State Farm indicates where in California homeowner's policies won't be renewed
ฝัง
- เผยแพร่เมื่อ 8 เม.ย. 2024
- State Farm, California's largest homeowner's insurance provider, has indicated where it will not be renewing policies, and some Bay Area residents are affected, according to a document provided by the California Department of Insurance. Jodi Hernandez reports.
Stay connected:
Follow us on Twitter: / nbcbayarea
Like us on Facebook: / nbcbayarea
Follow us on Instagram: / nbcbayarea
Follow us on TikTok: / nbcbayarea
Catch up on all the day's news:
www.nbcbayarea.com
Download our mobile app:
On iOS: nbcbay.com/R1BhqYM
On Android: nbcbay.com/rUcA97h
Watch us on OTT:
Add our channel on Roku: bit.ly/3ySK60j
Download our app on Amazon Fire TV: amzn.to/3FmmiEA
Recall incompetent insurance commissioner Ricardo Lara. Vote him out of office.
Why? Look at San Francisco. It's a cesspool.
Why would you insure homes in that area?
DEI hire 😂
Something or someone obviously is being incompetent and We The People need to solve it at election time.
@@gnericnuser Russian bot.
I had State Farm Insurance for over 40 years. My home burned to the ground in a forest fire. The policy was called total cost replacement plus 20%. You will find out how worthless your State Farm Insurance policy is when you try to collect. I had 46, yes, 46 adjusters and years of B.S. and games from State Farm Insurance, when I tried to collect. 7 contractor's estimates, with 3 of them being from Stae Fram's adjusters and contractors. State Farm Insurance denied all of them. You will be better wirh out them. The State of California Insurance Commissers Office made them pay over twice as much. State Farm has now dropped me.
Glad to hear you did receive payment eventually..I was going to say in the End.
We've had the same experience with Allstate up here in WA state. Refused to pay until my patience ran out- and I'm still out of pocket $7500 more than they paid for the repairs to our home from a fallen tree.
Yes. They under Insure too
I never had a claim on my homeowners and my home insurance in the last couple of years more than double. This past month, my auto insurance went up by 20 percent and I am a very safe driver with no tickets and no accidents. The response from State Farm that in California everyone got a 20 percent increase.
And to add insult to injury the city won't let you cut down your own trees to make defensible space.
Yes this is the real problem, when state farm says re-assesses risk. Look at how prone that mans home is to Forest fires.
DEMOCRATS WANT YOU POOR AND HOMELESS
@@brendangalloway3162 , that is what I saw also.
Wild fires, earthquakes, mudslides, I don’t see any reasons that State Farm would want to pull out.
I'm in Ohio, State Farm did this to me after never missing a premium for 20 years, State Farm is doing this all over the country
I think the more important question is how many claims did you have over those 20 years?
All insurers are starting to. Worldwide. It is called climate change and it won't get any better. Either they drop those people or insurance costs go thru the roof for everyone.
I know this sounds crazy but the decisions used to determine coverage or not are probably being done by algorithm and AI these days. All being determined by a mathematical based set of rules centered on risk management. It is what is driving financial market decisions too.And Government. And many other key areas of our society.
When I worked for a large insurance company we had to do this when we found out that we insured too many homes in a community (a corner of Virginia). Insurance companies spread risk and if they have too much of one area is bad risk management. Orinda may just have a State Farm agent who is too good at their job.
Yes. Merced Mutual went out of business because 2 the Paradise fire 🔥
That's right! Put on more regulations and watch more companies leave. These people have not a clue!!
MOST people are clueless.
Oh, trust me they have the clues to close out the job they were chosen to do.
This is also happening in Florida.
It’s about liability and exposure to loss, not the current balance sheet.
Should boycott their Auto insurance too if they are going to do this to the home owners. At the end of the day, statefarm is looking after themselves.
That is their job and the management's legal obligation.
State Farm is a mutual insurance company that is completely owned and controlled by its policy holders. You can blame the other policy holders for not wanting to insure their peers in CA 😂
If people decide to build/buy homes where the chance of fires or greater risks are involved, they should pay higher premiums. For the last few years, State Farm has more than double my policy without ever a claim and I do not live in high risk area. When I called State Farm to ask, they tell me is to cover areas of high risk. By not insuring high risk areas, then hopefully my premiums will not be as high.
Hey - You get what you vote for!
