The state of home owners insurance in California now

[bucky]

Ca insurance companies are losing their shirts with all the fires. If you are located in a rural area you are screwed. My company does drive-bys and satellite twice a year. More than once they have informed me that a tenant has a new dog. Biggest issue for me is that the cost is sky high if a house has plumbing over 20yrs old. I had to replumb more than one house. To keep them happy.

 

[CreepinDeth]

So what happens if you have a mortgage? Mortgages require home insurance. How does that work?

If you have a mortgage from pre 2008 crash you should be fine. They changed the rules on lending afterwards at least in my state to REQUIRE it paid into Escrow after the crash

I had a 2004 mortgage and didnt have home ins for several years because I had an HOA coverage, but after a refi later to 3% they required it in escrow by law. I wasnt happy payin for it

 

[freedom_in_4low]

Farmers doesn't surprise me, they're in trouble, just laid off 11% of their workforce.

The others surprise me a little, but less so because California. I usually only hear of cancellations happening after a suspiciously high number of claims. State farm dropped my brother after his house burned down 1 year after getting a roof replacement, but I replaced a roof two years in a row due to hail and they kept me.

 

[Daviddnv]

I was crying about homeowner's insurance in FL, I finally got into Citizens for one house, saved 30% and my other is with Castle Key (Allstate).

But my real issue now is Auto Insurance in FL. It's insane! I have a 22 RAM and 19 Elantra and a 97 TJ, it's me and my 20yo daughter (she is only on the Elantra) and it's jumping from 2,200 to 2,800 for 6 months! and that's if I pay it all at once, which I will. It's crazy. Tried Allstate and State Farm and they are both higher. I'm actually thinking about selling the Jeep since I only drive to the beach on the weekends. It's all crazy!

David

 

[CreepinDeth]

I was crying about homeowner's insurance in FL, I finally got into Citizens for one house, saved 30% and my other is with Castle Key (Allstate).

But my real issue now is Auto Insurance in FL. It's insane! I have a 22 RAM and 19 Elantra and a 97 TJ, it's me and my 20yo daughter (she is only on the Elantra) and it's jumping from 2,200 to 2,800 for 6 months!

Ive grown tired of the Ins scheme with annual 10-20% increases in premiums. We are ina good area, perfect credit, middle aged, and clean driving history. Yet we STILL get hit with 20% rate hikes?

Meanwhile they allow illegals in like a river flow and push the “no fault” ins schemes to make our rates even higher for poor drivers

Ask yourself what theyre doing to poor creditors, and new drivers on their own if we are bein raped rhis badly. The FICO scoring buyoff in the early 2000s was nothing but a scheme to fleece Americans

Its high time this sh*tshow of mandatory fleecing crashes

 

[Alex01]

You sign up at the California Fair Plan and get raped.

Yep. We had to do it when we moved in. I think we paid 4-5k for the year. We've been asking neighbors to see what they use. If anyone is a Vet though they said USAA has great rates.

 

[Squatch]

I'm in Washington state. After I paid-off my house, I switched from Farmers to Travellers insurance. For the same coverage, with only an increase of $500 for my deductible, my annual cost was less than half of what Farmers was charging. You California folks might want to check with Travellers. I just did a quick search, and it said Travellers does coverage in California.

Best of luck to you all!

 

[NskLJ]

I'm about to drop hurricane coverage, Jumped to $2,800/yr from $1,600 2 years ago. Fuck that - this house has been here since 1963, it probably isn't going anywhere. If it does, I'll walk away from it.

Or call Fema if it’s a hurricane

 

[LJtobey]

I had Travelers, after AAA stopped coverage in San Diego County. No claims and after two years they raised my HO from $2700 to $8100 for the year. I tried everyone, and finally got State Farm for about $2800. Now State Farm is not writing policies in Ca, so I’ll have to wait for my renewal to see if they play any games on the premiums.

It is getting really tough here in Ca to justify all this type of nonsense

 

[bobthetj03]

I had Travelers, after AAA stopped coverage in San Diego County. No claims and after two years they raised my HO from $2700 to $8100 for the year. I tried everyone, and finally got State Farm for about $2800. Now State Farm is not writing policies in Ca, so I’ll have to wait for my renewal to see if they play any games on the premiums.

It is getting really tough here in Ca to justify all this type of nonsense

They'll likely drop you when your policy renews. That's what they did to me. Hope they don't.

 

[srimes]

1st they create a big scary problem. Then the state steps in to "fix it." Get ready for government housing insurance.

 

[LarryTJ]

I checked with State Farm, Allstate, Progressive and AAA, and they all laughed at me.

Curious is USAA an option?

 

[LarryTJ]

Yep. We had to do it when we moved in. I think we paid 4-5k for the year. We've been asking neighbors to see what they use. If anyone is a Vet though they said USAA has great rates.

You don't have to be a Veteran to have USAA, if your parent was a Veteran than your eligible and I just got off the phone with USAA and they insure in California. But the caveat is depending on your location I.E. is it a high-risk area for wildfires.

 

[cliffish]

I'm about to drop hurricane coverage, Jumped to $2,800/yr from $1,600 2 years ago. Fuck that - this house has been here since 1963, it probably isn't going anywhere. If it does, I'll walk away from it.

is that just hurricane insurance or total homeowners for the year?

