Published 15:18 IST, December 25th 2019
Wildfires pose threat in California property insurance market
The California wildfires have posed a threat to the property insurance market. Kent Michitsch, 57, a resident of San Diego, CA has been facing challenge.
The California wildfires have posed a threat to California property insurance market. Kent Michitsch, 57, a resident of San Diego, California has been facing a challenge to insure his home that he’s lived in for more than 30 years as the property insurance market reels from three consecutive years of destructive wildfires. He has received three non-renewal notices in three years and said that he fears getting the fourth one when his policy will come for renewal in the middle of next year. He is pretty much worried and frustrated as he has to look for a new policy next year again. Several homeowners have lost their insurance policies in the last few years as they give up the areas that are at risk of fire damage.
$13.5 billion agreement
Meanwhile, California based electricity producer PG&E stated that the company had reached a $13.5 billion agreement to solve claims by all those who were affected in the 2017, 2018 wildfires and the butte fire dating back to 2015. According to reports, PG&E stated that they had come to an agreement with all the significant groups such as the TCC (Official Committee of Tort Claimants) and with law firms representing individual claimants. CEO of Pacific Gas and Electric company, Bill Johnson, said that after having achieved such a milestone, the focus of the company was to rise up to the expectations of both customers and communities. According to reports, the settlement between the company and claimants is subject to certain conditions and requires a green light from the United States Bankruptcy Court.
Corrective measures of the company
PG&E has previously reached a $1 billion settlement with claimants such as cities, public entities, and counties and also an $11 billion settlement with insurance companies in relation to the devastating 2017 and 2018 wildfires in the state of California. The company had reportedly turned off power to some customers across the region as a precaution after extreme winds and dry weather had raised the risk of wildfire. However, a utility spokeswoman told an international media that Edison had not de-energize any power for the Saddleridge fire area.
Updated 15:18 IST, December 25th 2019