You wont get any help from Sacramento, they are in the pockets of the insurance companies.
They're in the pockets of everyone who will give them donations. Just not the people.
It's not that they are in the pockets of insurance companies. Think about it. If people in Calif have to resort to the state run FAIR plan, look at all the money that will be coming into state coffers. The corrupt democratic party will then have billions to redirect in everyway possible (just like the fuel tax that doesn't repair roads anymore). Then when the insured need to rebuild their homes after a wildfire, there won't be anything for funds. Calif then goes to Fed with hand out shouting save us. Standard operation procedure for Dem run blue states. Steal money-Cry poverty.
over all things are getting better off , keep Voting Blue #Biden/Harris
Newsom needs to go, he’s the root cause of
U own the house out right fuc$ insurance......u don't need it
lol, you people who don't own squat telling people who have property how to live. good gawd I have insurance because of people like you!
Liability coverage..some loozer trips & see's U as a cash kow
If you can't get home owners insurance, then you won't be able to get a mortgage from the bank. If you can't get a mortgage from the bank, then you can't sell your house. I mean, who wants to buy your house when the buyer can't get a bank mortgage and can't get homeowners insurance?
I heard they are considering pulling out of the Sacramento valley due to the high risk of flooding....
Flood insurance is Federal
Their research must indicate that Orinda is ripe for a large fire😮
Or maybe mudslides, the way those houses were on the hillside.
Bingo. This is the elephant in the room that nobody is talking about. What model or AI-driven model did they use to come to their conclusion? Should the state be regulating the AI driven model or the risk formula that insurance companies use? No one is asking the right question.
Use the California FAIR Plan to get your insurance if no one else will insure you. That’s why it was established.
it sounds like state farm has been undercharging for years
only fix is dont require insurance .
How will that help homeowners who lose their house in a fire or flood?
Maybe don't live in an area that's prone to catastrophes like wildfires and earthquakes
Man just looked at houses in Orinda. Cheapest is like $2mil. Boggles my mind that people are somehow able to afford places like that and I make decent money as an engineer.
Like a bad neighbor, state farm isnt there.
😂😢😂
I wouldn't insure anyone there either
Not being a bad neighbor to not want to lose money on bad voters.
They really don't have much choice. Places like Orinda are way overdue for major fires -- and the shots of all of those trees simply proves that. It's also prime earthquake country. They have to cut their exposure, if the homeowners don't (OR CAN'T) cut the risk of disaster. Remember Paradise, another California town where there were too many trees, too much vegetation.
All of those billions of dollars that State Farm has can be sucked out in a single major disaster, if they have covered too many of the wrong neighborhoods. Someone at the company probably just started listening to the experts who have been talking about such widespread threats as the upcoming Big Shake, and looked at the maps and satellite overheads.
WTF? Jake!
White jake or blak Jake?
Its simple math, State Farm will decline renewals for homes that are considered "at risk" for potential hazard! What this does now is cost State Farm to lose money, how will they recoup those lost revenue? Easy...go after home owners in other locations that are deem "safe" and have them pay for the difference in lost revenue but brand it has "inflation" to cover up the real reasons. I guess Jake from State Farm has been a little quiet for a reason.
There were zero State Farm cancellations in my zip code. I received my annual renewal notice and it increased by $200. I imagine that is what SF will do to everyone they can get away with. They increased my automobile insurance by $150/6 months as well.
@@tjs114 I'm sure you're not the only individual with received a notice of an increase. I have GEICO and I also received $200 dollar increase so I remodified my coverage in reducing "property and medical" coverage to keep my cost in check. If God forbid I injured someone, what cost of vehicle obviously will come from the vehicle and whatever physical injuries sustain will come from the personal. What does the "property and medical" cover for? Rarely will you or I be driving through anyone's property and as for "medical" that's just reworded freebies that they added on to get more from us out of nothing.
Selfish homeowners who built or bought homes in fire-prone areas are now angry that they're having to deal with the consequences of their actions...
non renewal notice results in automatic 10% reduction in property value
also with a purchase contract buyer needs for show insurance
This is Redlining. Tried in Baltimore City many years ago. Insurance Commissioner said write everywhere in the State or don't write anywhere.
