From wildfires to foster care: California insurance crisis expands to agencies helping at-risk youth

SACRAMENTO, Calif. — California’s insurance crisis now includes the foster care system.

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The main provider of foster care agencies is dropping its insurance coverage for the nonprofits, causing some to close.

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For two decades, Robin and Mark Malloy have opened their Elk Grove home to 39 foster children.

The Malloys rely on a lot of help, including wrap-around resources provided by a foster family agency, or FFA.

“They are the liaison, so it’s like we tell them what this kid is asking for and they’re on it,” said Robin Malloy.

Mark Malloy agreed. “If there’s an issue we’re having, they provide the necessary resources to assist,” he said.

FFAs are private, nonprofit organizations that recruit and support foster families.

There are about 200 in the state.

The California Department of Social Services reports that as of May 31, 13 FFAs have closed, which served 148 foster youth.

So far, the agency said no child placements have been disrupted by the closures.

Chris Stoner-Mertz of the California Alliance of Child Family Services said those children ultimately become the responsibility of the county.

“And many of these counties are struggling,” Stoner-Mertz said.

Foster family agencies are struggling to afford new, more expensive insurance policies, resulting from high payouts in civil lawsuits.

Stoner-Mertz compared the sexual abuse claims and settlements to the wildfires and loss of homeowners’ insurance.

“It’s almost like it’s a cascading effect rather than an immediate in-your-face crisis that people can see and feel, which makes it in some ways harder to get the attention we need on it,” she said.

Click here to read the full article in KCRA