Posted on 04/19/2024 7:28:15 AM PDT by cuz1961
... According to filings from the state’s Department of Insurance, Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. said they would both stop offering homeowners and personal umbrella insurance in the Golden State....
... Those impacted will receive nonrenewal notices beginning on July 1. The proposed effective date for these filings will take place on Aug. 1, 2025....
(Excerpt) Read more at ktla.com ...
I work in the insurance industry in California, but I don’t deal with property lines like homeowners policies. Apparently, a big issue is that California Insurance Code prohibits carriers from passing on the cost of reinsurance to customers. Carriers like State Farm purchase their own insurance (reinsurance) to cover themselves in the case of a catastrophic event. Also, property values continue to rise, which also increases their risk. If carriers could pass reinsurance costs to consumers, any price increase would be a wash due to more competition in the market.
It also doesn’t help that actuarial data for fire prone areas in Californiaay be flawed. I live in a suburb with municipal water and building code, all homes have fire sprinklers in every room. We’re not in the mountains, so any threat of wildfire is zero. Yet, Cal Fire considers my community a fire prone area because we share a zip code or something with communities in the Sierra foothills. People moving in have been having a hard time getting a policy because of that.
thank you for the input.
America is being invaded and stopping it is not a priority for the Uniparty.
They’re helping to make it happen.
American? Out of work?
Starving? Going bankrupt?
They don’t care.
See ya at the bill signing.
Just received my Mercury Homeowners renewal yesterday. (Kalifornia) It went down $41 from last year. Of course it went up in 2023, but still a bit surprised.
I don’t think they have the right to make that decision in the state of KaleePornia
In the former case, I expect that insurance companies will simply pull out of CA entirely.
” 1) California will pass a law saying if you offer homeowners insurance in other states but not here, it will be illegal for you to write policies in any other insurance area, cars, commercial, liability, etc.”
Decades ago, some carriers wanted to stop writing auto insurance in NJ due to the rampant fraud, but their DOI said they’d have to stop writing profitable lines such as homeowner’s insurance, so they bit the bullet and stayed.
2) the State of California will now get into the homeowner insurance business and that whole program will become rife with corruption.
10% for the Big Guy...
No baksheesh with 1)
Yes and it will go Bankrupt in record time. Where will they get the money to subsidize those policies? They can’t account for $24 Billion right now.
Dont worry, CA will take up the business.
I think you hit the nail on the head. It’s not “at any price,” because if it were, any restrictions imposed by the govt would result in higher premiums but when you have states like Kalifornia that restrict payouts and premiums, the only choice insurance companies have is to leave.
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