Who would want to buy a house that cannot be insured?
When the earthquake and fires come, all those Californians will be left hanging?
Every insurance company should pull out of California . Risk is too high.
No One is buying SF’s overpriced insurance.
Without insurance there is no mortgage.
Atlas Shrugged
I wonder if this is already happening in Oregon and Washington as well and due to the appalling social problems in those states that are probably that far worse in California (witness San Francisco and Los Angeles).
So if you currently own a home and want to sell, the new owners will be denied insurance from SF? There are others but this will certainly raise rates and give them reason to consider pulling out as well.
My in laws live up near Lake Tahoe smack in the middle of fire country. There is exactly one insurance carrier that will write a policy and wildfire is specifically excluded.
L
Regardless of what State Farm says publicly (which they have to be very, very, careful about), there are only TWO possible reasons they are leaving, one neither has to do directly with ‘construction costs’:
1. They simply don’t know how to price their policies, given the whims of politicians in that state.
2. They are NOT PERMITTED to price their policies to cover the cost of doing business.
I suspect that the reason that they’re not dropping everyone is that there is some law in California that still leaves them on the hook for people they drop without cause, making it cheaper for them to run out the clock with existing customers.
Like a good neighbor. This protects customers from the other 49 states from carrying the costs that result from California’s over regulation and mismanagement of forests, the consequences being blamed on “ climate change”
On a side note. Anyone else notice the State Farm commercials in Spanish recently?
Makes since to me. Business 101, loss vs profit.
California with it’s cesspool of immortality and tax/spend attitude will lead to more business loss.
So State Farm ain’t there?
I have State Farm for auto and home in Kansas. My parents did, as my siblings do. The only complaint is they replaced the original Jake with a black guy for woke reasons.
Maybe Gruesome Newsom and his Hollowoody pals should start an insurance company.
First State Farm got rid of White Jake, now they’re getting rid of California...
Never mind.
Depending upon location and type/quality of materials/design, costs can be between $300 and $500 per square foot of new construction. Does not include land, permit fees, environmental review costs, ‘impact’ fees, school fees, special assessments, architect, etc. The only way it seems possible to break even or come out ahead on building in CA is to a.) have zero, or close to zero, land cost, b.) zero, or close to zero, construction cost, or c.) be a nationwide builder who can maybe, just maybe, eek out a small profit (or take a loss to gain a regional market share/legacy).
so how many sf agents will go out of business or drastic reductions in income?