From Wildfires to Travel Disruptions: The Growing Appeal of Parametric Insurance

February 5, 2025 — With wildfires still raging across California, discussing the long-term implications of this ongoing catastrophe — and the ones that came before — may seem premature. However, for homeowners in the Pacific Palisades, the road ahead highlights the growing challenges within California’s homeowner’s insurance system. Those who lost their homes may face months of waiting just for an adjuster, and over a year to settle with their insurer, only to discover that their coverage falls short of the full replacement cost. Even those who choose to rebuild may find their insurance policy dropped once the temporary, one-year moratorium on cancellations — imposed by the California Insurance Commissioner — expires.