(Monday PO) State Farm has stopped accepting homeowner insurance applications in California

[GuideToACrazyWorld]

https://www.npr.org/2023/05/28/11786489 ... -inflation

State Farm has stopped accepting homeowner insurance applications in California, citing the growing risk from catastrophes like wildfires and the rising cost to rebuild.

"State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market," the insurance giant said in a statement on Friday.

"It's necessary to take these actions now to improve the company's financial strength," the company added.

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According to the Insurance Information Institute, State Farm was the leading company offering home insurance in California.

The decision to forgo coverage went into effect on Saturday. It applies to both personal and business properties. The company said it will continue to serve existing customers, as well as offer personal auto insurance.

The measure is the latest development in what has been a years-long issue in California: insurance companies dropping homeowners because of the growing risk of wildfires.

In recent years, the state has witnessed some of the most destructive wildfire seasons in its history. In 2018, the Camp Fire destroyed 11,000 homes and at one point, displaced nearly 50,000 people. In its aftermath, insurance companies saw huge losses, causing premiums to go up and toughening eligibility requirements to get covered.

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California officials have attempted to minimize such efforts, by temporarily barring insurers from dropping customers in areas hit by wildfires and directing insurance companies to provide discounts.

But as wildfires rage on in the state, so has the issue of insurance affordability and availability. Last year, American International Group notified the state's insurance regulator that it will exit the homeowners market.

[GuideToACrazyWorld]

Not just state farm. Allstate just canceled all motorcycle insurance. Homeowners is next and maybe car after that. What really bothers me is that the people who are causing this see it as a win. It goes back to what I keep saying about one-party states there is no one to check the bad ideas.

Don't get me wrong. My mother worked in the insurance industry for decades and my sister has recently been involved soon. There might be no scummier industry and I'm including the mafia. The thing is you don't clean up corruption by killing competition.

[Tarmaque]

Allstate just canceled all motorcycle insurance.

In many states even liability insurance isn't required for motorcycles. And of course you can negotiate a bet on collision with any bookie. Other countries do it differently of course. "Liability" insurance is a part of your license fees, and you don't have a choice to negotiate it. I have no idea how such countries deal with collision or comprehensive, but I expect insurance companies have tables to figure out your cost just like anything else. Insurance is now and always has been legalized betting, with the odds set by the insurance companies and the gubbernment forcing you to participate. Hence why it may as well be a part of your vehicle's license fees.

[Slip Shod]

Democrats defend FBI stonewalling.
https://totalnews.com/democrats-defend- ... mant-file/

[GuideToACrazyWorld]

Insurance is now and always has been legalized betting, with the odds set by the insurance companies and the gubbernment forcing you to participate. Hence why it may as well be a part of your vehicle's license fees.

Gambling is much more moral. The games are fairly clear and there aren't loop holes to avoid payouts. In fact your odds are easy to learn with minimal research. Insurance doesn't offer any of that.

[Tarmaque]

Gambling is much more moral. The games are fairly clear and there aren't loop holes to avoid payouts. In fact your odds are easy to learn with minimal research. Insurance doesn't offer any of that.

True. The same deal with state-run lotteries. If you play a lottery or place a bet with organized crime, they pay you what it says on the bottle. If a guvernment does it you get paid "an annuity" unless you take a discounted cash payout. Now I'm not saying this is unfair. If you read the fine print that's exactly what it says. However writing "$100,000,000!" in great big print on the sign and then having the actual cash payout of $45,000,000 in tiny print is a bit underhanded. On the other other hand, the last time I looked into it they paid anything under $60,000,000 out in cash. I don't want to say I couldn't retire on $60 million, but I also did the math on the $1 billion payout. The annuity works out to around $2 million a month for 30 years. I definitely could retire on that, and wonder every month what to do with the rest.

[GuideToACrazyWorld]

If a guvernment does it you get paid "an annuity" unless you take a discounted cash payout. Now I'm not saying this is unfair. If you read the fine print that's exactly what it says

Yeah, it's pretty funny how many government programs would be illegal for anyone else to run.

The annuity works out to around $2 million a month for 30 years.

I could retire off a few years of that.

[Tarmaque]

I could retire off a few years of that.

I could retire happily off a couple months of that.