State Farm ceasing new applications in California for property insurance, other policies

[GON]

My takeaway from the article is less on California, but more that homeowners across the nation could see massive rises in the rates of homeowners insurance for the reasons State Farm is not writing new policies of this nature in California.

State Farm ceasing new applications in California for property insurance, other policies

State Farm said it will no longer accept new applications for personal and business, and personal lines property coverage.

www.foxbusiness.com

 

[Chris142]

State farm is the ONLY one that will insure in my area and they are expensive.

 

[PimTac]

In reading the article they cite the high costs of construction as a prime reason. Those costs are not limited to California. I suspect that insurance costs will skyrocket in the coming years or will include a deductible of some kind.

 

[John105]

So typical. Here’s where I believe there should be govt oversight. Insurance is notorious for cherry picking and denials and cancellations.

I remember when my dad lived in MA I was surprised he wasn’t shopping for insurance rates on his car. He said it’s all the same, regulated by the commonwealth. And as such? Many carriers didn’t offer insurance in MA as they wanted more.

There was mention lately how poor are treated differently. While people on Medicaid are provided with health benefits, it doesn’t mean that a doctor has to take it. And most places that people with “normal” insurance go, do not accept Medicaid.

There should be a revolution where en masse nobody buys insurance anymore and insurance cos are squeezed.

In my career, I had one claim. A $3000 one on a bmw loaner car 13 years ago. And how long have I had full coverage on cars, home, and my body? That’s six figures of premiums, to pay out $3k. I guess I’m not good with math.

 

[GON]

So typical. Here’s where I believe there should be govt oversight. Insurance is notorious for cherry picking and denials and cancellations.

I remember when my dad lived in MA I was surprised he wasn’t shopping for insurance rates on his car. He said it’s all the same, regulated by the commonwealth. And as such? Many carriers didn’t offer insurance in MA as they wanted more.

There was mention lately how poor are treated differently. While people on Medicaid are provided with health benefits, it doesn’t mean that a doctor has to take it. And most places that people with “normal” insurance go, do not accept Medicaid.

There should be a revolution where en masse nobody buys insurance anymore and insurance cos are squeezed.

In my career, I had one claim. A $3000 one on a bmw loaner car 13 years ago. And how long have I had full coverage on cars, home, and my body? That’s six figures of premiums, to pay out $3k. I guess I’m not good with math.

Government should stay out of it, with the exception of removing barriers to entry into this and any other business.

 

[Zee09]

Florida homeowners insurance companies are insolvent...a bad situation with no answers of yet.

 

[John105]

Government should stay out of it, with the exception of removing barriers to entry into this and any other business.

I agree in theory. But this is like where I live. Places that sell motor oil refuse to accept it in return.

NYS has a law they must accept. I believe when actors don’t act right, govt needs to step in.

Btw—a little different. I have never met a single person, regardless of their politics, who said they miss the pre existing conditions clause. Even as a healthy 30 yo that was a pita to me (job changes). Insurance always dragged their feet in producing the proof of creditable coverage cert. I’m not making it up…the govt helped all of us with it

 

[Donald]

I read somewhere (and this was a general statement) that first homes become insurable then uninhabitable. This was geared towards climate change, rising sea levels, high chance of wildfires, too darn hot to live there.

 

[Donald]

I agree in theory. But this is like where I live. Places that sell motor oil refuse to accept it in return.

NYS has a law they must accept. I believe when actors don’t act right, govt needs to step in.

Btw—a little different. I have never met a single person, regardless of their politics, who said they miss the pre existing conditions clause. Even as a healthy 39 yo they was a pita to me. Insurance always dragged their feet in producing the proof of creditable coverage cert. I’m not making it up…the govt helped all of us with it

Delaware transfer stations have in the recycling area these large containers for used motor oil and another one for used oil filters.

 

[Donald]

I agree in theory. But this is like where I live. Places that sell motor oil refuse to accept it in return.

NYS has a law they must accept. I believe when actors don’t act right, govt needs to step in.

Btw—a little different. I have never met a single person, regardless of their politics, who said they miss the pre existing conditions clause. Even as a healthy 30 yo that was a pita to me (job changes). Insurance always dragged their feet in producing the proof of creditable coverage cert. I’m not making it up…the govt helped all of us with it

In NY I could bring used motor oil to a shop that did work for me. I asked for a credit on my bill as he used it to heat the shop. So he would have less oil to o but I figured. I do not think I ever saw a credit on my bill however.

