Markets are fickle creatures. When governments try to intervene and mess with the markets, the markets tend to mess back. The wildfires breaking out in Los Angeles County are heartbreaking to watch from both a human and prepper's perspective. We see first responders putting it all on the line to save as many people and structures as they can. We also see thousands of individuals who thought they were prepared because they had insurance. 

Long prior to the fires, many national insurers were pulling out of the California market because the risks were too high. The market was telling them that the risk was not worth the reward. The California Department of Insurance created the California Fair Access to Insurance Requirements plan which was an insurer of last resort for those who cannot obtain private insurance. As the damage estimates come in, it looks like Fair Plan will now be on the hook for over $20 billion in losses. Over the past summer, FAIR Plan President Victoria disclosed the insurer had only $385 million in unreserved funds to pay such claims. Disaster comes in many forms and this is an unmitigated disaster for homeowners in California. 

California Fair Plan Fire Insurance May Break the Bank

While we are not an expert on insurance companies or the insurance market, we skeptics of institutions in which people place their entire faith for survival. We have no more faith in California Insurance Commissioner Ricardo Lara than we do the President of the United States when it comes to saving the day. 

While there are countless private insurers who are going to be left with a hefty bill, it does seem that the Palisades Fire is going to hit the Fair Plan the hardest. There different actions that the plan can take depending on how much insurance it took out on itself, but there does not seem to be a clear path towards every homeowner being fully reimbursed for the total devastation. 

Any broker of insurance policies will tell you that homeowners insurance is meant for catastrophic loss. It's not to cover the cost of a leaky roof or repair cracked foundation. Unfortunately, insurance in California has become subject to massive catastrophic loss for which it was not prepared. Namely, the institution may fail and that is a lesson for every survivalist and prepper in the land. 

Image source: Los_Angeles_Times

California Residents Living Through a Wildfire Apocalypse

First off, let's just take the wildfire from a survivalist standpoint. The Palisades Fire tore through expensive real estate and the homes of celebrities and millionaires alike. For all that money, we're willing to bet that very few were truly prepared for this day. 

Here at MIRA, we sell a wide range of gas masks and respirators that would have been able to assist the celebrities with their evacuations. Any product we sell would have been able to handle the smoke and noxious fumes pouring through the L.A. skyline and every single one is within the budget of people who can afford those homes. 

Yet, the amount of faces we saw in the news uncovered or with a simple face mask was astonishing. Yes, there has been much written about the fact that firefighters and officials were unprepared for this threat. That goes back to institutions failing us. 

However, what is clear is that there were survival failures on the individual level and those happened at scale. There is something about money that just makes people think that someone will always be there to save the day. We know that we live in the survival space and so we think this way often. However, the speed and scale of this disaster should be a wake up call for everyone. 

Image Source: Unsplash_Ross_Stone

The California Department of Insurance is Not Coming to Save the Day

Back to the insurance coverage disaster in California, we see an equal sense of complacency that somehow California homeowners are going to be saved. We already spoke about how many insurers are pulling out of California. In fact, State Farm dropped thousands of home insurance policies in the Palisades area this past July according to CBS news. 

Fire insurance in California is quickly becoming untenable. Even in areas not affected by the fires, insurance brokers need to start preparing their customers for the fact that they are about to foot the bill for this crisis. 

The Fair Plan Policy was put in place because private insurers recognized this untenable risk. In many ways, traditional insurance called the shot early. Insurance coverage was then given to those at high-risk for a low cost and in walks the $20 billion dollar disaster we seeing unfold. 

If you are a homeowner, you have to take aggressive action to make sure you have the right policy. You have to take the initiative to ensure your voice is heard. You'll have to fight tooth and nail to get every dollar you deserve. Please, do not wait on your insurance provider to demonstrate that they are loving good guy they show you in the commercials. Jake from State Farm is not coming to save the day. 

Source: Pexels.com Kurt_Hudspeth

Good Intentions Like the Fair Plan Policy Rarely Win Out in a Survival Scenario

That's enough about the industry and we'll circle back to what we do best here at MIRA Safety. We get the intent behind providing affordable residential insurance and the intent was noble. It was just a disaster waiting to happen. 

So it is with many survival scenarios or disasters. Intentions matter little when the fight for life is on and only how you have prepared matters. Looking at the news coverage and seeing bumper to bumper traffic while the fires raged around them was frightening. 

That's what happens when you wait on officials to tell you when to evacuate and everyone else has the same good idea and the same time. When a wildfire breaks out, you need to be ready to bug out at least one level before the officials tell you to. 

When they give you Level 1 "Be Alert" orders, you don't sit there and keep watching the news. No, you start getting ready to live then. Collect up the pets and valuables and standby. When they give you Level 2 "Get Ready to Go", you need to be on the road moving. 

If you wait until you get a Level 3 "Go now" you are going to be in the middle of the traffic and potentially the fire with everyone else who had the same good intentions of obeying to the letter of the order. Please, we're begging you with tears in our eyes, seize the initiative when it comes to the safety of your own family. 

Preparing for a Wildfire is More Simple Than You Imagine

Since we don't have many suggestions to offer on insurance industry, we're going to stick to helping you prepare for such an evacuation. Wildfires in California are occurring with regular frequency and preparation is only prudent. 

There are those who think keeping a full tactical gas mask on you at all times is overkill as you're just not build to prep like that. Ok, fine. We disagree, but fine. However, every single homeowner has the ability to keep a Tactical Air-Purifying half face respirator in the home or car. 

It doesn't make you look like some tactical operator who will scare the public. When there is a wildfire burning in your neighborhood, wearing one of these just makes you look smart. It helps you and your family breathe so that you can make better decisions during evacuation.

We even sell masks for children and infants. It is some kind of hell for a parent to have a mask for themselves and realize he has to take is six month old baby out in the smoke unprepared. Don't forget the little ones. How serious are we about preparing for the day most people dread? We've got an ark for your furry loved ones as well. 

This is not overkill. The people who lived in those multi-million dollar homes on the beach have spent untold sums of money pampering their kids and their pets. Never once did occur to them to spend a fraction of that money keeping them safe during a wildfire. People just don't think that it can happen to them. It happens and if you are in high-risk areas, the time to get ready is now. 

SSource: mirasafety.com

Prepare and Find Fire Insurance Now

Look, we don't know what is going to happen to the  insurance market in California. We just know that it doesn't look good and some of the institution people rely on may not be coming to save the day. That's why we encourage of all readers to prepare for every scenario.

Check your coverage now and see how likely it is that you could get dropped. Go ahead and budget in some increases in your premiums, because they are coming. If you lost your home during the fire, get aggressive with ensuring you receive the proper benefits. Be active, prepare for the fight that is coming. 

As for everyone else, please don't let us see you on the news with a make shift early COVID area mask while trying to escape a fire. Please don't wait for Level 3 Go Now to get out dodge. Seize the initiative for your own family's safety. Prepare, practice, train, and then prepare some more. The day most people dread is closer than you think. Our prayers go out to all those affected by fires as it is your safety that fuels what we do here at MIRA Safety.