California insurer 'canceled hundreds of wildfire policies' in Pacific Palisades months before deadly blazes

One of the largest homeowners insurance providers, State Farm, reportedly canceled hundreds of policies in the Pacific Palisades region of Los Angeles County just months before deadly wildfires devastated the community.

Newsweek reported that the company justified the decision by saying the policies were canceled to avoid "financial failure" as the risk of wildfires continues to grow in the state. With the destructive fires still burning in the Los Angeles area local officials are reporting that over 1,000 structures have been destroyed so far, but that number is expected to rise.

Residents who have had their homes destroyed by the fire often count on their homeowners insurance policies to help them recover from the devastating loss and get back on their feet. For many residents of the Pacific Palisades that may now not be an option. The Mirror US reached out to State Farm for comment outside of operating hours but did not immediately hear back.

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Many insurance companies have begun to flee the Golden State as the risk of wildfires continues to increase every year. This has caused many homeowners to resort to the state's FAIR Plan which serves as a last resort for residents who cannot find coverage from private insurance companies due to being in at-risk areas. The FAIR Plan has more than doubled the number of policies between 2020 and 2024 reaching a total of 452,000, as reported by CapRadio.

The death toll from the destructive Los Angeles wildfires has been updated from two dead to five dead, according to local officials.

The identity of the victims have not been revealed as of yet. Local officials say that 1,000 structures have been destroyed as a result of the fires but that number is expected to rise. Five fire are currently burning in the greater Los Angeles area, according to CALFire. The two largest fires, the Palisades and Eaton Fires have burned over 25,000 acres combined.

Many of the towering fires began Tuesday and were fueled by powerful Santa Ana winds, which gusted to more than 70 mph (112 kph) in some spots. The winds persisted Wednesday and for a while made it too dangerous for aircraft to attack the fires from the sky, furthering hampering their efforts. Aerial firefighting resumed Wednesday morning.

California Gov. Gavin Newsom said on Wednesday that 1,400 fire personnel had been deployed to help battle the blazes and Oregon is reportedly sending 240 firefighters and 60 engines to the state to assist. Los Angeles Fire Department asked all off-duty firefighters in the city to help.

AccuWeather estimates $52 billion to $57 billion in preliminary damage and economic loss has occurred from the fires.

At least 70,000 people were ordered to evacuate — a number that kept changing because evacuation orders were continually being issued.