Experts warn Los Angeles fires will impact insurance coverage in the future

SAN DIEGO (KGTV) — One expert said while the wildfires are being put out, insurance for homes, condos, and rental units is going to be difficult to secure. This is in light of the moratorium issued by California Insurance Commissioner Ricardo Lara Friday.

Bạn đang xem: Experts warn Los Angeles fires will impact insurance coverage in the future

Lara announced that insurance companies won’t be able to cancel policies for some existing southern California homeowners.

Destruction leading to a total loss has already put a strain on a vulnerable insurance system where providers are continuing to leave the state.

Xem thêm : California aims to expand insurance coverage in fire-prone areas with new rules

One expert said the fires may continue to encourage the mass exodus of insurance providers.

“This situation has been brewing for the last three years heavily,” said Chris Kleitsch, an insurance agent. “Most of the carriers that were going to leave have left, all of the major name players are gone. The direct insurers, the independent agency insurers, most of the quality I would say preferred carriers have left California already. A new crop of carriers were coming in and starting to take up some business, but this fire in the sheer magnitude is going to scare anybody away.”

California Insurance Commissioner Ricardo Lara is trying to fight back. Lara issued a moratorium Friday to prevent homeowner cancellations and non-renewals with the perimeters or adjoining zip codes of the Palisades and Eaton fires.

Kleitsch said that moratorium should be issued for the entire state of California. He also said right now, people should call Lara’s office for that reason.

Xem thêm : Insurance experts predict billions in California wildfire losses

“It’s going to be heavy duty. Just it’s going to blow up in California’s face,” said Kleitsch. “It’s finally here, it’s been heading that way for a while. But we’re here now. And when the fires go out and the people start getting back into their houses and see the damage and call their agents, it’s probably going to be difficult. It’s going to be really sad.”

Kleitsch said there are practical steps people can take right now.

“Get on the web and start searching agencies that say that they have homeowners insurance, and its going to be renters insurance, its going to be homeowners, its going to be condos, you know, if you own rental units, coverages are going to become impossible to secure,” said Kleitsch. “And the scary thing is, it’s at any cost.”