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Historically, many have found their claims denied or significantly underpaid, regardless of the insurance policies they held. The fires in California are expected to create one of the largest insurance payouts in history, but unfortunately, this could lead to more financial pain for policyholders as companies begin to impose additional costs across the nation.

Legislative Hurdles and Challenges

California has laws in place aimed at preventing insurance companies from raising rates excessively or price gouging its residents. However, many companies are struggling to manage the losses they incur with each wildfire season. This has led to numerous companies pulling out of California altogether, effectively forcing the remaining insurers to balance their risk across the entire nation.