State Farm actually told the state why... it was due to the states lack of mitigating the fuel danger... Newsome & Co. imposing price controls on the insurance industry was the end. It almost seems as if the state was willfully negligent, by design.
Plus the Department of insurance, who regulates rates and rate increases, State Farm wanted to raise their rates 30% on single family home and 35% on Condo/Townhouses. Base on inflation and rebuild prices. State Farm was denied the ability to raise their rates. Basically warning Gavin Newson that they would start pulling out of California…. Allegedly this was all reported.
The Democrat way. Start a program to help citizens but then don't fund it properly. Once the failure is noticed, they then shove it off on all the people who wanted nothing to do with their program to pay the bill
Correction - State Farm did not cancel these policies, they non-renewed them. There is a huge legal difference. State Farm told these policy holders they would no longer offer policies in California because of the actions of California and their leaders and voters.
@@BobM.-to9ji Well, California voted for politicians that have enacted policies that make it impossible for any insurance company to cover their exposure much less losses - State Farm is a mutual not a corporation, yet they cannot find any reinsurance for their California policies and cannot cover their losses. Florida is different in that there have been a lot of claims, but the state is not enacting policies to force insurers out and the insurer of last resort is still able to find reinsurance on the open market. So totally different situations - Florida did not force insurance carriers out by demanding they take the loss or force that lass on their other policy holders in the rest of the country
Because Too much of arson ( please look and see how nearly all these were started ) I install solar. Megawatts installed I am not saving earth…..I just install solar. No coincidences.
Don’t blame insurance companies. Blame the states leadership for creating conditions that made the fire risk too high. It was a rational decision made by a business that has to weigh risks.
There really isn't any way to lower the risk significantly. Where the government goes wrong is in not allowing insurers to charge what they need to, given the risks. The result of that will be to drive all insurers out of state. You simply can't order a business to operate at a loss.
No it’s the insurrance companies who are at fault. They will easily take your money and then run if things get tough. Go look at Florida and other states. How can you blame the local government for Mother Nature and the climate change issues.
I don't normally side with insurance companies. But if I put my business owner hat on, why would I insure anyone in a state that does nothing to mitigate the fire risk, cuts Fire Department budgets, can't manage water resources, and still can't manage to do something as simple as tell the utility to turn off the power in certain areas during red flag events? Newsom didn't do anything about State Farm and others cancelling policies because they have Fair Plan act in place to just force the insurance companies to pay into it by "assessing " them. Which is a real bitch move on his part. If I ran State Farm, I would not reinsure anyone in California for anything. Not homeowners, life, RV, car, boat, nothing. And just walk away completely once the last policy is cancelled.
This has been percolating out in the open, also asking these company’s to cover smash and grabs, auto theft, and property damage. Company’s see the lawlessness these politicians advocate and they’ll just leave.
I live in Northern California and had renters insurance through State Farm for years. Last summer they cancelled my renters insurance as part of this new policy of also cancelling homeowners insurance. People like me who rent were given no alternative. I talked to my insurance agent, who still insured my car, and he had no explanation for this. But when I saw news about these fires I thought, "That's why they cancelled all of us." As if they knew this was coming.
Anyone paying attention to the state's land and water management could see it coming. Only left wingers and the politicians that get rich off them couldn't see it coming.
No mystery. Insurance companies warned the state that rates had to go up because of the states lack of risk mitigation. The state capped premiums, so companies left.
It's important to note that if a house is worth 3.5 million in Pacific Palisades, the insurance company may only need to pay out around a million dollars because the dirt the house sits on is worth 2.5 million
Don't worry about rebuilding. It won't happen overnight but many of the residents there can access funds if they don't already have, and at least for Palisades is a very choice location. Other burnt areas in Los Angeles like Altadena would be considered more ordinary although parts would still be toney so might have more difficulties rebuilding.
If you know anything about home values, not every home there is priced that way. There was a lot of regular homes in this region. $650k-$800k for the area. And yes, there’s more tucked in, horse farms with acreage and commercial properties and new construction every where that’s also gone. They wanted this. They want to redo the entire layout. If it’s ‘old’ they burn it down. San Francisco fires, Chicago fires, 9/11, Lahaina and now LA, plus many more I’ve missed but this is just an insight into what the elite, government will do to eliminate the poor and make you obey.
The insurance companies warned that this catastrophic event was inevitable and immanent if brush was not cleared, water reservoirs were not maintained, and the fire departments were not better financed and equipped. The fire experts with the local fire departments agreed that without those steps the city was going to burn. Not a part of it, but the whole city. So the local governments cut the fire department budget by many millions of dollars. Insurance companies cover unexpected accidents and disasters. This fire was neither. It was a predictable consequence of intentional neglect and either incompetence or outright corruption. They would have been insane to cover this area knowing it was definitely going to burn down soon. And remember we aren’t just talking about multimillion dollar homes but also the millions of dollars of property in those homes as well. The total cost of this preventable horror is going to be over a hundred billion dollars in the end. No insurance company can survive that and still cover legitimate unavoidable disasters.
Can't blame the insurance companies on this one. If they see the government isn't doing it's job to ensure public safety, then why would the insurance industry back such a plan??
However most people would have paid for their policy premiums. What happens to that money? Do the insurance companies keep that money.? Or do they reimburse that to the customers. If you do not want to pay out on premiums, you need to get out of the insurance business. When I pay for something, I expect to get something in return.
@@jeanrichardson2044 You said it yourself. They "would have paid" which means that they didn't pay. The insurance companies refused to take the money as it would require them to cover the risk. State Farm followed your advice and got out of the insurance business in that area.
@@Tico513 I never thought I'd be defending insurance companies, but he's right. Insurance is not a public service. If that many people lose their home all in one shot, there's no way the company can pay that out without transferring the cost to other customers. All that had to happen was for the state to mitigate the problem. They didn't.
insurance policies were not "cancelled" they simply were not renewed; the reason they were not renewed was because the california insurance department were not willing to let the insurnance companies charge what they need to charge to cover the risks. The media is trying to make this sound different than what it actually was, imagine that.
no, The insurance companies realized these neighborhoods were vulnerable to a catastrophic fire and did not want to be liable if the neighborhood burned down.
The problem is if you open every fire hydrant there's not enough water for every fire hydrant to have pressure. the water system was never designed for this situation.
It’s sad when a private company can see how bad the risk is when the politicians who are paid by tax dollars can’t or are too incompetent to mitigate the risk.
In the private sector there is a limited number of times a worker can make mistakes, working for the government pretty much guarantees permanent employment.
The insurance companies knew things were broken in California and they have people who do nothing but run risk analysis daily. They knew what would most likely happen that did happen. They asked to raise rates. California said no. Insurers said okay were pulling out. Insurance companies are not charities. They are FOR PROFIT! They would have lost their a** on this disaster. And I bet you anything they told California exactly why they wanted to raise rates and the officials still did nothing.
No, they didn’t “do nothing.” They slashed the fire department budget to the bone leaving them just enough resources to deal with one large single building fire or two small brush fires at a time.
do you work for them? insurance is a forced racket that is unconstitutional. there is no provision that states you must be forced to pay. if it was a free market , the cost would be fractional .
@ It is fractional based on the risk at hand and the number of policy holders. The risk of this fire at this time based on science using the known variables at hand was around 98% for everyone. Not just per the insurance companies but also from the fire department.
