With More Homeowners Getting Dropped, Here's What to Do If Your Property Insurance Is Canceled
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- Опубликовано: 25 июн 2024
- As wildfire risk and losses continue, California sees rise in insurers dropping policyholders. NBC Bay Area Consumer Investigator Chris Chmura reports.
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Insurance companies will take your money for years, and then just drop you once you’re considered a liability . Keeping the thousands and thousands of dollars you paid them as pure profit.
That 'profit' was most likely paid out in the form of claims for other clients. Hence why they're pulling out of the state. 2K/yr is nothing when one house burning down costs 2 Million. The risk is simply too high.
Good Riddance State Farm . May you burn in
@@joncarbone. Well, that’s what they want us to believe. Check the bonuses for their top execs. THAT’S where most of the profits go.
@@Me97202 ... that's the situation for virtually ALL industries, not just insurance companies. Executives ARE paid excessive compensation. However, looking at the actual claims dollars paid out for wildfires in California, and for hurricane damage paid out for gulf coastal areas, one cannot deny that the insurance claims & losses are at all-time highs.
That's why the nineteen seventies was so great nobody cared about money
So the insurance companies only want people who will likely never need to use the insurance 😐
No, there are really three problems. (1) As the risk of fire drastically increases they need to increase rates drastically to breakeven (especially since their cost from reinsurance rates are doubling or tripling) but that can cause a death spiral in insurance markets if people who think they are relatively low risk drop policies while people who privately think they are high risk keep them. That means your clients are riskier so average cost goes up, prices go up, but that drives another round of increased risk, and so on. (2) In CA it is even worse than that as state law is preventing anything but small changes in price despite recently large increases in risk. Regulators are not making exceptions so insurance companies are looking at these unprofitable policies and just leaving the state. (3) Insurance companies are having a real hard time modeling the risk of climate change since they can't just fall back on the historical record. That makes the business riskier and if you look at the data in the US 6 insurance companies went bankrupt in 2022 (e.g. Fednat Insurance and Lighthouse Property Insurance) when normally less than one insurance company goes bankrupt per a year in the US. Obviously insurance companies are going to be trying to reduce their risk. In the worst case and they stick out as much more dangerous than their peers in the industry they may lose access to reinsurance. Well actually the worst case is they go bankrupt, don't have enough reinsurance, and policy holders don't actually get the payouts they are owed.
Why is the risk of fire drastically increased
this ain't new
As an insurance agent in California you need to know 2 numbers. What your fireline and property protection code is for your home. Anything above a 4 for fireline and 8 for PPC will get you dropped from most companies. The insurance commissioner also put a stop to non renewals during the pandemic that companies are now starting to drop. Loyalty to a company will not save you from getting dropped if the risk is high.
Good to know, thank you!
Where does one find those numbers?
@@gracefulvintage Call your insurer and ask what they use to determine their fire risk. Farmers uses 2 companies Verisk and Zesty AI. The Fireline is how much fuel is around the property and access and the PPC is how far a fire hydrant and fire station are from your property. I believe this is an industry standard but call and ask.
@@BenitoGuerrero thank you!
U people r only interested in money
Point Blank, if insurance wants to get out of the business then they should refund every single person every dollar they ever contributed to the insurance and never got back for services paid but unrendered. They should also be seized and put out of business as a company and reborn as a government agency that covers home insurance. We pay in and you pay out. Period. This is called embezzlement to take money and never give the services you paid. It's defrauding the consumer. You want out of the business, then get out.
Dude insurance companies business model is to accept premiums and deny claims. This is no surprise.
So tell me, how does not accepting $ fit into the business model? How about you starting an insurance co to serve the market of dropped people ? Should be an easy money maker with customers lining up at your door no?.
YUP🎉
@@bobroberts2371this is so simple, are you seriously asking? The company is not accepting money *specifically* from the people they think will come back with a valid insurance claim in the future. If these people have a valid insurance claim, the insurance company will have to pay it out.
The insurance companies essentially *only* want customers who are *unlikely* to ever have a valid insurance claim. Free money for them
Cali no longer uses Fire Breaks anymore , thank you Newsom , vote blue
God save us from lawyers and insurance companies.
Most of them are Jews.
cars saleman and real estate agents.
Then start an insurance co to serve these dropped people, should be an easy $ maker with people lining up at your door.
Kanye west was right all along
And idiots that want to live in very high risk areas!!
Liberty Mutual dropped my late father one year. After an accident of backing out of a space on a company that built statues, But the statue was in the parking lot and NOT on the sidewalk or even protected by a fence. So the company that built the statue sued my father for the damage and Liberty Mutual had to pay a settlement. Because Liberty Mutual had to pay out, they dropped my father like a bad habbit.
