Southern California is reeling from the largest wildfires in Los Angeles County's history, with over $50 billion in damages and more than 5,000 structures destroyed. As insurance options dwindle and rebuilding costs soar, residents face tough choices.
Southern California is grappling with the aftermath of the largest and costliest wildfires in Los Angeles County's history, which have caused over $50 billion in damages, according to JP Morgan analysts.
The Palisades Fire alone destroyed more than 5,000 structures, leaving homeowners to decide whether to rebuild or relocate in the face of skyrocketing costs and insurance uncertainties.
State Farm and other major insurers have pulled back from California, citing increased wildfire risks, leaving many residents with the state’s FAIR Plan — a last-resort insurance policy with limited coverage, high premiums, lower maximum coverage limits and lack of personal liability protection.
FAIR Plan policies grew from 200,000 in 2020 to over 450,000 by late 2024, tripling the plan’s loss exposure to $458 billion. Critics warn these bare-bones policies may leave wildfire victims underprotected.
“It’s just an unmitigated disaster,” said Amy Bach, executive director of United Policyholders. “Wildfires in January? This just proves insurers’ point that the risk is so significantly increased due to climate change.”
Rebuilding will test the region’s resources. About 25% of the construction workforce consists of immigrant labour, essential for recovery.
However, President-elect Donald Trump’s proposed mass deportations could exacerbate labor shortages. Construction costs are also climbing due to high tariffs on materials like lumber and appliances.
Governor Gavin Newsom likened the recovery effort to a “Marshall Plan,” emphasising federal disaster assistance and the need for collaboration.
President Joe Biden has pledged full federal disaster relief to California for six months. “We’re all better off when we’re working together to take care of people,” Newsom said.
Insurance reforms, including the ability to factor climate change risks into premiums, aim to stabilise the market. Yet, experts like Denise Rappmund of Moody’s warn these changes could drive premiums even higher.
As Southern California rebuilds, the focus remains on balancing immediate recovery with long-term resilience, a challenge amplified by the looming 2028 Olympics in Los Angeles.
The Ministry of Energy of Uzbekistan announced a nationwide energy-efficiency programme designed to reduce consumption, modernise standards and meet k...
Five tourists were killed in a powerful snowstorm in Chile's Torres del Paine National Park, in the southern region of Patagonia, authorities said, ad...
Six children were part of at least 16 people killed in a massive explosion which occurred in Faisalabad, Pakistan on Friday according to local media....
Israeli forces killed two Palestinian teenagers during an overnight raid on a town near Ramallah in the Israeli-occupied West Bank, residents said, as...
Japan is awaiting a decision on Friday from Niigata Prefecture Governor Hideyo Hanazumi on whether the Kashiwazaki-Kariwa nuclear plant can restart so...
A trial beginning Wednesday in Portland, Oregon will determine whether President Donald Trump lawfully ordered the National Guard to the city to quell protests.
A 29-year-old man has been arrested in connection with a devastating wildfire that killed 12 people and destroyed thousands of homes in Los Angeles earlier this year.
A fire has broken out at Chevron’s El Segundo refinery in Los Angeles County, California Governor Gavin Newsom’s press office announced on Thursday via X.
President Donald Trump said on Tuesday that the U.S. and China have a deal that would keep TikTok operating in the United States, transferring its U.S. assets to U.S. owners from China's ByteDance, potentially resolving a saga that has lingered for nearly a year.
The pilot of an Indian fighter jet performing in the Dubai Air Show has died after the aircraft crashed during an aerial display on Friday.
Indonesian authorities evacuated more than 900 people from nearby villages and were helping 170 stranded climbers return safely after the eruption of Semeru volcano, one of the country's tallest mountains.
Germany has returned 12 royal-era cultural artefacts to Ethiopia in a ceremony in Addis Ababa, marking a formal step in ongoing cultural cooperation between the two countries.
An off-the-cuff remark by new Prime Minister Sanae Takaichi that triggered Japan's biggest bust-up in years with powerful neighbour China was not meant to signal a new hardline stance.
The Iranian Foreign Ministry has announced plans by Tehran to bring together Afghanistan's neighbouring states including Russia and China in a regional meeting aimed at addressing ongoing tensions with Pakistan.
President Donald Trump will meet with incoming New York mayor Zohran Mamdani on Friday, the first in-person talks between political opposites who have clashed over everything from immigration to economic policy.
Five tourists were killed in a powerful snowstorm in Chile's Torres del Paine National Park, in the southern region of Patagonia, authorities said, adding that four more who were reported missing had been found alive.
Japan is awaiting a decision on Friday from Niigata Prefecture Governor Hideyo Hanazumi on whether the Kashiwazaki-Kariwa nuclear plant can restart some reactors for the first time since the Fukushima disaster.
The pilot of an Indian fighter jet performing in the Dubai Air Show has died after the aircraft crashed during an aerial display on Friday.
European Union support for Ukraine will continue, as the country is the victim of aggression, stated Ursula von der Leyen, President of the EU Commission, on Friday. She added that sanctions imposed on Russia are having a significant impact on its economy.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment