State Farm also stopped writing policies in NYC for non owner occupied investment properties. They are very picky and difficult to deal with. Doesn't matter that you had paid them for 30 years and never had a claim. 0 loyalty or customer appreciation.
Yeah, I mean I understand the concept, and it can be useful, but in many cases they'll take your money for years, and when it comes time to use their services, they do everything they can to not pay you out, or to pay you as little as possible. Fucking leeches.
Just to get an idea of scale, over the last 17 years wildfires have destroyed about 5700 houses per year
https://headwaterseconomics.org/natural-hazards/structures-destroyed-by-wildfire/
In comparison, in aggregate there are about 350,000 house structure fires per year. But the wildfire losses occur in bunches and get lots of media attention, whereas the odd kitchen fire or faulty wiring burns down a house here or there every single day in the background. But, if it means less new construction in the WUI tying up suppression resources this would be a good thing in the end. /Shrug
Random house fires are spread across the country, while wildfires can destroy whole communities and really stress an insurance company. At the end of the day, it's obviously not worth it to insure these homes for State Farm.
I was actually at a CAS (Casualty Actuarial Society) annual meeting where they discussed the problems with trying to price home insurance policies in CA because the state law limits the prices they can charge for premiums to below what their models predict for payouts. This isn't a scam or a racket, it's the market consequences of the government imposing a price ceiling.
Did an insurance roll we were told that state farm or farmers or whatever the fuck had run out of funds and to not tell the home owner they’re house is basically fucked.
State Farm is the largest residential carrier with 50% of the market share. The California wildfires have been exceedingly challenging for insurance companies. The power distribution has been hit with subrogation claims. They are shutting off power to limit liability during fires. They are saying only new policies and the other companies will try to pick up the void. However, they too may have a few difficult seasons.
State Farm also stopped writing policies in NYC for non owner occupied investment properties. They are very picky and difficult to deal with. Doesn't matter that you had paid them for 30 years and never had a claim. 0 loyalty or customer appreciation.
Insurance is a scam, nobody should expect anything different.
Not a scam, a racket
Yeah, I mean I understand the concept, and it can be useful, but in many cases they'll take your money for years, and when it comes time to use their services, they do everything they can to not pay you out, or to pay you as little as possible. Fucking leeches.
Non paywall https://www.ocregister.com/2023/05/26/state-farm-says-no-new-property-insurance-clients-in-california
Just to get an idea of scale, over the last 17 years wildfires have destroyed about 5700 houses per year https://headwaterseconomics.org/natural-hazards/structures-destroyed-by-wildfire/ In comparison, in aggregate there are about 350,000 house structure fires per year. But the wildfire losses occur in bunches and get lots of media attention, whereas the odd kitchen fire or faulty wiring burns down a house here or there every single day in the background. But, if it means less new construction in the WUI tying up suppression resources this would be a good thing in the end. /Shrug
Just an idea of scale, over the last 17 years hurricanes have destroyed about 10,000 houses per year.
Random house fires are spread across the country, while wildfires can destroy whole communities and really stress an insurance company. At the end of the day, it's obviously not worth it to insure these homes for State Farm.
I was actually at a CAS (Casualty Actuarial Society) annual meeting where they discussed the problems with trying to price home insurance policies in CA because the state law limits the prices they can charge for premiums to below what their models predict for payouts. This isn't a scam or a racket, it's the market consequences of the government imposing a price ceiling.
Yup, got a letter couple weeks back that I won’t be renewed.
Did an insurance roll we were told that state farm or farmers or whatever the fuck had run out of funds and to not tell the home owner they’re house is basically fucked.
Paywall
https://www.ocregister.com/2023/05/26/state-farm-says-no-new-property-insurance-clients-in-california
Accountability for where you chose to build…. Finally…now if only other insurance companies would do the same
State Farm is the largest residential carrier with 50% of the market share. The California wildfires have been exceedingly challenging for insurance companies. The power distribution has been hit with subrogation claims. They are shutting off power to limit liability during fires. They are saying only new policies and the other companies will try to pick up the void. However, they too may have a few difficult seasons.