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>That really is what a competitive insurance market should be like right? Should be. But states like California cap insurance rates in such a way that insurers
by mh- 3y ago
>That really is what a competitive insurance market should be like right?
Should be. But states like California cap insurance rates in such a way that insurers are dropping (non-renewing) policies, since they can't charge market rates.
- rlt 3y agoI don’t understand how states like California don’t understand basic economics.
- seanmcdirmid 3y agoCalifornia is one of the capitalistic states out there. But they have politicians, government, regulation, like any other state. Insurers are also rapidly leaving Florida, so it might not just be about regulation, or those two states do lots of regulation, or something in between.
- cyanydeez 3y agoIts about reality. Both states should be.preventing public housing where reoccuring signifixant hazards effect populations. Instead, they.try to manipulate the insurance market.
- tekknik 3y agoYou have to define reoccurring and significant. Much of CA is on a fault line, so should everybody move to the desert where it’s scorching hot but a bit safer?
- lostlogin 3y ago> so it might not just be about regulation Or is it about risk? Those places have a fair few large disasters, and one is sinking while denying it.
- ransom1538 3y agoFL here. Florida was hit by a wave of roofing fraud. They are changing out the laws (which will make sense).
- Spooky23 3y agoThey do. HN commenters often over simplify complex issues.
- tekknik 3y agoThey are not oversimplifying it. The law says they can’t use forward looking projections, only historical data to build rates. Coupled with climate change the CA insurance commission certainly doesn’t understand economics and they’ve created a recipe for failure.
- revlolz 3y agoIt's because California pushes their FAIR plan which is expensive and has terrible coverage. It's a corrupt and unethical solution for the state to recoup its budget deficit.
- ericd 3y agoDo you have evidence that they make money on their plan? My impression is that insurance of last resort isn’t cheap to provide, they’re only getting the people that were too high risk to qualify for a cheaper commercial plan.
- revlolz 3y agoNo, only my anecdote. The state is offering significantly reduced coverage for more than double the cost of previous coverage. Getting the state plan still requires you to get additional private coverage in order to satisfy mortgage insurance requirements. I think it would be impossible for a layman to just give you "evidence" that will fit whatever arbitrary checkbox is formally needed. I cannot fathom a way the state isn't profiting here and both the state and insurance companies are exposing homeowners to incredible burdens. Now you frame this like I am too high risk or people in this capacity are too high risk, but that is the whole problem. Insurance cos are inconsistently making these determinations and the state's governance is directly responsible for the lack of regulation and enforcement. Nothing in my area has changed, but the insurance company has enacted the equivalent of ex post facto evaluation due to the state of CA. As example, my roof in great condition, passed inspection when purchase property a few years ago. I don't have certificates or invoices for repairs done to it in the 50 years of my home's life because I've only owned the property for a few years. The insurance company canceled my insurance stating I refused to provide such an invoice. They also claimed I'm now in a dangerous fire zone (I'm not) which I wasn't a year ago. They also claimed to need invoice of repairs for my plumbing, which again, is in wonderful condition. They stated simply providing inspection receipts wouldn't cut it and expensive certificates were needed. Anyways, I doubt you will read this but it's ridiculous and I'm not the only one in this state going through it.
- 3y ago