Our OC former house had a non-renewal last April. We were in the process of moving out of state, so the pressure was not as great for us as for many other local and state residents of CA. That said, the conclusion that we had was that the insurance companies did not adequately provide for reserves in the case that the reinsurers increase their rates. However, the CA insurance commissioners through a previous proposition made it tougher for the Farmers, State Farm and others from increasing their profit margins, which has sunk the ship in CA. The Fair Plan may be overwhelmed if the wildfires increase again. SO, my advice is to move out of state to where property taxes, income taxes and property insurance are more moderate. Our insurance costs where we live now are a third of what we paid in OC. BTW, our property taxes will be a third of what we paid in OC at our previous home. Sorry, but CA has absolutely no future for the middle class.
100% We need a free market to operate without additional government restrictions and tyranny. Fraud is already illegal and those laws are sufficient, so just let companies compete and may the best actuaries win.
The problem is these insurance companies are greedy and they're messing with the numbers. The problem is we don't have enough eyes over-watching how the numbers are crunched and any rate increase gets approved no matter what without any push backs.
He has it exactly backwards. Most of the homes forced into the fair 10x higher payments) are not!! Affluent and in fact moved out into the woods because it WAS more affordable. Even someone who has would shudder at their insurance going from 250$ a month to 2,000$ a month.
The bigger problem has already started with insurance companies not renewing any policy in CA for certain businesses. Watch all kinds of small businesses crumble and close within a year. I guarantee this will happen.
My shop ins. was not renewed, 15-18 other companies would not insure my line of work (auto repair with machining service), my ins. broker found an out-of state non-conforming policy, and I had to pay for the full year upfront or 24.99% rate for monthly, with a 25% fee if I cancel if I find another company.. my rate went from 2200yr to 6450yr. , my hrly shop rate just went up to cover it. side note, I'm 63 and younger generation is not interested in engine rebuilding, when I close up and retire, whos going to do that valve job for the local repair shop or do-it yourselfer? I'm very busy with other shops retiring, I'm in a dieing trade.. good luck getting a car fixed in 20yrs
California doesn't want ppl owning a car. They want their worker ants at the mercy of the State for where they go and when. And you Boomers created the current California. So don't spit on the younger generations, they are just trying to slog thru the ocean of s*** you Boomers made.
Lol someone did that work before you and someone will do it long after you're gone. Don't kid yourself, you are easily replaced. If you figured out how to do it then someone else can.
As a home owner & FAIR plan user, my biggest concern beyond paying too much money, is if I were to sell my home, who will buy it & would they even consider buying a home NO ONE will cover them! Im sitting on a potential ZERO VALUE HOME!
If this guy REX would be an Professor for insurances in the University, I would be in his class. He can explain the insurance topic excellent. Easy to understand with him.🎉🎉🎉🎉
I live in the desert with no flood risk and no fire risk. Never filed a claim in 35 years. AAA raised my rate 30% this year. CA earthquake insurance was raised 15% on top of that. "Waiter, check please."
I do NOT have any type of home insurance for the past 26 years. If you have never file a claim, you don’t need insurance. I save an average of $2,500 a year multiply by 26 years = $65,000….put that in a dividend stock and it become $100,000. Use that to fix whatever you want!
@@tsparky9196 …..you mean a fire that destroyed your entire house? Even insurance won’t pay you that much if your house burn down. Go to Paradise, California fires and see how insurance screwed the people!! FYI: we have a 2nd house on the Kailua Kona side of the Big Island, Hawaii….and it is worth over $1.4 million….we don’t have insurance on that as well. Both houses are paid for so we are NOT required to have insurance….
Sitting at my desk at the CFP watching this while processing all these applications for coverage. The current situation we are in can best be compared to CFP being a little corner store (7-11) surrounded by large grocery chains, and all those grocery stores go out of business. Where are all those people going to get their food now? At the 7-11? Something needs to be done about this issue because it’s already bad.
