Largest home insurer in the country no longer offering policies in California (San Francisco: camp, price)

[NORTY FLATZ]

Originally Posted by Ultrarunner

Maybe doing business with a company based in California guards against leaving the State?

Quite a few California Corporations are not allowed to sell their products, in the State of California.

Which, is ironic, as the products are created/produced/built IN California...

Now, as far as insurance goes...if you're in Calif, then the LAST thing you should do, is upset the apple cart. (unless you want to be canceled, that is.)

[2sleepy]

Originally Posted by Thekdog

California's homeowners insurance crisis is growing and spreading to car insurance

https://www.kpbs.org/news/economy/20...-car-insurance


Under California law, the commissioner has to approve rate increases, but that didn’t happen during the COVID-19 pandemic.

“For 31 months, this insurance commissioner did not approve rate filings or rate increases for automobile insurance, and it has clogged the pipeline,” D'Arelli said.

"It can't be business as usual. The department needs to fast-track rate approval."

“Insurance companies have told me that the regulatory landscape has gotten so poisonous and the process of getting rates approved has just been weaponized in Sacramento at the Department of Insurance.

Companies would rather write business where there’s a friendlier regulatory scheme,” D'Arelli said.

No, they would rather not have to comply to rate limits, they would love to charge you as much as they possibly can. I'm amazed that people read about this and get all sad about these poor insurance companies when it's about nothing more than their greed. And they won't stop with California, rates in Florida are already through the roof and these companies are out there finding ways to raise rates and if they can't raise them they threaten consumers.

...Some think what’s going is on is a political ploy by insurance companies mad over California’s Proposition 103, which requires any rate increases to be approved and reviewed. Rates didn’t increase during the pandemic when there were less people on the roads because of stay-at-home orders. But over $1 billion in rate hikes have been approved this year alone, and yet, it’s not enough since insurance companies are willing to make California drivers suffer because they want even more money. https://jalopnik.com/auto-insurance-...ifo-1850556264

[CA4Now]

Insurance companies collected more than $150 billion in premiums from California homeowners over the last 25 years and enjoyed profits at four times the national average. Now they’re demanding an unprecedented bailout from the California Legislature as the price of continuing to do business here in the wake of wildfire losses.

Industry lobbyists are reportedly negotiating with lawmakers, Insurance Commissioner Ricardo Lara and Gov. Gavin Newsom’s office toward a deal that would be unveiled in the last weeks before the Legislature adjourns on Sept. 14. The industry’s plan would advance its decades-long drive to undermine the protections of Proposition 103, the insurance reform measure passed by voters 35 years ago. The proposal would allow insurance companies to hike rates without full transparency or justification; force policyholders to assume the staggering costs of insurers’ backup coverage for unexpected losses; and use secret algorithms to set premiums.

...Finally, as a condition for the privilege of selling any kind of insurance in California, companies must be required to cover all homeowners who have taken appropriate measures to protect their property. And insurers that choose to leave the state should not be allowed to return for five years. Companies that collect our premiums for decades and then suddenly decide they don’t want to obey our laws should not be allowed to do business in the largest and most lucrative insurance market in the nation.

https://www.latimes.com/opinion/stor...res-california

[Thekdog]

Sounds like they're finally going to fix it

[aslowdodge]

Originally Posted by CA4Now

Insurance companies collected more than $150 billion in premiums from California homeowners over the last 25 years and enjoyed profits at four times the national average. Now they’re demanding an unprecedented bailout from the California Legislature as the price of continuing to do business here in the wake of wildfire losses.

Industry lobbyists are reportedly negotiating with lawmakers, Insurance Commissioner Ricardo Lara and Gov. Gavin Newsom’s office toward a deal that would be unveiled in the last weeks before the Legislature adjourns on Sept. 14. The industry’s plan would advance its decades-long drive to undermine the protections of Proposition 103, the insurance reform measure passed by voters 35 years ago. The proposal would allow insurance companies to hike rates without full transparency or justification; force policyholders to assume the staggering costs of insurers’ backup coverage for unexpected losses; and use secret algorithms to set premiums.

...Finally, as a condition for the privilege of selling any kind of insurance in California, companies must be required to cover all homeowners who have taken appropriate measures to protect their property. And insurers that choose to leave the state should not be allowed to return for five years. Companies that collect our premiums for decades and then suddenly decide they don’t want to obey our laws should not be allowed to do business in the largest and most lucrative insurance market in the nation.

https://www.latimes.com/opinion/stor...res-california

If it’s so lucrative why would they pull out? That doesn’t make any sense.

[CA4Now]

Originally Posted by aslowdodge

If it’s so lucrative why would they pull out? That doesn’t make any sense.

They haven't made much in profits since climate change fueled natural disasters have started occurring.

https://www.policygenius.com/homeown...urance-crisis/

[2sleepy]

Originally Posted by aslowdodge

If it’s so lucrative why would they pull out? That doesn’t make any sense.

It's a ploy to try to get the state to reverse prop 103 that was passed in 1988, it requires the state to approve rate hikes and insurance companies jumped on this like fleas on a dog to try to stir up the public to support their desire to raise rates whenever and for however much they want. https://www.sfexaminer.com/news/stat...b17c195b5.html

[aslowdodge]

I don’t normally side with insurance companies, but all costs have skyrocketed in the last few years, way fast than insurance rate increase probably.
Car parts for repairs have gone way up. One of my parts went from 400 to 600 in one jump. I need 4 of those.

Going to Home Depot I’ve seen a lot of items doubling or tripling in price the last few years.

My friend is a broker and one of his vendors auto owners insurance told him no new policies and they are going to drop a lot of current customers who they deem as higher risk. I guess bringing is less revenue and cutting payouts down is more profitable. Better to collect a dollar and payout 80 cents than collect 10 dollars and pay out 12 dollars I guess.

[Ultrarunner]

The devil in the details as going without is seldom an option and even government mandated.

Growing up we did not have heath insurance…

Home and Auto were only required if you were making payments…

Then there was a segment called Judgement Proof.

Mandatory Auto Insurance was promised to lower rates because everyone would be covered the the pool of those paying would be larger.

The trend now is to cherry pick on something many are mandated to have…

[MKTwet]

Not to mention so many car thefts, glass break-ins, must be great to operate a car shop that repairs car windshields and glass in CA. Insurance pay outs must be ridiculous in CA.