Home owners denied insurance when climate change claims too many homes to wildfires
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Homeowners in certain extremely fire-prone areas in California are reportedly denied coverage as insurance companies refuse to insure certain properties, or raise the premiums to extreme levels.
ABC News reported in mid November of 2023 that some people in the most high-risk areas - that have already been affected by wildfire destruction - say they are now being left behind without insurance.
In the five years since the city of Paradise, California, was ravaged by a large wildfire, insurance companies have reportedly become less willing to insure.
Greg Bolin, the mayor of Paradise, said his residents are still paying the price for the fire in their homeowner's insurance - some companies have raised the insurance premiums as much as 10 times, and others have simply limited any new policies in fire-prone parts of California.
According to ABC News, experts are claiming the situation has escalated for several reasons - one of them being that insurance companies are assessing the risk of doing business there too high due to the elevated risk of wildfires.
Another complication mentioned is that California also reportedly has laws which restrict how the insurance companies can price out their policies.
California forest fires. Photo by United States Department of Defence.