Gov. Gavin Newsom and the Democrat-run government of California caused insurance companies to cancel many of their fire insurance policies — with many residents of Pacific Palisades losing their policies just before the wildfires.
As it was reported earlier, many insurance companies have stopped selling new policies in California “because of the increased risk of wildfires and the rising costs of construction in the state — and because the state’s regulators will not allow it to price new policies based on future anticipated risk, only on historical risk.”
On the Nextdoor app, residents of the Palisades have been complaining for months. One woman wrote on December 23 that her company “canceled our home insurance policy. We are currently scrambling to find home insurance.” She added that her company would no longer insure homes near canyons or schools, or homes worth over $1 million.
Newsweek also noted that several insurance companies canceled their policies in the area in the last few months, adding that many people had been forced to turn to the state’s own insurance option, which is “an insurer of last resort.”
California’s state insurance commissioner, Ricardo Lara, a Democrat, announced new regulations last month to force insurance companies to expand coverage in fire-prone areas and to account for future risk in pricing.
“Solving our wildfire crisis requires bold action to protect our communities,” Lara said in a statement.
“Insurance rates now must account for the billions spent on wildfire mitigation, including community efforts and home hardening. This all-hands effort by my Department has achieved decades-overdue reforms in just one year, ensuring consumers benefit from more accurate rates and better risk assessment,” he said.
The regulation was effective in mid-December, which would not have allowed most homeowners to find insurance in time for the Palisades fire.
In addition to proposing “Medicare for All,” Lara was previously notorious for proposing a bill that would have allowed illegal aliens to hold state office.
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