patrick.net

all insurance is a fucking scam and needs to go away. shit just made everything more expensive.

California Insurance Crisis: Homeowners Getting Insured Right Out of Their Homes

Blame decades of bad California politics

By Katy Grimes, September 17, 2024

... The Globe recently spoke with a couple who shared that the condominium complex in which they reside lost its insurance coverage. “They told our HOA that they just don’t want to insure us anymore,” the husband said.

This is a very nice condominium building.

Consequently, the HOA had to scramble to find new insurance. But the new insurance will cost each of the condo owners an additional $10,000 a year in HOA costs.

“Who can afford an additional $10,000 payment to already high HOA dues?” the husband asked. ...

In June, former State Senator Ted Gaines reported on the insurance crisis for the Globe, in “The Time for Action on Insurance Crisis is Now: Insurance lubricates the entire economy; the current system is broken.”

“Californians need bold and immediate action from the Governor Gavin Newsom and Insurance Commissioner Ricardo Lara to help attract insurers back to the state, create a robust market, and give consumers more options for fire insurance coverage,” Gaines said.

He explained that “rate increase applications are languishing in the Department of Insurance (DOI) for up to two years. Instead of losing money while waiting for rate increases, insurers are pulling out of the state with astonishing speed. It’s likely that everyone reading this knows someone who has been non-renewed by an insurer and unable to find the needed fire insurance required by lenders.” ...

We always knew California’s leftist political policies would catch up to the people paying the bills. But no one expected just how high the bills would be. Or how devastating the costs and cancellations would be. Or how the repercussions would hit every industry in the state. Or how so many business owners would pick up and leave California. Or how many employees would leave the state.

Oh wait – yes we did. We’ve been warning about this since Jerry Brown was reelected as governor in 2011, and finished the state off that he started to destroy in his first term, 1975-1983. We’ve been warning that if Gavin Newsom was elected he would be worse than Jerry Brown. We warned that electing Ricardo Lara to Insurance Commissioner – who has never run a business or even signed the front of a paycheck – would be a disaster…

And here we are – your homeowners insurance has just been cancelled. Will you be forced to dump your single family home?

Now you know how it happened, and even who is to blame, but there will be no indictments.

The real blame falls on California voters; when will the California voter stop supporting dreadful policy makers? When will voters acknowledge that voting for today’s radical Democrats only leads to crisis after crisis?

Nothing will change for Californians until voters rid the state of the Democrat supermajority who wield the power that only harms the people.

“Californians need bold and immediate action from the Governor Gavin Newsom and Insurance Commissioner Ricardo Lara to help attract insurers back to the state, create a robust market, and give consumers more options for fire insurance coverage,” Gaines said.

Allstate looking to raise California homeowners insurance premiums by average of 34%

This is why SFR is the way to go. Condo or others of their ilk can defer shit for decades until - BOOOM! - 20K special assessments If SFR is too expensive, then it's time to buy a trailer for the majority of broke-ass America. Condos are a 10-20 year 5-figure inevitable balloon payment once the "special assessments" kick in.

"Insurance companies are losing bigly on their Commercial Real Estate."
Yes, this. But also....
I used to trade bonds institutionally. At one point involved in municipal bonds, calling up insurance companies. My opinion is that they put extensive amounts of premium monies into long duration fixed income to set aside for payouts and earn income in the meantime. Think about where bond coupons have been in the past 15 years, whether munis, treasuries or corporates....if you have this portfolio and need to sell to cover payouts you are taking tremendous losses. You are sitting on tremendous losses. Not sure how insurance companies are required to structure, but my instinct is they are required to hold money a certain way. They are conservative. They probably can't do things like interest rate swaps or other hedge strategies. So how do you make up these losses? You have to avoid risk and jack up premiums. Just my theory.

Will they go bankrupt before or after the banks???

FortwayeAsFuckJoeBiden says

all insurance is a fucking scam and needs to go away. shit just made everything more expensive.

Wrong, Insurance used to be affordable you pay for the risk but since then the industry has changed and massively regulated so costs have skyrocketed. Just look at what happened in healthcare, These bastards have their fangs in everything,

all insurance is a fucking scam and needs to go away. shit just made everything more expensive.

Misc says

Will they go bankrupt before or after the banks???

Since the banks can lend money into existence, unlike the insurance companies, then it's the insurance companies that will fail first.

What does Buffet have to say about this? Is he still big into Gieco?