Warning to homebuyers: get multiple quotes from your insurance brokers and make sure to understand the full extent of your coverage and how much you're paying for it. There's a lot of people in California (and Florida) who did not have adequate coverage, and now they're paying the price. Ultimately - it's also important to consider if it's worth owning real estate in disaster-prone areas, as these homes are going to become increasingly more expensive to insure. We're already starting to see home price trends indicate negative performance in areas with highest insurance costs/disaster risk. Access the data for your market at www.reventure.app.
Re: your comments on the Long Island's insurance issues - it sticks out into the ocean like a big thumb, so its no wonder bigger climate impacts are expected by the insurance industry. I knew not to return after college graduation and I stayed well back from the coast as well. That was back in the late 80s and I'm glad I listened to the professors. People have no idea what's here and ahead.
@@ReventureConsulting Most of CA's natural disasters are due to mismanagement, aside from the very occasional major earthquake. Wildfire risks for insurance companies would drop dramatically with common sense fire breaks, self-defense pool pumps, and buried power lines.
Most people in my area in Placer county can’t get multiple quotes. The only thing they can get is the plan from Cal-Fire or go without. This is effecting even people in neighborhoods not just those in rural areas.
Part of that is the cost to rebuild. The more the materials, the more costly the workmanship then the more the insurance. Makes me think the cold in Minnesota isn’t so bad when my insurance is around $80 per month. It’s taxes rising faster than income that hurts.
@@brycesanders5402 I understand that the rebuild Costco‘s along with how much labor is how much materials is and what I don’t understand is how labor and material materials cost so much more in Florida, Texas, California. How did they become so out of whack with the Midwest my insurance here is $80 a month and I have a 1400 square-foot house with a two car attached garage and I can guarantee you it’s built better than most stuff out in California or Georgia or Florida when I’m in those houses it feels like they’re gonna fall down.
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I've got 20 years working both in claims and sales for a major insurer. I saw your heading and came on here to school you, thinking you were one of the many uninformed content creators trying to get views. I was pleasantly surprised by your well articulated and balanced explanation of the insurance problem in California. Nicely done and correct on all points! Thank you for spreading accurate and helpful information.
Insurance is one the very few private companies where you are mandated to purchase if you have a mortgage.. a solution that should be considered is remove the mandate.
Just got my homeowners' insurance renewal in Salt Lake City, Utah, and it went up 102%. Working quotes but looks like going to be at least 85%. We have had no disasters, and I have never filed a claim in 22 years, and the home is 9 years old.
@PeaceIsJesusChrist Our independent agent said it to help cover other large disaster's. The other quotes have been more along the lines of "that's just what it costs these days"
@@cheerdadcheervideos Man… so sorry. We are living in crazy times. This worldwide inflation is unprecedented. May God provide for you and your family. 🙏🏻❤️
Did yours actually double or did it go up 2%? I'm with State Farm in Florida, well outside a flood zone and mine went up 2%. Should State Farm cancel me, then I will self-insure without any doubt.
Great video! For 2025, it’s hard to nail down specific predictions for the housing market because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about a market rally and said that stocks would be experiencing significant growth this period any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such uncertainties are the reason I don’t base my judgement on a ''heresay'' 2020 had me holding trash stocks, but thankfully revamp my portfolio through the aid of a pro before seeing significant gains. To date, I've scaled up nearly 320% ROI. it's been 4 years and counting. I and my advisor are working on a 7 figure ballpark goal and we're not far.
There are a handful of CFAs out there. I've experimented with a few over the past years, but I’ve stuck with ‘’Aileen Gertrude Tippy’’’ for some years now, and her performance has been consistently impressive. She’s known in her field-look her up.
glad to have stumbled upon this, curiously inputted her on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
In South America most don’t have home owners insurance. This IS partly because most homes are made of concrete and don’t burn. The furniture might but not the house! We need this!
I can’t speak for all of South America but I’m from DR and I can say concrete works well because of the heat. It’s the perfect material for keeping a house cool but I think in colder climates it would be a disaster. Don’t know why they don’t do it in SoCal though considering it doesn’t get very cold at all
@@carrob704I think there’s a lot of earthquake proof steel / concrete techniques now. It will be interesting to see how they rebuild Altadena and the Palisades. A lot of very old houses in LA aren’t very fire resistant. I see a lot of shaker roofs in my neighborhood. That’s like building your house out of kindling!
Something has to change here. We can’t have senior citizens on fixed incomes having to sell their homes because they can’t afford or can’t get insurance. Same goes with the large increases in property taxes. It’s just wrong. People spend 30 years paying off their home only to realize their insurance and taxes have increased so much, they have to sell their home and live in an apartment. That’s shameful. I know this might be unpopular but this is going to end up like health insurance. We spend trillions on useless wars and then we can’t help people getting kicked out of their homes or can’t afford a doctor visit. This cannot continue.
Nobody saw 2020 coming. It’s by design that all this happened at once. I guess the little gain of function V didn’t off enough people on Social Security. I sold my house in 2018 to move in with my mother, who is 90. My house, according to Zillow, is now worth double what I sold it for. It’s crazy. I’ll never be able to own a home in my own old age now. My kids (one just retired from 20 years in the USMC) can’t afford a home either. Longevity is going to be a handicap.
Another question is, why are houses in disaster prone areas even selling for the sane "Market" rate. Shouldn't houses in those areas be sold for significantly less? If they were sold for lower value the insurer responsibility would be lower. That should lead to lower prices and insureres coming back
Doesn’t matter how disaster prone an area is as long as people still want to move there. Maybe we will see a drop in demand for LA homes and that could lead to a drop in prices but nothing about being a disaster prone area guarantees a drop in prices.
I live close to Tampa FL (Palm Harbor specifically). Very dense population, it's down to supply and demand. There is only so much shore line and only so many houses on the water. Those places are 'special' so they get more money for them. A lot of people here would love to keep their huge boat on a lift right behind the house.
Also, doesn't matter what the house is sold for, it's the replacement cost. For example I bought a house here years ago for 80K. Right before I sold it (2 years ago), I had to insure it for 200K. I was told to rebuild from scratch factoring in raising costs of construction material, it would cost 200K. So I was forced to insure it for that amount. Price of the house doesn't matter.
Just so you know, the California Fair Plan only covers FIRE damage. You have to get a separate policy for contents or earthquake or riders. And the Fair Plan costs as much as the other insurance companies used to charge, but for less coverage. Then you have to try to find another company that will insure the rest, at an additional cost.
*I'm favoured only God knows how much I praise Him,* $230k every 4weeks! | now have a big mansion and can now afford anything and also support God's work and the church.
Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!
I started pretty low, though, $5000 thereabouts. The return came massive. Joey is in school doing well, telling me of new friends he's meeting in school. Thank you Evelyn Vera, you're a miracle.
Wow...I know her too she is a licensed broker and a FINRA agent she is popular in US and Canada she is really amazing woman with good skills and experience.
People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.
I like both. But in my experience, most of the millionaires I know have gained their wealth through diversified investments and they all had a sort of financial advisor helping out with informed decisions.
Straight up! advisors are the ideal reps for investing jobs, and at first hand experience, I’ve maintained a balanced growth portfolio for 5 years now, resulting to a 7 figure account after 100s of thousands invested so far. nothing beats expertise.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 75 cash earning 5.25 interest, 685k in roth ira, 120k in 401k, Gold and silver bars. age is 48. My advisr helped me realign my portfolio to my risk tolerance and it boomed shortly.
StateFarm denied my claim for an accident while on my way home after having been discharged from the ARMY. What was supposed to be an eventful trip home, turned into an absolute nightmare. Thanks Statefarm, good to know you abandon your Vets too. Now I make it a mission to warn everyone, who needs enemies if they have you.
@@mr.anderson4755 I’m glad! USAA has been fabulous for us over the years with home insurance! With car insurance though, make sure your health care provider is doing all the necessary paperwork if you get injured, because sadly, USAA uses a 3rd party to pay out benefits, and they’ll try to get out of paying you. I learned that the hard way. I sadly had to threaten to expose them in order to get them to pay up. :/ They’re come through time and time and time again though for home issues, and they did give me top dollar for my car when it was totaled.
I’m a contractor we service homes that are damaged. Several insiders informed me State Farm was in financial trouble even several years ago. Not a good pick unbeknownst to many consumers unfortunately. I’ve had better luck with Allstate. But if you live in high risk areas look out no matter who you pick price has to be high or they will leave. It’s a business not a charity.