Liberty Mutual will take your money but if they have to pay out even one penny, they would drop every single person if they could.
Money for them and not for anyone else. A fire broke out in friend's home, Liberty Mutual was the insurance company and then told the family they are not going to cover the damage because the fire was caused by lighting. But lighting did not hit the house but the telephone pole that made the lighting travel to the house and that caused the fire.
Act of Nature is not covered, so Liberty Mutual will cover not a single thing on their home owners policy EVER.
I know that they are the WORSST company to do business with. So I will NEVER use Liberty Mutual for any insurance at all.
Liberty Mutual a rip off company who only cares for profits and not the customers they are suppose to help. They are only helping themselves.
Never filed a claim.Liberty increased premium 125%. Then cancelled . After 18 years, no claims. Go figure.
If you're not getting dropped, they're increasing the premium. And customers call every day asking why their mortgage payment increased and we have to tell them it increased because of their homeowners insurance or taxes, or both. Florida is taking a big hit.
I’m sorry I have to ask. How and why does a mortgage payment go up? What state do you live in?
@@mytravls Your Principal and Interest is fixed. But if year after year the property taxes increase, or insurance, more has to be collected to cover the increase. Your best bet is to make sure you at least applied for a homeowner exemption that will reduce the amount of taxes you pay, and shop around for insurance.
@@mytravls I'm in Vegas, but that every State.
@@mytravls In Florida I lost my home due to insurance premiums. As you may know, if you have a mortgage they include your homeowners insurance and taxes in an Escrow account that they pay on your behalf. In Florida, my mortgage was $470 a month, my taxes $100 a month, and my insurance premiums were....drumroll please.... $950 a month! I didn't write that wrong. I didn't mean $950 a year, it was $950 a month, to insure a 1000 sq/ft concrete block and stucco, one story home, in a flood zone "X" (meaning "has never historically flooded"), built in the 60s, having made it through multiple hurricanes. Reason for a $11,000 annual insurance bill - the house was built before "hurricane codes existed". I hope this explains the reason why people from the Florida keys all the way up to West Palm Beach (including Miami, Fort Lauderdale and Boca Raton) are losing their houses due to their "mortgages" going up because of "insurance". Mainly because these areas vote Democratic, and Tallahassee and the State legislature is Republican. Other Republican areas are not affected by Insurance hikes. Orlando is too big to fail, although they also vote Democratic. That's why Governor Santis is f'ing with them now too. We'll see how that goes. I hope Desantis wins, Disney leaves, and they insurance everyone out of Orlando too. Then Florida will go broke. The Republican areas can't pay the state's bills. Time will tell.
@@mytravls Some of people leave their insurance and taxs bundled with their payment
Insurance companies are making massive profits and should be regulated a lot more and/or not allowed to be for profit. A lot of places will turn you down if you are cancelled or non renewed by another company even if they wouldn’t cancel/non renew you for that same reason and then you can only get the most expensive insurance but somehow it basically covers nothing. If it wasn’t required by mortgage companies a lot more people wouldn’t even have home insurance because they are dropped after the first time they make a claim or the company just won’t cover the claim.
Lesser known insurance companies pose risk of not paying out claims.
Big insurance companies do the same thing. How do you think they got so big?
“You only pay for what you need.” I guess you don’t need fire insurance according Liberty Mutual.
Selling insurance in a high wildfire area isn’t exactly a winning business model
it could be for the RIGHT price
@@ThriftyCHNR exactly but the CA insurance regulator isn’t allowing them to increase rates accordingly, so they leave. Then homeowners are stuck with crappy Fair plan at a worse price than increased rates on normal insurance would be. CA regulators never seemed to learn about supply and demand.
@@14534 I understand. the best way forward would be to have a state issued plan in which the correct price is quoted for a little bit above break even. I do think it should also be back stopped by the federal government.
Right👏👍
@@ThriftyCHNR They're trying that do that with California FAIR Plan, but the pricing models are coming back that nobody would be able to afford it.
Time to stop all subsidies to insurance companies and stop them from making their own rules
It's mandatory that you carry Homeowners insurance if you have a mortgage, and almost everyone has a mortgage, so like Auto policies, the State needs to step in and legislate a assigned risk pool, where if dropped, you can buy insurance from the State Insurer pool, that pool would require all insurance companies doing business in the state to be part of the pool. If they refuse, they can't sell insurance in the state, ANY insurance.
That's already in place. In FL its Citizens Insurance. In Cali its FAIR Plan.
