"Pacific Palisades is right next to the ocean" — DDG indirectly says LA wildfires may have been intentionally started for insurance claims

American YouTuber and rapper DDG recently commented on the LA wildfires during a live stream, the video of which was posted by X user @scubaryan_ on January 9, 2025. In the video, commenting on the wildfires, DDG said:

"But the areas that its happening in, it should not be happening in, like Pacific Palisades is right next to the ocean"

The YouTuber also said he was indirectly putting forth his perspective on the insurance angle, given that the LA wildfires were happening in "so many different rich areas." DDG said he noticed people who weren't rich were affected and mentioned:

"I might be wrong but ya'll know what happens when houses burn down right? People file insurance claims. Now it might not, that might not be it, don't quote me. I'm just saying is this a little weird?"

The LA wildfires have turned out to be one of the most destructive fires of all time within 36 hours of its onset. The fire in Pacific Palisades that started on January 8, 2025, affected some of the most prominent real estate properties, including the homes of celebrities like Paris Hilton.

By midday, January 8, 2025, the fire in Pacific Palisades had spread to approximately 15,000 acres and had destroyed 1000 structures, as per CBS News.

---

More details on LA wildfires in relation to insurance claims explored

According to a report by Business Insider dated January 9, 2025, California's largest home insurer, State Farm, canceled thousands of plans of policyholders across LA County, including parts of Santa Monica, Calabasas, and Pacific Palisades.

The insurer stated that it would end coverage for 72000 apartments and homes in California. Additionally, in 2023, State Farm announced that it wasn't going to accept new insurance applications from new homeowners in California. As per Politico's report dated January 8, 2025, the California Fair Access to Insurance Requirements or FAIR Plan commented on the rumors of it being unable to pay out. FAIR Plan's spokesperson, Hilary McLean, said in a statement:

"We are aware of misinformation being posted online regarding the FAIR Plan’s ability to pay claims. It is too early to provide loss estimates as claims are just beginning to be submitted and processed.”

McLean mentioned that the FAIR Plan has been prepared for such disasters, referring to the LA wildfires, and consists of payment mechanisms like reinsurance to cover claims. Multiple LA County homeowners whose properties are under the scrutiny of LA wildfires haven't been able to acquire private insurance and have joined the FAIR Plan.

The FAIR Plan is operated by the state government and is backed by certain private insurance companies. However, its premiums are usually higher than those of general private insurers, and its coverage is restricted as well.

Moreover, a lot of major insurers have restricted their coverage plans across California in recent years, citing reasons like intense and frequent disasters, rising costs, inflation, and home repair costs.

---

On January 8, 2025, AccuWeather estimated that the damages resulting from the LA wildfires ranged between $52-$57 billion and would continue rising because of the hurricane-force winds forecasted on January 8 and January 9, 2025.

Additionally, Insurance Commissioner Ricardo Lara mentioned in a statement that insurance companies pledging their commitment to California will be held accountable for the promises they've made.