Tyler Perry slams insurance firms for abandoning LA wildfire victims
What's the story
Acclaimed filmmaker and actor, Tyler Perry, has publicly called out insurance companies for canceling "millions of policies" in Los Angeles, just before the catastrophic wildfires. On Instagram, he shared the story of a woman who was forced to use a garden hose to protect her elderly parents' home after their insurance was canceled. He asked insurance companies if it's ethical to profit from communities and leave them in times of crisis.
Statement
'People left with nothing because of pure greed': Perry
In his Story, Perry said, "Does anyone else find it appalling that insurance companies can take billions of dollars out of communities for years and then, all of a sudden, be allowed to cancel millions of policies for the very people they became rich on?" "People who have paid premiums all their lives are left with nothing because of pure greed," he continued, adding, "I am keeping everyone in my prayers."
Solidarity
Perry pledged support amid ongoing LA wildfires
Perry, who is now looking for ways to help those impacted, stood in solidarity with the victims of the Palisades and Eaton wildfires. The fires have caused severe property loss for many Los Angeles residents, including those without insurance. According to the Los Angeles Times, State Farm General Insurance announced in March 2024 that it would not renew 30,000 home and condo policies once they expired.
Policy halt
Insurance firms' withdrawal amplified residents' woes
The Times also noted that Chubb Insurance refused to sanction new policies for high-value properties in fire-prone areas. Other companies like Allstate, Tokio Marine America Insurance Co., and Trans-Pacific Insurance Co. also reportedly stopped offering policies in California. This mass exodus of insurance services has further complicated the problems of residents in the wake of the massive wildfires. Unlike other insurance companies, Mercury Insurance made itself available to former customers of these firms.
Moratorium
California imposed a moratorium on policy cancelations post-wildfires
In the wake of the crisis, California Insurance Commissioner Ricardo Lara exercised his authority to suspend all policy non-renewals and cancelations from insurance companies for a year. He also announced plans for free insurance workshops in Santa Monica and Pasadena. However, US insurance stocks fell as analysts estimated that the insurance costs from the wildfire could exceed $20 billion.