Your thinking is the problem. Its the progressives DEMS that have trashed another market and you want to blame insurers! Stop voting DEM
@@SFPhilo and it’s crazy expensive for garbage coverage.
That’s just what Gavin wants - people dependent on the government.
The Calif FAIR Plan is a last option, no choice suck deal. Insurance companies, like Allstate, Progressive, AAA , al left and more leaving. FAIR plan in nutshell. Any company wanting to do business in the state has to pay 20% of their profits into the slush fund to cover homeowners for FIRE ONLY! No PPC, that has to be obtained separately. (Gettin all this?) Then as an example ;They have to insure 17 out of 100 clients that are in a fire zone, and 20 clients that were non-renewed. The cherry on top? IF the FAIR plans goes "insolvent", sayyyy, because the state burns down? The insurance companies have to cover the loss! Now you know why they are leaving this tyrannical state controlled by one party that seems to screw a lot of things up!
Good old fashion High way robbery ..going through it in south texas too😢
Make sure you hire a gardener at least every two weeks. Geico dropped us because our lawn was two inches too long. They also falsely claimed we had asbestos siding.
The home owners in the multi million dollar homes and there own little private forest want taxpayer funded... I mean government funded insurance for their little private Edens. Priceless. Three years ago I owned a small ranch near Yosemite that I almost lost in the Lake Fire, the one I almost bought not far from mine did burn to the ground. I sold it right after that because I figured it was only a matter of time and I didn't need the stress of fearing the loss of my house along with all my belongings for 7 to 8 months out of the year for the rest of my life. On the bright side of things that allowed me to retire early and move abroad shortly after I turned 58. Best decision I have ever made for myself as an adult.
If they drop you without proper reason. They should be required to refund you every payment you’ve made since day one.
I'd support that. Could be a good way of keeping them in line too!
don't blame them ,Cali no longer uses Fire Breaks anymore , thank you Newsom , vote blue
Stop adding bonds to property tax...too many fire fighter and school bonds.
Imagine being in a foolproof business so they only want to collect and never pay out 😂
Progressive doubled my home insurance without warning and giving no reason. I contacted an independent agent and got coverage through Openly for a low rate.
Hi , could you kindly share some info on the agent or the company you used or any other leads to get coverage ? Because I'm in the same situation !! Really in need of help ... Thanks so much
@@ChrnRn-iu4nywhat state
@@edgarneil - CA
Insurance companies want you to continue sending them a big chunk of money each month but don't want to pay out.
Soon Gavin will impose eminent domain on all private property. That’s going to piss some people off.
On no, no government provided home insurance, forget about it, no subsidies to homeowners building in high risk areas.
Just stop building houses with wooden sticks, plywood and tar paper roof tiles
yeah cause I love spending my free time calling every single insurance company on earth
Insurance companies do not want to pay, they only want to collect your money. They are in teh business of making money, not giving it to you.
This is about the whole state of California, however, by personal experience, I can tell you that Florida homeowners' insurance is almost impossible to get because of "windstorm" insurance (required for mortgages). The last resort is the corrupt state-run "Citizens" insurance that pays other insurance companies "re-insurance" from your payments, so they can keep cancelling homeowners' policies. Each state is different, and placates to insurance companies in their own unique, corrupt way. Perhaps you should do an investigative piece on the insurance commissioners of California. That would be revealing. They wouldn't dare to that in Florida for fear of all the high-powered people who would be exposed in such a bit of reporting. But, I fear you will never do that, because you fear losing the ad revenue that these companies pay to keep you "investigating". Journalism died in 2001. You're not helping to bring it back.
why does 20% equity owner pay 100% of the insurance? lender is holding title and has 80% risk? lender should pay fair share of insurance
Recall insurance commissioner Ricardo Lara. Kick him out of office, he’s not protecting Californians . Not doing his job.
I wouldn't want to insured that property either. Look at all that trees.
Stop paying them and start saving
2:17 -> house in the MIDDLE of the woods
“Someboda insure ‘ma houze!!!”
Bruh
Tell the gov to stop burning everything with dews
Insurance companies used to red line
African American neighborhoods. Now they red line neighborhoods in the wildland fire interface. That company of last resort will drop him like the others after after a year or so of taking his premium payments. There's no greater condemnation of the whole insurance industry than potential customers being told to call a company back who rejected you., because , they might give you the coverage that they earlier refused. Insurance brokers used to be travel agents, you called th÷m to do all the work. Today they can't shop the companies to do anything to help you. They have no juice!
