Members phkrause Posted June 6, 2023 Members Share Posted June 6, 2023 Decisions by two major insurers to stop offering new homeowner policies in California highlight the growing swath of America that's becoming close to uninsurable. Why it matters: Sea-level rise, wildfires and other climate-related disasters are driving up insurance costs in California, Florida, Louisiana and elsewhere, Axios' Andrew Freedman and Nathan Bomey report. The recent moves by State Farm and Allstate to stop offering new homeowner insurance policies in California have kicked off a national conversation on insuring risk in an increasingly perilous climate. "I never thought I would see in my lifetime houses that are flat-out uninsurable," says Robb Lanham, chief sales officer for insurance brokerage HUB Private Client, which works with about 500 insurers. The hardest states to insure homes are, in order, California, Florida, Texas, Colorado, Louisiana and New York, Lanham says. State Farm says it won't accept new applications for California property insurance — including homes and commercial property — "due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market." An Allstate spokesperson confirmed to Axios that it quietly did the same thing in California in 2022 for the same reasons. 🖼️ The big picture: Disastrous wildfires have plagued California in recent years. Multiple hurricanes have hit Florida and Louisiana, racking up losses for insurers at the same time that home-replacement costs have skyrocketed. Studies show climate change is causing larger, more frequent wildfires in the West, and hurricanes with more rainfall. 🔎 Between the lines: Regulations are also contributing to insurance flight. In California, regulators have blocked insurers from raising rates above certain thresholds. Insurers say that has prevented them from covering the costs of their policies. At an average of $1,300 per year, home insurance rates in California "have been artificially low for decades," Insurance Information Institute spokesman Mark Friedlander tells Axios. That means insurers "have been writing business there for this very high risk. And they've been losing money," he said. Go deeper: California insurance market rattled by withdrawal of major companies. Quote phkrause By the decree enforcing the institution of the papacy in violation of the law of God, our nation will disconnect herself fully from righteousness. When Protestantism shall stretch her hand across the gulf to grasp the hand of the Roman power, when she shall reach over the abyss to clasp hands with spiritualism, when, under the influence of this threefold union, our country shall repudiate every principle of its Constitution as a Protestant and republican government, and shall make provision for the propagation of papal falsehoods and delusions, then we may know that the time has come for the marvelous working of Satan and that the end is near. {5T 451.1} Link to comment Share on other sites More sharing options...
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