That 'profit' was most likely paid out in the form of claims for other clients. Hence why they're pulling out of the state. 2K/yr is nothing when one house burning down costs 2 Million. The risk is simply too high.

Good Riddance State Farm . May you burn in

@@joncarbone. Well, that’s what they want us to believe. Check the bonuses for their top execs. THAT’S where most of the profits go.

@@Me97202 ... that's the situation for virtually ALL industries, not just insurance companies. Executives ARE paid excessive compensation. However, looking at the actual claims dollars paid out for wildfires in California, and for hurricane damage paid out for gulf coastal areas, one cannot deny that the insurance claims & losses are at all-time highs.

That's why the nineteen seventies was so great nobody cared about money

No, there are really three problems. (1) As the risk of fire drastically increases they need to increase rates drastically to breakeven (especially since their cost from reinsurance rates are doubling or tripling) but that can cause a death spiral in insurance markets if people who think they are relatively low risk drop policies while people who privately think they are high risk keep them. That means your clients are riskier so average cost goes up, prices go up, but that drives another round of increased risk, and so on. (2) In CA it is even worse than that as state law is preventing anything but small changes in price despite recently large increases in risk. Regulators are not making exceptions so insurance companies are looking at these unprofitable policies and just leaving the state. (3) Insurance companies are having a real hard time modeling the risk of climate change since they can't just fall back on the historical record. That makes the business riskier and if you look at the data in the US 6 insurance companies went bankrupt in 2022 (e.g. Fednat Insurance and Lighthouse Property Insurance) when normally less than one insurance company goes bankrupt per a year in the US. Obviously insurance companies are going to be trying to reduce their risk. In the worst case and they stick out as much more dangerous than their peers in the industry they may lose access to reinsurance. Well actually the worst case is they go bankrupt, don't have enough reinsurance, and policy holders don't actually get the payouts they are owed.

Why is the risk of fire drastically increased

this ain't new

Good to know, thank you!

Where does one find those numbers?

@@gracefulvintage Call your insurer and ask what they use to determine their fire risk. Farmers uses 2 companies Verisk and Zesty AI. The Fireline is how much fuel is around the property and access and the PPC is how far a fire hydrant and fire station are from your property. I believe this is an industry standard but call and ask.

@@BenitoGuerrero thank you!

U people r only interested in money

So tell me, how does not accepting $ fit into the business model? How about you starting an insurance co to serve the market of dropped people ? Should be an easy money maker with customers lining up at your door no?.

YUP🎉

@@bobroberts2371this is so simple, are you seriously asking? The company is not accepting money *specifically* from the people they think will come back with a valid insurance claim in the future. If these people have a valid insurance claim, the insurance company will have to pay it out. The insurance companies essentially *only* want customers who are *unlikely* to ever have a valid insurance claim. Free money for them

Cali no longer uses Fire Breaks anymore , thank you Newsom , vote blue

I’m sorry I have to ask. How and why does a mortgage payment go up? What state do you live in?

@@mytravls Your Principal and Interest is fixed. But if year after year the property taxes increase, or insurance, more has to be collected to cover the increase. Your best bet is to make sure you at least applied for a homeowner exemption that will reduce the amount of taxes you pay, and shop around for insurance.

@@mytravls I'm in Vegas, but that every State.

@@mytravls In Florida I lost my home due to insurance premiums. As you may know, if you have a mortgage they include your homeowners insurance and taxes in an Escrow account that they pay on your behalf. In Florida, my mortgage was $470 a month, my taxes $100 a month, and my insurance premiums were....drumroll please.... $950 a month! I didn't write that wrong. I didn't mean $950 a year, it was $950 a month, to insure a 1000 sq/ft concrete block and stucco, one story home, in a flood zone "X" (meaning "has never historically flooded"), built in the 60s, having made it through multiple hurricanes. Reason for a $11,000 annual insurance bill - the house was built before "hurricane codes existed". I hope this explains the reason why people from the Florida keys all the way up to West Palm Beach (including Miami, Fort Lauderdale and Boca Raton) are losing their houses due to their "mortgages" going up because of "insurance". Mainly because these areas vote Democratic, and Tallahassee and the State legislature is Republican. Other Republican areas are not affected by Insurance hikes. Orlando is too big to fail, although they also vote Democratic. That's why Governor Santis is f'ing with them now too. We'll see how that goes. I hope Desantis wins, Disney leaves, and they insurance everyone out of Orlando too. Then Florida will go broke. The Republican areas can't pay the state's bills. Time will tell.

