Posted on 12/06/2019 4:59:45 AM PST by karpov
Responding to several years of unprecedented fires across California, regulators on Thursday imposed a one-year moratorium banning insurers from dropping policies for homeowners in wildfire-ravaged areas of the state.
The move comes amid an exodus of some insurers in communities hard hit by fires, forcing some homeowners to take plans that provide less coverage, sometimes at higher premiums. Some have had to go without insurance altogether.
“I have heard the same story again and again. People getting dropped by their insurance after decades,” California Insurance Commissioner Ricardo Lara said. “To add insult to injury, many struggle to find coverage.”
Though existing law prohibits insurers from dropping policies for homeowners who have suffered a total loss in a wildfire, the moratorium relies on a law that went into effect this year that extends that rule to homeowners who live adjacent to a declared wildfire emergency and did not lose their home.
On Thursday, Lara said the moratorium will give both homeowners and insurers time to reassess a path forward for living with wildfires.
The plan affects more than 800,000 homeowners in Northern and Southern California who live in ZIP Codes next to 16 recently declared wildfire disasters, including those near the Kincade fire in Sonoma County, the Saddleridge fire above Sylmar and the Tick fire in Canyon Country.
Though the moratorium is legally binding for insurance providers around those fires thanks to the law that went into effect this year, Lara called on insurers statewide to voluntarily follow suit.
(Excerpt) Read more at latimes.com ...
Rates will “necessarily skyrocket” in those zones.
Is Ca tries to make that illegal then they will just fold tent for sure.
The intent is to drive out private insurance, so the state can take it over.
I'm sure the homeless crapping in the streets will approve if it's followed with benefits like free toilet paper for the homeless.
It’s all that climate change. If people had just listened to Democrats none of this would’ve happened!
If they would manage their forests these fires would not be nearly as frequent or devastating.
A similar thing happened in Florida, where a state law required insurers to provide hurricane insurance. Several insurers just walked away from the state entirely.
CA is well aware of companies needing to remain viable.
Exhibit A: PG&E, a model company of financial stability within the state of CA, due to awesome state oversight.
The insurance companies should sue the State for not allowing the necessary preventative measures to prevent fires. The State should pay the increased premiums.
Fire insurance will become unaffordable.
Only self insured people will be able to afford to build in these areas.
Property values will plummet in these areas.
The State will step in and subsidize insurance.
The law of unintended consequences will be upheld.
As an insurance Underwriter, when restrictions are placed you’re not allowed to challenge come into effect, you pull back from writing any new business in that location. One way or another you need to balance the risks. If you’re not allowed to, you don’t take the risk.
As I predicted, large insurance firms will simply stop insuring homes in Cali. Enjoy socialism Cali, as your commi leaders destroy the state. Only the few very rich and the many very poor will choose to live in Cali (Northern Mexico).
Rezone for natural habitat, grandfather for current residents only... heil Hitler!
Interestingly enough I doubt there were dissenting opinions on selling those properties in the first place because of exponential forthcoming tax revenues, but now that the shoe is on the other foot the government in California feels the need to force private companies or corporations to shoulder a type of responsibility that is not within stakeholders interest.
Just as a side point, once an area is totally burned, wouldn’t that be the least risk of another fire? Insurance should be cheap!
Yep. Rates are related to risk. It’s why, at age 66, it would be pretty expensive for me today to get life insurance.
My thoughts exxactly.
Your meme is hilarious. Or should I say, halarious.
Conservatives that live in Mexifornia tend to move into rural and wild areas where there is more of a wildfire risk. I built my house in the Southern Sierras 15 years ago and my insurance company dropped the policy last September. But I found a company that covered us and it turned out to be around $400 bucks cheaper annually. I thought I was making out until my property taxes were raised because of the reassessment. You can’t win for losing. It’s worth it though and I’m reminded every time I go to the city for supplies.
The State should pay the increased premiums = Taxpayers will pay the increased premiums
“f they would manage their forests these fires would not be nearly as frequent or devastating.”
Yep. Lived in Florida (lighting loves us) for 50 years. The state has always back-burned/control burned for as long as I’ve been here and forest fires are pretty infrequent. We have something now and then but pretty infrequent.
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