My house is north of Sacramento in the foothills of the Sierras and in June last year my insurance more than doubled it went up by about 110%. When I asked State Farm about it they said they were paying out $1.60 in claims for every $1 they were bringing in in premiums and that accounted for the increase. I was the only person in my neighborhood that still had private insurance and all my neighbors have to have California Fair plan. State Farm sent out of notice last year saying they were no longer accepting new policies for homeowners insurance in the state of California which costs way more than State Farm
big returns come from investing big. investing big comes from building conviction, conviction comes from understanding, understanding comes from doing your homework and research beyond surface level.
Accurate! asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars) Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
My CFA 'Jane Marie Ising', a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Natural and man-made disasters are ruining Real Estates. My heart goes to everyone who have been affected by these disasters in one way or the other. California was just recently being gutted by fire, I really feel sorry for those who were affected by the devastating forest fire. My family would have been in regrets if this happened 2 years ago when we were heavily in Real Estate in California. We only have a property left there, sold the other 2 when the prices was at their best (Unfortunately, one of the 2 sold houses went with the fire). I thank God for Katherine Ann McGrath whose initiative it was to diversify our investments.
I feel the same way. Real Estate is one of the best investments to this day but seeing things like the recent Hurricane Milton and Helene, now the forest fires in California which has taken many buildings, I start to wonder, what else? It's all plummeting, diversifying is definitely the best option. Better, Real Estate and others rather than Real Estates alone. Certainly shouldn't put all my hope in one glass. Who is this Katherine Ann McGrath and what service does she render?
@@FloScidmore She's manages our Investments, an expert in Investment and Risk management. She gave us reasons why investing in Real Estate alone at this time was a very risky venture. Such disasters were one of her reasons. I'm glad we listened to her. She allocated our finances to different investments including stock and digital currencies. We've been seeing unbelievable gains with minimal risks and I can't really thank her enough.
State Farm in NE, GA. It is a new home with an almost new second garage and an apartment upstairs insured for $1.4M and $100K other structures for a new $100K floating dock. It was $3100 a year but just added earthquake coverage for $360 a year. No claims and 825 credit score. Autos, boat, and PWCs through SF as well. Very low crime area.
Electricity prices are also skyrocketing despite the fact the whole USA switched from regular 100 watt bulbs to the LED “equivalent” bulb which only uses 13 watts to give the same light as the old 100 watt bulbs. So we chopped our electricity use (for lighting) by 87% yet somehow electricity prices keep skyrocketing!
I HAD State Farm and they sent me a letter that after being with them since 1989, they'd NO LONGER 'renew' my policy(s). So, I TOO went with USAA. I 'over insured' my current home (due to increasing value of the property) to 'insure' I wouldn't be 'under-insured' in case of loss.
Worst case scenario, insurance is non existent, people will have to pay cash for houses and self insure. Prices would likely drop depending on the type of buyer available to purchase with cash. The ones who have a mortgage the lenders call the loan and foreclosures would rise. Florida is a non judicial state so it would take 2 years for those houses to hit the auction. But those who buy new construction will still be able to afford their premium if the builder has insurance available internally.
Excellent video on a subject most people don't concern themselves with. What do people who have mortgages do when they need to drop their policy due to high cost when their bank requires them to have insurance for their mortgage? You are right! This is a disaster in the making as it will ultimately affect rental prices as well.
Austin, Texas, home prices have tripled in 5 years (2019-2024). Naturally, the premiums must go up, because your $300,000 home is now valued at $900,000. If they charge you 0.5% of your home value for premiums, your rate naturally will triple. That's the problem of inflation. Homeowners are losers because they need a home to live in. They can sell and cash out with lots of profit, but where are they going to sleep at night? Under the bridge? Selling house for profit still requires you to buy another house, which could have tripled their old price too.
To say US housing market is on the verge of a meltdown is LAUGHABLE!!! We are over 3m homes short of demand!!! You think it’s just going to disappear???
There are no wildfires in Compton or Gardenia. The insurance companies knew who they were dropping... the problem is spreading risk. If you spread the risk for disaster prone areas to non-disaster prone areas, one group is essentially being subsidized. If you limit insurance risk distribution to within disaster prone areas, then when a disaster hits the payouts are a signifucant portion of that entire portfolio. Insurers should not be allowed to charge as though they cover anything more than a one-off if they are going to go bankrupt, deny claims, write down charges, or dump the responsibilities on taxpayers when tgat disaster happens.
Past periods of climate change brought big increases in geophysical activity. And that makes sense, considering the redistribution of mass on the earth's surface from ice sheet melt and sea level rise. So don't forget that one in the future too.
@@Ziegfried82 its not that the houses get destroyed its mostly hail damage. We had baseball sized hail last april. EVERY HOUSE in whole zip codes needed new roofs and it was legitimate damage. Average cost of a roof 8k here. a few thousand houses not to mention all the hail damage to cars. Ads up quickly
Nick, I was in Melbourne, AU in January, and I was shocked to hear local news report that the California fires are driving increasing home insurance rates THERE in Australia.
@@guytieman8368 california has always had massive fires. millions of acres burned yearly when the natives lived here. the reason why there were fewer in the 80's was because of CA's massive logging industry and there were 40% fewer homes in rural areas. i believe in climate change, but that's not what's going on here.
My family lives in rural Shasta county and they pay $700 for normal yearly home insurance as it does NOT include wildfire that is covered by FAIR plan at a cost of around $4000 per year so the total cost is $4700 a year but it is split $700 for general home insurance + another $4,000 for wild fire from the state FAIR plan.
The trajectory for housing prices in the USA is totally unattainable because there are too many variables like insurance, property taxes and not securing a mortgages. We prefer to live outside of the USA for all these reasons! Thanks for the info!
There are two major components to home insurance: land value and structural coverage. In Los Angeles, up to 95% of the purchase price of a house can be land value. Land was not destroyed by the wild fires, structures were. In the Pacific Palisades neighborhood of the city of Los Angeles, the average home destroyed is listed at $3.5 million but $3 million of that is land value. The land is still there, it did not "disappear" or fall into the ocean. The land was not destroyed by the wild fires. The structures that were destroyed are in the $100k to $500k range on parcels that have an average price of $3.5 million.
In LA if you build with permits added garage to the house let say one or two bedroom it will cost you anywhere in between $35k up to $65k depending on the materials roofing square feet and floor concrete work and the door itself cost $5k up to $8k for fully electric one so you are wrong the house cost and build was back in 1970s to 1980s some are new because they got remodeled in early 2000s and they cost a lot even back in 2000s the house cost was $250k up to $800k for the areas it was burned because of square feet was big those properties cost a lot of money because how big they were
@@oscarrodriguez1068 Of course, it doesn't matter how valuable the land is, if there had been $500K of construction value on it, you will need to fork over $500K to get it rebuilt.
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $375k to around $650k.
in times like these, it's crucial to be cautious and not rush into the market , Who is this your FA , my portfolio needs urgent attention , been a lot of loss.
Melissa Terri Swayne is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
I appreciate this. After curiously searching her name online and reviewing her credentials, I'm quite impressed. I've contacted her as I could use all the help I can get. A call has been scheduled.
We were stuck on a policy that was $5500 a year for a home in south Louisiana. Thankfully we got it down to a "reasonable" $3500 but I'm seriously concerned it'll only keep going higher and will make a lot less sense to own.
How much has inflation gone up? How much have auto prices gone up? How much have housing prices gone up? How much have medical costs gone up? If the cost to replace these insurable objects have risen, then insurance will also rise. To replace a house in 2024 that was built in L.A. during 2020 will be 31% higher now... If they have to pay more, then insurance will cost more. 1+1 = 2
You’re an idiot. Learn basic math and stop talking like a communist. I hate insurance companies as much as the next guy, but many of them are barely even staying afloat. You think you don’t want them around, but wait until you experience life without them.
I live in CA, San Joaquin county. Used to live in LA. Had farmers insurance on my current house. They called me back in November and said my yearly premium was going up to 5K. I called AAA, got more and better coverage for 2K/year.
Insurance is a business. They are beholden to shareholders. If I was investor in state farm I would tell them to get out of anything high risk… imho this insurance “adjustment” crisis people will become smarter where u choose to live. If not you should pay NOT ME!
You can insure anything ... so long as the premium is high enough. The State of California won't let the insurance companies charge what they need to be solvent so they leave.
@@geocam2that might not be true. what California has done ban the companies from adding the reinsurance costs to the mortgage premiums ie the customer instead making the company pay out of their profits.. Obviously this in the long run reduces the total profit. Therefore this pullout is driven by a lowering profit factor not one based on risk. They have comfortably sold policies for decades aware of Eathquakes.
This is why I don't think health insurance should be run by the private sector. Chasing profit does not coincide very well with providing people healthcare. It's a clear conflict of interest. Deny people's health insurance claims and make more profit. While the same can be said for every type of private insurance at least with the other stuff it's not life and death..merely replacing a house, a car, or whatnot. Objects, not people.
