The Los Angeles wildfires have caused widespread destruction: more than 100,000 acres have burned, 12,300 buildings have been destroyed, and thousands have been displaced. According to AccuWeather estimates, the financial impact is between $250 and $275 billion.
President Joe Biden recently declared, “I told the governor and local officials to spare no effort,” pledging federal support for disaster relief. With FEMA and other organizations providing emergency relief, this destruction still begs the crucial question: Who will pay for it?
Don’t miss:
As Business Insider reports, the federal government is providing immediate response efforts, including firefighting and emergency shelters. FEMA provides displaced families with risk mitigation and financial assistance, but these programs are not designed to completely rebuild homes or businesses. Private insurers and residents are largely on their own.
However, insurance coverage becomes a major obstacle. Companies like Allstate, State Farm and Farmers have done so recently stopped breeding in high-risk areas, citing increasing disaster risks. Many residents rely on California’s FAIR plan, the state’s last resort. This often results in higher premiums and less comprehensive coverage, leaving homeowners with high out-of-pocket costs.
See also: ‘Scroll to UBI’ — Deloitte’s fastest-growing software company allows users to make money on their phones. You can invest today for just €0.26/share with a minimum of €1000.
For uninsured residentsreconstruction is not only a challenge, but also financially crippling. And while state and local governments are providing some support, the long-term recovery depends largely on personal finances and private contributions.