Homeowners scramble as thousands of homes are suddenly deemed uninsurable: ‘Unprecedented severity’

In California’s most extreme wildfire zones, 1 in 5 homes has lost its insurance coverage since 2019, Forbes reported.

What’s happening?

Over 150,000 households can no longer get coverage. In some ZIP codes, premiums have jumped over 40%. This is because insurance companies are fleeing high-risk fire zones across North America at an alarming rate.

After Los Angeles was engulfed in flames in January, insurance companies paid out more than $44 billion in claims. State Farm alone took a $7.6 billion loss, and California’s state-subsidized FAIR plan, which is supposed to be the insurer of last resort, took a $4.8 billion hit and is now buckling under the pressure.

Since 2018, over 30,000 households in California’s high-risk fire zones have had insurers that declined to renew their policies. Many never got a replacement policy at all.

Researchers from the Hong Kong University of Science and Technology and Sejong University said global fire risk data shows “the likely occurrence of wildfires with unprecedented severity.”

Why is a lack of home insurance coverage concerning?

Homeowners need insurance to get mortgages, and without mortgages, property values drop.

The root cause is human activity. The burning of dirty energy sources creates planet-overheating pollution that warms Earth. This leads to what scientists call “hydroclimate whiplash,” wherein years of heavy rainfall create dense vegetation, then sudden drought turns that growth into kindling.

Add record temperatures, early snowmelt, and wind, and landscapes become fuses waiting for a spark. Fire Weather Index anomalies across North America show levels of risk unseen in over a decade.

The situation creates a feedback loop that makes things worse. Fires don’t just destroy property; they release carbon into the atmosphere. In 2023, Canadian wildfires released more carbon than the oil and gas industry, transportation, buildings, or heavy industry. That carbon speeds up warming, which raises temperatures and drives more fires.

People who lose private insurance turn to state-backed plans, which offer less coverage, higher deductibles, and fewer protections. These plans are expensive, incomplete, and dangerously overstretched.

What’s being done about home insurance coverage?

Communities worldwide are taking action to reduce fire risk and protect residents. Local policies help reduce factors that contribute to extreme weather patterns, while governments are working to create firebreaks and defensible spaces around homes.

If you live in a fire-prone area, clear vegetation at least 30 feet from your home, use fire-resistant landscaping, and consider upgrading to fire-resistant roofing materials.

Contact your representatives and voice your support for policies that accelerate the shift away from dirty energy sources. Installing solar panels or choosing renewable energy options through your utility company reduce the pollution that makes weather events more damaging.

Building codes are evolving to require fire-resistant materials in high-risk zones. Some states are exploring new insurance models that spread risk across regions while maintaining coverage for vulnerable communities.

Join our free newsletter for good news and useful tips, and don’t miss this cool list of easy ways to help yourself while helping the planet.