The insurance companies did not summarily cancel or non-renew HO policies in CA just because they felt like it. They pleaded to the CA Insurance Commissioner to allow them to raise rates to a sustainable level based on actuarial calculations. The CA Insurance Commissioner refused, so some HO carriers canceled and non-renewed their HO policies.
Before people start aiming their sights (literally) at insurance executives, the real problem needs to be acknowledged: California is too dangerous to insure. Insurance companies, unlike the federal government, can't print money; they just move it from place to place. That's ordinarily done on a state level (where rates are set) but Californians have indicated, through their government, that they don't want to cover the cost of claims; they've put a cap on premiums so that even rich people who COULD pay for coverage can't anymore. The hope is that national insurers can suck money out of the rest of the country - you remember us; the ones who DON'T have Pacific Ocean views, movie stars next door, and Mediterranean climates (but plenty of water and in some cases even functioning local governments) and resent this constant movement of money from the cautious to the incautious (it's also a problem with health insurance). If premiums were allowed to rise to a market level, with the uninsured absorbing the risk they take on, or the state would cooperate with insurers to improve risk (there are too many homes sitting on mudslides and tinderboxes, almost waiting to be destroyed so a bigger, newer one can be constructed), then everyone could live happily ever, bathed in cash. As it is, everyone wants to get, no one wants to give, and a few rich insurances company executives (most no richer than the people with the Pacific Ocean views) become an easy target for people incapable of unraveling an almost intractable problem.
Any insurance company that is worth buying from, would absolutely cancel the policies after those idiots diverted the water past the reservoirs, failed to clear brush, cut the fire department budget, and had incompetent leadership at the fire department who was more focused on DEI then saving lives.
Because it was risky to insure a fire prone area that is governed by people who can't even get water to fire hydrants, Or burn the brush during the rainy times with no wind.
Not that I'm defending the Gubment of Cali, but the "hydrant problem" was solely caused by too many trucks sucking water out of the system all over town. Those pumpers can easily pump 3,000 gallons per minute EACH.
@@mattywho8485: And who told you that, the gub'mint of CA? Did they tell you why they don't clear the underbrush which fuels these fires? Did they tell you a mouse's habitat is more important than fire prevention?
When insurance companies leave an area so should you. They assess risk realistically and tell you the truth. LA was once okay but not today. Move, people, move.
They don't want you to rebuild. They want to take your land from you and build their L.A. 2028 smart city. Look it up. It's not a secret. It's the plan. Blackrock, the insurance companies, and the WEF are involved. How did the fires start? Anyone's guess.
It's almost as if these fires were pre planned. Insurance is all about risk. If the state legislature refused rate increases then insurance companies have no choice but to pull out of high risk areas. Newsome caught with his pants down.
Until Blackrock comes along. No doubt they will buy up mass amounts of land, grease palms and build most of it with our taxpayer help-cause you know it is an emergency.
My insurance was canceled last year in Nor Cal. Least expensive is Cal Gov Fair Plan, $550 a month and $20k deductible. I was paying $90 a month, $2,500 deductible. I live in 5 acres and decided to enlarge the fire safe space around my house, add portable sprinklers, install 1/8" mesh attic vents, buy a large generator to power the well if PGE goes out... Have a tile roof and adobe walls with hardscape around the property. UPDATE: Forget to mention, it would not be beyond California to tax/fee those that are uninsured in an attempt to force them to pay for insurance. Newsome/Cali siding with insurance companies. Same as Newsome did with Obamacare. If youre uninsured you have to pay a fine in California. The Supreme Court said it was illegal at the Federal level. So, Newsome did it at the State level.
1.) 2/3 things you listed exist in the real world. That didn't even make sense. 2.) If insurance was based on the "real world" and not "blue hair logic" (again, whatever the hell that means), *why are they willfully selling policies on a mass scale, and taking premiums on a mass scale, that they then aren't prepared to reimurse on a mass scale?*
After 16 years selling insurance in LA, the reason is simple, look at the amount of trees and brush. State Farm, Allstate and others stopped selling in dense vegetative areas. Just take a look at any video of the Palisades, it was a jungle. It wasn't a matter of if, it was when this would happen. People need to wise up, no trees within 25 feet of your home period.
Unfortunately that's not how it works. First of all most homes don't have a 25-ft setback from their property lines to their house. These homes are not in rural areas with acres and acres of land. Secondly, when you have 80 or 100 mph winds 25 ft doesn't make a difference. You could have a hundred feet, you could have 300 ft, zero difference. Embers can travel thousands of feet. Fire blocks are entirely worthless when you have wind strong enough to carry embers that far. The best protection for these homes is ultimately to build them out of concrete or stucco. All roofs should be tile or non-combustible material. Zero organic landscaping around the homes. This is the only way to reduce this type of incredible fire damage during a high wind event.
I think you're partially correct, but just generalizing. Native plants and vegetation are much more likely to survive fires and don't not typically contribute to them. Lots of non-native trees, however, are a contributing factor, especially when they are not maintained properly. As I'm sure you've seen, many trees are still standing amongst destroyed neighbourhoods, so it would be untrue to advise no trees on private property.
A lot of this goes back to 6 years ago when PG&E caused the 2018 campfire because of faulty line. They filed for bankruptcy (still in business) and insurance companies were left with 30 billion in wildfire liability. Insurance companies have been trying for 6 years to raise the rates as they were losing money. The insurance companies finally had to stop the bleeding and stop writing new business. That's why no one can get insurance and insurance companies have canceled policies in certain zip codes. That is why we have the California Fair Plan.
PG&E wasn't allowed to the things that resulted in the current situation: clearing brush, back-burning, basic fire mitigation efforts that only a complete idiot would stop from happening (Gov. Hairdoo and crew); it wasn't their fault, it was the state of California, just like this time. When you vote for fools and lunatics (hard to distinguish between the two in California) poor outcomes will be the rule. As the saying goes, it's not a bug, it's a feature.
Big problem is ultra-liberal CA politicians force insurance companies to pay into the Fair fund even when they cancel policies. ALL insurance companies should pull out of CA and let the state cover insurance costs instead of the rest of us paying more. Vote liberal, you pay.
Well big duh! Can't imagine why they don't want to get stuck with the rebuilding bill when government does not allow or require the clearing of underbrush in the forested areas! They are reducing their risk. They have every right to do so. I have State Farm but fortunately I do not live in a high-risk area in California. If you live in high-risk areas, you should expect to pay more for your homeowner's insurance.
Why? We've been watching the reason why for several days. They dodged a massive bullet non renewing these homes . It's not just obvious to insurance companies that wildfire exposure is real and inevitable. We all knew it was a matter of time
the insurance companies knew. they saw how crispy the climate change crowd was keeping those lawns and they pulled out. this is what happens when you don't water your lawn california. let the smelt go before you die trying to save a fish that has no home any more and hasn't for milennia.
@@psilocybemusashi is this a joke? Plenty of places with lush vegetation burned as these are wealthy areas and they do not care for conservation. No, the delta smelt isn't the reason for these wildfires nor any sort of water shortages. The issues California has goes back decades and can't be fixed anytime soon.
all Insurance companies require that certain conditions be met and maintained to qualify for insurance, not clearing fire hazard brush, not keeping sufficient water reserves stored up. fire is a cruel master and the lesson is burned into your mind forever.