You have a lobbyist on your show. He never talked about the operation efficiency of the insurance companies: - what percentage of the total premium collected are actually used to cover claims - investment gains and losses on the premium in hand ? - secondary investment marketplace return ? (lloyds london) - what percentage goes to staff and fat managements ? - what percentage goes to reinsurance ? Without details, no way to determine if insurance companies lose money for stupid reasons, ie: invest in FTX right before it goes bust Remember, even companies with monoploy position and resources can still struggle due to incompetency and corruption, you can find plenty of these in China or Peru.
That's crazy an insurance company would ask for a small 6% increase, and the commissioner says to reduce your rates by 29%! No business could survive that!
@@living2day617 really? A quick search shows that Floridas prop tax rate is less than California (small amount but still less) and there’s no state income tax.
My insurance with farmers more than doubled. Paid $1200 for home insurance on 2023 and now to renew my policy my cost if $2500. I dont know how this is sustainable. Why arent more people speaking out and asking the state government for a correction
I'm paying nearly double what you are paying because of the size of my home. It's only going to go up once the regulations are updated. I'm also with Farmers.
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California. Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying.
Our ins claimed our roof had green algae growing on our roof and sent us satellite images tinted green ..3 contractors giving us a price on a new roof all said there is no algae on our roof and I have no idea how algae could survive the California heat and sunshine and all commented on what good shape our roof was for being 35 yrs old
omg the same exact thing just happened to me--the roof is totally fine then they have these doctored images colored green--fake! This seems like fraud to me?
The "people" don't care anywhere.Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California. Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying....
Leaky roofs are generally not covered by insurance. Policies read sudden and unforeseen events so say the wind rips your shingles off and wind driven rain damages your property.
I'm in a "concrete area" in San Diego. My premium with Farmers has more than doubled in three years. That's for a policy that just covers contents plus liability. I've never had a claim.
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California. Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying.
Wait until you do yard work and get a notice that your policy has been canceled or non renewal because your insurance company flew a drone over your house and discovered "hazards". This is happening in California without notification or appeal or corrective options.
I am in Apple Valley out here in the High Desert and I LOVE this channel so I watch while I do my nursing notes and there was this delightful insurance expert lady who was detailing the upcoming insurance catastrophe on the horizon for homeowners and I thought, "well, I am so glad I don't have to worry about that!". Well, can I tell you that sitting in my mailbox was a notice that Arrowhead Exchange had bid farewell to The Golden State and within 2 weeks I was stuck with the Fair Plan. Thank you for your content!
The deeper problem is that California allows people to build houses in fire and flood areas. Why do they that? To get the property taxes. And then FEMA JUMPS IN to payout aid for people who built in. Fire area then in summer, their houses burn , then in spring the rains flood the same homeowners’ houses
We have the same problem in Florida. The government, insurance companies, and banks have made a complete mess of this. Make it illegal for banks to demand that homeowners have to have home insurance, and this problem goes away.
I'm a homeowner. I live in the People's Republic of California. That said I've been very lucky( so far and ( with my insurance end of parentheses. My insurer is State Farm. They insure both my car and my home. For both it's just $92 a month. I'm not kidding. I have a $10,000 deductible on my homeowners insurance. And I drive less than 3,000 miles a year. So I'm sure I'm the exception and not the norm. By the way this is a great Channel!
If an insurance business makes good decisions, it won't experience losses. The government has to get out of regulating these companies and allow them to freely compete.
Also the liability issues. Our broken justice system that lets frivolous lawsuits proceed. I know a small business owner that had to fight in court when a thief broke into his warehouse under construction, ignored the yellow tape blocking the staircase off, and fell from an upper floor. The man who broke into the building at night sued the owner for his injuries. Why was that even allowed ? If a person trespasses, or breaks in to commit a crime, they should not be allowed to sue. The same ridiculousness of a family suing the restaurant when their son drowned after being pushed off the dock into the lake by his “friends”. Who is responsible for his death ? Not the restaurant. The friends who pushed him in and watched him drown. Or in a small sad part, the adult who never learned to swim, and his parents who never taught him to swim or be more discriminating in choosing his friends. But still, his friends are to blame.
