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.
French President Emmanuel Macron and Chinese Foreign Minister Wang Yi met in Paris to discuss enhancing trade, multilateralism, and cooperation on glo...
Chinese Foreign Minister Wang Yi called for peaceful dialogue to resolve the Iranian nuclear issue, condemning recent Israeli attacks and stressing th...
Ukrainian special forces hit a key Russian airbase in Voronezh, targeting a bomb store and aircraft in a bold overnight strike....
Start your day informed with AnewZ Morning Brief: here are the top news stories for 5th of July, covering the latest developments you need to know....
U.S. President Donald Trump said Ukraine needs Patriot missiles for defense after a positive call with President Zelenskyy, expressing frustration ove...
U.S. Vice President J.D. Vance visited military personnel in Los Angeles on Friday following their deployment to the city earlier this month in response to protests triggered by federal immigration enforcement actions.
Los Angeles businesses report significant losses as immigration raids prompt many workers and customers to stay home, raising concerns over broader economic effects.
Los Angeles police made mass arrests late Tuesday after protesters violated a newly imposed curfew following five days of demonstrations against Trump's immigration crackdown, which were marred by looting and vandalism.
The U.S. military plans to temporarily deploy around 700 Marines to Los Angeles amid ongoing unrest, a move that comes as the city awaits reinforcements from the National Guard, a U.S. official told Reuters on Monday.
The European Commission is set to propose allowing carbon credits from other countries to count towards the EU’s 2040 climate target, according to a leaked internal document.
A magnitude 5.5 earthquake struck off Japan’s Tokara Islands on Wednesday, with no tsunami warning issued but residents advised to remain vigilant.
The United States has rescinded licensing restrictions on ethane exports to China, allowing shipments to resume after a temporary halt and signalling progress in efforts to ease recent trade tensions.
Italy plans to grant approximately 500,000 work visas to non-EU nationals between 2026 and 2028, as announced in a cabinet statement. The initiative aims to address labor shortages by expanding legal immigration pathways
A malfunction in the radar transmission system at the Area Control Center in Milan suspended more than 300 flights at the weekend, across northwest Italy since Saturday evening according to Italy's air traffic controller Enav (National Agency for Flight Assistance).
Flash floods in Kerr County, Texas, have left 24 dead and many still missing, including girls from a summer camp, after the Guadalupe River surged 26 feet in less than an hour.
French President Emmanuel Macron and Chinese Foreign Minister Wang Yi met in Paris to discuss enhancing trade, multilateralism, and cooperation on global challenges.
Chinese Foreign Minister Wang Yi called for peaceful dialogue to resolve the Iranian nuclear issue, condemning recent Israeli attacks and stressing the importance of addressing the Palestinian conflict for lasting Middle East peace.
Ukrainian special forces hit a key Russian airbase in Voronezh, targeting a bomb store and aircraft in a bold overnight strike.
Start your day informed with AnewZ Morning Brief: here are the top news stories for 5th of July, covering the latest developments you need to know.
You can download the AnewZ application from Play Store and the App Store.
What is your opinion on this topic?
Leave the first comment