Remember that old song "You Ain't Seen Nothing Yet"
Hmm insurance companies only giving coverage if they think the event won’t happen lol. Don’t buy fire insurance, buy a metal roof, way cheaper. Buy a stone or brick wall to replace or cover wood and plastic.
If you cannot get home insurance your bank could foreclose because they can take a total loss if your home is destroyed...
Dang
Tbh the only things you can do is make your home fire/earthquake resistant, add another job or two to add money to an savings account to pay for any damage or replace the home entirely so if you can't save/earn more money you're screwed because once your home is damaged and you don't have the funds the city can condemn your property meaning you're homeless.
Just don't have insurance. It's hard to get them to pay up anyway.
Mortgage lenders will generally require you to have it so it’s needed unless you have enough to 1) own your house outright and 2) still have enough left over to cover accidents/unexpected losses etc.
If you have 10's of thousands to spend just to be insured, then it may be better to save that money and your monthly premiums and that is your insurance. At some point, insurance gets so expensive that it is not worth it.
Unfortunately, lenders require insurance (if a mortgage is involved, as it is for most people). Anyone who owns their home outright could probably do what you suggest
💯 what @@harashe1000 said. If folks could do this and not lose their mortgages and therefore home they would
Despite what they did, infrared heat from a nearby forest fire will keep his property in the danger zone. However, insurance companies accept risk when they issue a policy. Dropping folks should be illegal.
People are living where they’re not supposed to be.
There’s still a housing shortage in this country even with all these people “living where they’re not supposed to be” so where are they supposed to live?
Texas here, got un renewed, premium rising between 5-7k with poor surplus line policies... how to get a liability insurance without HO insurance? Can I rent my home to myself at will?
Where can I split the liability risks and buy it from somewhere else?
This could definitely get a lot of people to reconsider renting. And I think in areas like this the build code needs to VASTLY improve, possibly with new materials that are just now coming onto the market.
Florida is far, far worse.
So that in turn will skyrocket housing even more. More and more code and more expensive materials. Good way to make sure you’ll rent forever.
Here in El Dorado Co. Most of us are being forced onto the California unfair plan. My insurance broker stated that in the next two years she foresees most of California being forced on it. How is it that it's legal for the state of California to get into the insurance business when Ford got their hand slapped and was told by the court to get back in their own lane in the 90s .That they were a car dealership, not an insurance company, and they could no longer insure consumers that had purchased a vehicle from them. Yes there was more to this court case, but the bottom line was that they could no longer sell insurance.
CALIFORNIA IS NOT A INSURANCE COMPANY!!!
Companies are also leaving Florida due to hurricanes and it is now hurricane season.
This is why you don't build a home in a disaster prone area....
Besides once you pay your house off then you get rid of trees near your house people don’t need this rip offf crap
Insurance doesn't want risk
Its time to cancel these insurances companies. They them and let them scramble to make money. Without clients they have nothing
Can't get fire insurance? Maybe think about painting your roof U.N. Blue. Seems to have helped the homes in Hawaii. The homes with the blue roofs did not burn up like the rest.
For home owners they will not insure there are clients who are insured that will get their premiums raised to close the deficit. Insurance is a big scam. How about we just find real price discovery again. No one wants that though because of that we’re to ever happen the house of cards comes crashing down.
Ive had 2 claims in the last two years from water damage in my 9 year old house. Both from pipes in the wall. Sfate farm is dropping me and nobody will insure me now. Anyone know what to do? This is insane
State of California Fair plan sent us a cancellation notice. Where to now?
I'm like you and thousands of others, stuck paying mortgage company "forced insurance" that only covers their loss!
This is awful. Climate change is going to make homeowners insurance a hot commodity
What a beautiful home!
If you're financially well off, I suppose you'll have to insure yourself by saving the value to rebuild your home.
Why?
So either have no insurance and save more money at the risk of dealing with disasters on your or buy multiple insurance packages costing you tons of money. HMMMMMNM
What do they know?
folks build houses in the middle of forests and expect that there will not be a forest fire.... about time that the risk controls the price, that is what it is all about. folks who build near a fire dept in a desert should get lower rates and those that build in forests pay a higher rate....
If they dropped the insurance, they should pay them back the money they took before.
You don't understand how insurance works. insurance is shared risk for a fixed time frame.
It works like this. The insurance co calculates the number of losses it expects in a year , breaks that down between the number of customers, adds in operating expenses + profit. This results in what your yearly cost is. And before you cry about them making a profit, do you have any retirement $ invested? Do realize that it might be invested in an insurance co, that you apparently want to fail.
How about you starting an insurance co and server the people there were canceled? Should be an easy money maker no?