@ohsweetmystery What happens when insurance companies plan for a 1 in 500 year event that happens 3 times over a decade? Where does the math go when it turns out your historical models are not capturing the risk of today? What happens when you realize your predictive models, when viewed retrospectively, turned out to be too conservative? What happens when the frequency and severity of hail storms changes, with roofing standards still stuck in the 90's? Coastal communities are a prime example of this.
How is it the insurance companies claim they are pulling out because the insurance commissioner won't allow them to raise rates, yet myself, and many others I've spoken with or read online have had their state farm homeowners policies double in the last 2-3 years? They have raised rates more than a few percentage points. I don't even live in a high risk area.
One important part people leave out in this insurance crisis is the government inflating home prices and home owners in California rigging the game to prop up their home prices. A home in the ghetto in California; which would be a 150k home in the Midwest, is like 750k-1 million starting. Insurance companies need to raise rates!
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California. Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED.
@@raybod1775house value went up as well. You can't have the same price for both a $400k house vs an one million dollar house. You can probably get lower insurance if you write on the policy that your house is only worth 400k instead of 1m. But if your house gets burn down, you will get only 400k
The way it was explained to me that I am paying for less coverage and it’s costing me 3 times as much. It does not cover replacement cost. The dollar figure is less than it would cost for us to replace. If insurance companies rates are regulated than how can the fair plan charge triple the premium?
What can our Legislature do to fix this, even if the fix is only temporary pending issuance/approval of new final insurance regs? Can the Legislature require the Insurance commissioner to apply the State's current earthquake regs on a short term basis to provide insurance companies with emergency rate relief pending resolution of the approval of the changes recently recommended by the Commissioner?
Insurance company’s have been quite happy to take insurance preniums for years and years, but as soon as they have to pay out they balk and then don’t want to renew. For the camp fire mistake, all of us are paying for it. But I don’t see pg and E paying for the high insurance rates now. At this rate, if people can leave California they will be… less taxes, etc. and what about those on fixed income, disability. The insurance industry is forcing more people to be homeless. Plus every insurance person I’ve met, they live in a bigger and better house than mine due to profit of the companies they work for
These insurance companies are doing exactly what Uber is doing whenever the people want accountability. They threaten to leave. Let them leave so new insurance companies can grow.
Maybe I'm in the minority here, but I still have trouble trusting insurance companies to be honest with the public. With so many of us already paying sky-high insurance rates and rarely or never making claims, it's hard to imagine that allowing insurers to raise rates would be a big help to Californians who are already struggling in the current economy. Wouldn't more government regulations help, not less.
This guy is a shill for insurance companies. Most people's policies have doubled, tripled or been canceled in the last five years, while less than 5% have ever filed a homeowners insurance claim.
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California. Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying.
Higher insurance or no insurance because people are living in dangerous area, or laws/regulations, or and house value increases, so when something, they have to pay out more.
Rex is part of the swamp, my insurance went from $2300 to $4000 . Maybe criminalize insurance adjusters or allow people to go uninsured on their loans , at that point the corruption will end and the premiums will go down
What I don't get is how folks can continue to afford home ownership in California. Taxes, utilities, insurance is forcing my hand and I'm foldin'@@FR-tb7xh
I sell home insurance as my job. Why would the premium go down. The cost of parts and labor have skyrocketed. When people bitch about the premium I ask them if the value of their home as gone up. Of course it has.
Even in California with the new mandatory $150,000 Enviromental Engineering Accessment, to be sure the New Home complies with ALL the new statutes of the Feel Good Bill about Climate Change that past last year? LOL. What you said is true. Learned Helplessness. Folks will be forced to rebuild with their own barehands, me thinks. Becuase when the dust settles after each catasrophe, the things of Real Value remain.
It will cost you a lot to get started. Then after 5 years of arguing, you lose and get nothing. Then you are black balled and can't get insurance because you are vexatious claimant.
Can someone explain this to me like I’m 5? I understand that people pay a ton into insurance, the insurance makes great money from high premium costs. Something happens and insurance no has to do their end of the bargain and the leave. What am I missing?
