One issue nobody is talking about, but I'm hearing a lot is insurance cost and availability. One by one I'm hearing HOAs that provide master policies getting dropped and policies that cost $40 k are getting replaced with policies that are $300k. People getting hit with these increases are blaming Democrats because they are in charge of a…
One issue nobody is talking about, but I'm hearing a lot is insurance cost and availability. One by one I'm hearing HOAs that provide master policies getting dropped and policies that cost $40 k are getting replaced with policies that are $300k. People getting hit with these increases are blaming Democrats because they are in charge of all top CA positions.
A friend of mine on an HOA board in North SD county (CA 49) has been unable to get coverage, and they tried to get just liability and were unable to get a stand alone policy. They are currently completely naked on insurance in violation of their CCRs. Several units up for sale have been pulled from the market, and if this doesn't get corrected, real estate prices will collapse. Peter indicated that several of his surrounding communities are experiencing the same.
People in my own subdivision in Irvine, in a very low fire risk area, have been dropped and have gone on the state last resort insurance at 5X the price, it doesn't cover liability, and they are having trouble getting standalone liability. 2 liberal retired UCI professors are considering voting Baugh and Trump on this issue. Yes, total nonsense, but....
When California had this problem with earthquake coverage it formed a state program, California Earthquake Authority, that the state reinsures. Could homeowners insurance be next?
While I consider part of the insurance problem state self inflicted wounds, it seems part is insurance companies extorting the state.
How is it self-inflicted by the state? Could you clarify... And what, concretely, are the insurance companies attempting to extort from state authorities?
California has not allowed insurance companies to price individual units, but by zip code. If someone builds in a high risk area, they are effectively subsidized by surrounding low risk houses. Increased rates have also historically been limited by the state.
California also has a highly regulated insurance market that insurance companies have never liked, and many feel insurance companies withholding coverage is partly to try to get rid of regulations they don't like.
It's not just high fire risk people getting dropped, but people living in very urban areas.
Where I lived in CA as a kid, a few rich people fought tooth-and-nail to be permitted to build on the flood plane of the local river. And then, after the inevitable flood damaged their house, they tried to sue local authorities for giving them the permit and failing to protect them!
I don't consider it redlining. California is dealing with the same problem most other states are. We've allowed for relatively unregulated construction in areas where people shouldn't build. Climate change is quickly showing the problem with that. Building a log cabin in a quickly drying forest isn't a good idea.
But, isn't your point that one of the reasons rates are so high for low risk homes is that California forces insurance companies to set rates by zip codes?
Hearing about HOA insurance premiums skyrocketing everywhere. My building managed to secure "only" a 40% increase this past year, which was considered pretty good. Being told other buildings that use our management company are accepting 200 to 500% increases. We're in Colorado, pretty sure this is a national thing, though there may be state-specific things that exacerbate it.
The state has the FAIR plan for people who can't get private insurance. A big problem here is that up until very recently insurers' rate increases were strictly limited under state law due to voter initiatives passed decades ago. So insurers were losing money because we have a lot of construction in fire-prone areas (partly due to stupidity, but partly because it's too hard to build in more livable areas) and many have pulled out or threatened to pull out, which would put more people on the FAIR plan with much higher premiums.
The problems are largely self-inflicted, but no one who's in office now had anything to do with it. The state is trying to loosen the rules on rate hikes to the extent they can, to try to convince the insurers to stay in the market.
Dumb legislation is dumb whether or not it's passed by the legislature or at the ballot box. The CA Lege voted for electric utility deregulation (which resulted in 100's of billions of cumulative economic damage to the state) unanimously. Clearly we just need a benevolent dictator because lawmaking by state legislators is a terrible idea.
I’m glad MN doesn’t have a ballot initiative process. Red states need them bc GOP legislators don’t do basic stuff for their citizens. But, it is extremely unnecessary for blue states to have them bc intelligent people who follow facts and science are in charge. There’s a reason why I don’t send my neighbors to the Capitol to debate legislation. Instead, I send Fue and Bobby Joe to get the shit done for us.
The biggest part of California's residential property insurance problem is the insane price of housing here. If the housing market weren't broken, pressure on the insurance market would be much less.
One issue nobody is talking about, but I'm hearing a lot is insurance cost and availability. One by one I'm hearing HOAs that provide master policies getting dropped and policies that cost $40 k are getting replaced with policies that are $300k. People getting hit with these increases are blaming Democrats because they are in charge of all top CA positions.