Why don't you come right out and say what is so obvious...State Farm was right! And they will continue to pay claims according to the contract/policy. If you've been paying any attention to prior wildfires you will find that most homeowner's policies are Underinsured, usually because the policyholder wants the lowest possible premium. That, and the fact that policyholders never even read, or understand, their contract, specifically what's covered and what's excluded, and how claims are settled. Insurance companies are highly regulated, and they know what they are doing. Homeowners, on the other hand, dont.
California has known for over six months that the insurance companies have cancelled policies. Do not blame companies like State Farm for protecting their assets so those who do get insurance through companies like State Farm do not have their rates for automobile insurance increased to cover the costs of losses from wildfires.
The problem is… They’re STILL raising rates for people not in super high risk areas. Premiums and cost of coverage are increasing everywhere and they’re still canceling policies in these high risk areas.
I live in Las Vegas, my State Farm insurance has double in the last two years, even most recently built neighborhoods here are desert landscaping. Many zero water landscaping, which means nothing on the ground. But they do pay sports stars a good chunk of money to advertise. Car insurance because the invasion of Southern Californians in the last two decades with their terrible driving habits has gone up. I used to pay $600 every six months, now I pay $1500 for the same period, and yes it is the SoCal crowd.
As a business (insurance company), would you want to risk underwriting (insuring) something (a home, for ex.) that is too risky? You charge a premium of $5k - $10k/year, but potentially have to pay a $1M - $3M if the house burns to the ground. Your business would go broke. Some areas are prone to wildfires, are difficult to navigate due to limited, narrow or winding roads, and lack infrastructure or resources to put the fires out. Just look at what happened to areas in the Greater L.A. area. State Farm and other insurers made the right call (for themselves) to not renew Homeowners Ins. Policies in CA, because this State is poorly managed, but yet over-regulates, and taxes the heck out of everything.
Because they have basic pattern recognition. And they would have kept insuring if they had been allowed to raise the premiums to reflect risk. But the government said they could not, so they did not.
Same thing for Obamacare. The gov is forcing insurance companies to cover things that are not insurable risks. Which is why the gov has to subsidize the plans. They do not make sense from an insurance standpoint. Neither do the home insurance rules in CA. My advice...........take all the money you can, and leave the state. Do this as soon as you possibly can. Nothing is going to change there in your lifetime. If you decide to rebuild, you will regret it.
So .... 6 billion in exposure. 250 million in the bank. A lean on each insurance company for a forced billion collectively. That means they have 1.25 billion. The rest is coming from the rest of y'all's policy California. People are going to flee in droves.
On my 3rd company in 4 years, rates are triple, I live in Orange county in the foothills. Have had close calls with fires in the past decades. State, county will not take care of overgrown vegetation. Have an area by me declared protected due to some bird, full of creasote bush and Eucalyptus trees which are like gasoline.
We get big fires here in Australia… can’t keep up with fuel load reduction and never will tbh . Then some people just want to live in the trees so to speak . In most urban areas, I don’t think we’ve ran out of water though when fighting fires. I could be wrong. Then some fires, how can you stop them , fire breaks , waiting for the wind to change so they blow back on themselves. Plus praying for rain . Of course all the efforts of all fire services . I think LA, you have a lot of our Australian blue gums also. Which are an oily tree if that makes sense and they burn ferociously.
The state basically got between the insurance companies and their customers telling insomnias what the can charge. Property values and political corruption, along with the state’s refusal to deal with forest management and water issues are to blame. Insurance companies are not charities. It’s terrible what this guy’s family is having to deal with. If they were cancelled, they are not paying for Indy. So, how would they be entitled to a claim?
State Farm and other insurers who pulled out did so, because they accurately calculated an obvious risk. Voters chose their politicians. Politicians represented the values of their constituents. However, insurance companies rightfully expect their customers to responsibly do their part to mitigate risk. The voters, elected politicians, appointed officials, and home owners behaved with reckless abandon regarding probabilities, preparedness, and risk.
Average home price of 3.5 Million Dollars and not one was built of brick or stone or concrete. Nobody had metal roofs. And nobody was out in the yards with a broom putting out embers. Nobody had a gas powered water pump to use their pool to fight embers. These events are not new. They happen routinely, but people are living dense in areas that are historically burning every few years. Always have and always will. It's a inflammable area in a inflammable State.
They did a claims / risk assessment and found that the calms where not worth the risk of loss in that area. It's called the economy stupid. They are in the business to make money, not lose it.
Insurance accturaties determine rates based on costs. A state that for years arrested no shoplifters, pillagers, thieves and is surprised that stores closed because of massive losses is now shocked that there's no fire insurance for homes when the state hasn't maintained brush and forrests for decades and helped deplete reservoirs to bring back salmon for "native" tribes. Two+ decades of a single party state eliminates the checks and balances that protect the govern from the corruption
Maybe they read the fire department's report telling mayor bass that cutting 17 million of their budget was dangerous and could create a disaster like this
It is ironic that State Farm cancelled the policies and then they are moving the Mon night playoff game between the Vikings and Rams to Glendale, Arizona at the State Farm Stadium.
Insurance companies can subrogate the liability and sue the city and county for negligence and failure to mitigate fire risk. Then this gets passed on to the tax payer. Either way...the insurance that you pay for doesn't work. You pay the insurance and the taxes for the subrogated claims....so here is the thing...know who to vote for and hold their feet to the flame. No pun intended.
I’ve been cancelled by three companies recently and I live in AZ. The companies are telling us that they are reclassifying our area not due to anything here, but because they are eliminating risk because CA fires being so devastating AND the crazy cost to rebuild in CA. CA could and should streamline the rebuilding process and eliminate unnecessary red tape and fees that only drive up costs. These people have been through enough already.
Could of, would of, should of. Cal should do a lot of things to prevent or reduce the damage from disasters. And unnecessary red tape - This has been baked in to their laws due to incompetence and the green activists.
Answer: The analysts at the insurance companies know what the risk was........especially that the city wasn't doing anything to abate the potential for wildfire.
Same reason they've been cancelling policies in Florida. They saw what was coming with the near and middle term weather and got out before the big one hit. Whoever made the decision in the company will probably get a huge bonus for making a call that saved billions in losses.
I work for an insurance company. I hate doing inspection reviews because many people don't like maintaining their property. I feel for some folks who live in forested areas. However, they have to realize their home is not just a risk to the insurance company but also to all the other policy holders. Unfortunately, there is no way to hold the state accountable for negligence outside of voting. Mitigating wildfire risk on public lands should be a top priority.
So many people want to demonize the insurance companies for refusing coverage. Now, I won't carry water for the insurance companies because their practices are another discussion. But, you cannot expect an insurance company to cover you when you live in a high fire, earthquake, hurricane, or flood area. They're not in the business to lose money and shouldn't be demonized for what I would call rational decision making regarding their business. They can offer policies but you need to be prepared to pay the price and that's the second thing people complain about. First, they want coverage and nearly in the same breath they complain about the cost of coverage. If you live in high risk zones you're going to pay high risk insurance premiums.
They need to talk about costs to rebuild, not market value. My little 1500sf home in Silicon Valley is worth more than $3M and only costs $500k to rebuild.
California and Florida are known for catastrophic loss of life and property every year. Insurance companies have made a decision to not insure in known hazardous areas. But unsustainable building continues in these areas. Why?
