Fire insurance in cali and “the fair plan”

Sausage450r said:
Spoke with usaa yesterday, i cant even get a supplemental policy from them (they have seriously gone downhill last 10 years)

mercury was a no go as well for fire or supplemental. 
 

the insurance companies are specifically not writing policies in california. Period. Cost to rebuild is insane here ($347/sqft average low end $600 on the high end)
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AAA has my insurance and I've been pretty much immune to these drastic increases so far. But I'm sure my house being in a development in the middle of town less than a mile from the fire station has a LOT to do with that. Might be worth a phone call for you though.

 
I am with AAA and have been pretty much immune as well.  My next-door neighbor has been dropped from two different companies and AAA won't even talk to hm.  Why would my house be ok and theirs not.............freakin weird.

We are considered a fire zone, and we are on a lake.  Not a tree around or vegetation for that matter.

 
Yes, seems strange. Sounds like they are keeping existing policies and not entertaining any new business. My zip code is a fire zone as well. No lake, but I'm in the middle of town and about as urban as it gets for Alpine though.

 
Cookie said:
I am with AAA and have been pretty much immune as well.  My next-door neighbor has been dropped from two different companies and AAA won't even talk to hm.  Why would my house be ok and theirs not.............freakin weird.

We are considered a fire zone, and we are on a lake.  Not a tree around or vegetation for that matter.
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You're an existing customer.  Most companies aren't taking on new policies.  This:

California’s property insurer of last resort told lawmakers that it’s financially unprepared to cover the costs of a major catastrophe in the state.

The plan now faces $311 billion in potential losses, up from $50 billion six years ago, California FAIR Plan president Victoria Roach said in a state legislative hearing Wednesday.

...

The plan can’t raise consumers’ premiums to an amount that would cover a shortfall because state restrictions bar them from factoring the cost of reinsurance into their rates, she said.
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Is the primary reason why.

 
Just paid my AAA bill this week, it is almost double last years. $1300 -> $2400.

I'm not in a fire zone area.

 
$13k for fire this year from the not so fair plan and $2,200 for supplemental, Fridgen rip off, good ole Comifornia screwing the people once again. 

 
This whole deal is strongly making me consider selling and retiring early 

 
Happy said:
My insurance from State Farm doubled this year. From $2000 a year to $4000. I priced around and it was more through the Fair plan, Bamboo plan, etc.

I am in a fire area, but my home is almost fireproof with no wood on the outside of the house. Already had a fire rip through at 2am on a hot WINDY morning.

It surrounded my place, melted my sprinklers, burned my landscaping. 6 neighbors homes burned to the ground. I never called the insurance, I paid to fix (2019). So i've  been lucky. This was called the Hillside Fire.  I'm sure it will double again soon.

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keep that policy as long as you can.  Insurance carriers have more data than ever, and they are using it.  All these fires are considered in their rating and acceptability models moving forward. 

 
Sad part is a lot of this is just zip code driven, you could have a solid cement building and they would cancel you....common sense doesn't come into play when underwriting says to cut 35% of the policies. 

 
Realbadlarry said:
Sad part is a lot of this is just zip code driven, you could have a solid cement building and they would cancel you....common sense doesn't come into play when underwriting says to cut 35% of the policies. 
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We own a concrete building in lakeside and got canceled due to the zip code. Had to change our breaker panels also due to fire hazard. 

 
Bought our home in Alpine 3 years ago. The only insurance we could get was the fair plan. Every year my mortgage has gone up $100 per month because of home owners insurance. So this year I’m $3600 per year more because of insurance hikes. All other insurance companies aren’t writing new contracts so now the fair plan is a monopoly. This is bullshit. How about all the other states that have hurricanes and tornadoes. I mean complete losses but can still get coverage. I on the other hand live in an area where fires ripped through a canyon burning down Homes and am paying for it even though I’m not on the canyon! Seriously looking at Montana. Tired of this California BS.

 
Big_Daddy_Jp said:
Bought our home in Alpine 3 years ago. The only insurance we could get was the fair plan. Every year my mortgage has gone up $100 per month because of home owners insurance. So this year I’m $3600 per year more because of insurance hikes. All other insurance companies aren’t writing new contracts so now the fair plan is a monopoly. This is bullshit. How about all the other states that have hurricanes and tornadoes. I mean complete losses but can still get coverage. I on the other hand live in an area where fires ripped through a canyon burning down Homes and am paying for it even though I’m not on the canyon! Seriously looking at Montana. Tired of this California BS.
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Those people in the other states are seeing and saying the same thing. Their rates are sky rocketing because of the floods. I just saw a report that some markets in Florida are getting flooded (pun not intended) with houses that people are selling because their insurance rates are tripling in one year and they can't afford it. Yep, Montana, Idaho, Texas, Tennessee, the Carolinas are all are looking really good compared to this "great" state.

 
Damn, I wince when I read what you Cali folks are paying!

I got a notice this spring warning that rates were raising significantly this year, and thought it was going to be huge. It actually wasn't too bad. My C8, wife's Acura, my PU, the house, and an umbrella for a total of just over $3K annually. An increase of about $400 over last year.

 
Bought my first house in 1987. Insured it for YEARS. Not one (1) claim. Decided to cancel insurance. My Mom lives in the house, I look at these huge trees hanging over the TOP of this home and with the winds here in TX.............................I got a bad feeling. BUT.........................paid all that money for YEARS and got tired of the expense. If those trees fall on that house, I'll be screwed. Insurance is a complete RIP-OFF. Glad I'm not in CA! Peace

 
The states artificially kept rates low....not allowing the companies to raise them. Then add the Bidenflation of everything and you have a perfect storm. 

 
This insurance problem will continue to affect other states as well.  The cost to rebuild is becoming unaffordable in many states.  Cali and Florida already affected, Orgon and Washington State to be next.  Hurricane states are also on the their target list................

 
I have a 4 unit 1970s rental property in OC- non fire area. 2021 foremost was $1300/yr, 2022 $1400, 2023 $1750…

just got renewal, $3000/yr!!!

no claims, it’s bullshit 

 
Ripster said:
$13k for fire this year from the not so fair plan and $2,200 for supplemental, Fridgen rip off, good ole Comifornia screwing the people once again. 
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same here  my home went from $6k in 2011 up to now $13k  (9k from fair plan, 4k from farmers) paid last year--cant wait to see this years--argh!

 
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