https://www.sacbee.com/news/politics-government/capitol-alert/article279019279.html
Instead of relying on insurance companies after the fire. It might be wiser to safeguard your home during a wildfire. I think the way it stands now with insurance companies your money would be better spent with a system like this. Wildfire Sprinkler System for ultimate home protection| Frontline 
2 Likes
All home owners with a mortgage have to rely on insurance BEFORE any catastrophe. The lender of record will require that, or buy insurance for the homeowner to cover the loss of the remaining mortgage. My insurance company required me to harden my house in 2019, and then sent me a cancellation notice in 2021. Due to the River and Mosquito fires I still have a “reasonable” rate,
since they can not cancel a policy within or adjacent zip code to a state declared emergency incident.
Talking with a long time insurance broker, he feels that the only solution to the lack of house insurance options, is to tie the ability to write car policies to home policies. In other words, if a Insurance company wants to write car policies, which are still very profitable in CA, they must write a similar percentage of home policies. I’m not sure that would work but it seems reasonable
5 Likes
Yes, you are exactly correct the lenders require home insurance or the loan will not go through the same as driving a car you have to be insured. We faced this a few years back, our property was paid and our insurance increased 3 x so we dropped coverage. We now use the money to improve the property and will have to take our chances, and we also know that if we sell the property the new buyer will have to insure here. That they want to tie it in with Auto insurance is typical. As soon as they have to meet their agreement after a catastrophe they always balk with one excuse or another. Often using “I am sorry you are not covered in a natural disaster.” They need to be held accountable.
4 Likes
On point with your insurance friend, since State Farm has refused us homeowners insurance, we are also going elsewhere for auto insurance.
5 Likes
Problem is, insurance is for a lot more than just wildfire. There is wind and water damage, in addition to theft. One of the things that got dropped from the policy on my brother’s home was identity theft coverage. Not sure how that works on a house.
2 Likes
I was told it is better to just take out renters insurance on contents (which doesn’t save the home ). When it went up 3 x the amount in one year, we had no other option at the time. Wind, rain etc Insurers say it is a natural disaster so to be honest I am not sure what would be covered.
3 Likes
I just read three top-of-the-feed articles on this and not a single one suggested that labor could provide solutions. All too often, these pieces have little more than new formulas, new spreadsheets and new accountants to solve the problem. Insurance companies are walking away from half-assed land use policy the same way county tax hawks walk away from unimproved lots in the middle of the business district.
There’s no unfilled square on the screen that magically transfers risk from backload on emergency services, FEMA and insurance companies forward onto land use policy makers and developers, where it needs to be.
The problem of not enough hard hats cannot be solved by adding and subtracting suits and ties, only by adding more hard hats.
Civil engineering projects, like levees and serious fire breaks and fuels management, are what turns land prepared for communes and hunting lodges into land that is fit for families and labor.
Risk needs to be front loaded to engineers and developers who can make lands safer and more comfortable for residents and insurers. Meaning infrastructure, like roads and schools, but also the civil engineering projects that protect the infrastructure from fire and flood.
California, and perhaps the country, et al, at large, and otherwise involved, that does not get shouted down by populists and reactionaries, who build without sufficient civil engineering and infrastructure, would see a return of friendlier insurers if they would make the engineering investments at the state and federal level that prevent incidents, like those at Pajaro and Grizzly Flats, from becoming such problems to begin with.
Labor and civil engineers to lead them; hard hats, dozers and fuels crews make land safer and insurable for residents who provide labor and revenue for the fire stations, levees, weirs and water projects, roads and schools that support them. At that point, commercial and industrial zoning becomes more profitable. Doing this backwards seems to be driving insurers away and it’s difficult to blame them.
3 Likes
3 Likes
3 Likes
As the risk pool Continues to shrink, the rates will continue to rise. The laws of supply and demand are so out of balance because of intervention and lack of accountability on the part of less than 10% of the total private homeowners has only compounded the problem. I live in a city, zero fire risk, class 2 fire protection and my homeowners insurance went up $3600/year.
@Ehoss84 , my previous insurance left CA. I went back to AAA with sticker shock. Paying same as you class 2 fire dept, zero wildfire threat. Crazy. A guy at work though has USAA and pays 1200 for same size house but it is new and sprinklered so i wonder if the fire suppression lowers the risk that much.
2 Likes
The hustle factor.
1 Like
USAA has incredible rates. Big perk of military service.
1 Like
Well deserved but not all qualify
I posted a curiosity question on FB to ask if everyone was experiencing a major insurance gouge at all levels, or was it just me? Many friends responded “yes,” they’re being gouged at an alarming rate. At least it’s not a personal thing- companies must be terrified they’re going to lose, although according to Profit/Loss statements, none of them are in the hole
2 Likes
My renewal was up about 18%. I have State Farm. My agent showed me my last 4 years bills and there was no change until this year so I’m not too upset. Where I took the hit was on the umbrella policy. My bill is around $1200 on a 25 year old house (w/sprinklers). @Ehoss84 $3600! Yikes.
3 Likes
Information via a global reinsurance outfit.
The annual Natural Catastrophe and Climate Report by Gallagher Re has revealed that global insured losses from natural catastrophes reached an estimated $123 billion in 2023, marking the fourth consecutive year where such losses exceeded $100 billion.
1 Like
3 Likes
2 Likes