My auto policy has increased significantly for no reason other than the representative stating, in a nutshell, that annually insurance companies go through a review of the years claims/liabilities and increase prices to their customers depending on how high, all at no fault to the customer. I can have zero at fault accidents or tickets and STILL get a price increase… when I shopped around looking for different quotes in an attempt to lower my auto insurance payments all companies were higher and ALL said they no longer do home or renters policies…. How do we afford to live????
Insurance it’s one way Bussines the insurance they very happy when you pay their increase s for no reason other then greed for 10 15 20 30 years whith no claim s they very happy there but you the insurer needs to claim they come up all the run Ning around in the book s and out of book s So they don’t have to pay what you being paying for the longest time in their book Let them Get out of kilifornia so some others less greedy and abusive and corrupt Ed can make Bussines
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Our OC former house had a non-renewal last April. We were in the process of moving out of state, so the pressure was not as great for us as for many other local and state residents of CA. That said, the conclusion that we had was that the insurance companies did not adequately provide for reserves in the case that the reinsurers increase their rates. However, the CA insurance commissioners through a previous proposition made it tougher for the Farmers, State Farm and others from increasing their profit margins, which has sunk the ship in CA. The Fair Plan may be overwhelmed if the wildfires increase again. SO, my advice is to move out of state to where property taxes, income taxes and property insurance are more moderate. Our insurance costs where we live now are a third of what we paid in OC. BTW, our property taxes will be a third of what we paid in OC at our previous home. Sorry, but CA has absolutely no future for the middle class.
The "Fair Plan" is anything but fair.
The best way to fix it would be for the government to get out of the way.
100% We need a free market to operate without additional government restrictions and tyranny. Fraud is already illegal and those laws are sufficient, so just let companies compete and may the best actuaries win.
We're from the government and we're here to help.
The problem is these insurance companies are greedy and they're messing with the numbers. The problem is we don't have enough eyes over-watching how the numbers are crunched and any rate increase gets approved no matter what without any push backs.
He has it exactly backwards. Most of the homes forced into the fair 10x higher payments) are not!! Affluent and in fact moved out into the woods because it WAS more affordable. Even someone who has would shudder at their insurance going from 250$ a month to 2,000$ a month.
The bigger problem has already started with insurance companies not renewing any policy in CA for certain businesses. Watch all kinds of small businesses crumble and close within a year. I guarantee this will happen.
These tyrants been working hard for decades to make sure they cover all the bases
State Farm bailed from my previous industry 2 years ago all together in Oregon. Left my business in the lurch.
@@saintapathy what businesses?
@nynoah K-12 tutoring. Falls into the childcare/education industry regarding insurance classification.
This guy is great at explaining things!
My shop ins. was not renewed, 15-18 other companies would not insure my line of work (auto repair with machining service), my ins. broker found an out-of state non-conforming policy, and I had to pay for the full year upfront or 24.99% rate for monthly, with a 25% fee if I cancel if I find another company.. my rate went from 2200yr to 6450yr. , my hrly shop rate just went up to cover it.
side note, I'm 63 and younger generation is not interested in engine rebuilding, when I close up and retire, whos going to do that valve job for the local repair shop or do-it yourselfer? I'm very busy with other shops retiring, I'm in a dieing trade.. good luck getting a car fixed in 20yrs
The next generation in 20 years won't be able to afford one accept through inheritance via their great grandparents (aka u boomers).
California doesn't want ppl owning a car. They want their worker ants at the mercy of the State for where they go and when.
And you Boomers created the current California. So don't spit on the younger generations, they are just trying to slog thru the ocean of s*** you Boomers made.
Lol someone did that work before you and someone will do it long after you're gone. Don't kid yourself, you are easily replaced.
If you figured out how to do it then someone else can.
Given the situation that you've described, no generation would want to do that. The market is out of control.
As a home owner & FAIR plan user, my biggest concern beyond paying too much money, is if I were to sell my home, who will buy it & would they even consider buying a home NO ONE will cover them! Im sitting on a potential ZERO VALUE HOME!
True, the value of only goes down as the CA economy and crime get worse. Get out when you can.