To make an honest comparison, the cost per $1,000 of coverage is not the best indicator for the cost of homeowners insurance because of the wildly variable home prices. A better indicator would be the home insurance cost per home. For example, California home prices are much higher than the cost of a home in Louisiana where home prices are much more affordable.
I’ve been with State farm since I was a teenager. For my business and for all my personal every single one of my policies went up this year, my homeowners insurance policy went up $700 this year alone, they said it was an across the board rate hike… funny thing is I shopped around for homeowners and every single one of the 10 different quotes I got was higher than State farm. I just decided to stick it out with them.
You should contact your agent and ask them if they're going to renew your policy 1 year from now. They've been quietly non-renewing policy holders and have known about this a full year in advance.
Hey Nick, in Florida it doesn’t seem like you account for the new construction market nearly enough. New construction home prices are holding up pretty well, all while competing and ultimately winning the battle against re sale homes. I wish you would expand on that specific fact some more. There’s a ton of new construction home in FL.
Insurance for my house, not on the shore, was very affordable but now it's ridiculous never saw this coming. I came here to take care of elderly mother who passed now I'm to old and not well enough to leave so people sometimes just get stuck.
Average Insurance cost =$2200….we wish that were the case here in central California. In our neighborhood the average cost is $7000 …soon to be $10k …if you can even get coverage.
All homes in California have access to wildfire and earthquake insurance through the state. People in YT chat just don’t know what the f*** they’re taking about.
Omaha NE, my insurance and property tax (not even a ‘mean’ price home) is almost $1,000 a month! And when I renew in a few months I bet it’s even more. It will probably near $500/mo ($6,000 per yr) and yes I have to shop carriers every renewal. Even when I’m retired and have my home paid off it will be $12,000 a year in those two to just stay in the home. I’m tired of hearing, “oh, isn’t it cheap to live there?” It is not and I’m tired of brutally cold winter and hot & humid summers……
Here in Louisville i bought a 23k house and all insurance companies wanted to force me in to 150k plan's all i wanted was a 23k plan! Because that's all my home was worth
Fact is that some places are less viable to live and it probably should cost more to ensure because of those risks. I don't think anyone thinks it would be fair for someone in Iowa to pay for a home that gets destroyed every 10 years because it's in high risk areas for wild fires, hurricanes, flooding, etc... this is the reason for the risk pooling in insurance. Unfortunately, this then becomes a social-economic issue where those with the means can manage their risk differently, paying higher premiums or even self-insure. So the question becomes how do you manage this? Those who live in less risky areas should pay less so things need to be managed in risk pools which are kind of how things are done today. The problem is not everybody's in the risk pool so prices go up. It kind of feels like if you're in a risk zone, you have to be part of a mandatory pool that spans across insurance companies. Having this kind of mandatory opt-in to insurance based on the value and construction of your property would reduce the rates greatly. This also goes against the freedoms we believe we have in the USA. So the reckoning here, is if we don't mandatory insurance pools, the price of homes in risky areas needs to drop for affordability. This then slowly causes gentrification and the divide of social economic status, those who have the means to manage the risk, those who do not and those who do not. But the prices will never remain the same and those affordable properties will be bought up by those with means.
Flood insurance is the same way. Our flood insurance on our very modest home was about 300 annually, until hurricane Sandy wiped out the North Jersey coast, and all the millionaires lost their beach homes. Think Jersey Shore. After that, the cost tripled.
I bought 2750 sq ft home in TX in 2015 for $230,000 and my first insurance payment was $1200. Now 2025 same house insurance is $3528. Tripled in 10 years!
You were lucky and bought just before the extreme home inflation happened in Texas. Sorry about the insurance though. It’s based on the current price of your home, which is probably closer to 600-700K now, right?
Our home we sold when hubby got disabled and we needed cash to olive on was worth 450K and we paid 8,000 insurance on it in Miami. And it had a significant deductible and a 250K limit, so wouldn't fully rebuild. I figure it will get much worse or insurance compnaies will say, nope, and the state will have to run all property/hurricane/flood insurance.
@PeaceIsJesusChrist no Texas has abundant inventory and in Houston builders keep building newer homes and you see new construction in Houston 50 miles away from downtown.Its only around $375,000ish
If you're on a 30 year mortgage yep you're screwed. All you can do is sell the house if things get too expensive. If you refinanced in the meanwhile and got a sub 3% interest rate at least there's that?
We can do a much better job of protecting communities from wildfires, floods, and hurricanes, just not cheaply. It will cost a lot of money to harden our communities from natural disasters. But if we do not take these costly steps to protect our properties, we will end paying more when disaster strikes. A lot of money now or a lot more money later.
A major factor that is often overlooked. The price of new housing. Going up at a rapid pace, faster than our ability to afford housing. When new housing going up is averaging $500,000, how much will the purchaser need to be earning to afford it, and taxes and insurance. The whole shebang is "out of control".
My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting £15k or £20k With the current market movement at the end of the year they are making millions.
Yes I agree with you on that. I was once a holder with about 3BTC, 7ETH and $8000 worth of lite coin but now after investing have about 17BTC and 21 ETH.
Investment is currently the most lucrative business in the world. Both real estate, Stock, and Cryptocurrencies are positively changing people's lives.
@@tribe5569 California? uninhabitable? I don't think you've ever been to California. Or you don't know what uninhabitable means. Edit: the idiotic comment has been properly rescinded.
@@Wesley-rn7octhis dummy doesn’t know what uninhabitable means. Also, climate change is a word used by politicians to deflect responsibility. The climate hasn’t changed. All of these things have happened before and will happen again. The Bel Aire fire of 1961 is almost identical to this palisades fire. What has changed is the population, land management and access to water.
In 20 years the value of a 1000 sq ft house in my old home town increased about 600%. Yes, that was over 20 years, but an average middle class home costing well over $1M, not including interest, is flat out criminal. Those who pay are contributing to everybody's insurance problem.
If housing prices go up, and they have, then isurance costs have to follow in going up. Also, stronger weather events due to global heating also willneffect insurance rates. You are so lucky to own an asset that has doubled in price, so youbneed tonpay higher for the insurance.
Oklahoma has high insurance I think because of the super tornadoes 🌪️ that come through. Oklahoma City and Moore have had two in the past 15 years I think it is. I’d be so scared to live there! :(
@@lauraschepis2730 It would take a very, very long time for $7000 per year to add up to enough to rebuild a $500,000 house, even if you had a very high rate of return.
Everyones insurance went up in Houston and surrounding suburbs. And good luck actually using it when something happens. Ill take the cali model. Or better, pay off mortgage and go bare.
How the Banks who’s the home owners has their mortgages accept those houses with no fire insurance, check on the lenders who carries your mortgage if they say anything about that, 😮No loans on purchases or refinance will close the loan without the fire insurance.
This is NOT just California where insurance companies are leaving ...it is other states that do NOT regulate reinsurance . Look at the insurance companies that have left Florida in last few years.
Always fun when the regulators can increase taxes whenever they want, but then don't allow the industries they regulate to do the same. Not sure about the mean cost to insure per square foot. All my insurance increased 100% this year, and I'm in the low cost area.
This “crisis” is old news and turning into a dumpster fire. Reinsurance companies back the insurance companies…rates are low so investment returns were poor. Now claims are high in states like Florida don’t understand how risks work and essentially chased out insurance companies out because they have to make money. So the alternative is to have Florida and California become the insurance companies backed by taxpayers. The insurance costs will ultimately crash the Realestate market.
Great video! For 2025, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
You are right! I’ve diversified my $450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.
I receive guidance from coach Lisa Grace Myer who possesses extensive financial market experience. While others may prefer different approaches, her strategy has proven successful for me, as evidenced by my results. Specifically, she offers valuable insight on entry and exit points for the securities that I concentrate on.
I am grateful for your assistance. My finances have been in disarray, and I have experienced multiple losses in my 401k, IRA, and mutual funds. I hope that Lisa can provide me with the guidance needed to rectify the situation before it reaches a critical point.
It should be difficult and costly to insure properties in places like California and Florida. Every few years that have natural disasters that destroy huge numbers of properties. I live in PA and the worst thing we ever have is a hail storm.
Hopefully he is investing the difference from not paying those premiums so he can afford to rebuild/repair it himself. Otherwise he's gonna end up a renter at some point.
@@Ziegfried82 That may be true, but when you add prop. taxes , insurance costs, repair costs, any HOA costs, on and on, renting might end up being the cheaper option if he's willing to give up a bit of sq. footage.
