Home Australia Australian man’s home reduced to rubble in LA fires – as his sister reveals the harsh truth few Aussies understand

Australian man’s home reduced to rubble in LA fires – as his sister reveals the harsh truth few Aussies understand

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Melbourne man and California resident Glen Whelan lost everything in the Los Angeles wildfires

An Australian living in California has spoken out after his home was destroyed in the devastating Los Angeles fires, while his sister pointed out key differences between the situation in California and what they would face in Australia.

Glen Whelan, 39, moved from Melbourne to California 10 years ago to live and work, but his home in Pacific Palisades was destroyed last week when wildfires swept through the city.

He recorded a video for his sister, Catherine Cruse, while rummaging through the rubble of their old home, showing that everything he owned had been reduced to ashes and rubble.

“He and his partner were left with nothing but the clothes they were wearing,” he said.

‘The insurance will only cover half of what they have lost. That’s if they pay.

“My heart breaks for him, we can’t replace all the memories he has lost.”

He said there was a significant difference between Australia and the United States during natural disasters.

“The United States is not like Australia, where our government will step in and provide emergency funding – they are on their own.

Melbourne man and California resident Glen Whelan lost everything in the Los Angeles wildfires

His house was burned by the fire and is now reduced to a pile of ashes and rubble.

His house was burned by the fire and is now reduced to a pile of ashes and rubble.

“They are currently staying in a hotel that is not sustainable and trying to find rental accommodation in a city where thousands of people are in the same situation.”

Tens of thousands of displaced Los Angeles residents have lost everything except the clothes on their backs and a few select personal items, leaving insurance companies on the hook for colossal settlements.

But customers of one of California’s largest insurers railed against the company last week after it dropped fire coverage for thousands of Pacific Palisades homeowners last summer in an attempt to avoid a “financial failure.” .

State Farm said in 2023 that it would stop accepting new homeowners insurance applications in California and then added last year that it would stop covering 72,000 homes across the state due to the increasing frequency and severity of wildfires.

Even if residents are still covered by insurance, they could face a $115 billion shortfall because insurance companies will likely only cover $20 billion of the $135 billion in estimated losses.

“The concern is not whether insurance companies will pay for damages, but how much and how long it will take,” Amy Bach, executive director of United Policyholders, a nonprofit consumer group based in California, told NBC.

“For people who lose their homes in these wildfires, there will be fights over coverage.”

The 39-year-old's home is one of thousands lost in the California fire, as authorities continue to battle the flames.

The 39-year-old’s home is one of thousands lost in the California fire, as authorities continue to battle the flames.

The Pacific Palisades in Los Angeles have been burning for more than a week as fires continue to wreak havoc on coveted California neighborhoods.

The Pacific Palisades in Los Angeles have been burning for more than a week as fires continue to wreak havoc on coveted California neighborhoods.

‘My concern is that the insurance companies cannot take care of all the claims and declare bankruptcy and that’s it. It’s scary,” said Los Angeles construction worker Ivan De La Torre, 32, whose uncle and sister lost their homes in a fire that consumed half of Altadena, a suburb of about 40,000 people north of Los Angeles. .

The fires could also keep upward pressure on insurance premiums in Australia at a time when many no longer have cover.

More severe and frequent natural disasters have been putting pressure on the global reinsurance market, which may have implications for insurance costs in the country.

Alix Pearce, general manager of climate, social policy and international engagement at the Insurance Council of Australia, says it is still too early to predict whether the Los Angeles fires will have cost implications for local insurance markets.

Thousands have lost their homes to the fires and almost 90,000 are under evacuation orders

Thousands have lost their homes to the fires and almost 90,000 are under evacuation orders

“However, the California wildfires have occurred against the backdrop of a global reinsurance industry that has already been affected by more frequent and severe extreme weather and rising inflationary pressures,” he said.

Sometimes described as insurance for insurers, companies purchase reinsurance from larger global firms to limit their losses in case they need to pay more claims than expected, such as when a natural disaster occurs.

Fires have devastated neighborhoods inhabited by the rich and celebrities in West Los Angeles.

The fires have devastated neighborhoods inhabited by the rich and celebrities in West Los Angeles.

Pearce said Australia remained well insured overall, but upward pressure on insurance premiums was particularly evident in high-risk areas of the country, reflecting worsening extreme weather, inflationary pressures, global reinsurance and supply chain shortages.

“These factors are widening the insurance protection gap, leaving more Australians vulnerable when a disaster strikes and putting greater pressure on government resources to respond,” he explained.

The latest figures report that 24 people have died in the three active fires: the Palisades fire, which is the most destructive in the history of Los Angeles, the Eaton fire, located northeast of the Palisades fire, and the Hurst fire, to the north. .

Rory Sykes, a 32-year-old Australian, died when his mother’s property in Malibu was destroyed by fire on Thursday.

Severe drought conditions, intense heat and strong winds have continued to intensify the destruction, with the flames now spreading across 116 square kilometers of the state.

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