A mandatory one-year moratorium preventing homeowners insurance cancellations and non-renewals in affected areas of Southern California has been issued by Insurance Commissioner Ricardo Lara.
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Everywhere else in CA is Fair Game tho. We're not quite at Florida levels of insurance cancellations/insurers fleeing the state, but we're getting there.
Is a one year moratorium going to deal with the real problem? We can keep burying our heads in the sand or start dealing with the real problem. I’ll spell it out, it’s
c l i m a t e-c h a n g e. Deal with the issues causing it or keep pretending something else is the problem.
They've been cancelling fire policies all over California the past few years, often for erroneous reasons that aren't true, like a pic from a drone that shows a shadow on your brand new roof (happened to me.) So, why just a moratorium on So. California - should be all of California!
I see on every facebook post about the fire this morning gross amounts of misinformation. Most of them are suggesting a lack of water and its the governors fault. They are already running against Newsom. In fact everything they say is false from an objective perspective. All lies.
It’s no longer the left vs the right, it’s us. All of us citizens , against the government. Get it in your head, we are in a class war. Always have been, and they’ve been raking in the profits from our divide. And we lose every time.
Yes they do. They know, they just haven’t been directly burdened yet. They will though. LA burning is going to be a huge shift. Just watch this leave the news as quickly as it came in because they don’t want to talk about insurers who cancelled fire coverage.
They gave Israel $610 million so Zionists could carry out a genocide to steal land. How much you want to bet the Zionists buy up most of this land too. Our leaders don't care about us.
Insurers need to burn in hell. My condo complex per unit insurance was $385 per year per unit when I lived in. I befitted for an increase up to $500. It jumped from $385 to $1256. And with that only one company out of 30 offered that insurance. Everyone else just refused.
Considering reports that up to 70% of homeowners in Pacific Palisades had their homeowners insurance canceled in the past year, isn’t this too little, too late? Also, forcing insurers to operate at a (likely) loss in an area is not a sustainable solution - we’re gonna need much broader risk pools.
As someone on the other coast affected by broadened risk pools, I would only add that homeowners should not be able to insure homes in areas assessed as highly risky, like on threatened shorelines.
Yes. There has to be *some* add’l premium for high risk that is not absorbed by policyholders who haven’t chosen that risk. People won’t accept broader risk pools, politically, if they’re forced to subsidize high-risk takers. Either build there w/o insurance or expectation of bailout, or stay away.
I’ll say this, though: SOME sharing of the risk, except maybe in the most oft-ravaged areas, is the only way forward I can see. Eventually, we’ll ALL live in at least *relatively* high risk areas.
Me too, probably. Was gonna “like” that, but it felt a bit weird - kind of a “don’t know whether to laugh or cry” thing. But, (a) I have kids & empathy, & (b) this is coming faster than most people imagine, so I still find it worth trying to figure out a way forward.
And any even moderate-risk area should require enhanced infrastructure (no more hydrant systems without enough water pressure, overhead power lines, etc.), much stronger building codes & other damage-preventing mitigations, to be eligible for broader risk pools.
There is nowhere that does not have some risk for some disaster. Climate change is increasing this, and risk pools will increase the costs for everyone. And when you have thousands of multi-million dollar homes burning, then even the risk pools won't be large enough.
Or hear me out, insurance companies could just do the thing that we pay them for. The whole concept is a gamble for both parties, but the insurance companies act like they will go under if they ever actually have to pay out when there is a claim.
how do they do their job of diversifying if an event like this causes so many claims at once? either they have to charge through the nose to have build the reserves to pay out or they are left insolvent at the time when they are needed most
Good news but what about those who were canceled recently. I live in Florida where keeping and affording home insurance is difficult even without any claims.
...that's because those homes are uninsurable (they'll be underwater both as financial assets and in the literal sense within the lifetime of a definable policy)
Its cool for them to rake in money when there's no risk of them having to pay out (the whole point of insurance), but the 2nd their profits are in danger of being slightly less profitable its time to pull the rug on the consumer.... insurance of all types should legally be required to be non-profit
I spent a while looking into starting a peer 2 peer not for profit pet insurance business . Far too much cash required to run and way too much red tape.
It’s funny (not really) that america despise socialism and yet as soon as a disaster happens complains that the infrastructure isn’t there to support communities 🤦🏻. If the rich paid taxes then you could afford better fire services that don’t depend on prisoners to fill it’s ranks or socialised
They pay more in taxes than you though. This is what I don't understand with you guys. "The rich should pay more in taxes." They already pay the majority of taxes. 🙄
What does anything in my post have to do with taxes? Additionally, the rich have historically used loopholes in the tax system to avoid paying their fair share, if any taxes at all.
Think about it, the rich pay tax but pay virtually no tax compared to their earnings. Tax in Wales is 23.7% however the rich average tax rate is 8.2% so just to be clear; TAX THE RICH
In 2023 US property and casualty insurers were paid claims and expenses were 101.5% of premiums received.
They nonetheless made a small profit due to investment income made in period between premiums being received and claims being paid.
