The state of home owners insurance in California now

Daviddnv said:
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.
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I wasn't suggesting what I outlined to be the only issue, just that there's a correlation between insurance and natural disasters and that has a massive impact, not particularely a news flash. Keep in mind those same carriers that are investing in whatever they want aren't jacking rates insanely and/or pulling out of other states... I'm in PA & I don't know of any carriers that have packed up & left, & my homeowners and auto rates have gone up around 50% BUT spread out over the course of 25 years, basically commensurate with inflation. Although we did manage to get one significant hurricane here during that time which was Sandy in 2012, PA is generally not a big natural disaster state, see below. Stability in that respect has resulted in stability in homeowner's insurance rates, I believe.

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Westtown Willy said:
I wasn't suggesting what I outlined to be the only issue, just that there's a correlation between insurance and natural disasters and that has a massive impact, not particularely a news flash. Keep in mind those same carriers that are investing in whatever they want aren't jacking rates insanely and/or pulling out of other states... I'm in PA & I don't know of any carriers that have packed up & left, & my homeowners and auto rates have gone up around 50% BUT spread out over the course of 25 years, basically commensurate with inflation. Although we did manage to get one significant hurricane here during that time which was Sandy in 2012, PA is generally not a big natural disaster state, see below. Stability in that respect has resulted in stability in homeowner's insurance rates, I believe.

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Yeah, I know, and I agree. I don't have like it, lol. I grew in Philly... I remember people trying to find an address in NJ to have cheaper auto insurance, now it's the other way around. People NJ want to find and an address in PA for insurance.

I think it's natural to try to find a reason for something that is out of your control, like it's the greedy insurance companies that raise rates, but in reality, it's because where I choose to live (high risk, high premiums). But I can still complain about it.
 
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Daviddnv said:
I grew in Philly... I remember people trying to find an address in NJ to have cheaper auto insurance, now it's the other way around. People NJ want to find and an address in PA for insurance.
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I remember those days, that was a real Philly phenomenon with the insurance dance back & forth over the Delaware River :ROFLMAO:. Within PA itself rates are still way higher in Philly compared to bordering counties, high density/increased risk of accidents will always make it more expensive in urban vs. suburban vs. rural areas when it comes to auto insurance rates. In Philly that's aggravated further by a higher percentage of uninsured drivers as well as way higher than average jury verdicts in injury claims compared to the other 66 counties in the state.

One more, couldn't resist:

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Westtown Willy said:
I remember those days, that was a real Philly phenomenon with the insurance dance back & forth over the Delaware River :ROFLMAO:. Within PA itself rates are still way higher in Philly compared to bordering counties, high density/increased risk of accidents will always make it more expensive in urban vs. suburban vs. rural areas when it comes to auto insurance rates. In Philly that's aggravated further by a higher percentage of uninsured drivers as well as way higher than average jury verdicts in injury claims compared to the other 66 counties in the state.

One more, couldn't resist:

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There ya go... and some Taylor Ham. I get back to NJ some for work, heading up next month. But I like FL, I'll take the higher costs for most things over Philly. FL used to be lower cost of living, but no more.

I think this thread has been hijacked, sorry about that. Funny how CA and FL are in the same boat with insurance and are completely different in just about everything else. I guess insurance might be the only non-partisan thing left, lol.
 
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bobthetj03 said:
It's a shit show right now. Just got my "Screw You" letter from Farmers the other day saying they will no longer renew my policy. Been with them for 25+ years. Calling around to the big 5 and nobody is writing policies in the state right now. That leaves us poor home owners to deal with the Fair State act program or whatever it's called. Just stack on another reason to bug out of California. I hear Florida is worse. Guess we get to sit back and watch the insurance industry systematically put properties into default as home owners scramble to try to find coverage for their lienholders and can't afford it. Time to move to the desert I guess.
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This is interesting... I am not to far from you and am now worried. lol . I actually just spoke to my farmers agent (been with him 15+ years) about 2 weeks ago about this subject... He mentioned if my area was to be included in "uninsurable fire areas" they would still insure the home, but not cover any "FIRE" damage from Vegetation fires. Sounds like they completely canceled you... this is not looking good.
 
chaseb913 said:
This is interesting... I am not to far from you and am now worried. lol . I actually just spoke to my farmers agent (been with him 15+ years) about 2 weeks ago about this subject... He mentioned if my area was to be included in "uninsurable fire areas" they would still insure the home, but not cover any "FIRE" damage from Vegetation fires. Sounds like they completely canceled you... this is not looking good.
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Yep, they basically said, "Have a nice day!" They have insured my property for 25+ years, and nothing has changed geographically with my neighborhood, other than being in a rural area with oak trees and grass. There has been little to no growth housing wise, so basically they looked at a CalFire map and decided to dump everyone in a high fire risk zone. I've been very proactive with my property when it comes to fire risk to my home. I pay to have my property sprayed for weeds, I've spent thousands $$ having trees removed that are close to my structures, but none of that matters to them.
 
Son just built a house on a 5 acres of Avocados. It almost didn't happen because of insurance for the construction loan. Finally found a policy because of the Avocados. They are considered a farm which included insurance on the house.
 
We just went up to Wentworth Springs last weekend for that part of the Rubicon. Going through Georgetown my wife says, “Seems like a lot of homes for sale.” I replied “Probably can’t get insurance or afford it due to the fires”. Of course the weather patterns will change again but the insurance rates won’t drop or the rules.
 
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