 

[Fla]

Florida homeowners insurance companies are insolvent...a bad situation with no answers of yet.

Correct. I've had my WELL-BUILT house in Fla for 39 years and have gone through numerous hurricanes with no damage and only had two small claims in 39 years but the insurance rates have been climbing 25% per year. Literally the two claims that I've had were less than one year's insurance premium. This year I said, "No More" and I dropped my home owner's insurance. A few years ago the state of Florida also drastically lowered the coverage that the insurance co's have to pay in the event of a "wind event" (pretty much everything from a summer storm to a hurricane) so if your roof is more than about 4 years old , you get nothing.

 

[SC Maintenance]

Its always been difficult here in Coastal South Carolina also. It got much worse a couple years ago - main reason sighted was the re-insurance companies just don't want to re-insure areas that are at risk for natural disaster.

Re-insurers are the insurers of insurance companies. They take on part of the risk. However they don't worry about detailed rates house to house, they simply agree to share the risk of part of the insurance companies portfolio overall. Apparently the issue here is reinsurance doesn't want to insure due to hurricane's. So even though my house is 30 miles to the coast, and built to modern wind standards - doesn't matter - I get lumped in with the entire area.

Reinsurers defend against rising tide of natural catastrophe losses, for now

 

[John105]

Correct. I've had my WELL-BUILT house in Fla for 39 years and have gone through numerous hurricanes with no damage and only had two small claims in 39 years but the insurance rates have been climbing 25% per year. Literally the two claims that I've had were less than one year's insurance premium. This year I said, "No More" and I dropped my home owner's insurance. A few years ago the state of Florida also drastically lowered the coverage that the insurance co's have to pay in the event of a "wind event" (pretty much everything from a summer storm to a hurricane) so if your roof is more than about 4 years old , you get nothing.

I wish I were as brave with my 3 cars. No claims not ever yet all 3 have full coverage. I should drop homeowners as well but to put it in perspective it’s $1000, not sure what it would be in FL I imagine much more. We are charged imho rates not commensurate with risk. Because we are powerless as we are with health insurance.

My coworkers’ son had no heath coverage so he got a $52k bill for a 3 yo appendix. He told them I haven’t got it. So it went to collections. Prolly not the smartest move but he said all I can pay is ten grand. They took it. He should have said one grand.

 

[pghvolvo]

Dan over on I Allegedly (Financial YT Channel) did a story a few weeks ago on Insurance companies were stopping writing new policies in California. A friend of his in the Insurance Business told him, that his company was putting a hold on writing new commercial policies. He's out of Orange County California. I hadn't heard about insurance companies leaving the market in general except in Fl. Those who don't live in Florida have no idea how bad it's getting trying to find someone that will insure your property without wanting your forst born. I'm hearing stories of premiums jumping two and a half to four times from what it was a year ago.

 

[Astro14]

In reading the article they cite the high costs of construction as a prime reason. Those costs are not limited to California. I suspect that insurance costs will skyrocket in the coming years or will include a deductible of some kind.

You mean you don’t have a deductible already? Mine is something like $2,000

 

[simple_gifts]

Correct. I've had my WELL-BUILT house in Fla for 39 years and have gone through numerous hurricanes with no damage and only had two small claims in 39 years but the insurance rates have been climbing 25% per year.

Stating the obvious, insurance is a risk pool; it is not how your house is well built, it is about how your neighbors houses are built.

No stringent standards = more losses = higher insurance = companies leave the market.

 

[SC Maintenance]

You mean you don’t have a deductible already? Mine is something like $2,000

He is probably referring to special deductibles for weather events. We have a $5000 hurricane deductible - even though our homeowners is only $1000. Earquake is $25K deductible. Yes were in a seismic zone also.

 

[Snagglefoot]

As insurance rates continue to rise on expensive houses it will be a general drag on future price increases, but with limited room for new houses, prices will continue to rise and consumers will get used to higher insurance rates and deductibles.

 

[GON]

Free markets can solve this. One idea is a $25k reserve by the insured for claims. The first $25k comes out of the insured pocket. And the insured has two years to replenish the reserve.

With the first $25k coming out of the insured pocket, homeowners insurance rates would collapse.

Government is not the solution. One only need look at the flood plain insurance. Homeowners typically don't move after a loss from flooding, they just rebuild, again and again.

 

[Greasymechtech]

Make it too difficult for a business to do business, add some more red tape indefinitely, and then wonder why the business throws in the towel? Too funny!