DEL REY OAKS, Calif. (KMUV-TV) – State Farm and Allstate, two of the nation’s largest insurance agencies, announced that they will stop accepting new applications for fire protection in California. This comes just at a time of greatest need for wildfires, sparking the anger of some residents who live in wildfire-prone areas.
Burk Bley, a resident of a wooded area in the Boulder Creek Mountains, he says is shameful and the state of California should take better care of the situation, as some policies are too expensive.
But Burk is not the only one affected by insurance costs or changes in these policies.
“I think our insurance commissioner should take a look at what’s going on with our insurance companies across the state, because California, getting insurance in California is very expensive,” said Patt Foster, a fire area resident.
According to California wildfire records, in 2018 alone the state suffered $140 billion in damage and rebuilding from wildfires. A fire in an area covered in dry grass and trees can quickly spread to businesses and homes.
The Monterey County Department of Emergency Management indicates that several roads along Route 68 are prone to wildfires, as well as the rolling hills of Carmel Valley, Monterey and Del Rey Oaks.
In a statement, the State Farm company said the following:
“State Farm General Insurance Company made this decision due to historically higher-than-inflation construction cost increases, rapidly growing catastrophe exposure, and a challenging reinsurance market.”
The California Department of Insurance says the factors that have driven State Farm’s decision are out of its control: the challenges of climate change, rising costs and inflation all affect the insurance industry.
The insurance department also said they are doing their best to fund wildfire programs in collaboration with the California governor, doling out $2.7 billion in fire resiliency programs.
2023-06-10 00:52:49
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