California Wildfires Threaten Thousands Of Homes
A large wildfire near L.A. and surrounding counties continues to threaten thousands of homes in the area. A number of communities have had mandatory evacuations initiated but there have been a few holdouts who have defied the order adding to the strain of relief efforts.
Over 140,000 acres have already burned and more than 100 buildings have been destroyed. Favorable weather conditions are expected during the week to help fire fighting crews in their efforts to contain the large fire.
Wildfires are typical at this time of year for California, at the height of it’s dry season and it’s not uncommon to have multiple fires occurring simultaneously. Insurance premiums are high for the state due much in part to the relatively expensive real estate in the region, even with the decline of the housing market in recent years.
Some insurers have stopped selling policies in California, finding it economically infeasible to do business in the state with regulators vetoing recent rate hikes. Property insurers in general have taken large underwriting losses this year coupled with their investment losses from the financial crisis.