Orinda sits in an area of dry grasslands, oak/madrone high winds generated from the bay and houses are built on ridgetops and cul-de-sacs.They have the same conditions as the Oakland hills which burned a few years ago a couple miles down the freeway. Is State Farm still covering Oakland hills? Are they still issuing policy in Mark West outside Santa Rosa? Why single out Orinda?
Same with allstate
Califirnia contractors are part of the problem. Cist to rebuild is nearly double the National average.
State Farm cancelled my home owners ins after 18 years. Said they not covering homes in my area any more.
People should always look at the value of the land under the property. You do not have to insure that , unless you have a very high mortgage. It saved me a bunch of money
Or how about dont build a house inside a fire pit?
Prob is Pg&E fires too time to ask utilities to be nationalized
I live in SF, low fire risk, State Farm has already cancelled me.
Why do we need insurance? Is it by law?
Lenders require it to protect their loan form loss should the property becomes damaged: fire, quake, flood, hippies....
Insurance companies hold bonds. bond rates have gone up and they are underwater.just like the banks they don't have the money right now they have to wait for rates to drop (to revalue fund) or wait till they mature.
doni said they need rakes to stop fires!
so a bunch of people who built homes in fire zones are now mad they're dealing with the consequences of their foolishness?
People who build in high risk areas should also pay/reflect in their premiums.
Why would you want State Farm, they are expensive.
They are a private company owned by stakeholders. They have the right to conduct business as they see fit. The problem is that your legislature in Kalifornia deems that they are involved in anything that hurts their bottom line in taxes. Hard to keep property values up if no one wants to insure you. And there's a reason State Farm is walking away and it would suggest that other less financially stable insurers would do the same. Doesn't look like the homeowners in Orinda are suffering financially so payment of policies aren't it. Maybe they just hate the very sight of your Governor. Makes me wretch and i wouldn't live there again.
The reason given is the fires in the area.
So volunteer to do anti fire clean up in that county.
AND find another insurance company to insure homes with.
Forget the balance sheet. Does State Farm take in more in premiums than it pays out in claims, for its California policies? If the answer is no, then its withdrawal from California is rational. Perhaps state and local governments in the state need to do more to mitigate some of the risks and tackle local inflation.
“Like a good neighbor…”
Yes, write your governor. He’s the reason they are leaving
I'm wondering if they plan to start issuing separate policies for specific circumstances only: one for theft, one for house fire, one for wind damage , etc. We already need separate policies for flood and earthquake. This technically would help but mostly it gives them the opportunity to charge us more.
What reporters and policyholders fail to realize is the the insurance industry, by the nature of pooling risks, along with loss reserves, doesn't go by the same accounting practices as other businesses. GAAP Generally Accepted Accounting Principles don't apply. Just because State Farm has billions of dollars in assets, doesn't mean it's all profit. Also, premiums alone are not enough to cover the expenses of providing coverage. That money earns investment returns. If State Farm is withdrawing it means they wouldn't have enough money and reinsurance to pal claims. That's exactly how big potential losses are. Orinda could very well experience a disaster similar to the Oakland Hills Fire and 3,300 structures (mostly residential) lost. Think about it...1,700 wooden homes, in Orinda's oak covered lanes, valued at, say, $2,000,000 each would be $3,400,000,000 primary losses, not including debris removal and rebuilding, just for State Farm. Frankly, state regulators and insurers are doing exactly what they are supposed to be doing. Why should inform and educate ourselves about the risks. They will need to be handled differently, with policyholders bearing a greater part of the risks, as well as the expenses
In California, "affordable" is a synonym for "subsidized". After Hurricane Katrina & Ike struck, generating over $72 billion in insured losses, insurance rates soared along the Gulf Coast. Worries about rising sea temperatures had the insurance companies running for cover as they reeled from the losses. Cal has the same problem, only it is mudslides & fires rather than hurricanes. Climate change has dramatically increased losses & it only looks to get worse.
I don't blame State Farm for making this move. Materials and Contracting costs are out of control. The state of California could reverse this today if they actively subsidized the costs of materials and contracting effectively capping those costs in the event of disasters like wildfires. That would take the risk of spiraling costs that are hard to predict away from State Farm and make those houses that are on the margin of risk tolerable for the insurance company.
California is a rich state that could enact beneficial policies like this if they seek to identify and eliminate expensive programs that have proven unsuccessful for a decade or more.
Why Orinda? What is it about the city that bothers the insurer?
High fire danger?
