A recent rule change could cause a spike in insurance premium for homeowners across California, as the costs of the Los Angeles area wildfires are passed onto them in a way that was not allowed in the past.

"Californians deserve a reliable insurance market that doesn't retreat from communities most vulnerable to wildfires and climate change." California issues new mandate that will have a major impact on homeowners' insurance: 'This is a historic moment' first appeared on The Cool Down.

Note that policy costs in these high-risk states, minus California, averaged $5,040 – roughly 150% more than Golden State prices. And the 48-state average policy of $3,200 is 50% above California’s cost. Insurance companies are not saints, but you want them to be profitable.

The California FAIR Plan, the state’s insurer of last resort, had just $377 million available last week to pay claims that could reach billions, officials said.

Many LA homeowners were dropped by their insurance companies a year before the fires. Is there a better way to make the insurance industry more affordable and sustainable?