Los Angeles wildfires spur California’s insurance crisis

CALIFORNIA, US - JAN. 8 - 12, 2025: Deadly wildfires in Los Angeles, ongoing for eight days, have destroyed thousands of buildings and exposed a deepening crisis in California's insurance sector. Over 37,000 acres of land have burned since the evening of Jan. 7 across different parts of LA, spreading rapidly due to strong winds. More than 12,000 buildings have been damaged or rendered unusable in the wildfires, with economic losses potentially reaching $150 billion, while death toll has reached 24. Experts warn that insurers may struggle to cover the extensive damages caused by the wildfires. Climate change has brought about floods, storms, and wildfires in California, the US' most populous state, making it increasingly difficult for homeowners in high-risk areas to secure or afford insurance. Companies have reduced the issuance of new Insurance policies in high-risk areas and, in some cases, have failed to renew existing policies, leaving many property owners without coverage in the wake of the disaster. The high number of policy cancellations and insurer negligence have drawn widespread attention. Property owners in the affected areas have reported that major insurance companies had withdrawn fire coverage before the blazes broke out.(Footage by Lokman Vural Elibol, Tayfun Coşkun /Anadolu Agency via Getty Images)