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Home / Posts / California's Insurance Crisis After Wildfire

California's Insurance Crisis After Wildfire

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6. The Reinsurance Cost

California's Insurance Crisis After Wildfir_7

The new regulations allow insurers to pass on the cost of reinsurance to consumers, although at an amount that can't exceed an industry standard. Reinsurance is insurance for insurance companies, helping them spread risk. California was the only state that did not allow these costs to be included in rate calculations, which may now lead to increased premiums for homeowners.

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