State Farm stops home insurance sales in California

[Roller]

https://www.cnn.com/2023/05/28/business/state-farm-california-insurance-wildfire/index.html

The title refers to home insurance, but the article (and the announcement from State Farm) say this will affect "all business and personal lines property and casualty insurance." Insurance companies have always based premiums on risk and the cost of indemnifying policyholders, but this raises some interesting questions. Is the danger sufficiently high in all parts of California for State Farm to pull out completely? People in areas prone to natural disasters often rebuild after losing everything just because they want to live there. Will this action by State Farm counter that tendency, especially for wildfires, which often recur?

 

[Edd]

Isn’t the case with flood insurance on coastal properties is that the government backs it? Because private companies find it too risky? If so, I’d wonder if the government would step in here. Although coastal floods seem more infrequent than western forest fires.

 

[Eric]

We had a quote from our home from them and they called to inform us of this on Thursday, we could've purchased it but it had to be that day and we're still in the process of selling our home so we couldn't do it. Now we have to go with someone else.

It's a shame but climate change has made California a dangerous place, wildfires are off the charts ever year now. Growing up here you would see them every now and then but it was never like this.

 

[Herdfan]

I have been with Nationwide for 35+ years. Asked them to quote our new home in AZ and they declined. Stated reason was too many fire losses in the area. So I asked my neighbor about how fire can spread across the desert. He explained it wasn't like in CA where a fire can just roll by and engulf everything in its path, but instead the burning embers catch the wind and end up blowing up under eves and catching homes on fire that way.

 

[Yoused]

Like a good neighbor, State Farm is there …

 

[fooferdoggie]

Like a good neighbor, State Farm is there …

if your gay and your neighbor is a trump supporter?

 

[Citysnaps]

It's a shame but climate change has made California a dangerous place, wildfires are off the charts ever year now. Growing up here you would see them every now and then but it was never like this.

Kind of like mass shootings in the US.

Except when I was growing up mass shootings were extremely rare.

 

[Eric]

Kind of like mass shootings in the US.

Except when I was growing up mass shootings were extremely rare.

We could have far more control over mass shootings if we chose to act but both parties have let us down here, Republicans who refuse to acknowledge them and Democrats who refused to act when they had both houses. We are our own worst enemies and the biggest beneficiaries of our inaction are the shooters themselves.

 

[Citysnaps]

We could have far more control over mass shootings if we chose to act but both parties have let us down here, Republicans who refuse to acknowledge them and Democrats who refused to act when they had both houses. We are our own worst enemies and the biggest beneficiaries of our inaction are the shooters themselves.

I think 2A and the Supreme Court had something to do with that. Along with McConnell blocking Obama's Supreme Court justice nomination (Garland).

 

[Herdfan]

I think 2A and the Supreme Court had something to do with that. Along with McConnell blocking Obama's Supreme Court justice nomination (Garland).

It would still be 5-4.