A friend of mine on an HOA board in North SD county (CA 49) has been unable to get coverage, and they tried to get just liability and were unable to get a stand alone policy. They are currently completely naked on insurance in violation of their CCRs. Several units up for sale have been pulled from the market, and if this doesn't get corrected, real estate prices will collapse. Peter indicated that several of his surrounding communities are experiencing the same.
People in my own subdivision in Irvine, in a very low fire risk area, have been dropped and have gone on the state last resort insurance at 5X the price, it doesn't cover liability, and they are having trouble getting standalone liability. 2 liberal retired UCI professors are considering voting Baugh and Trump on this issue. Yes, total nonsense, but....
When California had this problem with earthquake coverage it formed a state program, California Earthquake Authority, that the state reinsures. Could homeowners insurance be next?
While I consider part of the insurance problem state self inflicted wounds, it seems part is insurance companies extorting the state.
How is it self-inflicted by the state? Could you clarify... And what, concretely, are the insurance companies attempting to extort from state authorities?
California has not allowed insurance companies to price individual units, but by zip code. If someone builds in a high risk area, they are effectively subsidized by surrounding low risk houses. Increased rates have also historically been limited by the state.
California also has a highly regulated insurance market that insurance companies have never liked, and many feel insurance companies withholding coverage is partly to try to get rid of regulations they don't like.
It's not just high fire risk people getting dropped, but people living in very urban areas.
Interesting and thank you for clarifying.
Where I lived in CA as a kid, a few rich people fought tooth-and-nail to be permitted to build on the flood plane of the local river. And then, after the inevitable flood damaged their house, they tried to sue local authorities for giving them the permit and failing to protect them!
Peak CA moment right there
That sounds like California is imposing redlining. Maybe I haven't had enough coffee.
I don't consider it redlining. California is dealing with the same problem most other states are. We've allowed for relatively unregulated construction in areas where people shouldn't build. Climate change is quickly showing the problem with that. Building a log cabin in a quickly drying forest isn't a good idea.
But, isn't your point that one of the reasons rates are so high for low risk homes is that California forces insurance companies to set rates by zip codes?
Yeah but that’s not redlining.
Hearing about HOA insurance premiums skyrocketing everywhere. My building managed to secure "only" a 40% increase this past year, which was considered pretty good. Being told other buildings that use our management company are accepting 200 to 500% increases. We're in Colorado, pretty sure this is a national thing, though there may be state-specific things that exacerbate it.
If it’s a state issue, then what do these liberal professors expect Scott or Baugh to do about it, exactly?
Also, the issues of home insurance is not really specific to condos.
Reality and perception unfortunately don't always align in voters minds. I agree it's not rational.
The state has the FAIR plan for people who can't get private insurance. A big problem here is that up until very recently insurers' rate increases were strictly limited under state law due to voter initiatives passed decades ago. So insurers were losing money because we have a lot of construction in fire-prone areas (partly due to stupidity, but partly because it's too hard to build in more livable areas) and many have pulled out or threatened to pull out, which would put more people on the FAIR plan with much higher premiums.
The problems are largely self-inflicted, but no one who's in office now had anything to do with it. The state is trying to loosen the rules on rate hikes to the extent they can, to try to convince the insurers to stay in the market.
Another reason why policy making by initiative is a terrible idea
Dumb legislation is dumb whether or not it's passed by the legislature or at the ballot box. The CA Lege voted for electric utility deregulation (which resulted in 100's of billions of cumulative economic damage to the state) unanimously. Clearly we just need a benevolent dictator because lawmaking by state legislators is a terrible idea.
I’m glad MN doesn’t have a ballot initiative process. Red states need them bc GOP legislators don’t do basic stuff for their citizens. But, it is extremely unnecessary for blue states to have them bc intelligent people who follow facts and science are in charge. There’s a reason why I don’t send my neighbors to the Capitol to debate legislation. Instead, I send Fue and Bobby Joe to get the shit done for us.
Same issue in SC, but no one is blaming Democrats that I've heard.
In Florida also; an underlying issue that may help Murcasel-Powell a great deal
The biggest part of California's residential property insurance problem is the insane price of housing here. If the housing market weren't broken, pressure on the insurance market would be much less.