Insurance companies have been paying for claims due to fires in California for decades. They make it their business to know why these huge fires occur. They saw a State that refuses to maintain their forests and have diverted their water supply and allowed their reservoirs to drop below critical levels. State government also capped the homeowner premiums companies felt were justified based on risk. They were forced into a no win situation.
State Farm being the largest, they are the only ones getting mentioned. It's other companies too. And some of them are leaving California which state farm is not.
I love how everyone is trying to make State Farm the bad guys here when they had a choice of shoot themselves in the head or be a villian and demonized in the media
I was forced to evacuate Van Nuys. That was in 1997. After the Northridge earthquake the state basically socialized insurance. I was involuntarily made into a socialist. Homey don't play that game. So I packed up and moved. It was the best decision I ever made. You get the government you asked for. And the people in LA are getting it good and hard.
I'm looking forward to any critic of these companies starting their own viable insurance company in California. Let me know what you have to charge, thanks.
As I understand it, the state put caps on insurance rates. The risk, calculated by the insurance companies, could not be covered by the rates they were allowed to charge. So they dropped out and would not renew policies. If the state had done a better job of setting the caps, the policies would not have been canceled. The insurance cost would be higher, but now we see why.
They can fight over who pays what, but at the end of the day society pays for all these losses, so stop blaming insurance companies or the Gov and focus on how to prevent fires, make houses that are very hard to burn, etc. The only way to get cost down is to stop the losses.
@LaRaineBarton no, I work 6 pm to 7am doing CPR in a big hospital. The insurance companies will pay eventually, but you missed the point.. to get insurance affordable, we need to lower losses and build back better 🔥 resistant homes.
Everyone knew this was eventually going to happen. The fire hydrants have No water because of a fish, No fire breaks on the ground because of a field mouse‼️ Bravo Democrats.
State Farm actually told the state why... it was due to the states lack of mitigating the fuel danger... Newsome & Co. imposing price controls on the insurance industry was the end.
It almost seems as if the state was willfully negligent, by design.
Exactly.
Sad but true 🫤
Plus the Department of insurance, who regulates rates and rate increases, State Farm wanted to raise their rates 30% on single family home and 35% on Condo/Townhouses. Base on inflation and rebuild prices. State Farm was denied the ability to raise their rates. Basically warning Gavin Newson that they would start pulling out of California…. Allegedly this was all reported.
The Democrat way. Start a program to help citizens but then don't fund it properly. Once the failure is noticed, they then shove it off on all the people who wanted nothing to do with their program to pay the bill
Wrong , they could not raise prices to the roof, so they left.
Correction - State Farm did not cancel these policies, they non-renewed them. There is a huge legal difference. State Farm told these policy holders they would no longer offer policies in California because of the actions of California and their leaders and voters.
Same difference
What a quack. To say canceled and non renewed is the same difference. Someone does not know what difference means.
Florida has the same issue with hurricanes but the MAGA boot lickers aren't making an issue out of that are they?
Canceled is prematurely ending a contracted insurance policy.
Non-renewed is declining to renew a policy into a new one.
Different things.
@@BobM.-to9ji
Well, California voted for politicians that have enacted policies that make it impossible for any insurance company to cover their exposure much less losses - State Farm is a mutual not a corporation, yet they cannot find any reinsurance for their California policies and cannot cover their losses. Florida is different in that there have been a lot of claims, but the state is not enacting policies to force insurers out and the insurer of last resort is still able to find reinsurance on the open market.
So totally different situations - Florida did not force insurance carriers out by demanding they take the loss or force that lass on their other policy holders in the rest of the country
The same reason Target and Walgreens closed stores in the Bay Area. Too much risk.
Right! now Macy's in Sacramento are closing too every time I go to my Target on Fulton Avenue I see people walking out of there stealing stuff
Insurance companies don't have the money to pay the victims
Maybe they knew the area was going to get the Maui treatment.
Correct and why Tsla left, Rogan left and many others who paid a lot of taxes.
Because Too much of arson ( please look and see how nearly all these were started )
I install solar. Megawatts installed
I am not saving earth…..I just install solar.
No coincidences.
Don’t blame insurance companies. Blame the states leadership for creating conditions that made the fire risk too high. It was a rational decision made by a business that has to weigh risks.
It's builders and bullying for permits
80 mph winds and fire is impossible to defend.
There really isn't any way to lower the risk significantly. Where the government goes wrong is in not allowing insurers to charge what they need to, given the risks. The result of that will be to drive all insurers out of state. You simply can't order a business to operate at a loss.
No it’s the insurrance companies who are at fault. They will easily take your money and then run if things get tough. Go look at Florida and other states. How can you blame the local government for Mother Nature and the climate change issues.
@@robertturner1308
But you can slow it way down with smart management and being prepared for the worst
Insurance companies are like canaries in the coal mine. If you can’t hear them renewing policies, something’s gone wrong and you’re in trouble.
Exactly
Great analogy..
Insurance companies health care insurance is also doing the wealth transfer.
Imagine if there weren't any insurance companies. At least some people aren't screwed, but holy crap they are iffy.
State Farm is now trying to take half of the $4 billion settlement that is going to victims of the Lahaina fire
I don't normally side with insurance companies. But if I put my business owner hat on, why would I insure anyone in a state that does nothing to mitigate the fire risk, cuts Fire Department budgets, can't manage water resources, and still can't manage to do something as simple as tell the utility to turn off the power in certain areas during red flag events? Newsom didn't do anything about State Farm and others cancelling policies because they have Fair Plan act in place to just force the insurance companies to pay into it by "assessing " them. Which is a real bitch move on his part.
If I ran State Farm, I would not reinsure anyone in California for anything. Not homeowners, life, RV, car, boat, nothing. And just walk away completely once the last policy is cancelled.
Insurance companies canceled policies because they could see this level of destruction happening.
See the Old Topanga Fire of late 1993 . This was overdue
NO-- they know the enemy and the plan for they are not blind.
My dad was a district manager for Shelter Insurance, and they inspected property regularly.
but LA government don't see 😅
IS THE SYSTEM BUSINESS
This has been percolating out in the open, also asking these company’s to cover smash and grabs, auto theft, and property damage. Company’s see the lawlessness these politicians advocate and they’ll just leave.
As well they should.
I live in Northern California and had renters insurance through State Farm for years. Last summer they cancelled my renters insurance as part of this new policy of also cancelling homeowners insurance. People like me who rent were given no alternative. I talked to my insurance agent, who still insured my car, and he had no explanation for this. But when I saw news about these fires I thought, "That's why they cancelled all of us." As if they knew this was coming.
Anyone paying attention to the state's land and water management could see it coming. Only left wingers and the politicians that get rich off them couldn't see it coming.
Newsom and Bass knew too.
@@Xenophon1 yep that's why Bass trembled at the airport... knew she was caught!
I live in Northern California and still have a renters policy with State Farm.
So much for being a good neighbor!
No mystery. Insurance companies warned the state that rates had to go up because of the states lack of risk mitigation. The state capped premiums, so companies left.
It will be interesting to see how many companies are still there a year from now.
It's important to note that if a house is worth 3.5 million in Pacific Palisades, the insurance company may only need to pay out around a million dollars because the dirt the house sits on is worth 2.5 million
Not worth 2.5 million any more. How can anybody rebuild if they can't get insurance? It's Redlined.
Ya, not anymore.