Insurance is based upon valuations worth vs risk, some policy’s have replacement cost vs mortgage value. Insurance companies are trying to get all those policies off their books by canceling them, and rewriting policies that don’t have those contract agreements, chances are people that have claims in the future that destroy the home will not get their home replaced. One could argue that it’s breech of contract on the insurance companies behalf but obviously every insurance policy is case by case basis. This will effect home prices as well sales of homes moving forward, if they wanted to correct markets no better way than to pick the most expensive Real-estate and intentionally burn people out, defer the insurance cost to everyone else even those in low risk areas. Long story short people are going to walk away from their homes in areas that are high risk first, which is already apparent.
The damage that the executives of California allowed to happen through their malicious incompetence, is going to cause insurance company prices to up 200%-300% for everybody, and for those that are in dangerous areas like wildfire area or flooding area, their prices will go up 1000% or more if they can even get insurance.
What happens to these insurance companies out price everything? Homes going up and so has vehicles. Then higher property taxes. So when no one can afford insurance on anything…how do these companies stay open??? Also how can it be okay for someone to pay in 30 years and then when they need help, it’s denied?? If we can’t commit insurance fraud…shouldn’t it be the same for these insurance companies?? Insurance fraud should be a two way street. Fair is fair.
What they ought to do is audit the insurance companies just to see how much of what they charge is fluff and how much of it is actually used to pay claims... I mean if the government mandates people to carry insurance for cars and And lenders force people to buy home insurance , then why not audit them?
Each state has a Department of Insurance that recommends insurance laws to law makers and regulates insurance companies. The DOI reviews insurance companies, receives insurance complains and fights for consumers, they require minimum coverage limits, they set mandatory coverages that must be offered, require insurance companies to submit financial information to request rate increases and the DOI is the state organization that approves or denies rate increases. Insurance companies are audited and regulated by the state the problem is that everyone wants to live in the same areas (good climate, beachfront views ect) causing increased density of exposures, and local governments want/require "smart growth" new construction which forces increased density of building and when the insurance companies need to protect themselves from large catastrophic events because of this concentration of risk the state regulators won't let them change their pricing/terms/coverages. So the companies reduce coverages or leave a market before a large loss event bankrupts the insurance company.
@@geocam2so the millions they spend on commercials comes from where? The millions their C Suite takes home comes from where? The billions in profits must be fake?
@@HarryPotterFan1307 1. A for profit company needs to spend on marketing to attract customers. That’s not a conspiracy. It’s logic… 2. Yes. I’m not sure what “news” source you’re getting your information from but most insurance companies are publicly traded and you and I can easily pull up their financial reports and see that there was in fact no “billions in profit” that you speak of.
Most insurers are public. You can look all of this up. On average, insurance margins are miniscule. They pay out close to 93% (if I remember correctly) in claims. The profit margin is close to grocery store level.
From $10K to $110K that's the minimum range of profit return every week I think it's not a bad one for me, now I have enough to pay bills and take care of my family!!!.
When homes go up in value it costs more to insure them. I did get a quote for new construction in Florida 20 miles from the beach and my quote is much less than I expected. I was told it’s because it’s new construction, with impact windows and doors plus a new roof is a real factor.
Another driver for smaller homes ... That don't seem to be built anymore. IMHO what we need is the national building code to be updated to require the elements that allowd the homes that survived be in all new and renovated homes. This would put risk back in line with loss risk.
Home insurance in states like Florida or California, will eventually need to be provided by the state - which would be backed by federal government funding. What’s going to happen when not even the landlords can afford home owners insurance?
If the State is broke, and it's taxes are already too high that ain't happening. CA isn't gonna be able to help, and the Federal government is what? 32 trillion in debt?
Warning to homebuyers: get multiple quotes from your insurance brokers and make sure to understand the full extent of your coverage and how much you're paying for it. There's a lot of people in California (and Florida) who did not have adequate coverage, and now they're paying the price.
Ultimately - it's also important to consider if it's worth owning real estate in disaster-prone areas, as these homes are going to become increasingly more expensive to insure.
We're already starting to see home price trends indicate negative performance in areas with highest insurance costs/disaster risk.
Access the data for your market at www.reventure.app.
Re: your comments on the Long Island's insurance issues - it sticks out into the ocean like a big thumb, so its no wonder bigger climate impacts are expected by the insurance industry. I knew not to return after college graduation and I stayed well back from the coast as well. That was back in the late 80s and I'm glad I listened to the professors. People have no idea what's here and ahead.
Housing will crash along with the economy now due to the closed border, no more shopping tourists.
@@ReventureConsulting Most of CA's natural disasters are due to mismanagement, aside from the very occasional major earthquake. Wildfire risks for insurance companies would drop dramatically with common sense fire breaks, self-defense pool pumps, and buried power lines.
Most people in my area in Placer county can’t get multiple quotes. The only thing they can get is the plan from Cal-Fire or go without. This is effecting even people in neighborhoods not just those in rural areas.
dont forget that our own government can use DEW to ruin your house & stocks within one day btw :)
Insurance wouldn’t be so hard to get if your homes value wasn’t artificially inflated at such a ridiculous rate.
Insurance policies are based off of rebuild cost not market value cost.
Rebuild costs are related to home prices in general. New construction homes for example are crazy expensive to make, even for the builders
Part of that is the cost to rebuild. The more the materials, the more costly the workmanship then the more the insurance. Makes me think the cold in Minnesota isn’t so bad when my insurance is around $80 per month. It’s taxes rising faster than income that hurts.
@@brycesanders5402 I understand that the rebuild Costco‘s along with how much labor is how much materials is and what I don’t understand is how labor and material materials cost so much more in Florida, Texas, California. How did they become so out of whack with the Midwest my insurance here is $80 a month and I have a 1400 square-foot house with a two car attached garage and I can guarantee you it’s built better than most stuff out in California or Georgia or Florida when I’m in those houses it feels like they’re gonna fall down.
Add to that -- eliminate fraud by people who try to get free stuff from the agency
Back in the day, when I purchased my first home to live-in; that was Miami in the early 1990s, first mortgages with rates of 8 to 9% and 9% to 10% were typical. People will have to accept the possibility that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. Pretty sure I'm not alone in my chain of thoughts.
If anything, it'll get worse. Very soon, affordable housing will no longer be affordable. So anything anyone want to do, I will advise they do it now because the prices today will look like dips tomorrow. Until the Fed clamps down even further, I think we're going to see hysteria due to rampant inflation. You can't halfway rip the band-aid off.
consider moving your money from the housing market to financial markets or gold due to high mortgage rates and tough guidelines. Home prices may need to drop significantly before things stabilize. Seeking advice from a financial advisor who understands the market could be helpful in making the right decisions.
I will be happy getting assistance and glad to get the help of one, but just how can one spot a reputable one?
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Carol Vivian Constable” for about five years now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
I am on her site doing my due diligence. She seems proficient. I wrote her an email and scheduled a phone call. Thanks for sharing
I've got 20 years working both in claims and sales for a major insurer. I saw your heading and came on here to school you, thinking you were one of the many uninformed content creators trying to get views. I was pleasantly surprised by your well articulated and balanced explanation of the insurance problem in California. Nicely done and correct on all points! Thank you for spreading accurate and helpful information.
Agree! Well done.
Insurance is one the very few private companies where you are mandated to purchase if you have a mortgage.. a solution that should be considered is remove the mandate.
Very informative, thanks! Also, thanks for the Moonacy Protocol tip-it’s been great so far!
Just got my homeowners' insurance renewal in Salt Lake City, Utah, and it went up 102%. Working quotes but looks like going to be at least 85%. We have had no disasters, and I have never filed a claim in 22 years, and the home is 9 years old.
My gosh! That’s crazy!! Sorry to hear it. What’s going on in Salt Lake to make the prices rise like that?
@PeaceIsJesusChrist Our independent agent said it to help cover other large disaster's. The other quotes have been more along the lines of "that's just what it costs these days"
@@cheerdadcheervideos
Man… so sorry. We are living in crazy times. This worldwide inflation is unprecedented. May God provide for you and your family. 🙏🏻❤️
Yeah, I left Utah a few years ago but my car insurance doubled in a couple of years. Not sure what's causing this...maybe Utah's high home valuations?
Did yours actually double or did it go up 2%? I'm with State Farm in Florida, well outside a flood zone and mine went up 2%. Should State Farm cancel me, then I will self-insure without any doubt.
Great video! For 2025, it’s hard to nail down specific predictions for the housing market because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
A lot of folks have been going on about a market rally and said that stocks would be experiencing significant growth this period any idea which stocks this may be? I just sold my home in the Boca Grande area and I’m looking to remunerate a lump sum into the stock market before stocks rebound, is this a good time to buy or no?
Such uncertainties are the reason I don’t base my judgement on a ''heresay'' 2020 had me holding trash stocks, but thankfully revamp my portfolio through the aid of a pro before seeing significant gains. To date, I've scaled up nearly 320% ROI. it's been 4 years and counting. I and my advisor are working on a 7 figure ballpark goal and we're not far.