Correct
Remember, the WEF promised we would own nothing and “be happy.”
It’s all part of the plan.
Homes shouldn't be an investment. Currently: 16m vacant homes, 3m homeless, 4m actual demand.
@downrightmike you are either from California or Canada because you dont know what the he'll you are talking about!
If this guy REX would be an Professor for insurances in the University, I would be in his class. He can explain the insurance topic excellent. Easy to understand with him.🎉🎉🎉🎉
I live in the desert with no flood risk and no fire risk. Never filed a claim in 35 years. AAA raised my rate 30% this year. CA earthquake insurance was raised 15% on top of that. "Waiter, check please."
I do NOT have any type of home insurance for the past 26 years. If you have never file a claim, you don’t need insurance. I save an average of $2,500 a year multiply by 26 years = $65,000….put that in a dividend stock and it become $100,000. Use that to fix whatever you want!
@@CanTho2022 You mean replace a 650,000 home?
@@tsparky9196 …..you mean a fire that destroyed your entire house? Even insurance won’t pay you that much if your house burn down. Go to Paradise, California fires and see how insurance screwed the people!! FYI: we have a 2nd house on the Kailua Kona side of the Big Island, Hawaii….and it is worth over $1.4 million….we don’t have insurance on that as well. Both houses are paid for so we are NOT required to have insurance….
Sitting at my desk at the CFP watching this while processing all these applications for coverage.
The current situation we are in can best be compared to CFP being a little corner store (7-11) surrounded by large grocery chains, and all those grocery stores go out of business. Where are all those people going to get their food now? At the 7-11?
Something needs to be done about this issue because it’s already bad.
You have a lobbyist on your show.
He never talked about the operation efficiency of the insurance companies:
- what percentage of the total premium collected are actually used to cover claims
- investment gains and losses on the premium in hand ?
- secondary investment marketplace return ? (lloyds london)
- what percentage goes to staff and fat managements ?
- what percentage goes to reinsurance ?
Without details, no way to determine if insurance companies lose money for stupid reasons, ie: invest in FTX right before it goes bust
Remember, even companies with monoploy position and resources can still struggle due to incompetency and corruption, you can find plenty of these in China or Peru.
Well, there is a sign that reads "The Epoch Times" in the background. That was my first red flag to further scrutinize the information provided.
That's crazy an insurance company would ask for a small 6% increase, and the commissioner says to reduce your rates by 29%! No business could survive that!
They could if the insurance awards were fixed to pre-disaster numbers. Contractors and lawyers are using the courts to legally steal.
Another reason to MOVE OUT OF THAT STATE
Why would you move and miss seeing how society degrades in real time?
@@living2day617 really? A quick search shows that Floridas prop tax rate is less than California (small amount but still less) and there’s no state income tax.
@@keithfoster5329 how does Florida make money then?
The weather in California is so nice. It would be hard to find another state with similar weather.
@@1HeatWalk I didn’t say they don’t tax these things, the rate is just less. California spends like drunken dipshits. Not hard to understand.
My insurance with farmers more than doubled. Paid $1200 for home insurance on 2023 and now to renew my policy my cost if $2500. I dont know how this is sustainable. Why arent more people speaking out and asking the state government for a correction
I'm paying nearly double what you are paying because of the size of my home. It's only going to go up once the regulations are updated. I'm also with Farmers.
State government will only make it worse…
Fires and floods are driving up insurance costs.
The goal of the socialist left has always been to destroy the middle class. They hate the Bourgeoisie
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California.
Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying.
Our ins claimed our roof had green algae growing on our roof and sent us satellite images tinted green ..3 contractors giving us a price on a new roof all said there is no algae on our roof and I have no idea how algae could survive the California heat and sunshine and all commented on what good shape our roof was for being 35 yrs old
omg the same exact thing just happened to me--the roof is totally fine then they have these doctored images colored green--fake! This seems like fraud to me?
California such an amazingly beautiful place but the people are destroying it.
Correction, the demoncrat government is "destroying" California, you either don"t live in Kalifornia or you just moved there?🤔😂
The "people" don't care anywhere.Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California.
Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying....
Leaky roofs are generally not covered by insurance. Policies read sudden and unforeseen events so say the wind rips your shingles off and wind driven rain damages your property.
This concise authoritative synopsis is greatly appreciated.
Our homeowners insurance bill showed up today, from $3600 a year to $5000 a year.
I'm in a "concrete area" in San Diego. My premium with Farmers has more than doubled in three years. That's for a policy that just covers contents plus liability. I've never had a claim.
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California.
Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying.
Wait until you do yard work and get a notice that your policy has been canceled or non renewal because your insurance company flew a drone over your house and discovered "hazards". This is happening in California without notification or appeal or corrective options.
I am in Apple Valley out here in the High Desert and I LOVE this channel so I watch while I do my nursing notes and there was this delightful insurance expert lady who was detailing the upcoming insurance catastrophe on the horizon for homeowners and I thought, "well, I am so glad I don't have to worry about that!". Well, can I tell you that sitting in my mailbox was a notice that Arrowhead Exchange had bid farewell to The Golden State and within 2 weeks I was stuck with the Fair Plan. Thank you for your content!
Thanks 😊 ! Pls Join our CA Insider newsletter: bit.ly/Cainsidernews
This is such a tragedy. I had to increase the rent on my house because I had to have a FairPlan policy. And people blame homeowners for rent increases
The deeper problem is that California allows people to build houses in fire and flood areas. Why do they that? To get the property taxes. And then FEMA JUMPS IN to payout aid for people who built in. Fire area then in summer, their houses burn , then in spring the rains flood the same homeowners’ houses
Allow to build? Not a fan of private property?
We have the same problem in Florida. The government, insurance companies, and banks have made a complete mess of this.
Make it illegal for banks to demand that homeowners have to have home insurance, and this problem goes away.
I'm a homeowner. I live in the People's Republic of California. That said I've been very lucky( so far and ( with my insurance end of parentheses. My insurer is State Farm. They insure both my car and my home. For both it's just $92 a month. I'm not kidding. I have a $10,000 deductible on my homeowners insurance. And I drive less than 3,000 miles a year. So I'm sure I'm the exception and not the norm. By the way this is a great Channel!
Oh yeah? If you live in the PRC, where are your modern cities? Safe streets? Highspeed rails? Ultra cheap food energy? 😂😂😂
It is gov the people can no longer afford Gov employees or Teachers
Because of replacement costs! Insurance companies are private businesses, they have to make profits. They are leaving other states too.
If an insurance business makes good decisions, it won't experience losses. The government has to get out of regulating these companies and allow them to freely compete.
Also the liability issues. Our broken justice system that lets frivolous lawsuits proceed. I know a small business owner that had to fight in court when a thief broke into his warehouse under construction, ignored the yellow tape blocking the staircase off, and fell from an upper floor. The man who broke into the building at night sued the owner for his injuries. Why was that even allowed ? If a person trespasses, or breaks in to commit a crime, they should not be allowed to sue. The same ridiculousness of a family suing the restaurant when their son drowned after being pushed off the dock into the lake by his “friends”. Who is responsible for his death ? Not the restaurant.
The friends who pushed him in and watched him drown. Or in a small sad part, the adult who never learned to swim, and his parents who never taught him to swim or be more discriminating in choosing his friends. But still, his friends are to blame.
@ohsweetmystery What happens when insurance companies plan for a 1 in 500 year event that happens 3 times over a decade? Where does the math go when it turns out your historical models are not capturing the risk of today? What happens when you realize your predictive models, when viewed retrospectively, turned out to be too conservative? What happens when the frequency and severity of hail storms changes, with roofing standards still stuck in the 90's? Coastal communities are a prime example of this.
Finally, someone who can explain what’s happening with insurance, other than Newsom and the political environment in this state……
Just move out of California and you dont have to deal with all these problems.
California going down.
How is it the insurance companies claim they are pulling out because the insurance commissioner won't allow them to raise rates, yet myself, and many others I've spoken with or read online have had their state farm homeowners policies double in the last 2-3 years? They have raised rates more than a few percentage points. I don't even live in a high risk area.
