Homeowners in California’s mountain towns are also among the millions left in the lurch after extreme weather causes private insurance companies to abandon them and turn to expensive state-funded plans as a last resort. He’s an American.
what’s happening?
As detailed by The New York Times, communities in the San Bernardino Mountains are facing an insurance crisis as climate change increases the risk of wildfires and snowstorms.
California has a law that prohibits insurance companies from canceling policies for 12 months after a wildfire affects a homeowner’s area, but many private companies end up abandoned. According to state data cited by the news publication, 75% of homeowners in the area are enrolled in the state’s Fair Access to Insurance Requirements (FAIR) plan.
Dawn Rowe, a regional representative for the San Bernardino County Board of Supervisors, told the Times that FAIR’s high premiums are unaffordable for some homeowners, leading to some living without insurance. He said some people are trying to sell their homes and seek refuge elsewhere.
“It’s terrible,” Lowe said, explaining that insurance costs are a top concern for voters.
Why is this a concern?
Residents of the San Bernardino Mountains are among the growing number of Americans facing displacement as insurance premiums soar due to extreme weather events caused by climate change.
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Average property insurance premiums have increased more than 30% since 2020, with homeowners in areas vulnerable to natural disasters like hurricanes and wildfires paying the most, according to the National Bureau of Economic Research (NBER). .
Unfortunately, as the NBER points out, relief is unlikely if current trends continue, as rising global temperatures are intensifying extreme weather events. This increases the risk for insurance companies, forcing them to raise premiums or withdraw from high-risk areas.
What can we do about this?
San Bernardino County, home to popular tourist destinations such as Big Bear Lake, still draws residents seeking an escape from city life, but the county is “bearing the brunt” of the Golden State’s insurance crisis. ” explained Ricardo Lara, state insurance director. to the Times.
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Lara added that California law prohibits canceling insurance policies for up to a year after a fire, which created “much-needed breathing space.” But he said he is still working on regulations that would further improve the state’s insurance market.
Meanwhile, scientists overwhelmingly agree that a transition away from dirty fuels is important, even if it will take time to bring the planet’s temperature back into balance. According to the United Nations, gas, oil and coal account for more than 75% of global warming pollution.
Learning about greenwashing and using your purchasing power to hold companies accountable for their polluting decisions is a powerful step toward contributing to a safer, cleaner future.
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