@@sdsk8rboi Oh, that makes sense! Especially after that horrendous fire they had in Paradise a few years ago. I didn't think of that. Thanks!
The way insurance works is first they have some bat nerd types build actuarial tables that cover the probabilities of certain types of covered incidents for which the insurance company may have to pay out. This could be something like "the probability of fire damage in the next year is x%, next 5 years y%, next 10 years z%" and so on. Then they look at an area in aggregate and do a basic "expected value" calculation. If the probability of paying out times the average payout is higher than the probability of not paying out times the average monthly premium then providing insurance isn't profitable in that area. The state implemented some protectionist policies that while they seemed designed to help people they are actually the majority of the problem in this example. The state capped the premiums but didn't cap the risk for the insurance companies which over time erroded the profit margins to the point where normal insurance companies doing things the right way simply can not do business in some areas in the state. Insurance is a business that in order for it to actually work the insurance company itself must make a profit. Obviously for a business to work, regardless of the business, they need to make a profit but with insurance if there is no profit then there is almost certainly a lack of ability to actually payout if some large scale incident happens. The state needs to do away with laws, and lawmakers, regulating insurance markets that fail to understand insurance markets.
A really nice hilly area near SF, heavily wooded filled with million dollar homes.
Lots of trees & steep hills...wealthy homes & beautiful area..
Why?
Business is business, nothing personal. We have all heard that.
🔥🔥🔥🔥
Forced relocation of people from rural areas into the cities!
Why?
@@Cyndogg085 WoW, I like you! You are inquisitive! It's a global plan that has been implemented to force people into the cities which makes it easier to watch over them! I live in the suburbs outside of Los Angeles CA. Rural areas are not safe. Build Back Better means , Smart Mega-cities!😬👍
Like a good neighbor. Unless u need them!
Insurance companies are not nonprofit.
Patterson will pay !!!!
Gonna do the same thing like maui
They want to be in business when money is going in their direction
False reporting. State Farm General is a completely different company than State Farm Mutual which owns the rest of the states homeowners policies (Other than Florida). The profits of State Farm mutual have nothing to do with its subsidiary, State Farm General. If a major catastrophe hits California or Florida and State Farm General goes bankrupt, State Farm mutual has no obligation to bail out State Farm General.
Any company is in business to make a profit. There is only one reason why insurance companies vacate….. no profit. Replacement costs when a house burns down have skyrocketed. I have a neighbor, who has had two small fires at her house… each cost 1 million dollars . No company can stay in business with those replacement costs! Don’t blame the companies, blame government for not keeping up with fire infrastructure projects, building in fire zones, replacement costs and cheaters. If you buy a house in an earthquake zone, hurricane alley, or fire zone…expect no insurance. Nothing is free!! And California is an earthquake and fire zone!
Where will Jake from State Farm live now?
It’s not state farm fault it’s bad policy’s that is causing insurance companies to leave California
it is a business decision, nuff said
False Headline: This video only mentions Orinda, CA.
The news script left the city name blank intentionally so the other news station hosts can parrot the exact same verbiage in every other city State Farm used to insure.
They wanted it. They voted for it. They got it.
Wild fires coming to Orinda and surrounding area! 😮
3 year inflation
Median household income - 3%
Retail Gas +39%
Ground Beef, +37%
Automobiles +34 %
White pan bread +33%
Sliced bacon +19%
Milk + 18%
Deodorant + 38%
cooking Oil +36%
Eggs + 41%
Bleach + 43%
RAMEN + 43%
Dog Food + 36%
Snack food and chips +27%
Auto repair and Tires +26%
Median household income - 3%
Deficit increases by 1 trillion every 100 days and accelerating
Inflation isn't too bad, median household prices went down. People can afford at least median household items.
@@cheaserceaser Yeah lol
Every California city is being hit. I live south of San Jose and they are not renewing here.
State Farm is a mutual insurance company that is completely owned and controlled by its policy holders. You can blame the other policy holders for not wanting to insure their peers in CA 😂
Ca policies is half of the issue
It's a new trend?. Overpriced/mountain houses uninsurable.
20% of American gdp is from insurance industry. Can you believe it how bizarre this is?
this shows that charging to much out here state farm aint wrong because they could be taking loses that effecting their company and feel like they making the best move and could be right too the homeless crisis keep growing in califorina and effecting alot of business out here
You get what you vote for.