One important part people leave out in this insurance crisis is the government inflating home prices and home owners in California rigging the game to prop up their home prices. A home in the ghetto in California; which would be a 150k home in the Midwest, is like 750k-1 million starting. Insurance companies need to raise rates!
The Californian State Insurance Agency needs to be RE-Regulated or we will CONTINUE to go down
But prices will go up significantly.
California has too many fires, floods and earthquakes, too many loses. Insurance costs will continue to go up for everyone living along the coasts.
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California.
Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED.
@@Only1JoytotheWorld: been tried already. Cali folks love Newsom. Last recall failed. Nothing will change.
@@raybod1775house value went up as well. You can't have the same price for both a $400k house vs an one million dollar house. You can probably get lower insurance if you write on the policy that your house is only worth 400k instead of 1m. But if your house gets burn down, you will get only 400k
What about RE-INSURANCE? Insurance companies are also insured from huge losses to prevent them from footing the entire costs. What about that ?
Can somebody help me better understand what the old rules are that the guest is referring to, and what the problems are?
The way it was explained to me that I am paying for less coverage and it’s costing me 3 times as much. It does not cover replacement cost. The dollar figure is less than it would cost for us to replace. If insurance companies rates are regulated than how can the fair plan charge triple the premium?
Imagine having a policy with State Farm for 20 years and it's no longer renewed...... Maybe drop the newly added 3%ers.
My home ins went from 1820, to 3000, to 9000. In 3 yrs.
I asked why. Answer was basically: your house is one year older.
Now on FAIR.
How did someone living on a cliff get insurance in the first place?
Because of 0% interest rates and a stable bond market.
@@nutterbutter7869 ohhh true
Why aren't insurance companies getting their money back from those who were responsible for the fires? No one is reporting about this subject.
My Farmers plan went $1400 to $3777.00 this month, and all my neighbors are complaining of the same.
"The insurance of last resort" reminds me of the 1985 episode of the Twilight Zone "The Card", with Susan Blakely and Bill Atherton .
Not as bad as Florida where you can’t even get insurance. I have home insurance and it’s not gone up that much so far.
This guy knows his stuff
if the bank owns 60% of your property the bank needs to pay 60% of the insurance.
LMAO. Cool I just bought a brand new car. Put 0 down. Made my first payment. I think I own 1% of it. So the bank should pay 99% of my car insurance?
@@BCNeil yes, but only the comprehensive/collision insurance since the bank owns it the bank has the responsibility.
432 thousand homes currently insured by the FAIR plan in California, and he considers that a "very small" number?
What can our Legislature do to fix this, even if the fix is only temporary pending issuance/approval of new final insurance regs? Can the Legislature require the Insurance commissioner to apply the State's current earthquake regs on a short term basis to provide insurance companies with emergency rate relief pending resolution of the approval of the changes recently recommended by the Commissioner?
Insurance company’s have been quite happy to take insurance preniums for years and years, but as soon as they have to pay out they balk and then don’t want to renew. For the camp fire mistake, all of us are paying for it. But I don’t see pg and E paying for the high insurance rates now. At this rate, if people can leave California they will be… less taxes, etc. and what about those on fixed income, disability. The insurance industry is forcing more people to be homeless. Plus every insurance person I’ve met, they live in a bigger and better house than mine due to profit of the companies they work for
These insurance companies are doing exactly what Uber is doing whenever the people want accountability. They threaten to leave. Let them leave so new insurance companies can grow.
Guess where the utilities get the money back they paid out on fires. That’s right. The ratepayers. That’s you.
This will force people to sell their homes but how will the buyers get insurance.
They won’t. Corporations like blackrock will come in and pay cash at 10cents on the dollar. Then turn them into rentals.
you will own nothing and you will be happy
Maybe I'm in the minority here, but I still have trouble trusting insurance companies to be honest with the public. With so many of us already paying sky-high insurance rates and rarely or never making claims, it's hard to imagine that allowing insurers to raise rates would be a big help to Californians who are already struggling in the current economy. Wouldn't more government regulations help, not less.