Could you recommend who you work with? I really could use some help at this moment please.
There are a handful of CFAs out there. I've experimented with a few over the past years, but I’ve stuck with ‘’Aileen Gertrude Tippy’’’ for some years now, and her performance has been consistently impressive. She’s known in her field-look her up.
glad to have stumbled upon this, curiously inputted her on the web, easily spotted her consulting page and was able to schedule a call session. Ive seen commentary about advisers but not this phenomenal
In South America most don’t have home owners insurance. This IS partly because most homes are made of concrete and don’t burn. The furniture might but not the house! We need this!
I can’t speak for all of South America but I’m from DR and I can say concrete works well because of the heat. It’s the perfect material for keeping a house cool but I think in colder climates it would be a disaster. Don’t know why they don’t do it in SoCal though considering it doesn’t get very cold at all
So move there
@@Bunny-zk5dn I am guessing it might have to do with earthquake risk. Wood construction is safer, I believe.
@@carrob704I think there’s a lot of earthquake proof steel / concrete techniques now. It will be interesting to see how they rebuild Altadena and the Palisades. A lot of very old houses in LA aren’t very fire resistant. I see a lot of shaker roofs in my neighborhood. That’s like building your house out of kindling!
Something has to change here. We can’t have senior citizens on fixed incomes having to sell their homes because they can’t afford or can’t get insurance. Same goes with the large increases in property taxes. It’s just wrong. People spend 30 years paying off their home only to realize their insurance and taxes have increased so much, they have to sell their home and live in an apartment. That’s shameful.
I know this might be unpopular but this is going to end up like health insurance.
We spend trillions on useless wars and then we can’t help people getting kicked out of their homes or can’t afford a doctor visit. This cannot continue.
Fully agreed!!
You sound like the california government. Their property tax were protected by prop 13, and their insurance premium were protected by the government.
Nobody saw 2020 coming. It’s by design that all this happened at once. I guess the little gain of function V didn’t off enough people on Social Security. I sold my house in 2018 to move in with my mother, who is 90. My house, according to Zillow, is now worth double what I sold it for. It’s crazy. I’ll never be able to own a home in my own old age now. My kids (one just retired from 20 years in the USMC) can’t afford a home either. Longevity is going to be a handicap.
Thanks!
Another question is, why are houses in disaster prone areas even selling for the sane "Market" rate. Shouldn't houses in those areas be sold for significantly less? If they were sold for lower value the insurer responsibility would be lower. That should lead to lower prices and insureres coming back
Doesn’t matter how disaster prone an area is as long as people still want to move there. Maybe we will see a drop in demand for LA homes and that could lead to a drop in prices but nothing about being a disaster prone area guarantees a drop in prices.
I live close to Tampa FL (Palm Harbor specifically). Very dense population, it's down to supply and demand. There is only so much shore line and only so many houses on the water. Those places are 'special' so they get more money for them. A lot of people here would love to keep their huge boat on a lift right behind the house.
Also, doesn't matter what the house is sold for, it's the replacement cost. For example I bought a house here years ago for 80K. Right before I sold it (2 years ago), I had to insure it for 200K. I was told to rebuild from scratch factoring in raising costs of construction material, it would cost 200K. So I was forced to insure it for that amount. Price of the house doesn't matter.
Just so you know, the California Fair Plan only covers FIRE damage. You have to get a separate policy for contents or earthquake or riders. And the Fair Plan costs as much as the other insurance companies used to charge, but for less coverage. Then you have to try to find another company that will insure the rest, at an additional cost.
Was another slush fund for state like SSI is for feds
*I'm favoured only God knows how much I praise Him,* $230k every 4weeks! | now have a big mansion and can now afford anything and also support God's work and the church.
Only God knows how much grateful i am. After so much struggles I now own a new house and my family is happy once again everything is finally falling into place!!
Wow that's huge, how do you make that much monthly?.. I have been looking for ways to be successful, please how??
It's Ms. Evelyn Vera doing, she's changed my life.
I started pretty low, though, $5000 thereabouts. The return came massive. Joey is in school doing well, telling me of new friends he's meeting in school. Thank you Evelyn Vera, you're a miracle.
Wow...I know her too she is a licensed broker and a FINRA agent she is popular in
US and Canada she is really amazing woman with good skills and experience.
No insurance, no loan
No loan, no mortgage
No mortgage, no buyer
No buyer, NO BID
People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.
U.S. stocks have historically been the best investment. Home prices will need to fall at least 40% before the market normalizes.
I like both. But in my experience, most of the millionaires I know have gained their wealth through diversified investments and they all had a sort of financial advisor helping out with informed decisions.
Straight up! advisors are the ideal reps for investing jobs, and at first hand experience, I’ve maintained a balanced growth portfolio for 5 years now, resulting to a 7 figure account after 100s of thousands invested so far. nothing beats expertise.
Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 75 cash earning 5.25 interest, 685k in roth ira, 120k in 401k, Gold and silver bars. age is 48. My advisr helped me realign my portfolio to my risk tolerance and it boomed shortly.
@@mikey43221 I'm worried about my retirement portfolio and could use some guidance. How can I get in touch with your advisor?
StateFarm denied my claim for an accident while on my way home after having been discharged from the ARMY. What was supposed to be an eventful trip home, turned into an absolute nightmare. Thanks Statefarm, good to know you abandon your Vets too. Now I make it a mission to warn everyone, who needs enemies if they have you.
I’m so sorry! :( Why are you not with USAA?
State Farm has been evil for a long time. They were horrible to me after a car accident in the 80s and I never bought insurance from them again.
@@PeaceIsJesusChrist Brings me comfort to hear that. I am now. Hard lesson learned but I've been with them ever since.
@@mr.anderson4755
I’m glad! USAA has been fabulous for us over the years with home insurance! With car insurance though, make sure your health care provider is doing all the necessary paperwork if you get injured, because sadly, USAA uses a 3rd party to pay out benefits, and they’ll try to get out of paying you. I learned that the hard way. I sadly had to threaten to expose them in order to get them to pay up. :/
They’re come through time and time and time again though for home issues, and they did give me top dollar for my car when it was totaled.
I’m a contractor we service homes that are damaged. Several insiders informed me State Farm was in financial trouble even several years ago. Not a good pick unbeknownst to many consumers unfortunately. I’ve had better luck with Allstate. But if you live in high risk areas look out no matter who you pick price has to be high or they will leave. It’s a business not a charity.
My house is north of Sacramento in the foothills of the Sierras and in June last year my insurance more than doubled it went up by about 110%. When I asked State Farm about it they said they were paying out $1.60 in claims for every $1 they were bringing in in premiums and that accounted for the increase. I was the only person in my neighborhood that still had private insurance and all my neighbors have to have California Fair plan. State Farm sent out of notice last year saying they were no longer accepting new policies for homeowners insurance in the state of California which costs way more than State Farm
big returns come from investing big. investing big comes from building conviction, conviction comes from understanding, understanding comes from doing your homework and research beyond surface level.
I want to start a Roth IRA before the end of the year. do you have any stock you would suggest to buy and hold long term?
Accurate! asset allocation is crucial with an Experts guidance. I have 850k in equity, 300K
cash earning 5.25 interest, 685k in 401k, 250k cash account, 120k in car assets ( paid off cars)
Gold and silver bars. age is 48. My advisor helped me realign my portfolio to my risk tolerance and it boomed overtime.
Impressive can you share more info?
My CFA 'Jane Marie Ising', a renowned figure in her line of work. I recommend researching her credentials further. She has many years of experience and is a valuable resource for anyone looking to navigate the financial market.
Just ran an online search on her name and came across her website; pretty well educated. thank you for sharing.
Natural and man-made disasters are ruining Real Estates. My heart goes to everyone who have been affected by these disasters in one way or the other. California was just recently being gutted by fire, I really feel sorry for those who were affected by the devastating forest fire. My family would have been in regrets if this happened 2 years ago when we were heavily in Real Estate in California. We only have a property left there, sold the other 2 when the prices was at their best (Unfortunately, one of the 2 sold houses went with the fire). I thank God for Katherine Ann McGrath whose initiative it was to diversify our investments.
I feel the same way. Real Estate is one of the best investments to this day but seeing things like the recent Hurricane Milton and Helene, now the forest fires in California which has taken many buildings, I start to wonder, what else? It's all plummeting, diversifying is definitely the best option. Better, Real Estate and others rather than Real Estates alone. Certainly shouldn't put all my hope in one glass. Who is this Katherine Ann McGrath and what service does she render?
@@FloScidmore She's manages our Investments, an expert in Investment and Risk management. She gave us reasons why investing in Real Estate alone at this time was a very risky venture. Such disasters were one of her reasons. I'm glad we listened to her. She allocated our finances to different investments including stock and digital currencies. We've been seeing unbelievable gains with minimal risks and I can't really thank her enough.
