Home insurer in California beg for bailout to avoid financial ruin
California’s worsening wildfire crisis has pushed major home insurance companies to the brink, leading them to seek government assistance to stay afloat.
Facing billions in potential payouts, insurers argue that without financial relief, they may be forced to leave the state entirely, leaving homeowners with fewer options and skyrocketing premiums.
In recent years, major insurers like State Farm and Allstate have stopped issuing new policies in California, citing unsustainable wildfire risks.
Those that remain have dramatically increased rates or shifted homeowners to the state’s last-resort FAIR Plan, which offers limited coverage at high costs.
Without intervention, experts warn that more companies could collapse, triggering a full-scale insurance crisis.
Industry leaders are pressuring lawmakers for state-backed reinsurance programs or direct financial aid, arguing that without government support, homeowners will face even higher premiums or lose coverage altogether.
Critics, however, argue that taxpayers shouldn’t bail out private companies that failed to prepare for climate-related disasters.