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Consequently, it is likely that those living outside California will feel the residual effects of this crisis. As underwriters try to manage increased rates, individuals may see their own insurance premiums rise. Reports indicate that some policyholders have experienced increases anywhere from 20% to 45% in their rates, while others have even reported tripling costs.

Looming Economic Implications

The fires in LA have already been estimated to cause over $10 billion in damage. The reality is that once assessment begins, this figure could balloon. The concern is who will ultimately shoulder this financial burden. California's laws protect its residents in some ways, but the rest of the United States may bear the brunt of increased premiums as insurers adapt to the financial strain.