The real reason is in the article: Proposition 103 is a price control on the cost of home insurance. The law requires California government approval for increases beyond a certain percentage. And the California government is putting up a lot of red tape to prevent those approvals.
So now you get Brandon's inflation for everything including cost to rebuild and reinsurance, wildfires which I'm pretty sure is just poor forest management and antifa arsonists, and the other assortment of natural disasters all combined.
If you're an insurer, California looks pretty risky. The only way to mitigate that risk is to raise the premiums. But you can't do that because of Prop 103 and the California beaurocracy. So your choice is to take a big risk on losses, or pull out.
Surprise Pikachu face when insurers pull out, and now there are fewer choices for insurance. Maybe no choices in the near future.
The free market solution to this problem is to let insurers pick whatever price they want. Competition among insurers will keep prices in check, just like competition for any other good or service keeps prices in check. (NOTE: Competition can't protect against Brandon and the crooks at the Federal reserve.)
What they will do in California is create State homeowner's insurance. They will provide the only insurance option in the State. It is simply more communism and control. They will provide the high quality service that governments are known for and embezzle and steal all the money from the slush fund of premiums. Simply business as usual.
You're exactly right, and the article alludes to that as well with their FAIR program.
Insurers pulling out is part of the plan. Once there's not enough, the state can swoop in and save the day. I'm sure it will be great... at first, but then it will be terrible and worse than it was with the private insurers.
Beginning in late 2022, three of California's largest insurers either completely paused or greatly limited new home insurance applications, destabilizing the insurance market.
Allstate and State Farm are not currently accepting new applications for California home insurance, while Farmers has scaled back the number of policies it plans to write.
In July and August, smaller insurers AMGuard and Falls Lake filed withdrawals with the California Department of Insurance, indicating that they will drop policies at their renewal dates. Safeco also announced it would nonrenew some California policies but for policyholders in San Francisco and the Bay Area.
Insurers have pointed to current California insurance laws, increased wildfires and costly reinsurance premiums as their main reasons for the new coverage limitations.
I can see concern for wildfires but there can’t be much left to burn at this point. /s
It’s not limited to Californication. Midwest States insurance Carriers are having trouble too. 1 just went into liquidation that served Ks, Mo, Ia , ok and Ne. More have stopped writing homeowners insurance or non-renewing policies. Tough times ahead.
I'm a bit slow, but I just realized that IHOP is known for their blue roof. The whole DEW thing is comms and this is probably the symbolism behind the blue nonsense. Thanks for continuing to push it so us beginners can at least try to keep up.
Does anyone want to discuss IHOP symbolism? All I got is they emphasize the EYE in the pronunciation and underline OP in the logo. So maybe it's saying they want all eyes on the op. Probably because it's clown sauce. They do seem to have a whole lotta shootings at IHOPs around the country.
Far more likely economic reasons. California is way down the road into socialism. Price controls through regulation are likely making it impossible for Insurers to operate in the State. Their only recourse is to leave and let the State(s) figure out what to do without insurance.
I’m in San Diego my home insurance is already out of control and they keep raising it ! im paying 3k more a year then I was 5 years ago !
My mortgage company keeps raising my rate due to insurance.
I just threw another 1k in my escrow acct in order to stop another increase ! I threatened my ins company, farmers , I told them I was going to Look into other companies , she litterally told me good luckl
Same here in Florida. In addition to the homeowners insurance, I have to pay for flood insurance also which is another 1000... 4400 yr for a 1bed 1 bath manifactured home.
They are all losing money. Premiums have slowly increased in past decade yet inflation, cost to fix vehicles, theft, fraud and crime rise. Also, old homes having water leaks and many many other issues. Department of Insurance will not approve rate increases until recently. Earthquake insurance and commercial policies are still very easy to purchase. The issue is with personal lines auto and home. Nothing sketchy here in my opinion other than corrupt politicians and bad laws checking up to us.
Centralized Planning Failure
The real reason is in the article: Proposition 103 is a price control on the cost of home insurance. The law requires California government approval for increases beyond a certain percentage. And the California government is putting up a lot of red tape to prevent those approvals.
So now you get Brandon's inflation for everything including cost to rebuild and reinsurance, wildfires which I'm pretty sure is just poor forest management and antifa arsonists, and the other assortment of natural disasters all combined.
