LA wildfires highlight nation's insurance crisis as homeowners try to recover lost homes

abcnews.go.com:

The nation’s growing home insurance crisis is in the spotlight as California homeowners begin the long road to rebuilding after the deadly Eaton and Palisades wildfires

The nation’s growing home insurance crisis is in the spotlight as Californians begin the long road to rebuilding after the deadly Eaton and Palisades wildfires.

For neighbors Louise Hamlin and Chris Wilson, the difference in insurance coverage on their nearly identical homes in Altadena reveals how unequal that recovery will be.

Hamlin was privately insured and has already been paid out nearly a million dollars. She is searching for contractors to rebuild her house.

Wilson will receive a fraction of what he needs because he was covered by the California Fair Access to Insurance Requirements Plan — the state’s bare-bones insurance program known as the FAIR Plan. He is contemplating loans, lawsuits and moving his family out of California.

The plan is a temporary coverage option created by the state as a last resort for homeowners who can't find private insurance. More Californians are relying on it than ever after several major insurance companies either paused or restricted new business in the state in recent years.

In Wilson’s case, his private insurer declined to renew his policy last year although he offered to install various fire mitigation efforts. No other insurers were willing to write him a new policy, forcing Wilson to get on the FAIR Plan to satisfy his mortgage requirements.

The number of FAIR residential policies issued in the state more than doubled between 2020 and 2024, reaching nearly 452,000 policies.

Under the FAIR Plan, Wilson paid about 60% more in premiums related to the fire than Hamlin, though he is slated to receive less than