While the retreat by home insurance companies in California hasn't been top of mind for Bgamers, I watch it also as a Tahoe homeowner where it is very much top of mind. The retreat is real--the public statements from insurance companies match my anecdotal evidence from Tahoe. The local retreat might start in Hillsborough since the fire danger is greatest there. With the Legislative session ending tomorrow for the year, the ball is back in Insurance Commissioner Richard Lara's court. He has to navigate the insurance industry and the "consumer watchdog" industry. Good luck with that. The Merc has more details:
“I have always been clear, legislation is one of many options that we have been pursuing,” Lara said. “We also are moving forward with a package of regulatory solutions that will streamline the department’s rate review process, opening it equitably to public input — not just the entrenched interests that have benefited materially from the status quo. We will continue moving forward. Together, we can create a sustainable and resilient insurance market to protect Californians, our communities and our environment.”
While consumer advocates cheered the collapse of a “half-baked bailout” of insurance companies, no deal means no relief yet for consumers, especially those living in wildfire-prone regions who either can’t find an insurer or can’t afford escalating rates. Participation in the state-sponsored, last-resort FAIR plan, intended to provide temporary basic coverage in areas insurers deemed too risky for standard policies, has doubled.
Do you care to guess who is covering the liabilities stemming from FAIR claims?
There was a very good article in CalMatters on this yesterday - see link below. It's obviously a very complex issue and not as much transparency as there needs to be. Personally, I'm not a big fan of Insurance Commissioner Richard Lara, who had some serious credibility issues around political donations the last time he ran for reelection.
https://calmatters.org/politics/2023/09/california-insurance-wildfires/
See also:
https://www.sandiegouniontribune.com/news/watchdog/story/2021-08-11/after-breaking-pledge-and-halting-donations-state-insurance-commissioner-jump-starts-campaign
Posted by: David | September 15, 2023 at 01:04 PM
Coming to a neighborhood near us--higher rates. Check out the red zone just south of SFO on this Merc map:
https://www.mercurynews.com/2023/09/19/california-tops-femas-new-list-of-areas-vulnerable-to-weather-disasters-what-does-it-mean-for-the-bay-area/?utm_email=945A740F8485348253E6F395EF&lctg=945A740F8485348253E6F395EF&active=yesD&utm_source=listrak&utm_medium=email&utm_term=https%3a%2f%2fwww.mercurynews.com%2f2023%2f09%2f19%2fcalifornia-tops-femas-new-list-of-areas-vulnerable-to-weather-disasters-what-does-it-mean-for-the-bay-area%2f&utm_campaign=bang-mult-nl-morning-report-nl&utm_content=manual
Posted by: Joe | September 19, 2023 at 04:56 PM
PG&E better underground those overhead wires surrounding Mills Canyon pretty quick.
Posted by: Peter Garrison | September 19, 2023 at 06:31 PM
I'll continue to watch with bemusement vs scorn as local property "owners" benefit and seek support from state and federal programs while vetoing any protection at all for their neighbors in rental units (who outnumber them) as a protest against BIG GOV interference. LOL
Posted by: Fugit All | September 28, 2023 at 12:13 AM
Landlords getting reasonably priced insurance does benefit renters. That seems obvious to anyone with rental experience. Stuff flows downhill.
Posted by: Phinancier | September 28, 2023 at 12:19 PM
Here's the Orinda ouch from today's Comicle:
A Chronicle analysis of data provided by State Farm to the state Department of Insurance found that 1,700 homeowners in Orinda will lose their State Farm coverage — the most in any ZIP code in the state. The nonrenewals affect about 55% of Orinda homeowners with State Farm policies, the largest percentage in the Bay Area.
Since State Farm insures roughly half of the 7,000 homes in Orinda, that means the company’s nonrenewals will hit close to a quarter of the city’s homeowners. And that comes on top of other insurers that have taken similar actions over the past two years.
On a visit Wednesday to Orinda’s downtown, anchored by the Art Deco Orinda Theatre, it was easy to find people who were affected by the home insurance crisis or had a friend or neighbor who was.
“It’s an issue with the whole city,” resident Shahrooz Haghighi said as he hurried into Peet’s for his morning coffee. “It seems like the insurance companies don’t want to insure people living in a woodsy area anymore.”
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It's easy to imagine this is (or will) be coming to H'borough and the unincorporated parts of B'game "up the hill".
Posted by: Joe | May 05, 2024 at 11:34 AM
The big headline says Allstate has gotten approval to raise rates an average of 34%. Some will be higher (one poor soul will see +600%+). Some will be lower.
I went to the Comicle map and 94010 has 361 residences insured by Allstate. Their increase will be 31% upon renewal......
Posted by: Joe | August 30, 2024 at 12:54 PM