The Los Angeles fire that started on Tuesday, January 7, has ravaged havoc across the ‘City of Angeles’ in the richest US state of California. This disaster, said to be one of the worst in the city’s history, has resulted in the death of 25 individuals.
The LA Mayhem
The death toll is only expected to increase in the time to come. In addition to that, in excess of 12,000 buildings have been destroyed so far. Roundabout 60 square miles of land have been burned.
According to some reports, destruction of over USD 100 billion has already been unleashed.
Amidst all this, the question of rehabilitation and support for those who have lost everything has also appeared. Insurance has been the principal tenet of this topic.
The death toll is only expected to increase in the time to come. In addition to that, in excess of 12,000 buildings have been destroyed so far. Roundabout 60 square miles of land has been burned.
| Photo: AFP
Insurance Cancellation Banned
This is because insurance companies in the city have tried to reduce their exposure in the city due to threats of wildfires.
As per some reports, thousands have been left high and dry without any insurance, therefore, without any means to support their recovery.
In order to handle this situation, the state of California has imposed a temporary ban on any cancellation of insurance in the city and affected areas. The state administration under Governor Gavin Newsom has also proscribed non-renewals of insurance policies in affected areas.
This crisis is only expected to fuel further inequality in society, particularly in the city and the state that is known for its high tax rates and high accommodations prices.
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1-Year Moratorium
The state government has 1-year moratorium on insurance cancellations in fire areas
“This means that if you’ve received a non-renewal from your homeowner’s insurance between Oct. 9 and Jan. 7, essentially 90 days, your insurance company should do the right thing and retain you as a valued policyholder.”, added a state official.
This crisis is only expected to fuel further inequality in society, particularly in the city and the state that is known for its high tax rates and high accommodation prices.
The state administration under Governor Gavin Newsom has also proscribed non-renewals of insurance policies in affected areas. | Photo: AFP
The tactics used by insurance companies in LA is similar to the one used in the sunshine state of Florida, where in many parts of the state, insurers have reduced exposure to areas that are frequently affected by Hurricanes.
With another strong tranche of wind in the forecast, the crises in the city is only expected to exacerbate.
