An aerial view of a fire truck near homes destroyed in the Palisades Fire as wildfires cause damage and loss through the LA region on January 13, 2025 in Pacific Palisades, California. Multiple wildfires fueled by intense Santa Ana Winds continue to burn across Los Angeles County, with some containment achieved. According to reports, 24 people have died with over 180,000 people under evacuation order or warning. Over 12,000 structures have been destroyed or damaged, while more than 35,000 acres have burned. (Photo by Mario Tama/Getty Images)
In the months before thousands of Los Angeles homes went up in flames, property insurance companies dropped coverage in many neighborhoods of the city, citing the growing wildfire risks caused by climate change.
As a result, a fast-growing number of California residents have switched to a state-backed “last resort” insurance plan. That plan has taken on policies covering billions of dollars in some of the neighborhoods hardest hit by the fires, which have engulfed more than 12,000 structures and prompted staggering loss projections. Some experts think the plan’s reserves won’t be enough to cover the damage…