I admittedly just spent all of just a few minutes researching this, but have read that US property and casualty insurers made a "record 88 billion in profit in 2023". Can you explain the discrepancy between that and what your data is showing?
there isn't a discrepancy - the chart lists the 2023 profit as 87,567, which in the units on the chart is ~$88 billion. Based solely on the chart, 2023 looks to have been a record year for two reasons - increased premium volume, and improved investment performance.
The return on revenue was 9.3%, which is better than average, and the premium volume increased 10% YoY. However, since the combined ratio was still above 100%, the increased premiums likely weren't a result of greed, as in that case we'd expect to see the combined ratio drop significantly.
What (s)he said.
Note the increase in net earnings was due to a huge realized gain number which was driven by one company, Berkshire Hathaway. This is not likely to be repeated in future years (although in 2024 they did sell a huge Apple position they held for years), so should be seen as a one off.
Funny you mention that; there's an industry called "Reinsurance" that reimburses insurance companies for large-scale disasters triggering losses such as these.
Home owners' insurance is screwed everywhere. If it's even still available!! Tons of policies being dropped all over. I live in TX, & mine tripled. A lot of people in multiple states are starting to have this happen to them. It all stems from corporate greed. All they care about is their bottom line
They're in the business to make money. They're not charities. If they could make money off the policies, they would keep them.
I'm no fan of insurance companies, but you can't force them to go bankrupt.
They are estimating $24 billion in losses to structures. Unfortunately with worsening climate change, California is becoming uninsurable. Insurance works when they on average take in more premium than they pay out in any given year. Something like this wipes out those reserves - it’s not sustainable
No worries. As always, everyone else in the country will pay higher premiums to compensate. Lord knows it happens every single time there’s a hurricane in Florida.
Did not notice anything about mysterious fees being added or rates moving up so they the people will have to self-cancel.
Need to see more details before I start to like this devil.
I understand that, but if they have no payments coming in, they are also going to lose all of their profit. At this point, they have proven, we are paying for nearly no reasons, if they are just going to deny claims and keep the money anyway
One year is not enough. It will take a year just to get through the paperwork for this event. Just ask the folks who lost everything in the Almeda fire.
It might be beneficial for California to explore becoming Canada's eleventh province. President Trump seems to harbor a strong dislike for California and often criticizes the state instead of providing support.
I think every state who voted for Harris would gladly join Canada. Canada would them become one of the biggest economies in the world while the United States would drown in its own shit.
We need to rapidly reprioritize & support the things which are vital & necessary for our survival inc all-ages quality education, secure water & energy systems, health care, infrastructure & housing design. Natural disasters are the GOAT of NGAF about insurance reimbursement appeals.
Yes Victory! This is what needs to happen and hope that goes further than a year for those that desperately need financial relief. God bless. In Jesus Christs name we pray amen.
Good on the moratorium. I didn't watch the video. Can they raise rates during this moratorium? If they can, holy frijoles you bet they're going to skyrocket.
Something needs to be done for ALL Californian homeowners.
State Farm canceled my ins even tho there have been few fires where I live. Paid it for 30 years, no claims. I have a MORTGAGE wh I'll lose w/o fire ins.
I got new coverage through CA FAIR Plan wh is 2x more expensive & = less coverage.
No, but it does mean that in select locales and for select kinds of properties, insurance companies will desist from writing new policies; Allstate is currently not writing new policies for homes or cars in NJ.
Shielding people from financial effects of climate change isn't helpful. A bankrupt company can't pay out. It creates another too big to fail situation where renting taxpayers are once again expected to bail out real estate owners who took on bad risk.
Then maybe the competent ones will come to their place from Japan. Like they did for American car manufacturers or, frankly, every other branch of American industry.
Judging from the current state of affairs in LA, a pack of rabid baboons would do a better and more professional job preventing wildfires than all US insurers and government agencies combined.
Gotta protect the rich. Anywhere else it would be a land grab for the wealthiest bidder. It’s so obvious and gross how everyone and everything prioritizes the wants and needs of the richest people in this country. Do you see it yet? We live in an oligarchy not a democracy🏴
I'm sure all the rich people will get 100% of their money back on the claims, its the working class that will get their claims denied and cheated of their money. Better watch Out Luigi's cousin is on the loose.
That’s the difference between California and Florida, blue state and red state with leadership diametrically opposed in protecting citizens and corporations.
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c l i m a t e-c h a n g e. Deal with the issues causing it or keep pretending something else is the problem.
#freeluigi
https://bsky.app/profile/enfintensiva.bsky.social/post/3lff6ix66id26
Virtual Signalling at its worse. 🙄
They nonetheless made a small profit due to investment income made in period between premiums being received and claims being paid.
Note the increase in net earnings was due to a huge realized gain number which was driven by one company, Berkshire Hathaway. This is not likely to be repeated in future years (although in 2024 they did sell a huge Apple position they held for years), so should be seen as a one off.
I'm no fan of insurance companies, but you can't force them to go bankrupt.
Need to see more details before I start to like this devil.
We are coming to save you!
2016: https://fortune.com/2016/08/23/munich-re-disaster-insurance/
State Farm canceled my ins even tho there have been few fires where I live. Paid it for 30 years, no claims. I have a MORTGAGE wh I'll lose w/o fire ins.
I got new coverage through CA FAIR Plan wh is 2x more expensive & = less coverage.