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THEY KNEW? Insurance Companies Canceled Hundreds of Policies Just Months Before Deadly Fires Wiped Out Everything

I’m not here to say this is a massive conspiracy, or that the insurance companies knew and were in on it and it was all planned in advance.

I’m not saying that.

I’m simply reporting the facts that hundreds, if not thousands, of homeowners were suddenly and abruptly canceled by their insurance providers for homeowner’s insurance in California, in the EXACT areas that were burned to the ground by the fires.

Absolutely tragic and horrific timinig.

Here’s Newsweek with more:

State Farm, one of the biggest insurers in California, canceled hundreds of homeowners’ policies last summer in Pacific Palisades—the same area which is now being ravaged by a devastating wildfire.

The move was justified by the company as an attempt to avoid “financial failure” as the frequency and severity of wildfires is growing in the Golden State, especially in at-risk zones. But as the multiple fires currently burning through Southern California threaten to cause devastating losses for residents, many will likely need to rely on their insurers to get back on their feet after the blazes are contained.

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“Our number one priority right now is the safety of our customers, agents and employees impacted by the fires and assisting our customers in the midst of this tragedy,” a spokesperson for State Farm told Newsweek in response to a request for comment on Wednesday.

Newsweek contacted the office of Commissioner Ricardo Lara for comment by email on Wednesday early morning, outside of standard working hours.

Why It Matters
Several private insurers have cut coverage in at-risk areas across California in the past three years, leaving homeowners scrambling to find options for coverage. As a result, California’s FAIR Plan, which works as an insurer of last resort in the state, has more than doubled its policies between 2020 and 2024, reaching a total of 452,000, as reported by CapRadio.

Most insurers who have limited their offer in the state mentioned the rising wildfire risk as well as the state’s regulations as the main reasons behind their decision. Unable to increase their premiums to a level that will match their growing risk, companies have decided instead to cut coverage.

This has triggered an ongoing property insurance sector crisis in the Golden State as homeowners are finding it increasingly harder to find coverage at a time when they so desperately need it.

What We Know About The Fire
There are three fires currently burning in Southern California: Palisades, Eaton, and Hurst. The Palisades Fire started on Tuesday evening and scorched the affluent neighborhood of Pacific Palisades, spurred on by strong winds. As of Tuesday night, it was estimated to have burned 2,900 acres.

California Wildfire Palisades
The Eaton Fire started near Pasadena, in Eaton Canyon, on Tuesday evening. It was estimated to have burned 1,000 acres as of later that same night.

Another fire, Hurst, was reported burning near San Fernando on Tuesday evening, according to the California Department of Forestry and Fire Protection. The Angeles National Forest wrote on X on Tuesday night that the fire had spread across approximately 500 acres.

The fires continued to burn across Southern California as of Wednesday early morning, propelled by winds gusting at nearly 100 mph, as reported by The New York Times.

Who Was Affected By State Farm’s Cancellations
State Farm announced in April 2024 that it would have canceled a total of 72,000 policies in the state for houses and apartments, 30,000 of which were homes, as reported by ABC 7. According to State Farm, about 1,600 insured homes in Pacific Palisades lost coverage because of the decision.

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The move came nine months after State Farm announced it wouldn’t issue new homeowners policies in California.

Some ZIP codes saw a large percentage of their policies with State Farm being discontinued. More than 65 percent of policies in ZIP code 95033, in the Santa Cruz mountains, ended last summer; in 95409, near Santa Rosa, nearly 48 percent were canceled, as reported by CBS News.

Why Did State Farm Cancel So Many Policies?
In a letter sent to the Insurance Commissioner Ricardo Lara in March 2024, State Farm President and CEO Denise Hardin explained that the decision to cut coverage in at-risk areas of the state was one they were “reluctant” to make, but that was necessary for the future of the company.

“As shared with the Department prior to the February 2023 filing, rate increases alone would likely be insufficient to restore SFG’s financial strength,” Hardin wrote. “We must now take action to reduce our overall exposure to be more commensurate with the capital on hand to cover such exposure, as most insurers in California have already done.

“We have been reluctant to take this step, recognizing how difficult it will be for impacted policyholders, in addition to our independent contractor agents who are small business owners and employers in their local California communities.”

Here’s what it looks like after the destruction:

Everything is just GONE.

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It’s like Maui 2.0 but worse.

Real life apocalypse:

This is hilarious, here is Gavin Newscum in 2021 saying things will be better now with Biden in office:

That didn’t age well!

The footage looks like something out of a movie….

An end of the world dystopian movie:


 

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