The devastating Los Angeles County fires have exposed California's deepening home insurance crisis, leaving many homeowners vulnerable and uninsured. Among the hardest hit was Pacific Palisades resident Francis Bischetti, who faced skyrocketing premiums when Farmers Insurance increased his annual policy from $4,500 to $18,000. Unable to afford the hike or comply with fire-prevention mandates like tree removal, Bischetti chose to forgo insurance entirely, or “go bare.” Tragically, his lifelong home was among the 10,000 structures destroyed. “I’ve grown up and lived here off and on for 50 years. I’ve never in my entire time here experienced this,” he reflected.
California's insurance market has been under strain as companies like State Farm, Chubb, and Allstate reduce wildfire risk exposure. State Farm alone declined to renew 30,000 policies statewide. The California FAIR Plan, a last-resort insurance option, now covers over 450,000 policies—double its 2019 numbers—but often provides insufficient coverage. FAIR Plan’s liability for Pacific Palisades alone approaches $6 billion.
Eighty-three-year-old Peggy Holter’s condo burned down in the fires, leaving her unsure about rebuilding. State Farm had not renewed her individual insurance, and her homeowners’ association’s FAIR Plan policy only covers $20 million for the entire complex, far below market values. Holter lamented the loss of personal mementos: “I had a picture of my mother on a camel in front of the Sphinx.”
Altadena resident Matt Knight faced similar challenges when Safeco Insurance refused to renew his policy despite extensive home repairs. Knight eventually secured coverage with Aegis Insurance but found his policy grossly inadequate. When the Eaton fire threatened his neighborhood, Knight and his neighbors battled flames with garden hoses until water supplies ran dry. “The whole neighborhood was there grabbing hoses and fighting fires,” he said.
Bischetti’s experience exemplifies the mounting toll on fire victims. After futilely trying to save his home, he escaped through black smoke and learned later that his block had been leveled. He lamented the loss of family photos and musical instruments but expressed hope, saying, “That was the last hurrah.” Bischetti and others now rely on FEMA aid to rebuild their lives amidst California’s insurance crisis.
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