L.A. Fires Could Hike Insurance Rates for San Diegans

Policyholders throughout the state could be on the hook for massive fire claims. Also, a look at some legislation and other wildfire proposals 

Staggering losses from the Los Angeles wildfires could raise rates for homeowners throughout California, even if they aren’t in the California FAIR plan, the state’s high risk insurance pool, consumer groups warned. 

Catastrophic fires in Pacific Palisades and Altadena, torched more than 12,000 homes and killed two dozen people, according to CalFire, causing up to $30 billion in losses. The fires leveled entire neighborhoods, leaving smoking rubble that looks like fire-bombed wreckage.  

Some of that damage will fall under private insurance policies, but at least $6 billion will likely fall to the FAIR Plan, the Wall Street Journal reported. Those claims could swamp the plan, which has just about $200 million in cash and $2.5 billion in reinsurance coverage. 

To cover the losses, state insurance regulators may require private insurers to make up the balance. That could cost policy holders on private plans $1,000 to $3,700, Fortune magazine reported. 

To be clear, it’s not a done deal whether the state will make commercial insurers share the costs of L.A. claims. Read more.

by Deborah Sullivan Brennan | January 17, 2025 | Sacramento Report | Voice of San Diego

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