This guy is a shill for insurance companies. Most people's policies have doubled, tripled or been canceled in the last five years, while less than 5% have ever filed a homeowners insurance claim.
Okay but your homes doubled in value
Please sign THE CURRENT RECALL PETITION for Gavin Newsom. Rescue California.
Stop talking, TAKE ACTION! I'm trying to get signatures from our Latino residents, but I don't speak Spanish. The majority (Latino) of Californians HAVE TO GET INVOLVED. I'm trying.
Higher insurance or no insurance because people are living in dangerous area, or laws/regulations, or and house value increases, so when something, they have to pay out more.
Home values doubling has no impact on home replacement costs. So insurance should stay the same
@@Only1JoytotheWorld we tried that already. Didn’t work
Feel sorry about poor insurance companies....
Rex is part of the swamp, my insurance went from $2300 to $4000 . Maybe criminalize insurance adjusters or allow people to go uninsured on their loans , at that point the corruption will end and the premiums will go down
Ummmm, what don’t you get about this entire presentation? It’s the most regulated industry in the nation, and if anything, you’re paying too little!
What I don't get is how folks can continue to afford home ownership in California. Taxes, utilities, insurance is forcing my hand and I'm foldin'@@FR-tb7xh
I agree.
I sell home insurance as my job. Why would the premium go down. The cost of parts and labor have skyrocketed. When people bitch about the premium I ask them if the value of their home as gone up. Of course it has.
@@TheMancYank Exactly!
just save your money it's cheaper to rebuild than pay for insurance
Even in California with the new mandatory $150,000 Enviromental Engineering Accessment, to be sure the New Home complies with ALL the new statutes of the Feel Good Bill about Climate Change that past last year? LOL. What you said is true. Learned Helplessness. Folks will be forced to rebuild with their own barehands, me thinks. Becuase when the dust settles after each catasrophe, the things of Real Value remain.
If you insurance is not willing to pay for damages, get an attorney and Sui them.
It will cost you a lot to get started. Then after 5 years of arguing, you lose and get nothing. Then you are black balled and can't get insurance because you are vexatious claimant.
Class action lawyers are eagerly awaiting the results ;,no need to retain, 'get' and 'sue'
Can someone explain this to me like I’m 5? I understand that people pay a ton into insurance, the insurance makes great money from high premium costs. Something happens and insurance no has to do their end of the bargain and the leave. What am I missing?
My auto policy has increased significantly for no reason other than the representative stating, in a nutshell, that annually insurance companies go through a review of the years claims/liabilities and increase prices to their customers depending on how high, all at no fault to the customer. I can have zero at fault accidents or tickets and STILL get a price increase… when I shopped around looking for different quotes in an attempt to lower my auto insurance payments all companies were higher and ALL said they no longer do home or renters policies…. How do we afford to live????
So technical…. 😮🌎
Just one more topic to add to the list of government-created problems in California.
What % of CA have earthquake insurance?
Easy. Drop your insurance.
Your 400 sqft condo cost $2 million, of course insurance is going to be a fortune.
Where is Newsom? Oh, he is too busy getting fast food workers a raise. Dude has no glue!
Too bad
Sounds like CA is a fire or earthquake away from major disaster
State farm has always been sleazy. They take your money, gamble in the stock market and if they didn't gamble well, well you lose your coverage.
California should just provide state homeowner insurance and raise taxes on those who stay. They don't need these private insurance companies.
lol yeah 👍 more government control . They run a 78 billion dollar deficit. They’re great at running business.
No one in their right mind wants government deciding who gets paid and who doesn't.
Lol
Insurance it’s one way Bussines the insurance they very happy when you pay their increase s for no reason other then greed for 10 15 20 30 years whith no claim s they very happy there but you the insurer needs to claim they come up all the run Ning around in the book s and out of book s So they don’t have to pay what you being paying for the longest time in their book Let them Get out of kilifornia so some others less greedy and abusive and corrupt Ed can make Bussines
Very informative talk. However, does this channel have anything to do with Epoch Time, whose name is on the board in the background?