State home insurance slipping down the slope

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?

Comments

[David]

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

[Joe]

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

[Peter Garrison]

PG&E better underground those overhead wires surrounding Mills Canyon pretty quick.

[Fugit All]

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

[Phinancier]

Landlords getting reasonably priced insurance does benefit renters. That seems obvious to anyone with rental experience. Stuff flows downhill.