Yeah, everyone votes for insurance corporations, right? 😂
Actually they vote for insurance commissioners who over-regulate the insurance industry to the point where they can't make any money in California, thus requiring them to leave.
increase the inflation in Cal
Stink Fart is NOT there.
Those insurance companies that leave the state shall not be a contributor nor benefactor from CAL Fair. They are reaping in double by denying ur policies to force you in their unregulated business thats not government at all.
Texas suffers millions in damage from hurricanes and severe stores. 600 million in one year just for hail damage. Hurricane Harvey cost billions in damage in Houston. The rates are not controlled like California, and they just raise rates to cover any losses. I pay 250 a month for insurance in texas 3000 a year more than my car insurance. That's more than my house payment. I have never filed a claim in 25 years. State taxes are 4500 a year plus house insurance.
Every time they talk of pulling out of Texas, raise rate 10%. We are paying to cover other states' insurance.
Insult on top of injury, the situation is bad but, bad reporting is worse. The statement about financial net worth is not the same as income. If you had a negative income how long would it take for you to change jobs. If a company has a negative income how long will it take them to leave that situation, like companies are doing. Focus on the state regulations and regulators. Ask yourself why would any company leave the fifth largest economy in the entire world.
Fire hazard. They are spreading risk by not having too many homes in burn hazard zip codes.
1mil dollar home no house insurance. Good luck with that.
State Farm made good money that is why they do not renew thousands of policies.
Has ANYONE ever seen an Insurance Company go Bankrupt? Yeah me neither.
Some do go bankrupt. Google is your friend.
How can you leave your home if you cant sell it. Nobody is buying a property you cant insure.
So how dose this work when the bank owns the home maybe they should pay
when granted the loan (or approved to assume it) you signed an agreement with the lender that you would acquire and maintain insurance sufficient to compensate the lender from any loss to the property.
@@Redpawdave maybe Congress should pass a bill that stops predatory banking and racketeering.
Should’ve got Allstate could’ve been in good hands 🙄
😂
They stopped writing home policies in CA years ago.
If you borrow money on your home they will insure it. Insurance is the Cornerstone of Finance. If you own your home and don't owe any money they have no reason to make you pay insurance.
"Careful analysis" puuuuuuleeeze 😂😂
Thank you State Farm, signed: The rest of the nation.
Americans who have State Farm should switch to another company immediately. They appear to not be for the consumers, but rather for getting rich without any expense. Who is to say they would do this in your community as well, leaving you high and dry when the chips are down….. think twice before choosing who you want to invest your hard earned money to protect you, your family, and your precious personal items.
No worries here in Gilbert Arizona. State Farm is the best.
$650 a year.
Couldn’t be happier.
Try moving out of the forest.
😂😂😂😂
The law should be clear, sell policies in the entire state or nowhere in the state.
@@Plutogalaxy Here in America, insurance is a for profit business and State Farm has registered record earnings. Why are you ok, with corporations screwing the average taxpayer.
@@Plutogalaxy Then demand a minimal defensible space before putting profits over people who have paid premiums for 30 years.
@@Plutogalaxy I’m not suggesting making a corporation do anything. I’m suggesting regulating a corporation. They either sell in the state or they don’t. They shouldn’t be allowed to cherry pick. They can set the price and compete with other insurance companies. Maybe you should take an economics course. Like Asimov once said about our society “Anti-intellectualism has been a constant thread winding its way through our political and cultural life, nurtured by the false notion that democracy means that 'my ignorance is just as good as your knowledge.” In this case it’s your ignorance.
Dont let them sell ANY policies in CA
47 years of insurance , I want my money back
Ah…ummm…
I’m thinking that there actually 330 million Americans that could start National Healthcare, National Casualty Insurance AND a much improved Social Security, among other urgent things.
All it takes is for us to
Wake up
I guess Jake won’t be making any commercials about this. Insurance is a huge scam. You pay premiums your whole life, they invest that money and make more, and then they simply walk away once it becomes time for you to make claims. They should have to give you all your money back if you never make a claim.
The Free Market would like to inform you that your money is no longer important to them.
Screw Jake and State Farm. Why doesn't California cancel their licence to do business here, any business including auto.
It must've been nice to live in a mini mansion for almost 50 years, cry me a river.
Owning homes in wildfire prone area.