When Insurance Companies Say Risky, Pay Attention

 1/13/25 NPR:

In recent years, insurance companies have begun using sophisticated computer modeling and artificial intelligence to calculate risk in fire-prone areas. That led several companies to stop writing new policies for homeowners and renters in places like Altadena and Pacific Palisades. Janet Ruiz, with the Insurance Information Institute, says, "They did have to restrict coverage so that when we have catastrophes such as the one in Los Angeles, they can pay claims."

Along with the destruction of lives and homes, the Los Angeles wildfires will also have a big impact on California's insurance market. Some estimates put insured losses from the fires at more than $20 billion.

California law requires insurance companies to hold reserves adequate to pay out claims even in a catastrophe such as these fires. For that reason, Dave Jones, a former California Insurance Commissioner, doesn't expect this event will push any companies into insolvency. Jones, who's now at UC Berkeley's Center for Law, Energy and the Environment, says, "It will be an earnings event for them as they say in the industry which means they won't make profits this year for sure.

But homeowners will also have to help pay for the fires.

Because insurance companies stopped writing new policies in these areas, many homeowners were forced to purchase coverage from California's FAIR plan. Often called the insurer of last resort, it's a plan created by the state and funded by the industry. Jones says so many homes in Pacific Palisades had coverage from FAIR, that it may run out of money. If that happens, the plan will impose a special assessment on home insurance policyholders across the state.

So even if you are one of the people who elect officials who understand that firefighting is an essential service, unlike DEI, you are going to get stuck with the bill for Los Angeles' incompetence.

 

Burglars Dressed As Firefighter

 1/12/25 Los Angeles Times:

Los Angeles authorities said they arrested 29 more people overnight in the fire zones, including one burglary suspect who was allegedly dressed as a firefighter.

Of the arrests, 25 people were apprehended in the Eaton fire zone, four in the Palisades fire zone, authorities said.

“We have people who will go to all ends to do what they do,” Los Angeles Police Department Chief Jim McDonnell said of a man dressed in a fire jacket and helmet burglarizing homes.

One man, who was driving a truck, was arrested in the Palisades area, the L.A. County Sheriff’s Department and LAPD said. Other suspects were found inside the vehicle. The men pretended to be associated with a fire station but a quick check with the L.A. Fire Department proved that not to be the case, officials said.

Sheriff Robert Luna said those arrested were not from the area and that some had firearms and drugs.

Say Something; Get Fired

1/10/25 Daily Mail reports that LAFD chief telling truth about underfunded department gets her fired by Mayor Bass

UPDATE: More recentreports indicate she expected to be fired but was not..

I Suspect the First Fires Were Accidents

But firebugs have a sexual thrill from doing so and I would not be surprised if some of the later ones were arson.  California State Parks press release:

"California State Parks announced today the arrest of a suspect on a charge of felony arson related to a brush fire that ignited on Jan. 8 near Leo Carrillo State Park (SP) in Los Angeles County. The region has been under a red flag warning, with severe fire danger intensified by powerful Santa Ana winds, which have fueled multiple destructive wildfires across Southern California.

"The suspect, Gloria Lynn Mandich, 60, was taken into custody on suspicion of starting the fire and booked into Ventura County Jail on a felony charge of arson under Penal Code 451(d). She is scheduled to appear in Ventura County Superior Court today."