State Farm will no longer insure California businesses or homes

[Klaus]

State Farm says the risk is too high in California and will no longer issue homes or businesses there.

I’m hearing from several agents in the industry that other insurers are in the processing of getting out or will be very soon.

I guess all those woke politics and green measures aren’t so popular after all when it affects the bottom line.

State Farm will no longer insure homes, businesses in California due to fire risks and costs

State Farm announced Friday that it will not take new applications for personal line or business property and casualty insurance in the state of California.

www.washingtontimes.com

It is because fire damages have been excessive. It has nothing to do with politics.

Leftists will claim it is because climate change has increased the frequency of fire.

The correct answer is that expensive homes have increasing been built in areas vulnerable to fire and home price inflation has made it super hard to price this risk.

 

[IA Shelby]

Up north to a less populated state. We are taking 2 weeks in July to go looking for land in SD, WY and MT.

I really like what I've seen in Hot Springs / Spearfish parts of SD.

Spearfish and Black Hills area is beautiful And still affordable. One of the last places that still retains the old feeling of Americana. Rugged individualists that are 99% not liberal. Summer and fall are beautiful weather. Winter and early spring - stay in Texas.

 

[DriftwoodSVT]

Spearfish and Black Hills area is beautiful And still affordable. One of the last places that still retains the old feeling of Americana. Rugged individualists that are 99% not liberal. Summer and fall are beautiful weather. Winter and early spring - stay in Texas.

I spent my first 30 years in Northern Iowa, I don't mind the cold and snow.

 

[PhoenixM3]

It is because fire damages have been excessive. It has nothing to do with politics.

Leftists will claim it is because climate change has increased the frequency of fire.

The correct answer is that expensive homes have increasing been built in areas vulnerable to fire and home price inflation has made it super hard to price this risk.

Are these fire areas the same where CA government cut fire mitigation funding?

 

[HudsonFalcon]

Well they’re a business not a charity so….

 

[Klaus]

Adding that insurers refuse to wrote hurricane risk in FL for the same reason. This risk is socialized through FL Citizens. Many would not be able to live on FL if they had to pay the actual cost of insurance.

 

[IA Shelby]

I spent my first 30 years in Northern Iowa, I don't mind the cold and snow.

Where in Northern IA? I have a lake house at Clear Lake. Love it 3 seasons but it is damn cold in the winter. That and the wind blows a ton.

 

[rborden]

It is because fire damages have been excessive. It has nothing to do with politics.

Leftists will claim it is because climate change has increased the frequency of fire.

The correct answer is that expensive homes have increasing been built in areas vulnerable to fire and home price inflation has made it super hard to price this risk.

It absolutely has everything to do with politics.

Liberals and the tree hugging organizations refuse to allow the trees to be sprayed for pine beetles and other tree destroying insects. When these trees are killed, it creates mass amounts of dead, dry timber, which is fuel for wildfires. They won’t let the logging companies go in and clear dead timber.

The NFS (National Forest Service) has had their hands tied by Democrats and their poor forest management policies for years.

Additionally most mountain towns dont have fire breaks or wildfire mitigation measures in place.

There’s been mountain homes and cabin’s for decades with no issues.

Inflation, house prices and increased costs for materials are a part of it as well.

 

[BlueSnake01]

Interesting thing as well, you can NOT buy warranty outside of California for all? MFGs.

Ex. If I wanted to buy or extend my Ford warranty from Ford ESP, I can only buy within the state of CA and no longer from outside the state like previous years.

 

[gimmie11s]

So, if the insurers pull out of CA, would the state become an insurer? I'm thinking what happens if ALL of the insurers were to pull out.

The state already is an insurer. It's called the California Fair plan and it's terrible.

 

[MFE]

California just keeps ****ing its residents in the name of woke liberal policies. Mentioned above is the overgrowth caused by hippie environmentalists. Now, it's labor laws getting in the way of using GOATS to help clear the underbrush. Brought to you from Clown World. No kidding: California overtime law threatens use of grazing goats to prevent wildfires

 

[Weather Man]

Another big insurance company has quietly stopped selling home insurance in California. Allstate, which in 2021 was the fourth-largest property and casualty insurance provider in the state, is no longer writing new homeowner, condo, or commercial insurance policies there, the San Francisco Chronicle reports.

 

[Russo]

hurricane IDA pretty much sealed the fate of insurance companies in Louisiana. My insurance through Allstate went up $800 a year to $2900, which isn't bad. however, a significant portion of homeowners in my area have an escrow larger than their mortgage. my parents home was quoted at $9k a year for insurance. they are 68 and 63, basically retired on SS. they simply cannot afford to have insurance, but thankfully their house is paid off.

 

[Blk04L]

How has the Carolinas fared with Hurricanes and insurance?

For a while Florida got lucky but it seemed storms went to Georgia/Carolina/Louisiana and Texas.

 

[PhoenixM3]

It absolutely has everything to do with politics.

Liberals and the tree hugging organizations refuse to allow the trees to be sprayed for pine beetles and other tree destroying insects. When these trees are killed, it creates mass amounts of dead, dry timber, which is fuel for wildfires. They won’t let the logging companies go in and clear dead timber.

The NFS (National Forest Service) has had their hands tied by Democrats and their poor forest management policies for years.

Additionally most mountain towns dont have fire breaks or wildfire mitigation measures in place.

There’s been mountain homes and cabin’s for decades with no issues.

Inflation, house prices and increased costs for materials are a part of it as well.

This was precisely the point I was indicating.....

 

[Pribilof]

The same thing is happening in Colorado and probably many states and areas out west.

We got denied by 32 insurance companies.

On our 6 acres we did a forest health study, cut down over 400 trees, cleared all the brush, literally raked so many pine needles out of the area that we over filed a 30 yard dumpster (with pine needles alone), removed all flammable materials from around the home, etc.

The following year, after completing the above, we got denied again by the same 32 companies. One underwriter told me that because of how the fire scoring works (flammable materials within 1 MILE of the home) that I could literally clear cut and pave my 6 acres and he still couldn't write me a policy.

We pretty much immediately sold the house and moved back to the city. I wasn't going to own a house with only 2 options for insurance (and one of those was a non-admitted carrier). What happens when there are NO companies willing to write a policy? What happens when there is a catastrophic fire in the area and there are only two companies to take the losses?