Don't worry about rebuilding. It won't happen overnight but many of the residents there can access funds if they don't already have, and at least for Palisades is a very choice location. Other burnt areas in Los Angeles like Altadena would be considered more ordinary although parts would still be toney so might have more difficulties rebuilding.
If you know anything about home values, not every home there is priced that way. There was a lot of regular homes in this region. $650k-$800k for the area. And yes, there’s more tucked in, horse farms with acreage and commercial properties and new construction every where that’s also gone. They wanted this. They want to redo the entire layout. If it’s ‘old’ they burn it down. San Francisco fires, Chicago fires, 9/11, Lahaina and now LA, plus many more I’ve missed but this is just an insight into what the elite, government will do to eliminate the poor and make you obey.
How much is the dirt worth after it is deemed too much of a fire hazard to build there??
The insurance companies warned that this catastrophic event was inevitable and immanent if brush was not cleared, water reservoirs were not maintained, and the fire departments were not better financed and equipped. The fire experts with the local fire departments agreed that without those steps the city was going to burn. Not a part of it, but the whole city. So the local governments cut the fire department budget by many millions of dollars.
Insurance companies cover unexpected accidents and disasters. This fire was neither. It was a predictable consequence of intentional neglect and either incompetence or outright corruption. They would have been insane to cover this area knowing it was definitely going to burn down soon.
And remember we aren’t just talking about multimillion dollar homes but also the millions of dollars of property in those homes as well. The total cost of this preventable horror is going to be over a hundred billion dollars in the end. No insurance company can survive that and still cover legitimate unavoidable disasters.
Pretty much summed it up. 👍
Can't blame the insurance companies on this one. If they see the government isn't doing it's job to ensure public safety, then why would the insurance industry back such a plan??
However most people would have paid for their policy premiums. What happens to that money? Do the insurance companies keep that money.? Or do they reimburse that to the customers. If you do not want to pay out on premiums, you need to get out of the insurance business. When I pay for something, I expect to get something in return.
They said fuck that ,thats way too much money, gonna stay wealthy instead
That's crazy, you have no sympathy
@@jeanrichardson2044 You said it yourself. They "would have paid" which means that they didn't pay. The insurance companies refused to take the money as it would require them to cover the risk. State Farm followed your advice and got out of the insurance business in that area.
@@Tico513 I never thought I'd be defending insurance companies, but he's right. Insurance is not a public service. If that many people lose their home all in one shot, there's no way the company can pay that out without transferring the cost to other customers. All that had to happen was for the state to mitigate the problem. They didn't.
insurance policies were not "cancelled" they simply were not renewed; the reason they were not renewed was because the california insurance department were not willing to let the insurnance companies charge what they need to charge to cover the risks. The media is trying to make this sound different than what it actually was, imagine that.
The insurance companies figured out that there was no water in the hydrants.
no, The insurance companies realized these neighborhoods were vulnerable to a catastrophic fire and did not want to be liable if the neighborhood burned down.
An Insurance employee befriended a city worker
Just pay 2k$ 1 guy to figure that out instead of handing out 20m$ - Great job.
@@DaveCarlson01 Correct AND The Old Topanga fire Nov 1993 was overdue for a repeat with a lot more house up there to burn . The odds were stacking
The problem is if you open every fire hydrant there's not enough water for every fire hydrant to have pressure.
the water system was never designed for this situation.
It’s sad when a private company can see how bad the risk is when the politicians who are paid by tax dollars can’t or are too incompetent to mitigate the risk.
I don't think it's ineptitude, I think it's intentional.
Especially when they're tipped off huh?
In the private sector there is a limited number of times a worker can make mistakes, working for the government pretty much guarantees permanent employment.
@ sad but true
Sad is the voter who exercises zero effort in voting for a proper good government. As you sow, shall you reap.
The insurance companies knew things were broken in California and they have people who do nothing but run risk analysis daily. They knew what would most likely happen that did happen. They asked to raise rates. California said no. Insurers said okay were pulling out. Insurance companies are not charities. They are FOR PROFIT! They would have lost their a** on this disaster. And I bet you anything they told California exactly why they wanted to raise rates and the officials still did nothing.
Preach !
No, they didn’t “do nothing.” They slashed the fire department budget to the bone leaving them just enough resources to deal with one large single building fire or two small brush fires at a time.
do you work for them? insurance is a forced racket that is unconstitutional. there is no provision that states you must be forced to pay. if it was a free market , the cost would be fractional .
@ It is fractional based on the risk at hand and the number of policy holders. The risk of this fire at this time based on science using the known variables at hand was around 98% for everyone. Not just per the insurance companies but also from the fire department.
The insurance companies did not summarily cancel or non-renew HO policies in CA just because they felt like it. They pleaded to the CA Insurance Commissioner to allow them to raise rates to a sustainable level based on actuarial calculations. The CA Insurance Commissioner refused, so some HO carriers canceled and non-renewed their HO policies.
As callous as it sounds, I don't want to pay higher rates because my insurance company is making policies where fire damage is almost guaranteed.
That's dumb. That's literally how insurance works. I don't want to pay for a home in Tornado alley, there's always a risk.
Before people start aiming their sights (literally) at insurance executives, the real problem needs to be acknowledged: California is too dangerous to insure. Insurance companies, unlike the federal government, can't print money; they just move it from place to place. That's ordinarily done on a state level (where rates are set) but Californians have indicated, through their government, that they don't want to cover the cost of claims; they've put a cap on premiums so that even rich people who COULD pay for coverage can't anymore. The hope is that national insurers can suck money out of the rest of the country - you remember us; the ones who DON'T have Pacific Ocean views, movie stars next door, and Mediterranean climates (but plenty of water and in some cases even functioning local governments) and resent this constant movement of money from the cautious to the incautious (it's also a problem with health insurance). If premiums were allowed to rise to a market level, with the uninsured absorbing the risk they take on, or the state would cooperate with insurers to improve risk (there are too many homes sitting on mudslides and tinderboxes, almost waiting to be destroyed so a bigger, newer one can be constructed), then everyone could live happily ever, bathed in cash. As it is, everyone wants to get, no one wants to give, and a few rich insurances company executives (most no richer than the people with the Pacific Ocean views) become an easy target for people incapable of unraveling an almost intractable problem.
Any insurance company that is worth buying from, would absolutely cancel the policies after those idiots diverted the water past the reservoirs, failed to clear brush, cut the fire department budget, and had incompetent leadership at the fire department who was more focused on DEI then saving lives.
There’s that diversity word again…..what that has to do with fires? Enlighten me.
@ What does racism have to do with fires? That’s probably the wrong question to ask. Racism is wrong no matter where it is. Can’t we agree on that?
@@mikeses4392 is fire racist then? i got lost in how DEI was relevant to insurance canceling fire policies.
@@SaphemanPlusall those Boeing DEI hires made flying so much safer.
couldnt have said it better myself
You are seeing real time why State Farm didn't want the policies. Common Sense 101.
And all the Democrats are butthurt that they did.
Because it was risky to insure a fire prone area that is governed by people who can't even get water to fire hydrants, Or burn the brush during the rainy times with no wind.
Not that I'm defending the Gubment of Cali, but the "hydrant problem" was solely caused by too many trucks sucking water out of the system all over town. Those pumpers can easily pump 3,000 gallons per minute EACH.
