When the Mountain Fire tore through Ventura County, it took only minutes to erase entire neighborhoods. Families who had lived in their homes for decades were left standing in ashes, sifting through remnants of their lives — jewelry melted to silver dust, family photos charred beyond recognition, heirlooms reduced to memory.
Among the victims were Kim and Lynette Wynn, sisters who lost their home in Camarillo in just 12 minutes. "I'm the sibling that keeps all the memories," Kim said tearfully. "All the heirlooms from my great-grandparents — everything's gone."
Their loss mirrors that of thousands of Californians who have watched wildfires consume not just their property but their sense of security. And while some families were able to rebuild thanks to their homeowners insurance, many others faced a devastating discovery: their policies had been canceled just days before the fire began.
"I feel for those folks," one survivor said. "How are they going to rebuild? We're talking hundreds of thousands — millions."
In a recent Insurance Hour appearance on FOX's On Your Side, insurance expert Karl Susman explained what's happening — and why more and more homeowners are being forced onto California's FAIR Plan, the state's insurer of last resort.
For many residents, the tragedy of the Mountain Fire began not with the flames, but with an envelope in the mail — a non-renewal notice from their insurance company.
"We're hearing from homeowners who lost their coverage just days before the fire," Susman explained. "That's becoming far too common."
California's insurance crisis has reached a critical point. Major carriers — including State Farm, Allstate, and Farmers — have paused or severely limited new policies in high-risk wildfire areas. Others are non-renewing existing customers whose homes fall within updated "risk zones."
Why? The financial math no longer works. Between inflation, construction costs, and back-to-back wildfire seasons, many insurers are paying out more than they collect in premiums. And under California's strict rate regulations (dating back to Proposition 103), companies can't easily adjust pricing to reflect today's escalating risks.
"This is the perfect storm," Susman said. "Carriers have been afraid of exactly this — fire after fire after fire — and we're living it right now."
While the Wynns lost everything, other families managed to rebuild thanks to robust coverage — but even they acknowledge how fragile that protection has become.
Take Lori Brennan, who rebuilt her Malibu home in just 1 ...
