Insurance companies canceled coverage on houses in neighborhoods that later burned. Government officials blame climate change, but the real problem lies with state and local governments.
by Connor O'Keeffe
First, LA experienced a lot of rainfall in 2022 and 2023. The wet conditions spurred the growth of a lot of brush and grasses on the hills surrounding LA’s metropolitan area. 2024 brought an exceptionally hot summer and almost no rain during what was supposed to be the wet season, which dried out the now abundant vegetation.
I really tire of hearing climate change stated over and over again for weather patterns I have lived through my entire life in California. California has always had long droughts broken up by very wet years. I didn't address climate change in my post California Wild Fires: Perspective of a Native Californian because I think this whole argument is stupid.
Connor goes a bit deeper on the insurance issues than I did.
When governments mess with insurance prices—either through subsidies, cheap public insurance, or price controls—the result is always the same. More people move to dangerous areas that are highly susceptible to natural disasters.
In 1988, California passed a law that forced insurance prices down by 20 percent, banned providers from using forecasts of future risk to set prices, and subjected all future price increases to government oversight. With rates severely decoupled from risk, the state saw extensive development in some very fire-prone areas. Then, after an exceptionally bad fire year in 2017, insurance providers tried to get approval to raise premiums to account for the high level of risk across the state. The government said no.
As a result, seven of the twelve largest home insurance providers pulled out of California. And that trend is continuing today.
California has MANY "progressive" polices that literally have the opposite effects than how they are pitched to the public.
Connor's piece is worth reading.