Posted on 01/11/2025 5:44:09 PM PST by MinorityRepublican
Experts have predicted that the fires blazing through several parts of Los Angeles County could easily become the most costly wildfire event in the U.S. One insurer alone faces potential losses of up to $24 billion: the California FAIR Plan.
The FAIR Plan is a state-created but privately run insurer of last resort, providing fire insurance for residents and businesses unable to secure a policy on the private market. The FAIR Plan is not funded or financially backed by the government — instead, if the FAIR Plan runs out of money to pay claims, it’s private insurers and their customers who end up with the bill.
Experts worry that if the FAIR Plan is overwhelmed, it could both financially strain policyholders across the state and their insurance companies, which could motivate more companies to rethink doing business in California.
But there are several steps before that would happen.
First, the FAIR Plan would have to blow through all of its reserves — a possibility that seems increasingly likely as strong winds continue to spread the uncontrolled fires. Over the summer, FAIR Plan President Victoria Roach disclosed to the Chronicle that the insurer only had about $385 million in unreserved funds available to pay claims.
(Excerpt) Read more at sfchronicle.com ...
“California FAIR Plan could be on the hook for up to $24 billion in L.A. fire losses”
that could really devastate all the freebees for their millions of illegal aliens ...
24 billion?
It’s Jan 11.
Hope there aren’t any more disasters this year...............
I hear a Mayor in California say the State fund has 200 million dollars. That’s it! California has a budget issue so is the Federal Government going to fund? Watch Joe, it might happen. On that topic, what about North Carolina lack of funding?
Sounds like a typical lib idea. Create an entity to provide insurance but no funding.
The state of Washington dud something similar to provide 3 months family leave program that is funded by employees for mere pennies. Everyone is using it and its going broke.
They don’t have that kind of money now.
They will try to get it from taxpayers.
Good luck with that.
Most the heavily affected homes were proudly
Democrat voters that made their beds,
now they can sleep in them.
Maybe we can borrow our money from Ukraine at 8% plus 10% for “The Big Guy”, then bail ourselves out with higher taxes....
That is the point of insurance
How many billions in aid have come in from foreign countries?
Taxpayers are on the hook for all of it. The wealthiest liberal elites in multi million dollar homes will get tax dollars to rebuild another multi million dollar house in the same fire prone area. It’s good to be a democrat.
Anytime government is involved in what should be a free market it distorts cause and effect and cost. If the free market was left alone the insurance rates would be extreme in areas of high risk and none would build there except for those willing to accept extreme costs of insurance. That is just the way it is. When government is involved it shifts the burden to those that choose to not build in high risk areas. This distortion of markets also applies to the Gulf Coast and parts of the Eastern Seaboard.
THIS FUND & THE LOTTERY MONEY BOTH NEED TO BE AUDITED.
I was recruited at university to be become an Insurance actuary( I defered and stayed with engineering)
But I know how insurance works mathematically
(I was a math major with a minor in business).
The Insurance companies will be overwhelmed by this
disaster and they cannot pay out at the rates people
expect. They don’t have the money. PERIOD!
Insurance companies are not designed for disasters
of this magnitude.
Yeah “State farm is there” until they are broke.
I have State farm insurance BTW.
But I’m a little more selective on where I live.
The only natural disaster I’m not subject to is Blizzards
but I can drive to one.
I live on the side of a volcano in Rural Hawaii.
Location, location, location!
Think about the threats you home will be subject to
before you build or buy!
I got away from those idiots in So. Cal.
as soon as I could.
I also stay away from the same idiots in Hawaii.
My nearest neighbor is 100 meters away.
Look at how close those rich people were to each other.
Y’all figure out the fire potentials.
What are the chances there is ten cents in that fund.
CA households affected should get the same $750 that NC residents were eligible for.
now who could have ever predicted such a socialist program Would go down in flames? /s
“The FAIR Plan is a state-created but privately run insurer of last resort, providing fire insurance for residents and businesses unable to secure a policy on the private market.”
So, like 0bamacare? *SNORT*
The insurance grifters are gonna have to find another BLUE state to prey upon once CA is sucked even dryer! And it will be. And they will.
any insurer still doing business in California deserves to be rimmed.
actually... no, that is not how it works. If the fund comes up short.. ALL the insurers doing business in California how to cough up the money even those who refused to insure those who lost homes.
Yep, same amount.
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