"Rainy times"....Only a 10th of an inch of rain has fallen in southern California since May 2024. Extreme dry conditions.
@SJ-vo1bw they stopped making fire breaks, they stopped controlled burns. The government is responsible for this.
@@mattywho8485it's my understanding let the pump supplying the hydrants were not online.
@@mattywho8485: And who told you that, the gub'mint of CA?
Did they tell you why they don't clear the underbrush which fuels these fires? Did they tell you a mouse's habitat is more important than fire prevention?
When insurance companies leave an area so should you. They assess risk realistically and tell you the truth. LA was once okay but not today. Move, people, move.
As Adam Carolla stated, there will be a massive permitting problem when anybody tries to rebuild.
They don't want you to rebuild. They want to take your land from you and build their L.A. 2028 smart city. Look it up. It's not a secret. It's the plan. Blackrock, the insurance companies, and the WEF are involved. How did the fires start? Anyone's guess.
Yep
It's almost as if these fires were pre planned. Insurance is all about risk. If the state legislature refused rate increases then insurance companies have no choice but to pull out of high risk areas. Newsome caught with his pants down.
Until Blackrock comes along. No doubt they will buy up mass amounts of land, grease palms and build most of it with our taxpayer help-cause you know it is an emergency.
Welcome to California lol
My insurance was canceled last year in Nor Cal. Least expensive is Cal Gov Fair Plan, $550 a month and $20k deductible. I was paying $90 a month, $2,500 deductible. I live in 5 acres and decided to enlarge the fire safe space around my house, add portable sprinklers, install 1/8" mesh attic vents, buy a large generator to power the well if PGE goes out... Have a tile roof and adobe walls with hardscape around the property. UPDATE: Forget to mention, it would not be beyond California to tax/fee those that are uninsured in an attempt to force them to pay for insurance. Newsome/Cali siding with insurance companies. Same as Newsome did with Obamacare. If youre uninsured you have to pay a fine in California. The Supreme Court said it was illegal at the Federal level. So, Newsome did it at the State level.
Pittsburgh is great come on over no natural disasters to worry about here!
maybe a blue roof?
You have done all you can to reduce your risk. If the entire state did that, insurance companies might renew policies.
Sounds like a scam too me I'm in ga
@@Gixsir Ummm... Pittsburgh is far from great. smh
State Farm canceled LA policies because they live in the real world and don’t base their risk analysis on Unicorns, rainbows and blue hair.
I thought insurance companies gave you a discount if you have a DEi mayor, fire chief, police chief and the compulsive sycophant’s.
Did you ever work as an actuary for united health?
In another word "hopes and dream"😂😂😂
1.) 2/3 things you listed exist in the real world. That didn't even make sense.
2.) If insurance was based on the "real world" and not "blue hair logic" (again, whatever the hell that means), *why are they willfully selling policies on a mass scale, and taking premiums on a mass scale, that they then aren't prepared to reimurse on a mass scale?*
@ Study contracts. Understand contracts. Then you may see your defect in logic.
StateFarm is a whole lot smarter than officials in California 😂
State Farm is not in the being dumb business!
Well, they're certainly not "Like a good neighbor, State Farm is There" either !
@@mattywho8485 a good neighbor would have voted for Trump not Newsom/Pelosi
They're in the business of lining their pockets at people's expense. I hate all insurance companies.
@@klcflyerinsurance companies are a business like any other type of biz. Do you think insurance companies are a charity? Get a grip on reality!
@@rayddonovan2608 says the insurance agent
Government can’t fix hydrants…but they want to fix health care..😂😂😂😂😂
After 16 years selling insurance in LA, the reason is simple, look at the amount of trees and brush. State Farm, Allstate and others stopped selling in dense vegetative areas. Just take a look at any video of the Palisades, it was a jungle. It wasn't a matter of if, it was when this would happen. People need to wise up, no trees within 25 feet of your home period.
Unfortunately that's not how it works. First of all most homes don't have a 25-ft setback from their property lines to their house. These homes are not in rural areas with acres and acres of land. Secondly, when you have 80 or 100 mph winds 25 ft doesn't make a difference. You could have a hundred feet, you could have 300 ft, zero difference. Embers can travel thousands of feet. Fire blocks are entirely worthless when you have wind strong enough to carry embers that far. The best protection for these homes is ultimately to build them out of concrete or stucco. All roofs should be tile or non-combustible material. Zero organic landscaping around the homes. This is the only way to reduce this type of incredible fire damage during a high wind event.
The trees are still standing
what a truly ignorant thing to say kellyb3375
Nothing to do with trees. Stop building your houses out of twigs and plastic maybe?
I think you're partially correct, but just generalizing. Native plants and vegetation are much more likely to survive fires and don't not typically contribute to them. Lots of non-native trees, however, are a contributing factor, especially when they are not maintained properly. As I'm sure you've seen, many trees are still standing amongst destroyed neighbourhoods, so it would be untrue to advise no trees on private property.
A lot of this goes back to 6 years ago when PG&E caused the 2018 campfire because of faulty line. They filed for bankruptcy (still in business) and insurance companies were left with 30 billion in wildfire liability. Insurance companies have been trying for 6 years to raise the rates as they were losing money. The insurance companies finally had to stop the bleeding and stop writing new business. That's why no one can get insurance and insurance companies have canceled policies in certain zip codes. That is why we have the California Fair Plan.
PG&E wasn't allowed to the things that resulted in the current situation: clearing brush, back-burning, basic fire mitigation efforts that only a complete idiot would stop from happening (Gov. Hairdoo and crew); it wasn't their fault, it was the state of California, just like this time. When you vote for fools and lunatics (hard to distinguish between the two in California) poor outcomes will be the rule. As the saying goes, it's not a bug, it's a feature.
Even the insurance companies knew they had fires every damn year.
MORE--- they know the exact cause (not mother nature).
Big problem is ultra-liberal CA politicians force insurance companies to pay into the Fair fund even when they cancel policies. ALL insurance companies should pull out of CA and let the state cover insurance costs instead of the rest of us paying more. Vote liberal, you pay.
Well big duh! Can't imagine why they don't want to get stuck with the rebuilding bill when government does not allow or require the clearing of underbrush in the forested areas! They are reducing their risk. They have every right to do so. I have State Farm but fortunately I do not live in a high-risk area in California. If you live in high-risk areas, you should expect to pay more for your homeowner's insurance.
When anything is called "The fair plan" you know how that will work for you.
Why? We've been watching the reason why for several days. They dodged a massive bullet non renewing these homes . It's not just obvious to insurance companies that wildfire exposure is real and inevitable. We all knew it was a matter of time
the insurance companies knew. they saw how crispy the climate change crowd was keeping those lawns and they pulled out. this is what happens when you don't water your lawn california. let the smelt go before you die trying to save a fish that has no home any more and hasn't for milennia.
@@psilocybemusashi is this a joke? Plenty of places with lush vegetation burned as these are wealthy areas and they do not care for conservation. No, the delta smelt isn't the reason for these wildfires nor any sort of water shortages. The issues California has goes back decades and can't be fixed anytime soon.
@@imzjustplayin No point in trying to explain to a misinformation monger. He's parroting what he heard from Trump and Fox News.
Maybe this will be the final straw to get rid of these disgusting stagnant leadership only you the people can change this hopefully
all Insurance companies require that certain conditions be met and maintained to qualify for insurance, not clearing fire hazard brush, not keeping sufficient water reserves stored up. fire is a cruel master and the lesson is burned into your mind forever.
