The horrific string of wildfires that has plagued California in recent years, taking dozens of lives and destroying many billions of dollars in property, also created a crisis in property insurance.

Some insurers have abandoned California altogether, some have refused to take more clients, many have sought premium increases and the state’s insurer-of-last-resort, the FAIR plan, has seen so much new business that its long-term solvency is in doubt. Meanwhile, fire victims often complain that insurers and their adjusters are low-balling settlement offers.

Obviously California’s property insurance market needs reform of some kind to improve its viability, but it’s an infinitely complex mélange of financial risks and rewards, truly understood by only a few experts.

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