A study has shown that destructive weather patterns are causing massive strain on the California home insurance market, according to InsuranceNewsNet.
What’s happening?
California has been battered by catastrophic wildfires in recent years, leaving properties and lives in shambles.
Direct air capture company Deep Sky has released findings showing that one in five homes in the most extreme fire risk areas of California have lost insurance coverage since 2019. Many insurance companies pulled coverage just months before the record-setting Palisades fires in January 2025.
“The home insurance market is in a state of crisis. The highest risk areas of California have effectively become uninsurable and will soon become unaffordable,” said the report. “Banks will not approve mortgages without home insurance, and few will buy a house without a mortgage (in a high risk wildfire area no less). Without significant policy intervention, these properties will eventually become worthless.”
Why is home insurance important?
“We are in a statewide insurance crisis, affecting millions of Californians,” said Insurance Commissioner Ricardo Lara, per InsuranceNewsNet. “Taking this on requires tough decisions. This is not a game.”…