Why don't you come right out and say what is so obvious...State Farm was right! And they will continue to pay claims according to the contract/policy. If you've been paying any attention to prior wildfires you will find that most homeowner's policies are Underinsured, usually because the policyholder wants the lowest possible premium. That, and the fact that policyholders never even read, or understand, their contract, specifically what's covered and what's excluded, and how claims are settled. Insurance companies are highly regulated, and they know what they are doing. Homeowners, on the other hand, dont.
California has known for over six months that the insurance companies have cancelled policies. Do not blame companies like State Farm for protecting their assets so those who do get insurance through companies like State Farm do not have their rates for automobile insurance increased to cover the costs of losses from wildfires.
The problem is… They’re STILL raising rates for people not in super high risk areas. Premiums and cost of coverage are increasing everywhere and they’re still canceling policies in these high risk areas.
I live in Las Vegas, my State Farm insurance has double in the last two years, even most recently built neighborhoods here are desert landscaping. Many zero water landscaping, which means nothing on the ground. But they do pay sports stars a good chunk of money to advertise. Car insurance because the invasion of Southern Californians in the last two decades with their terrible driving habits has gone up. I used to pay $600 every six months, now I pay $1500 for the same period, and yes it is the SoCal crowd.
Eff State Farm
As a business (insurance company), would you want to risk underwriting (insuring) something (a home, for ex.) that is too risky? You charge a premium of $5k - $10k/year, but potentially have to pay a $1M - $3M if the house burns to the ground. Your business would go broke.
Some areas are prone to wildfires, are difficult to navigate due to limited, narrow or winding roads, and lack infrastructure or resources to put the fires out. Just look at what happened to areas in the Greater L.A. area.
State Farm and other insurers made the right call (for themselves) to not renew Homeowners Ins. Policies in CA, because this State is poorly managed, but yet over-regulates, and taxes the heck out of everything.
I knew I would find another grown up here if I looked long enough....nice to meet you.
The fury should be with the government, not the company who couldn't properly operate due to bad government policies.
The fury should be with the people that support and vote for the government they have.
They told you why and they were right.
Because they have basic pattern recognition. And they would have kept insuring if they had been allowed to raise the premiums to reflect risk. But the government said they could not, so they did not.
Same thing for Obamacare. The gov is forcing insurance companies to cover things that are not insurable risks. Which is why the gov has to subsidize the plans. They do not make sense from an insurance standpoint. Neither do the home insurance rules in CA. My advice...........take all the money you can, and leave the state. Do this as soon as you possibly can. Nothing is going to change there in your lifetime. If you decide to rebuild, you will regret it.
So .... 6 billion in exposure. 250 million in the bank. A lean on each insurance company for a forced billion collectively. That means they have 1.25 billion.
The rest is coming from the rest of y'all's policy California.
People are going to flee in droves.
On my 3rd company in 4 years, rates are triple, I live in Orange county in the foothills. Have had close calls with fires in the past decades. State, county will not take care of overgrown vegetation. Have an area by me declared protected due to some bird, full of creasote bush and Eucalyptus trees which are like gasoline.
And yet you still choose to live there. CONGRATULATIONS on getting what you want. No, not sarcasm. Just the truth.
Keep voting Democrat.
donot make house in such area
Why did State Farm cancel the policies? Because they are smart
Why? Because the state legislature refused rate increases... Insurance is all about risk. They have the right to refuse to do business at a loss.
Sounds to me like a well managed insurance company.
It's their job to be aware of risk, they saw the situation and didn't like it.
isn't that what everyone with a brain does when they see california... see the situation, don't like it, pull out. thank god we got out when we did.
Timing is awfully coincidental no?🤔
This sums it up most simply.
@psychologyrelated538 These conditions exist the same time every year.
Yep. It is literally their number one job -- risk assessment.
Just because the property is worth 3.1 million does not mean the structure is worth that much.
I like how no one in the comment section is blaming the city and state ,they failed to maintain the land they let all that fuel build up
Yep
@@jamescole3152 same
no wait, I mean "this"
no... wait, I mean "bruh"
nah nah, wait... "same". yeah, same. that's what I meant
People talk about ocean salt water being bad for vegetation? Where are the aircraft getting water from? Using ocean water to fight fires?
We get big fires here in Australia… can’t keep up with fuel load reduction and never will tbh .
Then some people just want to live in the trees so to speak .
In most urban areas, I don’t think we’ve ran out of water though when fighting fires.
I could be wrong.
Then some fires, how can you stop them , fire breaks , waiting for the wind to change so they blow back on themselves. Plus praying for rain .
Of course all the efforts of all fire services .
I think LA, you have a lot of our Australian blue gums also. Which are an oily tree if that makes sense and they burn ferociously.
Yep. DEI all the way baby. Bring in. Oprah!!!
The insurance companies saw this coming, sadly, the politicians didn't. That's the difference between government and the private sector.
The state basically got between the insurance companies and their customers telling insomnias what the can charge. Property values and political corruption, along with the state’s refusal to deal with forest management and water issues are to blame. Insurance companies are not charities. It’s terrible what this guy’s family is having to deal with. If they were cancelled, they are not paying for Indy. So, how would they be entitled to a claim?
State Farm and other insurers who pulled out did so, because they accurately calculated an obvious risk. Voters chose their politicians. Politicians represented the values of their constituents. However, insurance companies rightfully expect their customers to responsibly do their part to mitigate risk. The voters, elected politicians, appointed officials, and home owners behaved with reckless abandon regarding probabilities, preparedness, and risk.
So innocent homeowners will be stuck with the bill for Newsom incompetence.
Replace ‘innocent’ with the word ‘millionaire’
A majority of those "innocent" homeowners have been voting Democrat for a long time. Reality came calling.
BUT....But...but
We saved the Smealt 🐟 🐠 🐡
Maybe they can return the favor.
Why do you think, maybe they looked at the Maui experience
Or just right here . Old Topanga Fire Nov 1993
Average home price of 3.5 Million Dollars and not one was built of brick or stone or concrete. Nobody had metal roofs. And nobody was out in the yards with a broom putting out embers. Nobody had a gas powered water pump to use their pool to fight embers. These events are not new. They happen routinely, but people are living dense in areas that are historically burning every few years. Always have and always will. It's a inflammable area in a inflammable State.
Exactly, I looked at $3m homes with tar shingle roofs, style over substance.
why can't sea water be used to fight the fires?
They did a claims / risk assessment and found that the calms where not worth the risk of loss in that area. It's called the economy stupid. They are in the business to make money, not lose it.
But....but....but I thought we were in good hands with allstate
Insurance accturaties determine rates based on costs. A state that for years arrested no shoplifters, pillagers, thieves and is surprised that stores closed because of massive losses is now shocked that there's no fire insurance for homes when the state hasn't maintained brush and forrests for decades and helped deplete reservoirs to bring back salmon for "native" tribes. Two+ decades of a single party state eliminates the checks and balances that protect the govern from the corruption
Maybe they read the fire department's report telling mayor bass that cutting 17 million of their budget was dangerous and could create a disaster like this
It is ironic that State Farm cancelled the policies and then they are moving the Mon night playoff game between the Vikings and Rams to Glendale, Arizona at the State Farm Stadium.
Good catch Bro!
