The move will temporarily protect homeowner policies in select ZIP Codes from Siskiyou to San Diego counties.
Thursday, November 12, 2020
Insurers banned by California from dropping coverage for 2.1M homes in fire-stricken areas
With parts of California still smoldering, the state Department of Insurance has issued a one-year moratorium prohibiting insurers from canceling or not renewing about 2.1 million homeowners’ policies, the second consecutive year policyholders in or near fire-stricken areas have gotten a temporary measure of relief.
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So who is going to bail the insurance companies out?
ReplyDeleteWE all pay for this.
ReplyDeleteNo way those commies passed a good law
ReplyDeleteNext up will be insurance companies leaving California in droves. Insurance will only be available from the few companies that stay and rates will skyrocket. The State of California will step in to fill the gap. The rest of the insurers will leave. With a captive audience and the unavoidable corruption, insurance rates will skyrocket in an endless climb.
ReplyDeleteTHAT'S how they get the rest of the country to pay for their incompetence.
ReplyDeleteCC
Only if you agree to participate.
DeleteThere are regional insurance companies that do not do business in Ca. If you use one of those, your rates won't include a charge for the idiots in Ca.
When I left State Farm, my rates dropped by a third, my coverage got better. State Farm agent asked to re-quote, simply gave up when he heard who he was bidding against. Apparently never occurred to him that if he could give me a better price, why wasn't I getting it already?
Insurance is a recurring cost. It's probably the #3 or 4 most expensive item in your budget in aggregate, and three or four of the top ten items individually.
I wonder how long it'll be before the insurance companies cut their losses and abandon California? The state can't mandate coverage if they don't operate there.
ReplyDeleteAll in the hope that insurance companies go bankrupt, 'requiring' a takeover by the government. Nobody saw that coming.
ReplyDeleteSome insurance companies already left California... the rest will be wish they had before this happened.
ReplyDeleteI don't know insurance law. Could companies leave the state to get around this?
The state says you can't cancel the policy, but they can't say what next year's prices will be. That requires an underwriter, not a politician. They will price it according to the history of claims.
DeleteGeek
Like mortgages, insurance policies often get bought by third parties-they are called "reinsurers". Lots of times those outfits are huge, are located in Europe, and are very profitable. Actually, the seller's "book" is sold, not individual policies. Sharing of the risk is an interesting concept, but there is a lot the average policyholder does not understand. Having said that, most of us do understand the one way flow of money: premiums go in but claims dollars are painfully slow to come out and often involve an unfair fight to anywhere close to being whole again.
ReplyDeleteInsurance companies are like the IRS they cancel and or raise premiums, make the rules and pay if they want to fuck them. I am dealing with a car claim when daughter was rear ended. They want to total the car for a broken bent bumper and mounting bracket. Dumb daughter did not call the police or go to the hospital like I told her to. It is for leverage. Never answer yes I am ok if your in an accident and say I need to go to the hospital to get checked out especially if its not your fault.
ReplyDelete