The real reason State Farm won’t sell home insurance in California anymore

[DigitalDrifter]

You've probably heard the news that State Farm is dropping all but car insurance policies in the state.
Whether you buy into the climate change reasoning, or poor land management, for the increase of wildfires, the bottom line is they've made a business decision, and I don't blame them at all.
By the way, both theories can coexist. I'm in the "poor land management" camp myself.

Media seized on this last item to declare the official arrival of the climate apocalypse.

“Climate shocks are making parts of America uninsurable,” the New York Times observed following State Farm’s announcement.

While climate change might be in the zeitgeist, there are better explanations for State Farm’s exit.

Though State Farm said nothing about climate change in its press release, there’s no question that California has struggled mightily with wildfires in recent years. Data collected by Policygenius show California experiences more wildfires than any other U.S. state (9,280 in 2021) and the most acreage burned (2.2 million acres).

Worse, California’s wildfires tend to be the most destructive. The Golden State suffered $14 billion in insured wildfire losses in 2017, the most in history. The worst years for other states don't even come close: The next closest is Texas, which suffered $530 million in insured wildfire losses in 2011, followed by Colorado ($450 million in 2012) and Arizona ($120 million in 2002).

MSN

 

[Hang on Sloopy]

for the biden supporters i say......lolololol..........................hope you pay to the nose

for non bidens, you don't deserve this

 

[struth]

Cali is run by Demafasict, frankly that’s a bad bet…i get why insurance companies, and people are fleeing

 

[Dekster]

IDK. I use Jake for our car insurance but haven't seen a need to move the homeowners over. I have heard they are hard to work with on property claims, but I have never had to file anything on my homeowners before with anybody. I cut all the trees back to keep them from being in falling distance of the house unless they had a clear lean the other way. Beyond that, I just fix crap out of my own pocket instead of filing a bunch of small claims that will get you rated.

 

[excalibur]

Allstate has now done the same.

 

[multivita-man]

You've probably heard the news that State Farm is dropping all but car insurance policies in the state.
Whether you buy into the climate change reasoning, or poor land management, for the increase of wildfires, the bottom line is they've made a business decision, and I don't blame them at all.
By the way, both theories can coexist. I'm in the "poor land management" camp myself.

MSN

The article's author wrote a lot to say basically nothing. Cute.

 

[multivita-man]

To be accurate, it's not just climate change-related fire dangers that are the danger; it's also the fact that there's a lot of high-priced property that an insurance company doing business in California is being asked to protect. One fire is a shit-load of damage. Double if it's two, and thrice if it's three, and so on. California real estate is becoming increasingly uninsurable and that is going to have devastating economic impacts.

But for those cheering this one, Florida is probably not too far behind. Cheer with caution.

 

[progressive hunter]

You've probably heard the news that State Farm is dropping all but car insurance policies in the state.
Whether you buy into the climate change reasoning, or poor land management, for the increase of wildfires, the bottom line is they've made a business decision, and I don't blame them at all.
By the way, both theories can coexist. I'm in the "poor land management" camp myself.

MSN

same thing here is what is happening with health ins.,, the governemnt creates to much bureaucracy and problems and runs the private companies out of business and then the state can step in to replace them,,,


climate changes is just a convenient excuse that advances another fake agenda,,

 

[Rambunctious]

Its shit like this that has caused the problem.... dems doing too much... dems gone wild is dangerous....

Gov. Newsom signs law requiring home insurers give policyholders more time before cancellations - United Policyholders

 

[multivita-man]

Its shit like this that has caused the problem.... dems doing too much... dems gone wild is dangerous....

Gov. Newsom signs law requiring home insurers give policyholders more time before cancellations - United Policyholders

A governor is supposed to look out for the consumer. I get that insurers don't like it and adds to their risk profile, but that's a perfectly valid piece of pro-consumer legislation.

The blunt reality is that the cost of doing business in a way that benefits both the consumer and the insurer is too much for California, and that's because of human development, human overgrowth, human market economics, and human-caused ecological destruction. Consequently, human systems are beginning to falter. There are limits to growth after all.

 

[multivita-man]

same thing here is what is happening with health ins.,, the governemnt creates to much bureaucracy and problems and runs the private companies out of business and then the state can step in to replace them,,,


climate changes is just a convenient excuse that advances another fake agenda,,

If insurance companies had their way, they would only pay for the claims they felt like paying for so that they'd extract as much revenue and profit from the consumer with as little cost as possible. For this reason, insurance is a heavily-regulated industry, as it has to be.

