(NewsNation) — California is battling not only wildfires but also looting, price gouging and challenges with insurance companies.
Law enforcement officers have arrested more than 20 people on suspicion of looting in recent days. Los Angeles County Sheriff Robert Luna condemned the criminal activity, saying “it’s a despicable crime and you’re going to go to jail, bottom line.”
California Gov. Gavin Newsom announced Saturday he is doubling the National Guard presence to approximately 1,700 troops to combat devastating wildfires.
The expanded response includes more than 12,000 first responders and 1,500 pieces of firefighting equipment as multiple blazes continue to threaten the region.
‘Very dire’ conditions ahead for LA wildfires: Weather Service
The crisis is compounded by insurance challenges.
State Farm canceled 1,600 policies in Pacific Palisades last July, representing 70% of their coverage in the area.
In response, California has implemented a one-year moratorium on insurance companies canceling or failing to renew policies for homeowners affected by the Palisades and Eaton fires.
Total damage from the devastating wildfires scorching Southern California could amount to $135 billion to $150 billion, according to AccuWeather.
The wildfires were previously estimated to cost around $50 billion, $10 billion of which is expected to be insured, according to JPMorgan.
California Attorney General Rob Bonta warned residents about potential scams and price gouging, which is illegal during a state of emergency.
LA fire chief says city failed department amid ongoing wildfires
Officials advise residents to verify credentials and avoid paying for services upfront.
The insurance crisis extends beyond California.
A Senate report found companies are withdrawing coverage across the country, including in Iowa, Mississippi, Alabama, the Carolinas and New England states, leaving thousands of Americans unable to secure mortgages.
Insurers began dropping plans after 2017 and 2018 when back-to-back wildfires in California resulted in losses totaling $23 billion. Insurers paid out twice as much in claims as they received in premiums.
That has left major insurers reluctant to do business in the state. Allstate dropped its business entirely in California in 2023, saying it would come back if regulatory changes were made to protect its bottom line.
Insurance industry experts attribute the withdrawals to unprofitable risk levels in certain regions, creating a growing national housing accessibility challenge.
NewsNation’s Rich McHugh contributed to this report.