You might owe them... look at your past claims before you start making silly demands
What do you do when FAIR plan wants to cancel you? Asking for a friend
SOL or pay A LOT more to a company based in a Caribbean island.
here we go again, it's taxpayers that'd have to pay for these "poor" folks to keep living in disaster prone areas.
Pay all your money for Insurance and they fight you on covering anything then drop you for bogus reasons I got a 10 day notice
It's pretty obvious what you do-. sell your house there. Take all that money and go buy a mansion in syracuse or buffalo or something... A million dollar house there you'll never want to leave it..
At 2:15 through 2:18.....you can see the problem. Something has killed over 90% of all the evergreen trees!
ALL my properties in San diego got canceled any property that build before 1990
Also, It's only a matter of time till other states pull the same kind of game.Florida and Texas is falling in line already.
Avg cost of insurance in America will rise 80 this year!!!!!
Why because of pg&e
The roof is asphalt, metal seems better
Paid off a let them drop it who care I know a guy he hasn’t had insurance in 35 years
I think there are specialized wild fire insurance.
This is a major reason why I decided not to buy a home, but to keep on renting, instead.
You still need renters insurance for all of your belongings.
@@Me97202unless he’s belongings aren’t worth dick
@magicunicorn6535 / Their exact motus operandi: increase insurance/taxes substantially so that people are forced to sell. Then the big corporations come in like red dawn, buy the homes, and charge exorbitant prices for rent. Essentially, you will own nothing and like it.
Yeah it's time for a government plan.
maybe they can sell some of those acres to self insure.
They did the same to me. I would never, ever trust them again.
The problem is that the population is increasing very fast and more and more people
are building homes in increasingly risky areas. Areas that were once avoided due
to natural disasters are now full of housing developments. Add to that the increase
in the number of natural disasters due to climate change and you have
a sort of perfect storm of sorts for insurance companies.
Insurance companies know you are screwed. The mortgage company requires insurance. So they gore you like a no-talent bull fighter.
Come on now, you didn't really think all those free roofs were really going to be free, did you? 😕
always has been a gamble
This is called redlining
just dont play with matches
Who would have thunk it? Build a house in the California tinder box, forest. Insurance carriers point and laugh. 🤔 Huh?
When the states over-regulate rates, they will shed risk. Simple as that.
It seems if they drop you and you get a policy again from the same company, I bet they will charge you more. Ethically wrong if you ask me.
Well if the insurance companies don't want your money, the lawyer you hire will.
Why didn't he ask that guy if he had seen Gavins hair. He doesn't need insurance as long as he gets to look at Gavins hair. Ungrateful bastards.
I just let the mortgage company/bank deal with it, that's what I did. It's really more their problem than yours.
So people that don't need them are the only ones that can have one..... mhhhh
Talk about insurance Companys stealing from their Clint's
36 seconds into the video and no one's mentioned clearing out all the trees within 100 yards of the home ... chain saws and bush mowers ... as is, this home is a death-trap for fire-fighters ...
The majority of homes in CA are not in high risk zones, yet 2 major companies will no longer accept new policies. Fishy if you ask me.
That company probably paid out billions of dollars during the last round of fires. Moving their risks shows they are doing their job. He can shop online for another policy get over it
“My computer is telling me”🙄Now we allow computers to have more brains than our actual human brains. Got it! When America is not a Country. America is a Corporation👍🏼
Consumers have choices. Buy in a safe area and consider risks, or self-insure and assume the risks. Other people (through the government) should not subsidize the decision live in vulnerable locations.
There is not such thing as invulnerable locations, insurance companies is a scam at this point.
Your logic dictates the ability to have over 300 million people live in low risk areas.
The real world should tell you some people are going to be forced to live there because 300 million people can't saturate only a few areas.
Your logic is flawed. Unintelligent people don't think things through.
If an insurance company covers you and takes your money, they should honor their coverage when you need it. But the rich have no honor.
@@KB-nt7eg Total population doesn’t give you the full picture because the US also has an extremely large land mass. It’s residence per capita is nowhere near being overcrowded and is many times less than most European nations. No one who lives in the areas like in the video has to because of population.
@@hermionegardener3796 Who has honor? The poor?
The fact of the matter if that while realities, of all sorts, have changed we're afraid to make any sytsemic changes for fear of becoming a communist or socialist nation - which is crazy. There are problems everywhere. Insurance companies are responsible to shareholders, the entire country is owned by a small number of monopolies, and on and on. Shit is simply not working anymore and it's because the rich and powerful are benefiting from the suffering of the vast majoirty.
2 the worst of the worst
ESIS
Crawford Broadspire.