Largest home insurer in the country no longer offering policies in California (Sacramento: car insurance, transfer)

[Mathguy]

I'd like everyone to remember the people that run the CA dept. of insurance report to an ELECTED board. (Basically all states operate like this where the buck stops at someone subject to public vote.)

So, let's assume that you really do know you need an increase but don't want to lose your job. Do you bad mouth the insurance companies knowing you really do need to make a deal but then look like you caved?

No, you have a politically connected "consumer watchdog" bite them for you. LOL.

They're unrelated *wink wink*

[CA4Now]

Originally Posted by Mathguy

I'd like everyone to remember the people that run the CA dept. of insurance report to an ELECTED board. (Basically all states operate like this where the buck stops at someone subject to public vote.)

Yep. I think we all remember who we last voted for for insurance commissioner. Now, whether he's actually done what he said he'd do is another story.

https://calmatters.org/california-vo.../ricardo-lara/

[Mathguy]

Originally Posted by CA4Now

Yep. I think we all remember who we last voted for for insurance commissioner. Now, whether he's actually done what he said he'd do is another story.

https://calmatters.org/california-vo.../ricardo-lara/

Zero experience in insurance prior to becoming commissioner.

For some roles I'm fine with someone just doing the politics and managing things but for others I think a deeper understanding is required.

Oh well, he's got his hands full now, I wish him and CA all the best in dealing with the situation but it's entirely within their control.

[TheGoodUsernamesWereTaken]

Originally Posted by bpollen

Common sense says that if that were true, they wouldn't be pulling business out of the state. Don't take at face value what someone says is a company's profit, or the underlying data used, or what states those numbers apply to.

If a company is making hand over fists profits somewhere, they'll stay there.

The costs for these disasters are enormous, requiring a lot of money paying claims, plus the personnel to work on those claims almost 24X7 for months on end, arranging claims adjusters going to thousands upon thousands of properties to assess damages for each property, reviewing millions of claims (we turn in partial claims repeatedly after a disaster...one for roof, one for fascia, one for debris tree removal, one for new hot water tank, one for new or repair of a/c unit, one for painting and stain cover, reimbursement for emergency tarps for roof, one for....well, you get the idea. The claims roll in by the thousands daily. It requires an enormous staff, including the hiring of many independent contractors hired from around the country, incl the cost to fly them in, their housing, their transportation.

Add to this, the states require a certain (large) amount of money deposited with the state, if you want to do business in a disaster-prone area. This is to assure the state that you have dedicated funds on hand with the state, when a disaster hits.

In Florida, ins. companies pulled out of some areas...and some of the smaller ins. cos. went out of business. It's not just the amount of claims to be paid, it's the short period of time that the money needs to be used to pay those claims.

Then there are the lawsuits (mostly justified, from what I've seen) against the ins. cos., for not paying, or not paying promptly (our state has laws requiring the time period an ins. co. must pay a claim after the claim is turned in).

I live in a hurricane zone and plan to move. But this will be my third year post-double-hurricanes (and the ensuing damage) that I'm here. My fingers are crossed that I'll be safe this year and will be able to move soon after. I just haven't been able to get everything together...the house repaired & looking nice, getting rid of stuff so I don't have to move it, and finding a new town to move to that I can afford. Real estate has skyrocketed elsewhere, but not here. So although I'll probably make a small profit on my house, I don't know where I can move to yet. I'm by myself and inexperienced with this sort of situation, so it's been tough. I have family here, but they are no help. They are the reason I moved here after retirement, to begin with (my Dad insisted). He's trying to talk me into staying. He just doesn't understand. I ask him, "Dad, just what am I going to do when a hurricane hits & we have to evacuate, but I'm sick and can't leave, or I'm old and infirm?" That's the mindset of many, though. They're dug in. Their whole lives, their families, their friends are here. Most have never lived anywhere else. They will never leave.

I'm trying to decide whether to pull money out of my retirement account to buy a house in an area I want, or to lower my wants/needs in a new home, because of the increase in housing costs elsewhere.

I wish you the best of luck.

That never leave attitude is something I loathe in the average Californian and San Franciscan.

[Thekdog]

Allstate has received a go-ahead to hike homeowner premiums in California by 4 percent, but that’s not enough for the state’s fifth-largest home insurer.

The Illinois-based company said it has no plans to reverse its decision last fall to stop writing new policies in California, the Whittier Daily News reported.


That will mean higher bills for Allstate’s current customers and no relief for California homeowners losing their coverage in areas ravaged by wildfires, floods and landslides.

State Farm, the state’s largest home insurer, said in May it would also stop writing new policies, igniting fears of an insurance market collapse.


Allstate said it applied for the rate increase in April 2021 before inflation hit last year, sending prices for new shingles, wood, insulation and labor soaring


California’s insurance market could be improved by allowing insurers to bill customers for reinsurance, as well as base premiums on computer-modeled loss projections, insurance industry representatives say.

https://therealdeal.com/la/2023/06/2...wner-policies/

[JGC97]

Originally Posted by bpollen

I'm trying to decide whether to pull money out of my retirement account to buy a house in an area I want, or to lower my wants/needs in a new home, because of the increase in housing costs elsewhere.

Soooooo? What did you do or have you done anything yet? I know what I would do but it's not my retirement money. I'm just curious.

[JGC97]

Originally Posted by Thekdog

Allstate has received a go-ahead to hike homeowner premiums in California by 4 percent, but that’s not enough for the state’s fifth-largest home insurer.

I hope there was some compromise in the deal. Something like they wanted to raise rates eight percent, the state wanted two and they settled on four. That's the fair way of doing things. Not one side getting their way all the time but rather compromise. Fed says there could be another rate hike soon so that means interest rates will likely rise too. It never seems to end.

[Thekdog]

Originally Posted by HereOnMars

I hope there was some compromise in the deal. Something like they wanted to raise rates eight percent, the state wanted two and they settled on four. That's the fair way of doing things. Not one side getting their way all the time but rather compromise. Fed says there could be another rate hike soon so that means interest rates will likely rise too. It never seems to end.

The request was from 2021

[JGC97]

Originally Posted by Thekdog

The request was from 2021

I saw that. No doubt, after the last devastating fire. I still hope they compromised. I like a good negotiation.

[Thekdog]

Originally Posted by HereOnMars

I saw that. No doubt, after the last devastating fire. I still hope they compromised. I like a good negotiation.

I imagine California pulling up the old 2021 offer and saying "you've got a deal!"