While the state is facing record-melting heatwaves, State Farm wants to increase insurance rates, which would “affect millions of California consumers”
Death Valley’s Deadly Heat
Image Credit: Shutterstock / reisezielinfo
If weather forecasters are to be believed, this weekend could see Eastern California’s Death Valley either tie or shatter a heatwave record.
This comes after the National Weather Service’s Chris Outler reports that Death Valley National Park could sizzle up to 130 degrees by next week.
Hell on Earth?
Image Credit: Shutterstock / Piyaset
According to Scientific American, should it exceed 130 degrees, Death Valley will hold the record for the hottest temperature ever “reliably measured on earth”.
Speaking to USA Today, Outler said “The threshold is certainly not out of the realm of possibility”.
A Sweltering Summer
Image Credit: Shutterstock / Vezzani Photography
The current predictions are that Death Valley will hit 127 degrees by Saturday, jump two degrees by Sunday, and then (according to a 20% chance) increase to 130 degrees.
Don’t Forget Coachella
Image Credit: Shutterstock / aleks333
Although Coachella Valley is about 300 miles south, its residents might also suffer some excessive temperatures, as predictions point to about 11 straight days with temperatures of at least 115 degrees, the Desert Sun (which forms part of the USA Today Network) reports.
Melting Heat Records
Image Credit: Shutterstock / rblfmr
The weather service warns that would smash the former record of nine days of at least 115 degrees which was set in 2021.
And in the Central Valley, Fresno is expected to reach 115 degrees by Saturday, which will tie a current record.
What Will It Cost?
Image Credit: Shutterstock / Bacho
California Insurance Commissioner Ricardo Lara has released an in-depth report, named “Impacts of Extreme Heat to California’s People, Infrastructure, and Economy”.
Described by Lara’s team as pioneering, the report examines the uninsured and insured costs related to the state’s extreme heat events while emphasizing the crucial need for adaptive strategies that can combat the rising threat of extreme heat.
Billions?
Image Credit: Shutterstock / Freedomz
Based on Lara’s report, the increasing cost of the seven heat events examined is originally estimated at $7.7 billion. The study also found that labor productivity losses fluctuated between $7.7 million to $210 million per event due to extreme temperatures, with considerable uninsured wage losses.
Damaging Infrastructures
Image Credit: Shutterstock / Dudarev Mikhail
In addition, infrastructure costs because of heat-related damage and delays varied between $3.8 million to $35 million per event, with roads and railways mostly affected.
People’s Health
Image Credit: Shutterstock / eldar nurkovic
It was also found that health outcomes disproportionately affected Black-, Hispanic-, and Native American communities, with substantial death rates and heat-related illnesses reported.
A Silent Killer
Image Credit: Shutterstock / New Africa
According to Lara: “Extreme heat is a silent, escalating disaster that threatens our health, economy, and way of life in California. This report brings to light the staggering hidden costs of extreme heat events, underscoring the urgency of our efforts to create a groundbreaking heat wave ranking and early warning system statewide”.
Heat Protection?
Image Credit: Pexels / Mikhail Nilov
Lara continued: “We must prioritize resilience-building efforts and innovative insurance solutions to safeguard our state against the growing impacts and financial risks of extreme heat.”
Mind the Gap
Image Credit: Shutterstock / Andrii Yalanskyi
Although certain insurance types, like health cover, workers’ compensation, and crop insurance, offer some protection, there are still substantial gaps in traditional insurance coverage when it comes to heat-related losses.
Lara’s report emphasizes the need for innovative insurance mechanisms and expanded investment in adaptation and resilience.
Hiked-Up Rates
Image Credit: Shutterstock / Doubletree Studio
Lara is also questioning the recent request of insurer State Farm General’s notable insurance rate increase – a move which Lara states does “raise serious questions”.
The Biggest in Seven Years
Image Credit: Shutterstock / PanuShot
State Farm is seeking to boost homeowners’ rates by 30%, 36% for condo owners, and 52% for renters. Should these increases be approved, it would mark the most substantial increase for the company over a seven-year timespan.
Impacting Millions
Image Credit: Shutterstock / Monkey Business Images
According to Lara, “This has the potential to affect millions of California consumers and the integrity of our residential property insurance market.”
To Be Investigated
Image Credit: Shutterstock / Jirapong Manustrong
Lara says he and his team want to “get to the bottom” of State Farm’s financial position, which is why they will conduct an in-depth review before deciding on the applications.
What’s Happening?
Image Credit: Shutterstock / Inside Creative House
This comes after State Farm announced earlier this year that about 30,000 homeowners’-, rental dwelling-, and other property insurance policies won’t be renewed as part of the company’s partial withdrawal from the California market.
About 42,000 commercial apartment policies are also facing non-renewal.
Wake up and Smell the Heat
Image Credit: Shutterstock / Salivanchuk Semen
Referring to the report drawn up by Lara and his team, Kathy Baughman McLeod, chief executive at Climate Resilience for All and member of the California Climate Insurance Working Group, has stated: “The data presented in this report is a wake-up call that we need immediate measures to protect lives. The far-reaching consequences of extreme heat require coordinated action across all sectors to accelerate equitable adaptation”.
Getting Worse…
Image Credit: Shutterstock / Sergey Nivens
California’s State Director at Environmental Defense Fund Katelyn Roedner Sutter also said: “As climate change intensifies, the costs of extreme heat on our health, lives, and economy are growing. It’s absolutely critical for California to monitor and reveal the enormity of otherwise hidden costs”.
Action Must Be Taken
Image Credit: Shutterstock / Salivanchuk Semen
Sutter also added: “Anyone who says California cannot afford climate action should flip through this report to learn why doing nothing is not an option”.
Oil Dumping Scandal Rocks Ships Heading to New Orleans
Image Credit: Shutterstock / Aerial-motion
Two shipping companies have been fined after knowingly hiding a large oil spill in the Atlantic Ocean. Oil Dumping Scandal Rocks Ships Heading to New Orleans
20 Eye-Opening Realities Facing Retiring Baby Boomers
Image Credit: Shutterstock / Jack Frog
As Baby Boomers approach retirement, the promise of leisure and security often seems unattainable. This generation faces unique challenges that could redefine retirement. Here’s a stark look at the realities shaping their outlook. 20 Eye-Opening Realities Facing Retiring Baby Boomers
Retail Apocalypse: Massive Closures Sweep Across U.S. Brands
Image Credit: Shutterstock / Tada Images
Stores across the U.S. are closing at unprecedented levels, according to new research from advisory firm Coresight Research. Read on for more information about the impact this could have on you and your communities. Retail Apocalypse: Massive Closures Sweep Across U.S. Brands
The post “Wake-Up Call” – California’s Extreme Heat Will Burn Millions of Residents With Blistering Bills as Temperatures Break Records first appeared on EcoHugo.
Featured Image Credit: Shutterstock / Tom Wang.
For transparency, this content was partly developed with AI assistance and carefully curated by an experienced editor to be informative and ensure accuracy.