@@FrancesBe
I'm really lucky to have come across this comment. Please, how do I see more about her and perhaps reach her?
@@FloScidmore She's right there on the web, just look her name up.
@@FloScidmore She's right on the net. Name's Kate Ann McGrath, just look it up.
State Farm in NE, GA. It is a new home with an almost new second garage and an apartment upstairs insured for $1.4M and $100K other structures for a new $100K floating dock. It was $3100 a year but just added earthquake coverage for $360 a year. No claims and 825 credit score. Autos, boat, and PWCs through SF as well. Very low crime area.
And they need your credit score?? We just rollover whenever these companies place new stipulations.
Anyone who lives in the Orlando area of FL (as I do) pays about $5k per year. In addition to the $10k in property tax most of us pay.
is car insurance high too?
@@cs.8821very
Electricity prices are also skyrocketing despite the fact the whole USA switched from regular 100 watt bulbs to the LED “equivalent” bulb which only uses 13 watts to give the same light as the old 100 watt bulbs. So we chopped our electricity use (for lighting) by 87% yet somehow electricity prices keep skyrocketing!
I’m glad I just saved a bunch of money by switching to USAA …!!!and their Cx service is beyond awesome 😊
I HAD State Farm and they sent me a letter that after being with them since 1989, they'd NO LONGER 'renew' my policy(s). So, I TOO went with USAA. I 'over insured' my current home (due to increasing value of the property) to 'insure' I wouldn't be 'under-insured' in case of loss.
USAA isn’t the company it use to be…
Just to prove Nick wrong on California USAA left Florida back in 2010 for homeowners insurance
Insurance is a huge reason a lot of people are leaving CA right now
Worst case scenario, insurance is non existent, people will have to pay cash for houses and self insure. Prices would likely drop depending on the type of buyer available to purchase with cash. The ones who have a mortgage the lenders call the loan and foreclosures would rise. Florida is a non judicial state so it would take 2 years for those houses to hit the auction.
But those who buy new construction will still be able to afford their premium if the builder has insurance available internally.
Excellent video on a subject most people don't concern themselves with. What do people who have mortgages do when they need to drop their policy due to high cost when their bank requires them to have insurance for their mortgage? You are right! This is a disaster in the making as it will ultimately affect rental prices as well.
Banks will place a forced insurance policy in this scenario and make the homeowner pay for it.
@@Sandybanker33 It's called Vendors Single Interest, and it's expensive.
Austin, Texas, home prices have tripled in 5 years (2019-2024). Naturally, the premiums must go up, because your $300,000 home is now valued at $900,000. If they charge you 0.5% of your home value for premiums, your rate naturally will triple.
That's the problem of inflation. Homeowners are losers because they need a home to live in. They can sell and cash out with lots of profit, but where are they going to sleep at night? Under the bridge? Selling house for profit still requires you to buy another house, which could have tripled their old price too.
Chutes and ladders.
Americans are victims of their own success.
Homeowners insurance is based on the rebuild value, not the market value
@@jordans5792 And more specifically, on the loss itself. If you have an ugly, old house without much updates, you get less payout.
It's because of all the storm claims. Nothing to do with value of home. Map clearly shows tornado alley and hurricane prone areas.
To say US housing market is on the verge of a meltdown is LAUGHABLE!!! We are over 3m homes short of demand!!! You think it’s just going to disappear???
I am kind of tired of all those (former) real estate agents (now TH-camrs), with their gloom & doom predictions. Depressing!
@@gabyfields3235 housing market crashing is good news for all of us young people lol
There are no wildfires in Compton or Gardenia. The insurance companies knew who they were dropping... the problem is spreading risk. If you spread the risk for disaster prone areas to non-disaster prone areas, one group is essentially being subsidized. If you limit insurance risk distribution to within disaster prone areas, then when a disaster hits the payouts are a signifucant portion of that entire portfolio. Insurers should not be allowed to charge as though they cover anything more than a one-off if they are going to go bankrupt, deny claims, write down charges, or dump the responsibilities on taxpayers when tgat disaster happens.
Property insurance in CA and the south will skyrocket. With every new wildfire and storm, insurance companies increase their premiums even further.
Past periods of climate change brought big increases in geophysical activity. And that makes sense, considering the redistribution of mass on the earth's surface from ice sheet melt and sea level rise. So don't forget that one in the future too.
People are going to need to stop building in stupid locations, or build structures that can better withstand disasters.
@@Ziegfried82 its not that the houses get destroyed
its mostly hail damage. We had baseball sized hail last april. EVERY HOUSE in whole zip codes needed new roofs and it was legitimate damage. Average cost of a roof 8k here.
a few thousand houses not to mention all the hail damage to cars. Ads up quickly
this will actually affect everyone in the us. when one state has a disaster, the national companies will raise rates in other states as well.
@@juliamihasastrology4427 Yes, but to a much lesser degree. Especially in states where competition is strong.
Nick, I was in Melbourne, AU in January, and I was shocked to hear local news report that the California fires are driving increasing home insurance rates THERE in Australia.
It’s climate change although I sure you don’t want to hear that 😂
@@guytieman8368 california has always had massive fires. millions of acres burned yearly when the natives lived here. the reason why there were fewer in the 80's was because of CA's massive logging industry and there were 40% fewer homes in rural areas. i believe in climate change, but that's not what's going on here.
7:28 thank you for making this point. I've been seeing/hearing/reading a lot of shade being thrown at insurers without any wider perspective
Somehow there is always money for the newest I-phone or a 65K pick-up truck vacations and on and on!
My family lives in rural Shasta county and they pay $700 for normal yearly home insurance as it does NOT include wildfire that is covered by FAIR plan at a cost of around $4000 per year so the total cost is $4700 a year but it is split $700 for general home insurance + another $4,000 for wild fire from the state FAIR plan.
You know who can afford to go without insurance? Blackrock. None of this is accidental.
Are black rock homes all fire proof ? Someone should check.
Then check the home Larry rat finks family live in
@curly__3 Exactly - by design.
They probably self insure..
Exactly. What a devilish way to seize numerous homes.
Oh well. The rich want to get richer.
@@richardgadoury8452 how much can they rent a pile of ashes for?
The trajectory for housing prices in the USA is totally unattainable because there are too many variables like insurance, property taxes and not securing a mortgages. We prefer to live outside of the USA for all these reasons! Thanks for the info!
There are two major components to home insurance: land value and structural coverage. In Los Angeles, up to 95% of the purchase price of a house can be land value. Land was not destroyed by the wild fires, structures were. In the Pacific Palisades neighborhood of the city of Los Angeles, the average home destroyed is listed at $3.5 million but $3 million of that is land value. The land is still there, it did not "disappear" or fall into the ocean. The land was not destroyed by the wild fires. The structures that were destroyed are in the $100k to $500k range on parcels that have an average price of $3.5 million.
💯. That’s why a lot of people decided to go without insurance. All their value is in the land.
In LA if you build with permits added garage to the house let say one or two bedroom it will cost you anywhere in between $35k up to $65k depending on the materials roofing square feet and floor concrete work and the door itself cost $5k up to $8k for fully electric one so you are wrong the house cost and build was back in 1970s to 1980s some are new because they got remodeled in early 2000s and they cost a lot even back in 2000s the house cost was $250k up to $800k for the areas it was burned because of square feet was big those properties cost a lot of money because how big they were
How many square feet do you think you’re going to be getting in California for 500k? They’re going to build 800 sq ft homes?
@@oscarrodriguez1068 Of course, it doesn't matter how valuable the land is, if there had been $500K of construction value on it, you will need to fork over $500K to get it rebuilt.
I've been watching the housing market closely, Prices have been skyrocketing for years. It's going to be tough for first-time buyers to enter the market." how can one diversify $280k reserve .
It's not just the prices, but also the increasing interest rates that are making it more difficult for people to afford homes. With a good FA you can make up your portfolio.
It's often true that people underestimate the importance of financial advisors until they feel the negative effects of emotional decision-making. I remember a few summers ago, after a tough divorce, when I needed a boost for my struggling business. I researched and found a licensed advisor who diligently helped grow my reserves despite inflation. Consequently, my reserves increased from $375k to around $650k.
in times like these, it's crucial to be cautious and not rush into the market , Who is this your FA , my portfolio needs urgent attention , been a lot of loss.
Melissa Terri Swayne is the licensed coach I use. Just research the name. You'd find necessary details to work with a correspondence to set up an appointment.
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Some areas are fundamentally uninsurable at current prices. Big swaths of Florida.
Fraud compounding on top of fraud
We were stuck on a policy that was $5500 a year for a home in south Louisiana. Thankfully we got it down to a "reasonable" $3500 but I'm seriously concerned it'll only keep going higher and will make a lot less sense to own.
