT ALL

[@sidali2590]

Why don't we ask isreal to give us a refund for this disaster