California's insurance crisis has reached a critical stage | Insurance Commissioner
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- Опубликовано: 19 ноя 2023
- California's insurance crisis has reached a critical stage | Insurance Commissioner
Homeowners insurance is becoming increasingly unavailable and unaffordable. ABC10 talked 1-on-1 with the Insurance Commissioner about what he’s doing to fix that.
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#california #insurance #wildfire #fire #localnews #news
Californian’s don’t let your car insurance lapse. Allstate , Farmers and others will not write new or renew coverages.
Automatic renewal.
To think that wildfire isn't historically a big deal in the Sierra foothills is just plain ignorant. Since the days of the Gold Rush, buildings were made with bricks and metal shutters on the windows. Just because someone can cut down big trees and build houses with them there doesn t mean it's a good idea.
I haven’t had an auto or homeowner claim for years but my premium continued to increase. I’m paying $7-8K between the auto and homeowners policy to renew it 2024. I called AAA and they told me CA approved a rate increase, I’m flabbergasted! Consumer needs to raise our voice and demand to know why the commissioner approved an increase.
Start your own insurance company and charge less and see how you deal with customers who bought 1 level of insurance but expect to be paid on a claim as if they had a better policy. And then have the state insurance commissioner tell you that he knows you are right, but you have to pay the higher claim anyway or lose your business license in that state.
My car insurance doubled over the past 2 years. I haven't had an accident or ticket in almost 20 years
It's not only California, I'm in Texas, I've lived in my house for 10yrs. For 8yrs my policy would usually go up about $50 dollars a year. In 2022 it went up $1,200 now in 2023 it went up another $1,200 🤨 no claims, it's the same insurance company. Let's not talk about property taxes.
The cost of materials and labor has skyrocketed since 2021. Maybe you've heard about the inflation. All those stimulus checks lol
Texas property taxes are ridicules! Had to sell my rental property there…
I love the way prop 103 was mentioned at the end of the video
Years of paying less than what a product is worth took a toll
I remember gop legislators wanted to make CA a no fault state for auto insurance and trial lawyers fighting it tooth and nail
Instead, we got prop 103
California are full of illegals driving. These illegals do not have insurance, thus insurance companies dont want to insure American Citizens because illegals run amok and if they crash into your vehicle even when its not your fault, the insurance companies do not want to cover it.
"Lower Premiums"? had to laugh at that one
It’s just rural counties. My father has a house in urban Sacramento. He put in a homeowners claim for a leaky roof. Shortly there after he received notice from the insurance company that they would be canceling his homeowners insurance. I believe the cancellation was a direct result of him putting in a claim.my advice to him and to everyone else is to not put in any type of claim with your homeowners insurance unless it is catastrophic. Otherwise they will drop you.
Insurance in CA has become "one and done". I have heard this about car insurance here as well…
Since when does fire insurance cover a leaky roof?
@@matthewhuszarik4173 Umbrella coverage for the house
How sad. On the other hand I've been waiting my whole life for reasonable housing prices in CA. So my recommendation is that if you can't afford it, you should sell it. "Always Up" is a garbage strategy that needs to stop.
So what happens if you can't insure and you have a morhage . The bank wants a specific amount of coverage . When i bought a house with a mortgage the provider suplied the homeowners insurance . Yes you can get your own but what are morgage companies doing . Maybe they forclose but the house is not sellable .
It surprises me that home prices are still elevated with such presure of afordability
My insurance dropped me for no reason. I don’t even live in a high risk of fire location. My bank loan requires i have insurance and they automatically got one for me. It’s super basic, but cheap so i didn’t even bother to get s new policy
@@rosacam6765it doesn't protect your interests, only the mortgage company. Make sure you understand what is covered/not covered.
It's getting crazy. I live in the foothills, 3/4 of a mile away from a fire station and a downtown area that isn't considered high fire risk, have city water and hydrants nearby and many of 100+ neighbors with houses that have been here for upwards of 80 years and have never had a wildfire claim are being dropped. My premiums have gone up 300% in the last 5 years and I'm trying to feel lucky that I'm at least getting renewed. To all the folks who say we're getting what we deserve by living where we do, just wait until insurance companies decide that more "regular" areas are at higher risk due to climate change, earthquakes or whatever and we all end up having homes we either can't afford to stay in or can't sell due to uninsurability. I think the State Insurance Commissioner has a duty to protect consumers from insurance companies that are destroying peoples' investments in their homes. They can't be dropping or making ridiculous increases in premiums based just on where you are on the map. I, like most of my neighbors, maintain defensible spaces around structures, have the local FD come out to inspect and make recommendations, and have a great respect for the potential of wildfires. I'd argue that our properties are more prepared and safer than folks 1/2-mile down the hill who think they're safer because they're in a part of the map that isn't designated an urban-wildfire interface.
