An Op-Ed on Disaster: Insurance, Healthcare, and the Price of Inequality

"If you think your homeowners insurance covers natural disasters, it probably doesn’t."

This sobering line from @Your.RichBFF’s viral reel lays bare a truth we’re all living with but few are ready to confront. California is burning—literally and metaphorically. Wildfires rage, insurance companies retreat, and the state’s wealth divide widens with every passing year.

This isn’t just about California, though. It’s about a system that has failed its people at every level. From the unchecked greed of the insurance industry to the ineffectual leadership of our elected officials, we’re at a breaking point.

Here’s how I see it, as I wrote recently:

• California’s Wealth Divide: Property values range from under $1M to $62M in some areas, showing how extreme inequality has become. Homeless populations are left even more vulnerable during disasters like fires, with no real solutions in sight.
• Undocumented Labor and Border Closures: Closing the border isn’t a fix. Many wealthy Californians rely on undocumented labor for work no one else wants to do. Removing that would only destabilize communities further.
• Healthcare Failures Are Killing Us: Americans are somehow okay with children and the elderly dying because they can’t afford healthcare. The mindset of “why should I foot the bill?” is not and has never been the answer. We are better than this.
• The Bigger Issue for America: Insurance companies prioritize profits over people, racial and wealth inequality are growing, and no one is stepping up to fix it.

Wildfires and Insurance: The Math Isn’t Mathing

A Climate Crisis with No Safety Net

California’s wildfire seasons have become longer, hotter, and deadlier. In 2020 alone, over 4.3 million acres burned, and losses from wildfires have now surpassed $18 billion annually (Insurance Information Institute).

Vivian, in her reel, sums it up perfectly: "Natural disasters are happening more frequently and at a more catastrophic scale. The math isn’t mathing anymore."

Insurance companies are designed to manage risk, but with wildfires occurring more frequently, their answer has been simple: stop covering them. Over the last decade:

• State Farm and Allstate have stopped issuing new policies in California’s wildfire zones.
• Premiums for existing policies have skyrocketed by 28% annually, forcing homeowners to pay more for less coverage.
• Most policies now exclude disasters like floods, earthquakes, and wildfires altogether.

What does that mean? If a wildfire destroys your home, you’re likely left holding a six-figure mortgage with no home to show for it. Los Angeles Times reports that one in three homeowners in high-risk zones is underinsured, and many can’t afford to rebuild.

Healthcare Denials: The Same Broken System

"If you think the healthcare system is any better, think again."

Insurance companies have learned the same lesson across sectors: when the costs get too high, deny, delay, and deflect. A 2023 ProPublica report found that 93% of denied health claims are overturned on appeal—proof that insurers are denying claims they know they shouldn’t.

Vivian’s quote comes to mind again: "When the math doesn’t work for them, they just change the rules."

For healthcare, this means:

• Automated claim denials without human review, often for life-saving treatments.
• Patients drowning in medical debt—now the leading cause of bankruptcy in the U.S. (American Journal of Medicine).
• People dying because their insurance won’t cover the care they need.

California’s Wealth Divide: Inequality on Full Display

Two Californias, One Disaster

California’s wealth gap is impossible to ignore. In Los Angeles, you’ll find homes priced at $750,000 sitting just miles away from estates worth $62 million.

When wildfires hit, the wealthy rebuild, often with private fire-fighting services, supplemental insurance policies, and fire-resistant retrofits. Meanwhile, working-class families are left with nothing but ashes and unpaid bills.

For the homeless, the stakes are even higher. A University of California, San Francisco study revealed that 25% of homeless Californians cite natural disasters as a direct factor in their displacement.

The Labor Hypocrisy

Here’s where the hypocrisy runs deep: Many of the wealthy Californians who can afford to rebuild rely on undocumented workers to clean their homes, rebuild their properties, and tend to their gardens.

Undocumented immigrants make up 10% of California’s workforce (Public Policy Institute of California), yet they live in the most vulnerable areas, often without access to disaster aid or insurance. Calls for stricter immigration policies would destabilize entire industries while doing nothing to address the root causes of inequality.

Leadership: Out of Touch and Out of Time

Governor Gavin Newsom has made big promises, but the follow-through hasn’t matched the urgency. While he’s allocated billions for wildfire prevention and homelessness, the results are underwhelming:

• Only 19% of wildfire prevention projects funded in 2021 were completed on time (CapRadio).
• Despite increased funding, California’s homeless population has grown by 16% since 2019.

I’ll say it again: “He’s a classic out-of-touch millionaire. He focuses more on optics than addressing systemic issues.”

The Bigger Question: Who Is This System Really For?

As I wrote recently: "America as a whole needs to figure out if we’re about the people or about corporations and bureaucrats—because we should be better than this."

Insurance companies prioritize profits over people, racial and wealth inequality continue to grow, and leadership seems more focused on preserving the status quo than fixing the underlying problems.

This isn’t just about California. It’s about a system that was never built to protect us.

What Needs to Change

Insurance Reforms

• Transparency: Require clear disclosures about what is and isn’t covered.
• Accountability: Penalize insurers who unjustly deny claims.

Climate Action

• Prevention: Fund wildfire prevention measures like controlled burns.
• Resilience: Build flood defenses and fire-resistant infrastructure.

Healthcare Overhaul

• Ban Automated Denials: Mandate human oversight for claims.
• Universal Coverage: Expand programs like Medicare and Medicaid.

Address Inequality

• Redistribute Resources: Fund housing and disaster recovery through progressive taxation.
• Protect Workers: Ensure undocumented laborers have access to disaster aid and protections.

Where Do We Go From Here?

The question is no longer whether the system is broken—it’s whether we’re willing to fix it.

As @Your.RichBFF said: "This isn’t just about insurance. It’s about what kind of system we’ve built—and whether it’s working for the people it’s supposed to protect."

Right now, it’s clear who the system is working for. And if we don’t act, the flames will keep growing hotter.

Sources: ProPublica, Los Angeles Times, Insurance Information Institute, American Journal of Medicine, CapRadio, Public Policy Institute of California, University of California San Francisco