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California Won't Let Homeowners Insurance Companies Raise Rates, so They're Leaving the State Instead
https://www.yahoo.com/news/california-wont-let-homeowners-insurance-113015400.html ^ | Fri, March 29, 2024 | Steven Greenhut

Posted on 03/30/2024 5:43:17 AM PDT by cuz1961

... Reading insurance trade magazines isn't everyone's idea of a great time, but every Californian should pay attention to the latest news in that arcane world. "State Farm to pull out of 72,000 California insurance policies," blared a Reinsurance News headline. State Farm provides nearly 21 percent of state homeowner policies, so this is big news. Last year, it stopped writing new homeowner policies. Now it's "non-renewing" existing ones and getting out of apartment policies entirely....

(Excerpt) Read more at yahoo.com ...


TOPICS: Government; Miscellaneous; News/Current Events
KEYWORDS: insurance
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1 posted on 03/30/2024 5:43:17 AM PDT by cuz1961
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To: cuz1961

The state of Florida and California are having a rough time. But it will settle down. I’m a little worried about this hurricane season as they predict a doozie.


2 posted on 03/30/2024 5:53:03 AM PDT by napscoordinator (DeSantis is a beast! Florida is the freest state in the country! )
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To: cuz1961
One of California's biggest problems (and there are a lot of them) is the state constitution allows changes to its constitution with only 51 percent of a referendum vote. Constitutions should be difficult to change.

The insurance industry in California is collapsing because a referendum passed that allowed a government regulator to establish rates for private insurance. The premiums are way below market value now and companies like State Farm are just leaving.

3 posted on 03/30/2024 5:53:51 AM PDT by Right_Wing_Madman
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To: cuz1961

When will politicians learn that the laws of Supply and Demand don’t care what they think. It’s a system of resource allocation that functions better on its own without political intervention.


4 posted on 03/30/2024 5:59:54 AM PDT by econjack
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To: cuz1961

51% to change the state constitution. Welcome to the state of Canutefornia.


5 posted on 03/30/2024 6:11:50 AM PDT by Bernard (“God's cruelest punishment is to let you reap what you sow.”)
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To: econjack
When will politicians learn that the laws of Supply and Demand don’t care what they think?

They won't. Ever.

6 posted on 03/30/2024 6:11:52 AM PDT by null and void (There’s only one thing that’s for sure. Everyone on all sides a conflict will be happy to lie to you)
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To: cuz1961

This happened in Louisiana with auto insurance.


7 posted on 03/30/2024 6:13:58 AM PDT by eastexsteve
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To: cuz1961

tou all see the tactic ?

this is a seige against low and middle class private property.

no one will be able to finance a house without insurance.

soon all the other companies will cancel policys and leave state.

then the commies wait till the current owners die .

end of private property.

am i missing something ?


8 posted on 03/30/2024 6:14:53 AM PDT by cuz1961 (grouchy)
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To: null and void

if politicians were educable..they would’nt need to be politicians!!


9 posted on 03/30/2024 6:17:12 AM PDT by mo ("If you understand, no explanation is needed; if you don't understand, no explanation is possible)
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To: mo

They could be teachers...


10 posted on 03/30/2024 6:22:31 AM PDT by null and void (There’s only one thing that’s for sure. Everyone on all sides a conflict will be happy to lie to you)
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To: econjack

California, and liberals in general, have a knee jerk response to every problem: when people complain about prices, just pass a law that won’t allow the sellers to raise prices. Problem solved. Don’t consider the solvency of the industry, or consider the possibility of the industry relocating. But when they fail or move, accuse them of racism. They don’t offer constructive solutions, but allow their constituents to embellish their status as victims. Ultimately, the victims response will be to attack the industries, as well as local governments, then capitalists, Christians and the middle class. Can we then see who is behind this thought process? Who benefits?


11 posted on 03/30/2024 6:24:45 AM PDT by Spok
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To: cuz1961
Wait? The "owners" of The People's Houses will be disappeared.

What's that line from Father land?

- Anna Von Hagen: We put them in cattle cars and shipped them east. Always east.
- Charlie Maguire: To the Ukraine, you mean? To the resettlement camps?
- Anna Von Hagen: Ja, we resettle them. In the air.” twirls her finger up "As smoke."

12 posted on 03/30/2024 6:28:13 AM PDT by null and void (There’s only one thing that’s for sure. Everyone on all sides a conflict will be happy to lie to you)
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To: econjack
When you purchase a policy you are asking the insurance company to indemnify you against risk. The premiums you are charged will be based on the risk you're asking the insurer to take on. All other things being equal, if you're asking the carrier to insure a $5M home in the middle of tornado alley, the premiums are naturally going to be higher than a $150K home in the mountains of eastern Tennessee. If you're buying a policy for a 22 year old driver in a 2024 Corvette, the rates will be higher than a 45 year old in a 2014 Ford F150.

If government wants to lower insurance rates, there are things they can do like increase the infrastructure for public safety (i.e. proximity of fire hydrants to residences), upgrade building codes in hurricane/tornado prone areas, and aggressively enforce crimes against property to lower theft and vandalism rates and reduce the overall risks citizens are asking the insurance companies to take on.

That takes too much thought and effort on the part of our thick-skulled pols who think they can simply set rates by fiat from on high.

13 posted on 03/30/2024 6:28:27 AM PDT by Joe 6-pack
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To: Spok
...who is behind this thought process?

There can't be a cogent thought process behind it or it wouldn't be happening. Many economic solutions are based on the "long run", but the long run to politicians is their term of office. That's why giving away OUR money to illegals and non-productive members of society is their to solution to all problems.

14 posted on 03/30/2024 6:31:15 AM PDT by econjack
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To: econjack

Also, re: my #13, one of the main contributors to skyrocketing insurance rates in the COVID and post-COVID era are supply chain issues. Building materials and vehicle repair parts have all seen significant price hikes which of course will contribute to the costs of fixing a vehicle or a residence after a covered loss. Some of contributors to supply chain issues are also within the control of government, but they have also failed in that regard as well.


15 posted on 03/30/2024 6:34:25 AM PDT by Joe 6-pack
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To: napscoordinator

You can’t buy SF homeowners insurance.

SF left Florida after Hurricane Andrew...


16 posted on 03/30/2024 6:35:16 AM PDT by Does so ( 🇺🇦....We are in the later stages of a Communist takeover...)
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To: cuz1961

Most everyone with an IQ above par golf, realized a long time ago that when the State dictates how much you can charge and then dictates how much you must PAY out in claims, was going to force them all to leave the State.


17 posted on 03/30/2024 6:59:32 AM PDT by eyeamok
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To: cuz1961

I can’t get an answer to an easy statistical question from the net: “How many homes does State Farm Insurance insure in California?”

How hard can that be?

All I get is article after article about the stoppage of new insurance writing.


18 posted on 03/30/2024 7:04:08 AM PDT by SaxxonWoods (Are you ready for Black Lives MAGA? It's coming.)
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To: SaxxonWoods

The truth? You can’t handle the truth!


19 posted on 03/30/2024 7:20:08 AM PDT by null and void (There’s only one thing that’s for sure. Everyone on all sides a conflict will be happy to lie to you)
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To: napscoordinator

I don’t think it was State Farm but an insurance company partnered with a drone/satellite company and then tied the addresses of homeowners to the images and if there were any trees near the covered homes, they were given 90 days to trim or remove the tree before the homeowner policy was canceled.


20 posted on 03/30/2024 7:23:04 AM PDT by Mean Daddy (Every time Hillary lies, a demon gets its wings. - Windflier)
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