 

[Cougarbear]

IDK. I use Jake for our car insurance but haven't seen a need to move the homeowners over. I have heard they are hard to work with on property claims, but I have never had to file anything on my homeowners before with anybody. I cut all the trees back to keep them from being in falling distance of the house unless they had a clear lean the other way. Beyond that, I just fix crap out of my own pocket instead of filing a bunch of small claims that will get you rated.

I've used Snake Farm recently for water damage on our flooring. They did a great job. Their auto insurance not so great. Impossible to work with.

 

[progressive hunter]

If insurance companies had their way, they would only pay for the claims they felt like paying for so that they'd extract as much revenue and profit from the consumer with as little cost as possible. For this reason, insurance is a heavily-regulated industry, as it has to be.

not sure why youre changing the subject,,

 

[bodecea]

for the biden supporters i say......lolololol..........................hope you pay to the nose

for non bidens, you don't deserve this

USAA all the way.

 

[Hang on Sloopy]

You've probably heard the news that State Farm is dropping all but car insurance policies in the state.
Whether you buy into the climate change reasoning, or poor land management, for the increase of wildfires, the bottom line is they've made a business decision, and I don't blame them at all.
By the way, both theories can coexist. I'm in the "poor land management" camp myself.

MSN

they were the fist ones to ditch fla too when they had 5 hurricanes....they're overpriced

 

[multivita-man]

not sure why youre changing the subject,,

It's not changing the subject; it has been argued on this thread that the reason CA insurers are leaving is because of regulation. Insurance is regulated out of necessity. It would be a completely worthless product without adequate regulation.

Insurers are leaving CA because there are too many wealthy people, with lots of high-valued assets to protect, living in ever-closer proximity to devastating wildfires. Insurers either cannot accurately account for the risk they are being asked to insure and eventually pay out, or they have a good idea what the risk is and know they're holding a live one.

California will not be the only state with this problem. There are limits to growth, and we're finding out the hard way now.

 

[progressive hunter]

It's not changing the subject; it has been argued on this thread that the reason CA insurers are leaving is because of regulation. Insurance is regulated out of necessity. It would be a completely worthless product without adequate regulation.

Insurers are leaving CA because there are too many wealthy people, with lots of high-valued assets to protect, living in ever-closer proximity to devastating wildfires. Insurers either cannot accurately account for the risk they are being asked to insure and eventually pay out, or they have a good idea what the risk is and know they're holding a live one.

California will not be the only state with this problem. There are limits to growth, and we're finding out the hard way now.

that proves my point,, some regulation is fine,, but when it forces companies to leave like here all it does is let the government step in and strengthen the fascist aspect of the state,,,

youre not a fascist are you??

 

[multivita-man]

that proves my point,, some regulation is fine,, but when it forces companies to leave like here all it does is let the government step in and strengthen the fascist aspect of the state,,,

Insurers wouldn't leave if their business didn't involve guaranteeing coverage for really expensive real estate in a region prone to explosive wildfires.

Again, the government has to have regulations in place so that homeowners don't get screwed by thinking they're covered when they're not. This has always been the case, and it's why most states I've ever lived in have some sort of insurance commission that regulates them. That was true in 1973 and it's true in 2023.

What's different is that there are now many more expensive homes in close proximity to natural disaster areas. That math isn't working anymore for insurers.

youre not a fascist are you??

Nah, more like Mao or Stalin, lol

 

[okfine]

State Farm has been accused of fraud so many times for denying claims it's sickening. A problem with them paying claims is the fraudulent contractors they recommend you use. They are all bloodsuckers. Since the Northridge earthquake that company went to hell. AFAIK, I think State Farm quit issuing policies in most of the Gulf States and the States they do issue are way overpriced.

 

[progressive hunter]

Insurers wouldn't leave if their business didn't involve guaranteeing coverage for really expensive real estate in a region prone to explosive wildfires. Again, the government has to have regulations in place so that homeowners don't get screwed by thinking they're covered when they're not. This has always been the case, and it's why most states I've ever lived in have some sort of insurance commission that regulates them. That was true in 1973 and it's true in 2023. What's different is that there are now many more expensive homes in close proximity to natural disaster areas. That math isn't working anymore for insurers.



Nah, more like Mao or Stalin, lol

government created a problem with a solution ready and waiting,,,