Fires in California’s wine country started on 8th October 2017. At least eight of the state’s counties experienced the worst wildfires in California’s history.
Forty-three people died. This included that of a firefighter. This death toll is also the largest loss of life from a single wildfire in California.
The Department of Insurance has stated that losses are expected to be more than $3.3 billion. 14700 families lost their homes. Furthermore, fires destroyed businesses and vehicles. Fifteen major insurance companies will cover these financial losses.
Insurance companies will not want to ensure areas previously considered low-risk for fire damage. The insurance companies update risk models.
Especially noteworthy is that The California Department of Insurance has stated that insurance companies are not allowed by law to increase rates as they wish. Higher rates must be requested from the Department. The Department presents Data history. Raising rates or cancelling fire policies of citizens who have damaged or destroyed properties is furthermore against the law.
According to Nicole Ganley from the Property Casualty Insurers Association, insurance companies plan for fires in California. The firms prepare for such occurrences. An amount of $700 billion is available in case of wildfires as well as the backing of re-insurers.
According to Ms Ganley, even with sufficient history, it would take many years for wildfire insurance increases to trickle down to consumers.
History affects insurance hikes. Does the home have a sprinkler system? Has the homeowner cleared vegetation away from the residence?