After homes across the street were destroyed by the fierce flames of the Palisades Fire three months ago, Alex Markarian was thrilled to find his house was still intact.
When Markarian stated, “The house is damaged, The fire actually got very close and singed part of the house.”
Nearly everything inside Markarian’s house was damaged, yet it was still standing. He anticipates that State Farm, his 15-year insurer, will cover the cost.
However, three months later, he’s anxious since he hasn’t received much money yet and worries about the future.
“I am worried about keeping home insurance after this is all said and done,” Markarian stated. “Will State Farm, or any insurance company, still insure us and, number two, will I be able to afford that insurance?”
Strong winds caused a string of wildfires in the Los Angeles area in January that destroyed over 16,000 homes and buildings, turning most of the Altadena and Pacific Palisades communities to ash.
According to State Farm, the biggest property insurance company in California, it anticipates paying out over $7.5 billion in claims.
State Farm stated in an emergency hearing on Tuesday that it must increase insurance premiums throughout the state by 15% to 38% “to continue to operate in California for the long term.”
When questioned about the justification of State Farm’s proposed rate increase for California, Democratic Senator Adam Schiff stated that, “I would like to leave that to the state legislative committee, but you know, a lot of these insurance companies, I think, are looking simply to maximize their profits.”
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“Right now, my focus is on making sure that people who did have insurance get their claims speedily addressed by those insurance companies, that the insurance companies aren’t going to play rope-a-dope with people who were victimized by these fires, but also that we’re making the kind of systemic changes necessary to make sure that we can afford to insure our homes and small businesses,” Schiff stated.
Schiff’s first measure as a senator, which would establish a federal tax credit to reimburse homeowners who modify their homes to make them more disaster-proof, was introduced on Tuesday.
“It’s certainly not going to be the end all answer to the insurance crisis, but because it will make homes more resilient against fire, it will make it more possible, and I hope, to reduce the cost of insurance,” Schiff stated.
Source: CBS News
