Posted on 05/22/2025 6:36:18 AM PDT by vespa300
(The Center Square) - State Farm, California’s largest property insurer, is seeking the remainder of its originally requested 30% rate hike after getting emergency, temporary approval for a 17% rate hike earlier this month due to cost pressures from the state's wildfires.
“While we are pleased that Commissioner Lara approved the interim rate of 17 percent for State Farm General Insurance Company, this change only addressed part of the original request of 30 percent filed in June 2024,” State Farm told Newsweek. “The overall request of 30 percent would not be on top of the 17-percent interim rate change. State Farm General is still pursuing the full rate request.”
In its earlier rate hike request letter, State Farm said that over the last nine years, it has paid out $1.26 in claims for every dollar in premiums it has received, leading to $5 billion in losses.
(Excerpt) Read more at thecentersquare.com ...
State Farm dropped my dear friend after 30 years, and no claims - her area was re-zoned as a “fire hazard” even though there’s never been a fire anywhere near her. She had to scramble to find insurance - called all over the country.
My insurance skyrocketed this year (not State Farm).
I suspect a lot of people are going to go without (paid off house, fixed income, retirees, etc.).
I don’t need it on my residence but do have it. My point was that it is a legitimate choice not to have insurance unless a requirement of the mortgage lender.
State Farm has to make up the shortfall from California from other states.
Rather than go without any insurance one could increase the deductible and/or lower the limit of liability.
The combination of rising rates and rising replacement value is a double whammy. We have seem 300% increases in net premium costs on multifamily residential in Ohio. Partly rate increase and a big part replacement cost. For example, a 49 unit building a friend owns is about 50,000 square feet plus a garage. His carrier used $220 per sq.ft. to create the value for minimum required 80% coverage resulting in insuring more than 12,000,000 on a building with less than $6,000,000 on the market.
Foolish move, to let gov’mt place caps on private enterprise. Only commie trash go that route.
The problem in CaCaLand is because of gov’mt interference. They mandate that everyone must be offered insurance, even some TWOT who builds in a fire zone. So, my rates go up ‘cause of that moron.
Also, gov’mt controls rates instead of letting the market. CaCaLand gov’mt forbids companies outside the state making offers.
It goes on and on. They did the same crappola on earthquake insurance.
My homeowners insurance company left California. I had a lot of trouble getting a new policy. That ‘s when I put my home up for sale and moved out of California.
“I wish Florida had these limits on how high premiums can go.”
OR premium increases necessary to pay for higher payouts due to billions in hurricane damages could be denied, and then Florida would have zero insurance companies as the remaining ones flee the state, like they are doing in california right now ...
Like a bad neighbor State Farm ain’t there
Not at all. I have been fighting NCJUA for tornado damage to my home from a year and a half ago, January 2024. As a matter of fact, there was a Senate hearing chaired by Josh Hawley, a couple of weeks ago. It tells me I am not the only one who believes that.
If I didn't know better, they must have had cameras hidden around my house because those testifying were describing my past year and a half to a tee.
And I think I need to join them. Friends have moved to Tennessee, South Dakota, and Wyoming and all are quite happy with the decision. More than a little irksome too is the fact that I pay a roughly 9% income tax to a state government populated and run by a pack of lunatics who hate me.
I sure hope Trump doesn’t get pressured into paying for California wildfires.
I posted the link to that as a thread this morning.
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