California homeowners will have to fund half of high-risk insurer’s $1 billion ‘bailout’.. Yes, you.....

LegitDuner

LegitDuner

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This is pure insanity...
calmatters.org

California homeowners will have to fund half of high-risk insurer's $1 billion ‘bailout’

The plan will impose a special charge on homeowners and insurance companies to cover $1 billion in L.A. wildfire costs
calmatters.org calmatters.org

After saying it would run out of funds by March, California’s last-resort fire insurance provider will impose a special charge of $1 billion on insurance companies — which will in turn pass the costs along to homeowners

Most California home and fire insurance customers will see temporary fees added to their insurance bills as part of the charge, known as an assessment — marking the first time insurance companies will have imposed an assessment directly on customers
 
I wonder if this will dampen home prices in SoCal. Previous insurance costs didn't. Rising interest rates didn't. The nearly 50% increase in the last 5 years didn't.
 
85% of the homes in Pacific Palisades were on the FAIR plan.

I'd have to reconsider where I lived if Insurance was so fucking ridiculous...
 
Almost like the Insurance companies KNEW it was a stupid risk, but leave it up to the State to take on a unsupportable Risk...I mean hell, it's not their money, they know they can just grab it from someone else. The good news is that the insurance companies are probably going to fight this..... the STATE took the risk, they can shoulder the burden. I mean shit a Billion is nothing to Gavin, there's 25 of them they can't find that was supposed to go to the homeless.
 
Crusty said:
85% of the homes in Pacific Palisades were on the FAIR plan.

I'd have to reconsider where I lived if Insurance was so fucking ridiculous...
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The 85% is the number of policies that have increased since last year, which make sense as insurance companies have pulled back from coverage.

www.insurancebusinessmag.com

Revealed - California FAIR plan faces $4.8 billion exposure from LA fires

Figure could grow as the wildfires continue to cause devastation
www.insurancebusinessmag.com www.insurancebusinessmag.com

The FAIR Plan’s potential exposure is over $4 billion for the Pacific Palisades Fire and more than $775 million for the Eaton Fire, according to an update provided to BestWire. The FAIR Plan insures about 22% of the structures affected by the Pacific Palisades Fire and 12% of those impacted by the Eaton Fire, based on the Cal Fire incident maps.
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Nothing fair about the FAIR plan. It's a terribly run state insurance. Why does it need a $1B bailout...? Average cost is $3200/year. Multiply that by the number of subscribers (451,000), we get to almost $1.5B in annual revenue.

This fire is the most costly on record, and estimates put about $4B on the FAIR plan...

But fawk, they only have 133 employees. Even if they're all paid an average of $150k/year, where's all this money going to? Anyone gonna ask the question on why crazily overpriced state insurance needs a bailout despite soaring revenues? Why does an agency, who's only job is to payout on fires, have only $200M or whatever in cash reserves (AKA, 1.7 months of revenue) after 2 of the wettest years on record in this state? The $5.7B in "reserves" is actually just re-insurance, which means they used revenue to buy this policy from another risk-taker.

Again: WHERE DID ALL THE MONEY GO!?!
 
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Rockwood said:
Nothing fair about the FAIR plan. It's a terribly run state insurance. Why does it need a $1B bailout...? Average cost is $3200/year. Multiply that by the number of subscribers (451,000), we get to almost $1.5B in annual revenue.

This fire is the most costly on record, and estimates put about $4B on the FAIR plan...

But fawk, they only have 133 employees. Even if they're all paid an average of $150k/year, where's all this money going to? Anyone gonna ask the question on why crazily overpriced state insurance needs a bailout despite soaring revenues? Why does an agency, who's only job is to payout on fires, have only $200M or whatever in cash reserves (AKA, 1.7 months of revenue) after 2 of the wettest years on record in this state? The $5.7B in "reserves" is actually just re-insurance, which means they used revenue to buy this policy from another risk-taker.

Again: WHERE DID ALL THE MONEY GO!?!
Click to expand...
Insert DOGE Here...
 
MGMFRP said:
No, in Socal, bought the building in 1998. Never once made a claim or had a claim against us. also not in a fire zone.
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Most of the carriers are getting out of the commercial insurance market....the costs are insane. Have a fire.....not only the building, contents, loss of revenue, then add on the fines from the state and feds for the water run off. Haz mat clean up, etc. etc. Even raising your premium 400% is probably just covering costs. This state/country is in bad shape.... this Covid stuff, released by Fauci and the Dems.... F'd us up.
 
MGMFRP said:
No, in Socal, bought the building in 1998. Never once made a claim or had a claim against us. also not in a fire zone.
Click to expand...

So fucked up.

I've been exploring getting outta Ca for awhile now. I'm starting to narrow down the choices.

Fuck Newsucm.
 
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