It has alway been high risk in the Serra Foothills. There have always been fires. You make the choice pay the costs.
How long before OUR Commissioner takes a HIGH paying job from the companies he was supposed to be regulating?
Same at the federal level. It's a revolving door between regulators and the businesses they regulate.
Its definitely a cost benefit calculation now. Completely open ended potential insurance cost vs hardening and the probability you will still be dropped. My home has fire hydrants nearby. A new Calfire station less that a mile away and an airtanker base less than 6 miles away and its still nearly impossible to get insurance due to the high wildfire risk designation of my area.
I would charge you 25% of your homes value every year for premium if I were a carrier in CA. Why should you get a cheap rate living in a forest fire zone?
Fortunately you aren't in the decision loop
I got a quote for a $3 million dollar 5000sf/ft modern mansion up in the hills in Encino. It came back with a $5,000 yearly policy. By comparison I have a 3600sq/ft $360K house in HTX, my policy cost me $3700 a year.
If you are curious about what property I chose, it’s on Noeline Ave and the owner is a RUclipsr too.
Wildfires are NOT due to CC, it's due to mismanagement of the forests and lack of response from the state.
Another nail in the coffin of CA.
Are you aware that the majority of forested land in CA is controlled by Federal Agencies?
@@SDGregkind of my point.
@@JohnMatthew1Why are you blaming the state when the majority of forested lands in CA are under Federal Management?
@@SDGregThe state works with the Federal government, and the choose not to make it a priority, simple as that.
@@JohnMatthew1The Federal government (Congress) doesn't adequately fund the maintenance of the Federal forest lands, simple as that.
Affordable Housing and Affordable Homeowner’s insurance in California are both Oxymorons. The insurance company’s motto is delay, delay, deny,, deny.
Ha! Got a notice of non renewal from nationwide expiring mid January and no other companies wanting to insure, so the fair plan it is! If the payment is too much, it may be time to walk away from my home of 10 years because along with the interest rate hikes, nobody is going to buy an uninsurable house. Good luck to all who are going through this 👍
The other side of this is that any potential buyer paying attention will also know it's difficult to insure so your home value will go down. It might be too late to get out unscathed.
I just had to move. I went to switch my Renters Policy. Nope. Nobody is writing. I am not in a forested area. a few scrawny trees around. No need to mitigate. just 3 citrus trees on the property
They live in drought and fire prone areas. Their insurance reflects the costs of doing business in California. Move to a different state like New Hampshire if you don’t like your rate.
Example of CA government caring more about the trees than their residents.
7:56 not only specific to CA
Riverside home insurance 2023 Paid 2600 now 2024 $ 6800 ????
They need to charge you enough so they have just enough to cover the bare minimum of costs and to ensure their employees and get paid. The companies don’t care about insuring your home.
It's not just a problem in the foothills and mountains, we're also having out policy non-renewed in WLA at Pico and La Cienega. Insurance Co.'s are holding CA hostage. They've got a real hustle going. They are the piggybanks of the rich. The state is not any better.
That old lady probably got the house in the divorce 😂😂😂😂 not sorry
excellent.
This is why homelessness is increasing in CA. I know someone that is an engineer. Makes over 150k/annually and is homeless because he cant afford CA.
Cap 🧢 😂
Housing prices need to decrease to 2019 prices or below.
Missed the boat?
Yet again people need to understand that if they cannot afford to live they need to move to a more affordable area.
Those people expect life and the state to look after them!!!
Hey dum dum. These people are living an affordable area......🤦♀️.
The fair plan ???? Sounds like another government thing , now we have to have government insurance for our home ....
IT'S SO SIMPLE, FOREST MANAGEMENT - THIN OUT THE FOREST. And I live in the forest ...
California needs to replace the Insurance Commissioner as he is not doing his elected job! Kicking the can down the road till 2024 ( Election Year) is not solving the problem. We need to recall this idiot and get someone with insurance smarts to fix this problem..
well, you probably should move....?
The fires were preventable. 40 years of neglect. 40 years of not wanting to upset the tree huggers.