If you're an insurer, California looks pretty risky. The only way to mitigate that risk is to raise the premiums. But you can't do that because of Prop 103 and the California beaurocracy. So your choice is to take a big risk on losses, or pull out.
Surprise Pikachu face when insurers pull out, and now there are fewer choices for insurance. Maybe no choices in the near future.
The free market solution to this problem is to let insurers pick whatever price they want. Competition among insurers will keep prices in check, just like competition for any other good or service keeps prices in check. (NOTE: Competition can't protect against Brandon and the crooks at the Federal reserve.)
What they will do in California is create State homeowner's insurance. They will provide the only insurance option in the State. It is simply more communism and control. They will provide the high quality service that governments are known for and embezzle and steal all the money from the slush fund of premiums. Simply business as usual.
Yup...I think you really nailed it there, fren.
Hegelian dialectic - aka Problem, Reaction, Solution.
u/#correct
You're exactly right, and the article alludes to that as well with their FAIR program.
Insurers pulling out is part of the plan. Once there's not enough, the state can swoop in and save the day. I'm sure it will be great... at first, but then it will be terrible and worse than it was with the private insurers.
Control of every thing is the goal. Once they have control, then comes the tyranny.
From the article:
Key takeways
Beginning in late 2022, three of California's largest insurers either completely paused or greatly limited new home insurance applications, destabilizing the insurance market.
Allstate and State Farm are not currently accepting new applications for California home insurance, while Farmers has scaled back the number of policies it plans to write.
In July and August, smaller insurers AMGuard and Falls Lake filed withdrawals with the California Department of Insurance, indicating that they will drop policies at their renewal dates. Safeco also announced it would nonrenew some California policies but for policyholders in San Francisco and the Bay Area.
Insurers have pointed to current California insurance laws, increased wildfires and costly reinsurance premiums as their main reasons for the new coverage limitations.
I can see concern for wildfires but there can’t be much left to burn at this point. /s
It’s not limited to Californication. Midwest States insurance Carriers are having trouble too. 1 just went into liquidation that served Ks, Mo, Ia , ok and Ne. More have stopped writing homeowners insurance or non-renewing policies. Tough times ahead.
Looking at Lahaina, I guess it might be worthwhile to invest in a blue roof.
No kidding
I'm a bit slow, but I just realized that IHOP is known for their blue roof. The whole DEW thing is comms and this is probably the symbolism behind the blue nonsense. Thanks for continuing to push it so us beginners can at least try to keep up.
Does anyone want to discuss IHOP symbolism? All I got is they emphasize the EYE in the pronunciation and underline OP in the logo. So maybe it's saying they want all eyes on the op. Probably because it's clown sauce. They do seem to have a whole lotta shootings at IHOPs around the country.
Anybody else have thoughts?
No one knows the future.
Far more likely economic reasons. California is way down the road into socialism. Price controls through regulation are likely making it impossible for Insurers to operate in the State. Their only recourse is to leave and let the State(s) figure out what to do without insurance.
I’m in San Diego my home insurance is already out of control and they keep raising it ! im paying 3k more a year then I was 5 years ago ! My mortgage company keeps raising my rate due to insurance. I just threw another 1k in my escrow acct in order to stop another increase ! I threatened my ins company, farmers , I told them I was going to Look into other companies , she litterally told me good luckl
Same here in Florida. In addition to the homeowners insurance, I have to pay for flood insurance also which is another 1000... 4400 yr for a 1bed 1 bath manifactured home.
Wow that’s really bad my friend , how the hell can people afford Flordia ,, cheaper to rent there… that’s more expensive then Cali
I'm hanging in there.. it's crazy where I'm at ( Space Coast )
They are all losing money. Premiums have slowly increased in past decade yet inflation, cost to fix vehicles, theft, fraud and crime rise. Also, old homes having water leaks and many many other issues. Department of Insurance will not approve rate increases until recently. Earthquake insurance and commercial policies are still very easy to purchase. The issue is with personal lines auto and home. Nothing sketchy here in my opinion other than corrupt politicians and bad laws checking up to us.
Maybe it is finally going to tumble into the sea?
Well, conceivably it's because people actually pay 1.5 million for a 2 bed, 1 bath 1940's bungalow on a quarter acre with a freeway in the back yard.