![]() Their case is extreme, but the problem is increasingly common: As climate-change-fueled disasters worsen, insurance against them is becoming unaffordable, leaving many families, organizations and governments at growing financial risk.īetween 20, over 1.3 million Californians had their fire coverage dropped by an insurer, out of a total of around 10 million total polices in the state, according to data gathered by the California Insurance Commissioner's office.Ī 2022 report from Rand Corporation found that in zip codes in California's Sierra Foothills with the highest wildfire risk, insurance rates are expected to jump by 18% for every $1,000 dollars of coverage by 2055 - making those areas potentially unaffordable to live in. The residents of Canyon Park Villas are part of a growing flood of California homeowners being forced into the world of last-resort insurance, where prices can be astronomical. ![]() ![]() "So yes, people are unhappy, people are hurting." "Many people here are seniors on a fixed income or young couples with children in their first home," Southwick said. To pay the bill, the complex of 240 clustered units levied an immediate special assessment of $2,500 per home to cover the cost, with another expected later this year, said Paula Southwick, a retiree who has lived in the complex for over 30 years. When the condo association looked for replacement coverage, the cost was nearly 13 times the old rate: $600,000 a year, up from $47,000. MIRA MESA, California - Last August, Canyon Park Villas - a condo complex that sits atop a steep wooded canyon outside of San Diego - lost its fire insurance, as more private providers across the state decline to renew policies in the face of growing wildfire risks. Insurers say rate rises needed as wildfire losses grow.Homeowners seeking replacement insurance face high costs.Growing fire risk results in 'non-renewal' of policies.This story is part of a series on weakening access to insurance protection in the United States in the face of growing losses from climate related disasters: End of insurance?
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