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> end up loosing money in the sate of California for example? the home insurance industry in California changed dramatically with the 2017 summer fire season.
by mistrial9 3y ago
> end up loosing money in the sate of California for example?
the home insurance industry in California changed dramatically with the 2017 summer fire season. The numbers are about "billion" in claims. (edit) substantial destruction of buildings of a major city Santa Rosa. At the same time, price escalation of homes was in full swing. Some houses experience a paper-value growth of more than ten percent a year, on top of high prices. The combination is fatal to the stable insurance industry.
No party is innocent on this.. all players are aggressively padding their positions adversarially, including local government. Less than half the burned homes were rebuilt, four years later IIR.
ps- a recent study claims that about fifteen percent of residential homes are under extreme fire risk in California now, out of maybe 1.5 million structures... roughly, depending on definitions.
- jeffbee 3y agoNone of those houses should be rebuilt, of course. Cities need to retreat from their interface with combustible lands, and keep a large cleared buffer around built-up areas. Sprawling out onto parched hillsides isn't a good idea and I fully approve of insurers dropping those policies. Some of your other statements are exaggerated. You say a third of Santa Rosa burned in 2017 but it was more like 3% of the dwellings in that city. The Census states that Santa Rosa has gained net dwellings in the last 5 and 10 years, so Santa Rosa is not another Paradise.
- mistrial9 3y agomore rigorous analysis available for a modest fee. Superficial AI search shows ~2800 homes destroyed completely in Santa Rosa October 2017. ps- I recommend this site.. https://ccst.us/reports/the-costs-of-wildfire-in-california/ https://ccst.us/reports/the-costs-of-wildfire-in-california/