Gov. Gavin Newsom (D) and the Democratic-run state government forced insurance companies to cancel many fire insurance policies, leaving many Pacific Palisades residents without insurance right before the wildfires.
As Breitbart News has reported for years, many insurance companies have stopped selling new policies in California due to “increased wildfire risk and construction costs in the state.” “This is because state regulators do not allow state regulators to set prices for new insurance.” Based on expected future risks and only on historical risks. ”
On the Nextdoor app, Palisades residents have been complaining for months. One woman wrote on December 23 that the company had “cancelled her home insurance.” We are currently scrambling to find home insurance. '' Her company will no longer insure homes near canyons or schools, or homes worth more than $1 million, she added.
Actor James Woods, who was forced to evacuate and appears to have lost his home, pointed out this issue in “X”:
newsweek noticed He said several insurance companies had canceled insurance policies in the area in recent months, adding that many people were forced to rely on the state's own insurance, which is the “insurance provider of last resort.”
This author warned in a 2023 Breitbart News column:
California is supposed to be heaven on earth, but the roads paved with good intentions are becoming the proverbial hell.
The latest example is a state insurance accident. State Farm, California's largest insurance company, announced this week that it would stop issuing new insurance for homes and businesses, citing wildfire risks and construction costs. (Allstate quietly I followed you Soon after that. )
The left may blame climate change, but the real reason lies in national policy.
California Insurance Commissioner Ricardo Lara, who authored the state's own “Medicare for All” proposal, has warned climate change activists (and skeptics that poor forestry is to blame) We are not going to force insurance companies to charge higher premiums for increased risk.
of wall street journal memo California is the only state that requires insurance companies to base premiums on past risks rather than future risks.
The intention to benefit Lara is noble. Housing is already prohibitively expensive in California, and so are the costs of doing business. It's a good idea to reduce your insurance premiums.
However, when premiums become so low that insurance becomes unprofitable, companies withdraw or go bankrupt. This means Californians may have a harder time finding insurance and, ironically, may have to pay more as the supply of insurance dwindles.
This is basically how California works. Our governments enact laws and regulations that aim at exciting social goals in theory, but in practice make those goals impossible to achieve.
California Insurance Commissioner Ricardo Lara (Democratic) announced Last month, new regulations went into effect that require insurers to expand coverage in fire-prone areas and price with future risk in mind.
“Solving the wildfire crisis requires bold action to protect our communities,” Lara said in a statement. “Insurance rates must now take into account the billions of dollars spent on wildfire mitigation, including community efforts and home fire protection improvements. With this collective effort by my department, A decades-old reform was achieved in just one year, allowing consumers to benefit from more accurate rates and better risk assessment.”
The regulation went into effect in mid-December, which would have prevented most homeowners from finding insurance in time for the Palisades fire.
In addition to proposing “Medicare for All,” Mr. Lara has previously gained notoriety for proposing a bill that would allow undocumented immigrants to hold state jobs.
Joel B. Pollack is a senior editor at Breitbart News. Breitbart News Sunday Sunday nights from 7:00 PM to 10:00 PM ET (4:00 PM to 7:00 PM PT) on Sirius XM Patriot. he is the author of Agenda: What should President Trump do in his first 100 days?available for pre-order on Amazon. He is also the author of Trumpian Virtues: Lessons and Legacy of the Donald Trump Presidencynow available on Audible. He is the recipient of the 2018 Robert Novak Journalism Alumni Fellowship. Follow him on Twitter @joelpolak.