Oh really? Ever heard of CLIMATE CHANGE? I don't know of anyone protesting the cutting of trees on the majority FEDERAL lands. And who was going to cut millions of acres of trees? I'm sure you don't want immigrants to help, and don't want taxes. There are very few workers available to train and cut millions of acres, or perhaps simply rake the millions of acres of forest as the Mandarin Mussolini suggests..
That is exactly right!! Creating dead brush EVERYWHERE!
40 years of democrats.
Insurance CLAIMS increase due to fires, storms, flooding, vandalism.. Rates go up accordinglynas insurance compaies lose money. 3 Hawaii insurance companies paid out 1 BILLION DOLLARS EACH in Lahaina. And they are not the only players to lose on Maui.
Clear cut areas that are prone to wildfires.
imagine all homes fall due an earthquake what then???
Gavin said California is thriving! 😂😂😂
This isn’t about greed. Insurance companies have lost billions in CA and FL. This is what happens when you vote for inept govt that doesn’t allow forest fire mitigation or allows ambulance chaser lawyers to get you a new roof every time there’s a hurricane and you’re missing a shingle. You get the govt you deserve
Not to mention all the regulations, permitting, red tape, workers comp that inflate every step of the process of repairs, teardown, disposal and or rebuilding
Insurance love to collect premiums but don't want to pay any claims.
it doesnt make sense for them to stay in CA when their profit is negative there
Alot of these fires are from old utility lines that fail in high winds. These should have been updated to underground pipes but instead the electrical company will deactivate during high winds. Then the electrical company's try to pin the cost on the consumer for the fires. And now it has snowballed to the insurance companies..
So thanks to the environmentalists letting the forest build up fuel, the electric companies for not maintaining their power lines and now the insurance companies losing money, we the people are getting screwed.
This insurance commissioner is the worst.My home insurance is $11,400.Im retired..got to move out of CA.Newsom and crew have to be impeached
We are all on a fixed income. That term is meaningless
If you are able, you can get another job. If you are retired, it's fixed.
The value that real estate has gone up in the last 10 years has been significant. These retired workers can choose to relocate or take a reverse mortgage. It is much harder for a young adult to afford a home in CA than paying a couple of thousand dollars yearly in for a homeowners policily.
@@JohnLee-tb3nh , I know lots of retirees who have a side job, some have 2 side jobs.
Retirees are not on a fixed income any more than a 21 year old is on a fixed income
@@briangasser973 I see your point (that they were lucky to afford a house at all in the past ) but there are some people whose insurance was $200 a month and now even at $500 per month (no claims) cannot even get the same policy. The “ fair plan” It’s self only covers actual fires. It doesn’t count like a tree falling down and crushing in your roof, liability insurance in case someone gets hurt at your house, and wants to sue you, or anything else that regular homeowners insurance will usually cover. So their rates are going up triple or even quadruple and not even covering the same things.
California Democrats in collusion with big insurance companies are dropping these policies and forcing older homeowners to have more expensive insurance because property taxes and insurance is so low since they bought the house in the 50s and 60s. California Democrats are forcing them into foreclosure so that the rich Chinese will buy these homes and thus pay the higher property taxes. State Farm will rather underwrite a new policy for the Chinese because its tens of thousands more a month and much more profitable rather than the measly $100 a month from the struggling American Aging Middleclass, with fixed income and cannot afford the rising taxes and inflation.
Hey have you guys tried to downsize your house if insurance is too expensive!?!
Does California do anything right?
No, they don’t. Only thing that’s right for them is receiving handouts
Florida is having the same problem.
California leads our nation and the world while conservatives try to hold back all progress.
@@fluxcapacitor1621 😂😂😂😂
If you can't afford the house, you don't deserve the house. Good bye.
The solution is simple. Clean out the forests of brush and dead trees to prevent future wildfires.
The parts of the forest are burning now are the parts that were clear-cut and replanted by loggers the trees are too close together We need to look to the past to learn our paths for the future. I hope we can learn from these mistakes.
"Lower premiums" thats a joke. Nothing is lower in CA.
The insurance carrier will pull their coverage right before major disasters anyway so why these carriers even bother to exit Commiefornia. They will not honor their coverage anyway.
I don’t get the climate has changed. There has always been big fires in northern ca where this county is located. It’s by Yosemite. They have snow rain fires. Normal conditions unlike SoCal like LA, OC, SB counties.
6:11 hopeful. I doubt companies would come back into the market even if they have the tech to predict loss (Future: no one can predict) why would they come in to pay high tax rates as a company to serve properties that are major liabilities?
