Who else beside California has this problem ?
Colorado now facing the same
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Let’s see what could be the problem. State Farm General (the CA subsidiary of State Farm Mutual) funnels a bunch of their money to their parent company State Farm Mutual. State Farm Mutual declares record profits last year. State Farm General say we need to raise rates to stay viable. State Farm Mutual say were not going to help State Farm General financially.
That’s it, peoples rates need to be raised.
States are sovereign, they can’t be “brought down”. They can however cut services if their constituents do not want to tax themselves to provide those services. Though that borders on a distinction without a difference to the average joe.
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Where does the fire risk on FRA lands fall into this map ? Is there a similar map made for fed lands ?
People dont live on Fed lands so i dont think there is a hazard map directed in that fashion.
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There are cabins in national forests surrounded by federal land . Wondering if there is a federal hazard map that insurance uses. These properties don’t show up on the state map.
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Ok yeah leased cabins but its probably 0.00001 of all homes in CA. When it burns down I doubt they will let you rebuild. The insurance is probably just a pay out to you.
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Hurricane prone states are having similar issues. Florida, TX and Alabama are experiencing the exact same issues with policy rates and cancelations.
It is too bad when two of the governors from two of the states that are having the issues got together for a debate… missed the opportunity to work together to solve the problem by finding commonality.
There are places within CA where insurance is being canceled because of building density… these are not in or near where it would be considered WUI. This has to do with post earthquake fires.
Not sure it would bring a state down. It will further the housing bubble. The people at PERS are pretty good at what they do.
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Homeowners insurance used to be more expensive in Texas than California. But that was not because of fires or hurricanes.
Big loss out here is from hail damage. We rarely see little hail stones, normally golf ball up to softball size such as experienced in Kerrville a couple of days ago. You realize the potential damage when you see a car dealership loaded with new vehicles get hit. Most suffer being totaled. Saw a Ford dealership next to a Dodge dealership both wiped out with all vehicles damaged due to hail.
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In the bigger picture…
Home insurance is the first domino, says this global insurance exec.
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That’s not how capitalism works. If one piece (insurance) is taken out of the equation, that does not mean that everybody else will just give up and stop transacting business, and their own livelihood. They will find another way to do it.
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Right, but it may involve less profits for bankers and hedge funds, and loaning of money. I think the loaning of money part is what the article is about.
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Take the 45min to watch this
Then ask yourself a series of questions.
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How much of my retirement (401k, Mutual Funds, Pension) is invested in the insurance industry.
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Where does personal responsibility begin and where does it end.
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As stated in the video, what percentage of what we are currently experiencing is a result of Prop 103
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Disgusting but certainly not surprising
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38% huh…That should add a few more Super Bowl commercial for them.
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AI summary: Waste of the Day: CA Insurance Commissioner’s Costly Travels
California Insurance Commissioner Ricardo Lara skipped a key Senate hearing on property insurance after the LA fires—to give a 15-minute speech in Bermuda. Days later, he greenlit State Farm’s emergency rate hike of up to 38%.
Since 2019, Lara’s taken at least 56 work trips, costing taxpayers over $30K (and likely more due to missing records). Destinations include Paris, Colombia, Egypt, and more. Some trips were funded in part by outside groups, but the public still picked up $26K+ in full travel expenses and another $4K+ for hotel and Uber costs.
He was also absent from both state insurance hearings held from 2021–2022.
Critics say Lara should be focused on California’s crises—not on global junkets.
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