@@APHill-ip8qt I have too much time on my hand. 🤣
Insurance companies can subrogate the liability and sue the city and county for negligence and failure to mitigate fire risk. Then this gets passed on to the tax payer. Either way...the insurance that you pay for doesn't work. You pay the insurance and the taxes for the subrogated claims....so here is the thing...know who to vote for and hold their feet to the flame. No pun intended.
I’ve been cancelled by three companies recently and I live in AZ. The companies are telling us that they are reclassifying our area not due to anything here, but because they are eliminating risk because CA fires being so devastating AND the crazy cost to rebuild in CA. CA could and should streamline the rebuilding process and eliminate unnecessary red tape and fees that only drive up costs. These people have been through enough already.
That's the dem way
Could of, would of, should of. Cal should do a lot of things to prevent or reduce the damage from disasters. And unnecessary red tape - This has been baked in to their laws due to incompetence and the green activists.
you're funny
You are obviously not a liberal. Common sense isn't thing in liberal world.
Answer: The analysts at the insurance companies know what the risk was........especially that the city wasn't doing anything to abate the potential for wildfire.
Seems to me the insurance companies knew the situation, lack of fire preventive measures before the state did and acted accordingly
Same reason they've been cancelling policies in Florida. They saw what was coming with the near and middle term weather and got out before the big one hit. Whoever made the decision in the company will probably get a huge bonus for making a call that saved billions in losses.
Yea they gonna get a bonus, and then Luigi gonna show up
You are not a great detective = look for the inside information to know it's coming.
@@mikejohn0088 Dude get real. This wasn't inside information. You know that whole climate change thing that people think isn't real? Well here it is.
@@delldorado9892
Luigi gonna be in prison again picking up his bar of soap.
The insurance companies found out there’s no water in lines,no brush policy ,they knew it all was a ticking time bomb
Obviously State Farm has good management.
Unlike LA and California.
Since this is the first brush fire in California history there is no reason anyone should buy or build a fire resistant home.
Because blackrock tipped them off to the fact that they would be burning down LA.
The Great Reset
Love it
You're probably right
Very fishy
I feel for normal people and nature.
The Rich need to wake up they are the problem
I work for an insurance company. I hate doing inspection reviews because many people don't like maintaining their property. I feel for some folks who live in forested areas. However, they have to realize their home is not just a risk to the insurance company but also to all the other policy holders. Unfortunately, there is no way to hold the state accountable for negligence outside of voting. Mitigating wildfire risk on public lands should be a top priority.
So many people want to demonize the insurance companies for refusing coverage. Now, I won't carry water for the insurance companies because their practices are another discussion. But, you cannot expect an insurance company to cover you when you live in a high fire, earthquake, hurricane, or flood area. They're not in the business to lose money and shouldn't be demonized for what I would call rational decision making regarding their business. They can offer policies but you need to be prepared to pay the price and that's the second thing people complain about. First, they want coverage and nearly in the same breath they complain about the cost of coverage. If you live in high risk zones you're going to pay high risk insurance premiums.
These are areas that can build back smart cities - this is valuable area
They need to talk about costs to rebuild, not market value. My little 1500sf home in Silicon Valley is worth more than $3M and only costs $500k to rebuild.
Which is still 400K over what it should cost. Do you have gold plated toilets?
over inflated market values
@@voivode2591 "should cost"? You can't even buy the materials for build a small home for $100K, let alone the labor to build it. It's not 1982.
He said 500k, not 100k to rebuild.
@@trailrider7046 He was referring to the comment saying it's 400k over what it should cost.
So. Nobody got their insurance policy ”canceled”. Nobody. And everybody was (and is) able to buy insurance through the FAIR Plan.
It wasn't state farm, it was all of them. They said ca burns up every year, we aren't rebuilding the same homes again.
California and Florida are known for catastrophic loss of life and property every year. Insurance companies have made a decision to not insure in known hazardous areas. But unsustainable building continues in these areas. Why?
I saw a boat on the roadside with a sign that said Allstate didn't cover my insured boat. I never used them again after seeing that.
Theres a famous video of a state farm denying new roofing, too, lol on TH-cam
Allstate is one of the worst- google their customer satisfaction
They did not cancel; they did not renew. The homeowners should have explored other insurance instead of living without it.
California is 58 Billion Dollars in the hole way before this happen 😅 did you guys forget ?
Insurance companies have been paying for claims due to fires in California for decades. They make it their business to know why these huge fires occur. They saw a State that refuses to maintain their forests and have diverted their water supply and allowed their reservoirs to drop below critical levels. State government also capped the homeowner premiums companies felt were justified based on risk. They were forced into a no win situation.
Value was $3.5M average, is now $0.
Value isn’t 0 because the land is valuable. But I wouldn’t build there!
Its the location.
The location is worthless if it's uninsurable.
@@jackwilson1818 --Once they declare that land can NO longer be used the value = $0 (as planned).
Anyone notice how smart the Insurance Companies are? Literally one of the few Industries that are void of wokness
Something tells me (hunch) that the insurance companies had their A.I algos warn them that the risk was very high coming into this fire season.
Net result: NO HOME OWNER policies will be written or renewed in CA by private insurance co's starting now.
God help us in California. Newson is Californias Trudeau 😢
Crazy how the governor and city officials are acting so surprised that there are wildfires in CA.
Let wait and see who starts buying up the properties that weren’t insured.
State Farm being the largest, they are the only ones getting mentioned. It's other companies too. And some of them are leaving California which state farm is not.
I love how everyone is trying to make State Farm the bad guys here when they had a choice of shoot themselves in the head or be a villian and demonized in the media
I was forced to evacuate Van Nuys. That was in 1997. After the Northridge earthquake the state basically socialized insurance. I was involuntarily made into a socialist. Homey don't play that game. So I packed up and moved. It was the best decision I ever made. You get the government you asked for. And the people in LA are getting it good and hard.
I'm looking forward to any critic of these companies starting their own viable insurance company in California. Let me know what you have to charge, thanks.
As I understand it, the state put caps on insurance rates. The risk, calculated by the insurance companies, could not be covered by the rates they were allowed to charge. So they dropped out and would not renew policies. If the state had done a better job of setting the caps, the policies would not have been canceled. The insurance cost would be higher, but now we see why.
I love conspiracy but this actually sounds legit. Who sells flood insurance in the Maldeves?
If you're referring to the oceans rising due to HICC ... surfed there a lot and nope, oceans not rising 🤔 Ask the locals.
Or in Houston, where houses are being built in a swamp that naturally floods.
If you voted Democrat, you voted for this.
They can fight over who pays what, but at the end of the day society pays for all these losses, so stop blaming insurance companies or the Gov and focus on how to prevent fires, make houses that are very hard to burn, etc. The only way to get cost down is to stop the losses.
You are special cause I guess you live in lala land and never pay bills
You sound like you work for state farm.
@missyarbogast7070 thank you, actually I pay all my bills and work in a trauma hospital 6pm to 7am and do CPR, intubations, and vents.
@LaRaineBarton no, I work 6 pm to 7am doing CPR in a big hospital. The insurance companies will pay eventually, but you missed the point.. to get insurance affordable, we need to lower losses and build back better 🔥 resistant homes.
agree
Everyone knew this was eventually going to happen. The fire hydrants have No water because of a fish, No fire breaks on the ground because of a field mouse‼️ Bravo Democrats.