Largest home insurer in the country no longer offering policies in California (real estate, buy)

[evening sun]

Insurance companies also sued PGE after they started the 2017 & 2018 fires. So the insurance companies got paid back.

https://www.npr.org/2019/09/13/76047...ast%20November.

[evening sun]

It is very wrong, they recouped their losses, & still put rates up & dropped coverage. Dirty bunch.

My current coverage will not be renewed when it expires in July. I have another quote, which is actually cheaper than the previous one, but I am still going to check around.

[Mathguy]

Originally Posted by HereOnMars

Here's the real reason SF is leaving . . .

It all has to do with Proposition 103, a Measure that was passed in 1988 where insurance companies are prohibited from raising rates without prior approval from the state. This Proposition passed with a 51% majority from voters.

https://www.insurance.ca.gov/01-cons...venor/info.cfm

I sometimes forget that we (voters) are responsible for some of the events that happen down the road after we vote for something. No doubt, others will be leaving soon, as well.

OMG....I may have just met one of the top 10 smartest posters on City Data.

You actually *gasp* educated yourself, shared the information with others and posted a link?!!!?!?!

100% serious, well done.

Yep, the STATE OF CA sets the rates, the idea of an insurer leaving a state is *insane* considering that they spread their fixed costs by writing as many policies as possible.

So in short:

1) The profit in $1000 of premium for homeowners in CA is about $50 or less.

2) The state, won't let the insurers charge enough to make them stay in the state.

3) CA, relative to other states even, doesn't even have that scary of CAT (catasrophe) exposure as they have almost no hurricane or tornado\hail risk, earthquake is a separate thing as is flood and wildfire is a risk in other states as well and not nearly as prevalent as say wind damage from hurricanes in FL.

4) So what does that mean? It means that a bunch of state laws passed in the last 5-10 years have made it a big fat gravy train to sue...same issue in Florida so totally not going political has nothing to do with that, SF had huge problems there about 14 years ago and since.

P.S. For the "they're gouging us and don't need higher rates" folks...then why are 45+ other states just fine? Or why does Michigan have super high auto insurance rates? Are they just arbitrarily being gouged or does their own state laws and regulations drive up auto accident costs? The states have 100% control of insurance prices, laws, litigation etc. but when they anger the voters? Oh...it's um the insurance companies. LMAO... don't get suckered.

[Mathguy]

Originally Posted by evening sun

Insurance companies also sued PGE after they started the 2017 & 2018 fires. So the insurance companies got paid back.

https://www.npr.org/2019/09/13/76047...ast%20November.

Did they get paid back? Read your own link.

[Mathguy]

Hey folks shop around. Nice thing about having lots of competition for your business.

That being said, when one of the major insurers (Never worked for them) says we don't want to sell our products there....you are basically heading down a path of horror (ask Florida).

So, either blame everyone else and embrace ongoing horror....or take a hard look at what is making insurance so expensive in your state.

All the best.

P.S. Politicians will try to blame everything from State Farm, global warming (um that's not new), aliens, rival politicians, Mexico, Canada, The Raiders moving to Nevada....so just be prepared for BS flooding.

[evening sun]

Originally Posted by Mathguy

Did they get paid back? Read your own link.

PGE Did declare bankruptcy, but they are still making payments to those who sued them.

I don't see anywhere where it says they will not get paid. They may have to wait, but they will still get money.

[Dub D]

This is nothing new. If you think its bad here...read up on Florida. Where they aren't exiting the market, companies are severely restricting standard policies. My cousin in Oklahoma has 1% dwelling coverage for wind and hail damage. So say the dwelling is valued at $400k. Only 4k would apply if its wind/hail damage. You need to purchase an endorsement (additional coverage) to increase that 1%.

Insurance across all lines are up. Take a look at our 2023 auto rates.

Also, State Farm REALLY sucks. At everything. So good.

[Mathguy]

Originally Posted by evening sun

PGE Did declare bankruptcy, but they are still making payments to those who sued them.

I don't see anywhere where it says they will not get paid. They may have to wait, but they will still get money.

Says they'll pay 11, insurers paid out 20, they're not getting the remaining 9.

It's right there in the article.

[evening sun]

Originally Posted by Mathguy

Says they'll pay 11, insurers paid out 20, they're not getting the remaining 9.

It's right there in the article.

That's still a good figure to get reimbursed, I mean insurance is risky. And some of them have re insurance coverage also. So they did not loose as much as they could have.

[Mathguy]

Originally Posted by evening sun

That's still a good figure to get reimbursed, I mean insurance is risky. And some of them have re insurance coverage also. So they did not loose as much as they could have.

Ok, so we went from "oh they'll get paid back" to "What's a measely 9billion dollar loss?"

Your first point was made along the lines of they didn't really lose money...now it's well, that's just business.

Ok, enjoy! Drive them all out. Winning!