California wildfires

[Lynyrd Skynyrd]

Just heard The CA Insurance Commissioner just told insurance companies that they can no longer drop policies! Gee Clyde, why didn't ya think of that a year ago when they actually started dropping policies? Brilliant again over and above the call of intelligence 

My insurance was cancelled in November, and I'm nowhere near a fire zone. The reasons are that it costs so much to rebuild a house, and with regulation, rates don't reflect the cost.

[xuenchen]

My insurance was cancelled in November, and I'm nowhere near a fire zone. The reasons are that it costs so much to rebuild a house, and with regulation, rates don't reflect the cost.

Yup big problem. They can't seem to balance rising inflated costs with what they need to get for premiums. 

[EXETER]

I really don't think that will work if an insurance company just leaves that entire state. From what I understand some are.

No it won't work in the long run, but that moratorium was only for a one year period.  It's to prevent all the insurance companies making a dash to the exit and to give the Cal Insurance Commission time to work the problem.

Insurance in California is a highly regulated business--as it is in most states.  Insurance companies have to get permission from the Insurance Commission to raise their rates and they have to go to the Commission and justify their need for a rate increase.  By law, they are required to use historical data to justify a rate increase.  So rate increases are few and far between.

But catastrophic fires have been occurring faster than all the statistical models predicted.  So if you just look at what happened in the last 10 or 20 years, that's not a good predictor of what's going to happen in the next 10 or 20.  So the insurance companies are saying that if they can't get rate increases big enough and fast enough to cover the actual losses, they are going to leave the state (or at least the high risk parts). 

In theory, this problem is being fixed.  There was an agreement reached a couple of months ago that will allow insurance companies to raise their rates based not just on historical data, but also to take into account forecasts of catastrophic events in the future.  In return, the insurance companies have to agree to provide insurance in high-risk areas.

[xuenchen]

Never Fear - Relief is HERE!

[Encia22]

MOD NOTE

To all Members:

Please refrain from bringing politics into this topic.

For discussions of that nature please post in Deny Politics.

Thank you

[KrustyKrab]

MOD NOTE

To all Members:

Please refrain from bringing politics into this topic.

For discussions of that nature please post in Deny Politics.

Thank you

It’s unfortunately a political topic whether people like it or not. This place is already fragmented so much that topics go unnoticed. It’s an issue that I think is hurting this site. There’s a lot of forum topics that overlap so much that subject matter gets diluted and goes unnoticed and makes it difficult to navigate, very cluttered in to many different directions. Just being suggestive

[Encia22]

It’s unfortunately a political topic whether people like it or not. This place is already fragmented so much that topics go unnoticed. It’s an issue that I think is hurting this site. There’s a lot of forum topics that overlap so much that subject matter gets diluted and goes unnoticed. Just being suggestive

Yes, and there is now a specific thread for the political side of this sad affair.

https://denyignorance.com/Thread-Politic...e-LA-Fires

It would be better to discuss here only the technical aspects and remember the people who have perished, are suffering and homeless.

[KrustyKrab]

Yes, and there is now a specific thread for the political side of this sad affair.

https://denyignorance.com/Thread-Politic...e-LA-Fires

It would be better to discuss here only the technical aspects and remember the people who have perished, are suffering and homeless.

That’s exactly what I’m talking about. There’s going to be political discussion about suffering and homelessness too. Then what? See what I’m saying?

[Encia22]

That’s exactly what I’m talking about. There’s going to be political discussion about suffering and homelessness too. Then what? See what I’m saying?

It's ok for the political thread to talk about the death and suffering, but we want to keep the politics out of the DI only threads. Obviously, there is always going to be some overlap and we've allowed much to pass under the radar. However, with DP up and running, we'll be keeping a keener eye on proceedings.

I think it best if we don't derail this topic any further.

[KrustyKrab]

It's ok for the political thread to talk about the death and suffering, but we want to keep the politics out of the DI only threads. Obviously, there is always going to be some overlap and we've allowed much to pass under the radar. However, with DP up and running, we'll be keeping a keener eye on proceedings.

I think it best if we don't derail this topic any further.

Okay that’s fine but I think over moderation is going to hurt and overly fragment the site. I’ve noticed this since I’ve been here. Like some threads being prematurely shut down instead of letting them run their course. JS

Maybe a better discussion for Board questions I guess.