State Farm

[Mik]

I'm surprised it did not come sooner. They've been building deeper into fire-prone areas.

[Horace]

I am sure the state government will be very happy to take that over.

[Doctor Phibes]

You'd think they'd be willing to insure those areas that are lower risk.

[Mik]

I'd bet they are, in reality. It sounds like they are just unwilling to insure new properties, as so much of the relatively safe areas have been built up and a lot of new ones are at greater risk. They say it doesn't affect currently insured properties.

[Copper]

Good. My State Farm bill came in the mail today.

I don't need Californians making it any higher.

[LuFins Dad]

Like a good neighbor, State Farm ain’t there…

[Jon]

Seems lazy. Why not just price in the risk?

[Mik]

@Jon said in State Farm:

Seems lazy. Why not just price in the risk?

[Mik]

Might be unaffordable.

[LuFins Dad]

California has an insurance “commissioner” that has to approve any rate increases. He isn’t. I don’t know about home-owners, but I do know that auto insurers are pulling out because they aren’t being allowed to raise rates. https://www.cbsnews.com/losangeles/news/auto-insurance-companies-pull-out-of-california/

[LuFins Dad]

https://calawyers.org/real-property-law/the-california-insurance-crisis/

[Jon]

@LuFins-Dad said in State Farm:

California has an insurance “commissioner” that has to approve any rate increases. He isn’t. I don’t know about home-owners, but I do know that auto insurers are pulling out because they aren’t being allowed to raise rates. https://www.cbsnews.com/losangeles/news/auto-insurance-companies-pull-out-of-california/

So like pretty much every shortage, it’s a policy decision.

[George K]

Allstate:

https://www.sfchronicle.com/california/article/insurance-allstate-fires-18130622.php

Allstate has stopped writing new homeowner, condominium and commercial insurance policies in California, the company confirmed to The Chronicle.
The insurer, the fourth largest property and casualty insurance provider in the state in 2021, paused new policies “so we can continue to protect current customers,” spokesperson Brittany Nash wrote in an email to the Chronicle.
The pause began last year but appeared to receive only a passing mention in industry publications. The Chronicle learned of the development this week, after reviewing an Allstate rate increase request to the California Department of Insurance.
It was not immediately clear what prompted Allstate’s pullback on new policies. But State Farm, the largest provider of property and casualty insurance in California, made waves in late May by announcing it would stop issuing new homeowner policies in the state due to inflation, wildfires and rising reinsurance costs.
That Allstate quietly did the same thing last year signals that insurance woes in the state may be more severe than the public is aware of.

[George K]

Not only no new policies, 72,000 not getting renewed.

https://finance.yahoo.com/news/state-farm-announces-major-insurance-150000813.html

State Farm stated that it would discontinue coverage for around 30,000 homes and 42,000 apartments, citing surging costs, increasing risks of disasters such as wildfires, and outdated insurance rules as reasons for terminating the policies, per the Associated Press.

And...it's global warming climate change...

According to the AP, California's elected insurance commissioner is reforming the state's home insurance regulations to restabilize the market.

"Changes to outdated regulations will improve choices for all Californians so everyone has options beyond the FAIR Plan," deputy commissioner Michael Soller told the Register.

We can help homeowners in high-risk areas by switching to electric appliances, powering our homes with solar energy, and making sustainable choices when we shop. Even one small change, multiplied by thousands of people, can help curb the pollution driving more extreme weather.