There is a corporate greed problem. Auto insurance has gone up more the 50%. Home insurance has gone up 50%. Health Insurance has gone up 50%.
How much has inflation gone up? How much have auto prices gone up? How much have housing prices gone up? How much have medical costs gone up? If the cost to replace these insurable objects have risen, then insurance will also rise. To replace a house in 2024 that was built in L.A. during 2020 will be 31% higher now... If they have to pay more, then insurance will cost more. 1+1 = 2
You’re an idiot. Learn basic math and stop talking like a communist. I hate insurance companies as much as the next guy, but many of them are barely even staying afloat.
You think you don’t want them around, but wait until you experience life without them.
Kind of expected. US politicians represent corporations.
This is factually incorrect. Have you read all the major insurance carriers 10k? It’s not record profits.
@ it is record profits.
I live in CA, San Joaquin county. Used to live in LA. Had farmers insurance on my current house. They called me back in November and said my yearly premium was going up to 5K. I called AAA, got more and better coverage for 2K/year.
Insurance is a business. They are beholden to shareholders. If I was investor in state farm I would tell them to get out of anything high risk… imho this insurance “adjustment” crisis people will become smarter where u choose to live. If not you should pay NOT ME!
If it's not high risk then why would people need the insurance?
You can insure anything ... so long as the premium is high enough. The State of California won't let the insurance companies charge what they need to be solvent so they leave.
@@geocam2that might not be true. what California has done ban the companies from adding the reinsurance costs to the mortgage premiums ie the customer instead making the company pay out of their profits.. Obviously this in the long run reduces the total profit. Therefore this pullout is driven by a lowering profit factor not one based on risk. They have comfortably sold policies for decades aware of Eathquakes.
This is why I don't think health insurance should be run by the private sector. Chasing profit does not coincide very well with providing people healthcare. It's a clear conflict of interest. Deny people's health insurance claims and make more profit. While the same can be said for every type of private insurance at least with the other stuff it's not life and death..merely replacing a house, a car, or whatnot. Objects, not people.
SoCal now experiencing insurance cancellations and high cost to insure a home that we in NorCal have been suffering from for years.
Replace car insurance with bonds, all interests accumulated on those goes to pay for the claims
Interesting idea. But how long to accumulate the $100k, $200k or more you may have to pay if you injure someone while driving?
It’s not the cost of insurance, it’s the record profits those companies are turning out year after year on the insured backs
the last 10 years they've actually seen record losses.
To make an honest comparison, the cost per $1,000 of coverage is not the best indicator for the cost of homeowners insurance because of the wildly variable home prices. A better indicator would be the home insurance cost per home. For example, California home prices are much higher than the cost of a home in Louisiana where home prices are much more affordable.
In Ohio and my insurance has doubled since 2021! It had been stable since 2010 to that point, when I bought my house…
When my cardboard box gets destroyed, I can easily find another one. I like being self-insured.
😂😂😂
😂😂
@SailingDacia-2019 My complaint is all the good spots under the bridges are already taken.
My question, if you're living in your van, does one need homeowners insurance, auto insurance or both?
Thats thinking out of the box.
Thanks Nick
I’ve been with State farm since I was a teenager. For my business and for all my personal every single one of my policies went up this year, my homeowners insurance policy went up $700 this year alone, they said it was an across the board rate hike… funny thing is I shopped around for homeowners and every single one of the 10 different quotes I got was higher than State farm. I just decided to stick it out with them.
Inflation means making you whole after a disaster is a lot more expensive now.
You should contact your agent and ask them if they're going to renew your policy 1 year from now. They've been quietly non-renewing policy holders and have known about this a full year in advance.
@@imzjustplayin good idea. I wonder if they are obligated to tell me the truth?
@joeybiden7755 there isn't an incentive to lie and it's your agent that would divulge this anyway.
Shop around! the costs come down when you shop around. there is competition out there for Homeowners insurance.
Hey Nick, in Florida it doesn’t seem like you account for the new construction market nearly enough. New construction home prices are holding up pretty well, all while competing and ultimately winning the battle against re sale homes. I wish you would expand on that specific fact some more.
There’s a ton of new construction home in FL.
Florida is being crushed by this. But living in a high risk area is a choice.
True, but they’re talking as everyone may need to share the costs regardless of where you live…
Insurance for my house, not on the shore, was very affordable but now it's ridiculous never saw this coming. I came here to take care of elderly mother who passed now I'm to old and not well enough to leave so people sometimes just get stuck.
Average Insurance cost =$2200….we wish that were the case here in central California. In our neighborhood the average cost is $7000 …soon to be $10k …if you can even get coverage.
If homes are uninsurable, owning one is essentially pointless if you're in a high-risk zone.
All homes in California have access to wildfire and earthquake insurance through the state. People in YT chat just don’t know what the f*** they’re taking about.
Prime location cleared out from peasants is pointless? 😂
@@iiio12 only if you cannot afford to self insure. I think you're misunderstanding his point.
@ That's was literally my point - owning a property in "high-risk-peasants-arent-allowed" zone will be a privilege
Omaha NE, my insurance and property tax (not even a ‘mean’ price home) is almost $1,000 a month! And when I renew in a few months I bet it’s even more. It will probably near $500/mo ($6,000 per yr) and yes I have to shop carriers every renewal. Even when I’m retired and have my home paid off it will be $12,000 a year in those two to just stay in the home. I’m tired of hearing, “oh, isn’t it cheap to live there?” It is not and I’m tired of brutally cold winter and hot & humid summers……
Here in Louisville i bought a 23k house and all insurance companies wanted to force me in to 150k plan's all i wanted was a 23k plan! Because that's all my home was worth
I would take the $150 and be very reckless with fire safety
Fact is that some places are less viable to live and it probably should cost more to ensure because of those risks. I don't think anyone thinks it would be fair for someone in Iowa to pay for a home that gets destroyed every 10 years because it's in high risk areas for wild fires, hurricanes, flooding, etc... this is the reason for the risk pooling in insurance.
Unfortunately, this then becomes a social-economic issue where those with the means can manage their risk differently, paying higher premiums or even self-insure.
So the question becomes how do you manage this? Those who live in less risky areas should pay less so things need to be managed in risk pools which are kind of how things are done today. The problem is not everybody's in the risk pool so prices go up. It kind of feels like if you're in a risk zone, you have to be part of a mandatory pool that spans across insurance companies. Having this kind of mandatory opt-in to insurance based on the value and construction of your property would reduce the rates greatly. This also goes against the freedoms we believe we have in the USA. So the reckoning here, is if we don't mandatory insurance pools, the price of homes in risky areas needs to drop for affordability. This then slowly causes gentrification and the divide of social economic status, those who have the means to manage the risk, those who do not and those who do not. But the prices will never remain the same and those affordable properties will be bought up by those with means.
Nick ..........soon we will be all living in a .........VAN ..........DOWN BY THE RIVER !!!!!
LOL, no kidding!!! That option is sounding better and better! 😂
I'm already there
Lincoln once said - rent is the most you will ever pay each month and your mortgage is the least.
Very good content! First accurate account for insurance in California.
The first thing that gets thrown overboard is homeowners insurance once you pay off your mortgage.
Say what?
They say, ‘You will own nothing and be happy.’ This feels like yet another example of that mantra being forced upon us in real time.
Flood insurance is the same way. Our flood insurance on our very modest home was about 300 annually, until hurricane Sandy wiped out the North Jersey coast, and all the millionaires lost their beach homes. Think Jersey Shore.
After that, the cost tripled.
I bought 2750 sq ft home in TX in 2015 for $230,000 and my first insurance payment was $1200.
Now 2025 same house insurance is $3528.
Tripled in 10 years!
You were lucky and bought just before the extreme home inflation happened in Texas. Sorry about the insurance though. It’s based on the current price of your home, which is probably closer to 600-700K now, right?
Our home we sold when hubby got disabled and we needed cash to olive on was worth 450K and we paid 8,000 insurance on it in Miami. And it had a significant deductible and a 250K limit, so wouldn't fully rebuild. I figure it will get much worse or insurance compnaies will say, nope, and the state will have to run all property/hurricane/flood insurance.
@PeaceIsJesusChrist no Texas has abundant inventory and in Houston builders keep building newer homes and you see new construction in Houston 50 miles away from downtown.Its only around $375,000ish
If you're on a 30 year mortgage yep you're screwed. All you can do is sell the house if things get too expensive. If you refinanced in the meanwhile and got a sub 3% interest rate at least there's that?
