Golden State residents who did not get homeowners insurance renewed in the past year and did not manage to find an affordable replacement policy stand to lose everything to the wildfires wreaking havoc through Southern California.
Last year, several insurers cut coverage across the state due to the increasing risk of paying enormous, unsustainable damages outweighing their profits. Some of the homeowners who were suddenly left without coverage in an increasingly difficult environment were in Pacific Palisades, the area that has been ravaged by flames in the past few days.
Why It Matters
The state's wildfires have become more devastating and unpredictable in recent years, with multiple studies finding that there's a link between more severe, more frequent blazes and global warming.
The increased risk posed by wildfires, as well as state regulations that strictly control how much companies can hike their rates every year, has led many insurers to cut coverage in the state in the past few years, or withdraw from it entirely. Cal Fire estimates that seven out of 12 of the Golden State's biggest insurers have cut coverage in the state since 2022.
The result is that California homeowners, especially those living in at-risk zones, are now struggling to find insurance, with many having to rely on the state's FAIR Plan, which works as an insurer of last resort for those who can't find fire protection in the traditional market. Many have remained without coverage—a dangerous position to be in.
What To Know About the Fires
As of Thursday morning, multiple fires were still burning through Southern California.
The Palisades fire, which started on Tuesday morning between the towns of Santa Monica and Malibu, had burned through more than 17,000 acres as of Thursday, according to the California Department of Forestry and Fire Protection (Cal Fire). It is considered one of the most destructive fires ever in the Golden State, based on the number of residential and commercial structures it destroyed, and it remains the largest among the fires still raging through Southern California.
The Eaton fire, which started on Tuesday evening in Eaton Canyon, had burned through 10,600 acres as of Thursday, leaving at least five people dead. Both fires are still considered out of control, despite firefighters' efforts to contain the flames.
The Hurst fire, which started on Wednesday evening, had burned through 855 acres as of Thursday and was 10 percent contained.
Multiple new fires broke out on Wednesday, two of which have been contained. The Lidia fire, which has burned through 348 acres, was 40 percent contained as of Thursday morning. The Sunset fire, which has expanded over 43 acres, was still burning out of control as of Cal Fire's latest update.
According to officials, the Palisades and Eaton fires have destroyed more than 2,000 structures since Tuesday.
California governor Gavin Newsom described the wildfires on X, formerly Twitter, as "unprecedented" in the state's history. The Democrat called for a Major Disaster Declaration, approved by President Joe Biden, which will release federal assistance funding to help the state recover from the blazes.
Those Who Have Lost Everything
The family of Chad Comey, a local musician and community organizer who's been taking care of his disabled parents for the past several years, lost their home in Pacific Palisades to the fire.
"Chad is one of the best people I know," wrote friend Tom Rhalter in the fundraiser he organized through GoFundMe for Comey. "Chad's mom is paralyzed by Neuromyelitis Optica, a rare autoimmune disease, and his dad is blind.
"Chad is the best boss I've ever worked for and one of the kindest people I know. The fire took everything: clothes, possessions, and memories," Rhalter continued. "His parents didn't have insurance on the home. Chad and his family need immediate financial assistance to help recover from the fire."
The family would use any donation to secure shelter and supplies as they try to recover from having lost everything, according to the fundraiser, and in less than 24 hours they had raised nearly $16,000—a little over their goal of $35,000.
Newsweek contacted Rhalter for comment through GoFundMe on Thursday early morning.
On Tuesday evening, as the Eaton fire ravaged through Hastings Ranch, a local ER nurse told ABC 7 she was trying to do what she could to help her elderly parents, who have no insurance on their home.
"I know I'm not supposed to be here, but this is my parents' home. They just got canceled from their fire insurance. So they're dealing with this," she told the TV channel.
"They're 90 years old. They've lived in this house for 75 years. They've had the same insurance, and these insurance people decided to cancel their fire," she added, clearly frustrated.
"And we're going through this. And it just happened. And they have no fire insurance. Thank you California insurance companies for supporting residents who pay taxes and love California. They wonder why people leave California."
At the time of the interview, the woman was trying to hose down her parents' house, hoping to stop it from burning down completely.
"There are no words to even describe how heartbreaking [...] that's a life. That's your entire life. You don't get that back. The memories are gone. I hope they're alive," she said.
What People Are Saying
Governor Newsom said: "People aren't strangers to the risks. But this fire is just laying siege to these communities, and we're seeing major structural loss in places we haven't for a very long time. This is going to be a catastrophic event."
Skyler Johnson, chair of Suffolk Young Democrats, wrote on X: "California is burning and thousands had their fire insurance canceled months ago. MAGA is crying conspiracy. There isn't one. The truth is simple. Large swaths of our country are becoming uninsurable due to climate change, due to fire or floods. And it will only get worse."
Cyrus Sanati, a columnist at Fortune magazine, shared a picture of fire-damaged properties on X and wrote: "You are looking at BILLIONS of dollars in personal property damage. This will bankrupt California's Fire insurance fund."
What's Next
Those who haven't been able to find insurance after losing their coverage, like Comey's family, have likely lost everything they owned. Those who managed to find an alternative after being dropped by their insurers will likely manage to get money back for their damaged homes—but they'll likely have paid higher premiums for it.
The wildfires now burning through Southern California are expected to revive the conversation over what the state's lawmakers should do to prevent companies from dropping out of the Golden State in the face of growing risks, while keeping home insurance affordable for most.
Have You Been Affected?
If you're a California resident who's been affected by an insurer's decision to cut coverage in the state over the past four years, or who doesn't have insurance, please get in touch by emailing g.carbonaro@newsweek.com.
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