 

[Alex01]

You don't have to be a Veteran to have USAA, if your parent was a Veteran than your eligible and I just got off the phone with USAA and they insure in California. But the caveat is depending on your location I.E. is it a high-risk area for wildfires.

My grandfather was in ww2 but dad missed the draft so no USSA for me. I'm in a very high risk area. But people have there homes insured for much less than I do since they aren't on the fair plan.

 

[Rooscooter]

I've been with Amica for everything for a long time. They are a Mutual company like all Insurance was back in the day. The coverage is very good and below the big companies. The longer you are with them the more you get of their annual dividends. I used to get back a few hundred a year on home, auto, RV, Boat and umbrella.... now I get back about 15% of what I pay in after 30 years.

I've made 2 claims over the years... both on the homeowners side and it's been a smooth and fair experience both times.

 

[Charlie L]

Yep. We had to do it when we moved in. I think we paid 4-5k for the year. We've been asking neighbors to see what they use. If anyone is a Vet though they said USAA has great rates.

I've been with USAA since '66, their rates and service used to be the best, can't say that now. I've had one claim on our house for$18k and no accidents with our vehicles, except for them handling a claim where the other driver was at fault, in all those years. In the last two years my rates have doubled. Another forum I belong to consists of all military, retired and active duty and the ones insured by USAA are for the most part very dissatisfied. The company is no longer run by former military and they invoking woke polices. I'm currently searching for another insurer.

 

[Zorba]

is that just hurricane insurance or total homeowners for the year?

Total.

 

[Westtown Willy]

from what I've read Florida leads the nation in insurance related problems from carriers going bellyup into receivership, to packing up and leaving before that happens, to not writing policies anymore, to some fake carriers writing fake policies & collecting all the money they can before the shit hits the fan. It's an economic disaster mostly brought on due to natural disasters which they've had to contend with over the decades but also due to unscrupulous and shady activities also. Bottom line is the industry is in trouble and the state run insurer of last resort in Florida, according to what I've read, cannot cover its obligations if the state gets hit hard with another hurricane.

Other states like California are in a similar boat due to the same type of issues though I think the fraud is a lesser issue out there as compared to Florida. Throw all coastal states in the mix, particularly those on the gulf & up through the Carolinas, they'll be seeing some form of this more & more.

At the end of the day it is what it is, these carriers are businesses that have to be profitable to survive, & putting all the shenanigans that go on aside, there can be no doubt that the natural disasters that go hand in hand with living in paradise are a massive factor in these rate increases & cancelled policies - add in the dramatic uptick in replacement costs & labor costs (& appraised values) & you've got a recipe for real hard times ahead as related to insurance costs in these areas.

We're seeing the same thing play out in auto insurance for some similar reasons; inflation/replacement costs of cars & their parts that all seemed to magically double in price over the course of the 2020's along with a dramatic uptick in uninsured vehicles on the road & what you get are increased payouts by carriers with fewer payors among which to spread the pain.

I don't see any of this getting any better, rather the opposite is far more probable.

 

[Daviddnv]

from what I've read Florida leads the nation in insurance related problems from carriers going bellyup into receivership, to packing up and leaving before that happens, to not writing policies anymore, to some fake carriers writing fake policies & collecting all the money they can before the shit hits the fan. It's an economic disaster mostly brought on due to natural disasters which they've had to contend with over the decades but also due to unscrupulous and shady activities also. Bottom line is the industry is in trouble and the state run insurer of last resort in Florida, according to what I've read, cannot cover its obligations if the state gets hit hard with another hurricane.

Other states like California are in a similar boat due to the same type of issues though I think the fraud is a lesser issue out there as compared to Florida. Throw all coastal states in the mix, particularly those on the gulf & up through the Carolinas, they'll be seeing some form of this more & more.

At the end of the day it is what it is, these carriers are businesses that have to be profitable to survive, & putting all the shenanigans that go on aside, there can be no doubt that the natural disasters that go hand in hand with living in paradise are a massive factor in these rate increases & cancelled policies - add in the dramatic uptick in replacement costs & labor costs (& appraised values) & you've got a recipe for real hard times ahead as related to insurance costs in these areas.

We're seeing the same thing play out in auto insurance for some similar reasons; inflation/replacement costs of cars & their parts that all seemed to magically double in price over the course of the 2020's along with a dramatic uptick in uninsured vehicles on the road & what you get are increased payouts by carriers with fewer payors among which to spread the pain.

I don't see any of this getting any better, rather the opposite is far more probable.

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I think there is more to it than that. I think it has to do with how insurance companies are designed/regulated. I don't know when, but regulation changed awhile back that allows insurance companies to work like investment companies. Years ago, insurance companies where limited on what/how they could invest, it had to be utilities or bonds or something like that. Now I think they can invest in anything, so when those investments do well, the premiums don't go up as much, then those investments do bad, premiums go up more (the company makes their profit no matter how).

I'd like to see Florida tell the insurance companies that if they offer Auto coverage you have to offer homeowners too. This way they can't just cherry pick the most profitable products to sell. If Progressive wants to sell auto insurance in FL, they should offer their homeowners insurance too.

For me, it's time to sell the jeep... I can't justify the insurance for how little I drive it.