Muh CLIMATE CHANGE.
😂😂😂😂😂😂
Right.
We can always Draft a Decleration Of Independence
“Climate change”. Lol.
end of the world....
People put their homes in a high risk areas let them pay the insurance rates required to compensate the risk.
Where is our Governor?
It really seems to be time to take hard look at removing the profit motive out of all types of insurance.
HAHAHAHAHA….there’s a reason “loss motive” isn’t a real thing
Just another reason to leave California
Acreage burned in the U S has been declining since the 1920s, with 2022 being the 12th lowest year ever. The hottest and driest decade on record was the 1930s, with temperatures on a downward curve since then. The NOAA "adjusts" the temperature data before presenting it to the public and if one plotted their "adjustments" on a graph it is a very close match to the plot of increases in atmospheric CO2 - go figure. Over 40% of the volunteers reporting data from weather stations reporting in the U S have either retired or died but they weren't replaced. NOAA just fabricates the data as if they still exist.
Have China come and visit. Newsom will fix everything. 💕
Someone needs to take a stand and your not!
It's not wildfire. Those are newsome fires.
California needs to start their own banks and insurance companies
Commissioner is a joke.
Greed
Why didn't we get to hear from these CONSUMER advocates in your report?
Much (not all) of this is because of the State. Many will disagree but economic markets will ALWAYS seek equilibrium even if the government tries to tinker with things. It's simple. The insurers had to pay a shitload for previous wild fires yet the State won't let them increase rates to cover these rising claims costs. The result is the insurers exit the state.
Newsom for president!!! Hahahahahahaha
If it has reached a critical stage why hasn’t the Federal Government stepped in?
Why is it that anytime you file a claim they’ll spend more money on attorneys to try and not pay you than doing the right thing?
Daddy Biden is too busy giving away out tax dollars at the border. C’mon man.
Insurance is the biggest grift. They can drop you or not renew and you don't get that money back.
If you need to file a claim you have to be able to afford a lawyer.
Its all some version of the Fair Plan
Its pathetic are so dependent on insurance. We need a different tactic to be able to rebuild during a tragedy
Insurance rates reflect the risk and cost. If you need flood insurance in Florida or fire insurance in the Sierra's, you are going to pay. Nothing stopping people from buying homes in WY, MT, ME, VT, UT.... which dont have a high risk of claims.
Once dyslexic Newsome gets involved with anything your screwed
Blame a democrat
So the bottom line is that insurance companies can raise premiums faster and easier. . .uh good work commissioner. California is a con.
Listen I can get corporate insurance in other states ( I have assets in AZ) no problem but CA nope and I have been dropped too. They can play the climate card all they want. This is CA mess and unfortunately my problem too.
Tie home owners insurance to auto insurance. If a company sells auto insurance in California then they have to offer homeowners insurance to those same insured customers at genuinely competitive rates.
Face it its time to move you can't afford it
Arrest Trump for this also ?
To me this is just proof that capitalism isn't the right answer to every problem. Like the fire dept. We first tried a capitalist form and it failed miserably. Private pension have a tendency to dry up when you need them or just aren't offered anymore. Social security paid out every month after 2008 while private companies vanished along with pension plans people were counting on. I think this shows us that public insurance would be a better solution compared to a business model that is more worried about profits than people. When you put in a moderate claim they will fight you tooth and nail. If we all pooled our money into a single nonprofit state run system we would all be pooling our money in the same place instead of a b8nch of private businesses. All that money that goes to many different pots would be in one pot. A much larger currency reserve to draw upon in case of emergency and no denial unless foul play is determ8ned.
Its mainly GREED from insurance companies and investors.
They lost billions you fool. Its not even greed when the continued losses affects the insurablility of all policyholders. Try again liberal clown. You never read a financial statement if your life.
Did you know the wildfires were never a huge issue before Europeans came to California settlers whatever you wanna call it, they brought animals that killed all the native grasses and planted grasses from Europe to grow in our beautiful hills of California years and years ago my family and other families would burn, the shrub grasses in the lower areas so that they could collect acorns every year around this time that doesn’t happen anymore they would even trim trees and plant things that the animals like to eat so they could make hunting a simpler task
With climate change, these places are just too dangerous and costly to live in. This kind of reminds me of people who insist on rebuilding their homes in flood zones after a disaster. I understand the reasons they don't want to leave, but you can't win against the forces of mother nature.
Symptoms of the Cantillon Effect. This is just the beginning, new money pushes out old money.