@@Ziegfried82 i have paid it off in 5 years done in 2020
I am sure those ads for windows replacement and roof replacement did something in the price increase
We can do a much better job of protecting communities from wildfires, floods, and hurricanes, just not cheaply. It will cost a lot of money to harden our communities from natural disasters. But if we do not take these costly steps to protect our properties, we will end paying more when disaster strikes. A lot of money now or a lot more money later.
A major factor that is often overlooked. The price of new housing. Going up at a rapid pace, faster than our ability to afford housing. When new housing going up is averaging $500,000, how much will the purchaser need to be earning to afford it, and taxes and insurance. The whole shebang is "out of control".
Banks should be responsible for covering disaster insurance while they own the note and charging exorbitant compound interest.
Then the banks will have to charge higher interest and fees to cover that. Nothing is free. Gotta be paid for.
Don’t borrow money to buy a house.
And no bank will lend without insurance. People won’t buy if too much. This really throws sand in the gears of commerce.
My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting £15k or £20k With the current market movement at the end of the year they are making millions.
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As of right now I pay about $4.50 per $1000 or about $1350 per year on 1410 sq ft home valued at $300K.....I live in Maricopa Arizona Pinal county.
Insurance companies will do it again- pass california loss and price it in to renewing policies from Alaska to Florida in all 50 other states.
Florida pulls in a lot of aid. So does Texas and Louisiana. The rest of us are tired of subsidizing all of them.
@@tribe5569 California? uninhabitable? I don't think you've ever been to California. Or you don't know what uninhabitable means.
Edit: the idiotic comment has been properly rescinded.
@@Wesley-rn7octhis dummy doesn’t know what uninhabitable means. Also, climate change is a word used by politicians to deflect responsibility. The climate hasn’t changed. All of these things have happened before and will happen again. The Bel Aire fire of 1961 is almost identical to this palisades fire. What has changed is the population, land management and access to water.
In 20 years the value of a 1000 sq ft house in my old home town increased about 600%. Yes, that was over 20 years, but an average middle class home costing well over $1M, not including interest, is flat out criminal. Those who pay are contributing to everybody's insurance problem.
This is another reason to believe that purchasing a home in 2025 will probably not be a wise decision.
If housing prices go up, and they have, then isurance costs have to follow in going up. Also, stronger weather events due to global heating also willneffect insurance rates. You are so lucky to own an asset that has doubled in price, so youbneed tonpay higher for the insurance.
Why is Jacksonville and Deltona Fl up so high compared to the rest of the state of Florida, when those two areas aren’t as high risk for hurricane?
That’s where all the poor people live in Florida 😂
They want extra money from those areas to help pay for the other areas.
Oklahoma has high insurance I think because of the super tornadoes 🌪️ that come through. Oklahoma City and Moore have had two in the past 15 years I think it is. I’d be so scared to live there! :(
I’d rather put 7000/year in my savings, then give it to an insurance company who will do their best to deny my claim
I agree. If you self-insure, put that money you would pay for a premium in a separate interest bearing account each year.
@@lauraschepis2730 It would take a very, very long time for $7000 per year to add up to enough to rebuild a $500,000 house, even if you had a very high rate of return.
Everyones insurance went up in Houston and surrounding suburbs. And good luck actually using it when something happens. Ill take the cali model. Or better, pay off mortgage and go bare.
A lot of have been forced to no insurance
How the Banks who’s the home owners has their mortgages accept those houses with no fire insurance, check on the lenders who carries your mortgage if they say anything about that, 😮No loans on purchases or refinance will close the loan without the fire insurance.
This is NOT just California where insurance companies are leaving ...it is other states that do NOT regulate reinsurance . Look at the insurance companies that have left Florida in last few years.
Always fun when the regulators can increase taxes whenever they want, but then don't allow the industries they regulate to do the same. Not sure about the mean cost to insure per square foot. All my insurance increased 100% this year, and I'm in the low cost area.
This “crisis” is old news and turning into a dumpster fire. Reinsurance companies back the insurance companies…rates are low so investment returns were poor. Now claims are high in states like Florida don’t understand how risks work and essentially chased out insurance companies out because they have to make money. So the alternative is to have Florida and California become the insurance companies backed by taxpayers. The insurance costs will ultimately crash the Realestate market.
In northern illinois I am paying $4 per thousand insured. Think i will stay in the upper midwest and put up with the snow and cold.
Great video! For 2025, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.
I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!
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It should be difficult and costly to insure properties in places like California and Florida. Every few years that have natural disasters that destroy huge numbers of properties. I live in PA and the worst thing we ever have is a hail storm.
My brother lives in St Petersburg, FL. He said he has no insurance for his home..
Hopefully he is investing the difference from not paying those premiums so he can afford to rebuild/repair it himself. Otherwise he's gonna end up a renter at some point.
@@Ziegfried82 That may be true, but when you add prop. taxes , insurance costs, repair costs, any HOA costs, on and on, renting might end up being the cheaper option if he's willing to give up a bit of sq. footage.
Insurance is based upon valuations worth vs risk, some policy’s have replacement cost vs mortgage value. Insurance companies are trying to get all those policies off their books by canceling them, and rewriting policies that don’t have those contract agreements, chances are people that have claims in the future that destroy the home will not get their home replaced. One could argue that it’s breech of contract on the insurance companies behalf but obviously every insurance policy is case by case basis. This will effect home prices as well sales of homes moving forward, if they wanted to correct markets no better way than to pick the most expensive Real-estate and intentionally burn people out, defer the insurance cost to everyone else even those in low risk areas. Long story short people are going to walk away from their homes in areas that are high risk first, which is already apparent.
The damage that the executives of California allowed to happen through their malicious incompetence, is going to cause insurance company prices to up 200%-300% for everybody, and for those that are in dangerous areas like wildfire area or flooding area, their prices will go up 1000% or more if they can even get insurance.
What happens to these insurance companies out price everything? Homes going up and so has vehicles. Then higher property taxes. So when no one can afford insurance on anything…how do these companies stay open???
Also how can it be okay for someone to pay in 30 years and then when they need help, it’s denied?? If we can’t commit insurance fraud…shouldn’t it be the same for these insurance companies?? Insurance fraud should be a two way street. Fair is fair.
What they ought to do is audit the insurance companies just to see how much of what they charge is fluff and how much of it is actually used to pay claims... I mean if the government mandates people to carry insurance for cars and And lenders force people to buy home insurance , then why not audit them?
Almost every nickel that comes in as premiums is payed out for losses. Property insurance isn't very profitable.
Each state has a Department of Insurance that recommends insurance laws to law makers and regulates insurance companies. The DOI reviews insurance companies, receives insurance complains and fights for consumers, they require minimum coverage limits, they set mandatory coverages that must be offered, require insurance companies to submit financial information to request rate increases and the DOI is the state organization that approves or denies rate increases. Insurance companies are audited and regulated by the state the problem is that everyone wants to live in the same areas (good climate, beachfront views ect) causing increased density of exposures, and local governments want/require "smart growth" new construction which forces increased density of building and when the insurance companies need to protect themselves from large catastrophic events because of this concentration of risk the state regulators won't let them change their pricing/terms/coverages. So the companies reduce coverages or leave a market before a large loss event bankrupts the insurance company.
@@geocam2so the millions they spend on commercials comes from where? The millions their C Suite takes home comes from where? The billions in profits must be fake?
@@HarryPotterFan1307
1. A for profit company needs to spend on marketing to attract customers. That’s not a conspiracy. It’s logic…
2. Yes. I’m not sure what “news” source you’re getting your information from but most insurance companies are publicly traded and you and I can easily pull up their financial reports and see that there was in fact no “billions in profit” that you speak of.
Most insurers are public. You can look all of this up. On average, insurance margins are miniscule. They pay out close to 93% (if I remember correctly) in claims. The profit margin is close to grocery store level.
I would not trust deregulated insurance companies to charge fair prices. Market gouging is the new normal from corporate America
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Yes the government is going to have to subsidies property Insurance like health insurance.
When homes go up in value it costs more to insure them.
I did get a quote for new construction in Florida 20 miles from the beach and my quote is much less than I expected. I was told it’s because it’s new construction, with impact windows and doors plus a new roof is a real factor.
Another driver for smaller homes ... That don't seem to be built anymore. IMHO what we need is the national building code to be updated to require the elements that allowd the homes that survived be in all new and renovated homes. This would put risk back in line with loss risk.
Home insurance in states like Florida or California, will eventually need to be provided by the state - which would be backed by federal government funding. What’s going to happen when not even the landlords can afford home owners insurance?
The government will have to charge what the risk is and what the cost to rebuild is, which means very high prices for insurance will keep increasing.
The federal government needs to stay out of the insurance business. If you can't afford California or Florida, move.
You mean "tax payer funded."
Thats why rents are high.
If the State is broke, and it's taxes are already too high that ain't happening. CA isn't gonna be able to help, and the Federal government is what? 32 trillion in debt?