Flammeninferno in Los Angeles: Who pays for the catastrophe?

Flammeninferno in Los Angeles: Who pays for the catastrophe?

Pacific Palisades, Kalifornien, USA - The devastating forest fires in Los Angeles not only wiped out entire villas from stars such as Paris Hilton, Leighton Meester and Eugene Levy, but also put pressure on the California insurance industry. The damage amounts to astronomical $ 57 billion, reports FAZ.NET . In California there is no obligation to do building insurance, which means that many owners have either taken out no or only insufficient insurance against fires. As a result, a significant part of the costs caused by the flames fall back on both the state and the homeowners themselves.

insurance industry under pressure

The situation is also complicated by the termination of insurance such as State Farm, which last year expired over 72,000 policies in California. Many households lost their protection in regions such as Pacific Palisades, where the fires were the hardest. The industry is faced with a "persistent crisis" because the frequent fires in the region forces the insurers to minimize their risks drastically, so Today.at .

The California government has already issued new regulations to give insurance companies the opportunity to pass on the increased reinsurance costs to its customers. However, this could lead to a dramatic increase in insurance premiums. A special mechanism could also ensure that private insurers have to bear parts of the costs if the state fair plan, which is the last instance, gets into financial difficulties. Nevertheless, there is a general uncertainty as to whether the latest changes will accelerate the withdrawal of companies from the California market.