Justine Bateman, an author and filmmaker, said that homeowners in California are struggling to obtain property insurance following the withdrawal of insurers from the market. She made this statement in a post on X.
"A couple of years ago, insurance companies put in the necessary requests to the state of California to raise their rates," said Bateman. "So most of them pulled out of CA."
According to Axios, State Farm, California's largest home insurer, is experiencing significant financial challenges due to recent wildfires in Los Angeles. These fires have resulted in $7.6 billion in losses. As of March 2025, State Farm has paid out $1.75 billion in claims and is seeking a 17% emergency rate increase for homeowners to alleviate further financial strain. The California Department of Insurance supports this request pending further assessment, highlighting the immense pressure on insurers operating in high-risk areas. This situation underscores a broader crisis in California's insurance market, where escalating climate-related disasters are testing the resilience of even the largest insurance providers.
AP News reports that the January 2025 Los Angeles wildfires caused nearly $4 billion in losses and destroyed about 17,000 structures. In response, California's FAIR Plan, the state's insurer of last resort, required a $1 billion bailout. To fund this, insurers were permitted to charge policyholders a one-time fee to recover $500 million of the costs. However, Consumer Watchdog has filed a lawsuit arguing that the Insurance Commissioner exceeded his authority by allowing these surcharges without legislative approval. The Department of Insurance contends that the lawsuit could exacerbate the ongoing insurance crisis by limiting access to coverage, while insurers say that the surcharge is necessary to maintain the FAIR Plan's solvency amid increasing wildfire risks.
According to her website, Bateman is known for her Emmy- and Golden Globe-nominated work and her acclaimed directorial debut "Violet," which premiered at SXSW (South by Southwest) and TIFF (Toronto International Film Festival) in 2021. She is also the founder of CREDO 23, an anti-AI certification for film/TV projects, and the CREDO 23 Film Festival.