@@mytravls Some of people leave their insurance and taxs bundled with their payment

Most of them are Jews.

cars saleman and real estate agents.

Then start an insurance co to serve these dropped people, should be an easy $ maker with people lining up at your door.

Kanye west was right all along

And idiots that want to live in very high risk areas!!

Never filed a claim.Liberty increased premium 125%. Then cancelled . After 18 years, no claims. Go figure.

Big insurance companies do the same thing. How do you think they got so big?

That's already in place. In FL its Citizens Insurance. In Cali its FAIR Plan.

Your thinking is the problem. Its the progressives DEMS that have trashed another market and you want to blame insurers! Stop voting DEM

@@SFPhilo and it’s crazy expensive for garbage coverage.

That’s just what Gavin wants - people dependent on the government.

The Calif FAIR Plan is a last option, no choice suck deal. Insurance companies, like Allstate, Progressive, AAA , al left and more leaving. FAIR plan in nutshell. Any company wanting to do business in the state has to pay 20% of their profits into the slush fund to cover homeowners for FIRE ONLY! No PPC, that has to be obtained separately. (Gettin all this?) Then as an example ;They have to insure 17 out of 100 clients that are in a fire zone, and 20 clients that were non-renewed. The cherry on top? IF the FAIR plans goes "insolvent", sayyyy, because the state burns down? The insurance companies have to cover the loss! Now you know why they are leaving this tyrannical state controlled by one party that seems to screw a lot of things up!

it could be for the RIGHT price

@@ThriftyCHNR exactly but the CA insurance regulator isn’t allowing them to increase rates accordingly, so they leave. Then homeowners are stuck with crappy Fair plan at a worse price than increased rates on normal insurance would be. CA regulators never seemed to learn about supply and demand.

@@14534 I understand. the best way forward would be to have a state issued plan in which the correct price is quoted for a little bit above break even. I do think it should also be back stopped by the federal government.

Right👏👍

@@ThriftyCHNR They're trying that do that with California FAIR Plan, but the pricing models are coming back that nobody would be able to afford it.

I'd support that. Could be a good way of keeping them in line too!

don't blame them ,Cali no longer uses Fire Breaks anymore , thank you Newsom , vote blue

Hi , could you kindly share some info on the agent or the company you used or any other leads to get coverage ? Because I'm in the same situation !! Really in need of help ... Thanks so much

@@ChrnRn-iu4nywhat state

@@edgarneil - CA

Unfortunately, lenders require insurance (if a mortgage is involved, as it is for most people). Anyone who owns their home outright could probably do what you suggest

💯 what ​@@harashe1000 said. If folks could do this and not lose their mortgages and therefore home they would

I'm like you and thousands of others, stuck paying mortgage company "forced insurance" that only covers their loss!

Mortgage lenders will generally require you to have it so it’s needed unless you have enough to 1) own your house outright and 2) still have enough left over to cover accidents/unexpected losses etc.

Florida is far, far worse.

So that in turn will skyrocket housing even more. More and more code and more expensive materials. Good way to make sure you’ll rent forever.

SOL or pay A LOT more to a company based in a Caribbean island.

There’s still a housing shortage in this country even with all these people “living where they’re not supposed to be” so where are they supposed to live?

You don't understand how insurance works. insurance is shared risk for a fixed time frame. It works like this. The insurance co calculates the number of losses it expects in a year , breaks that down between the number of customers, adds in operating expenses + profit. This results in what your yearly cost is. And before you cry about them making a profit, do you have any retirement $ invested? Do realize that it might be invested in an insurance co, that you apparently want to fail. How about you starting an insurance co and server the people there were canceled? Should be an easy money maker no?

You might owe them... look at your past claims before you start making silly demands

The majority of homes in CA are not in high risk zones, yet 2 major companies will no longer accept new policies. Fishy if you ask me.

You still need renters insurance for all of your belongings.

@@Me97202unless he’s belongings aren’t worth dick

@magicunicorn6535 / Their exact motus operandi: increase insurance/taxes substantially so that people are forced to sell. Then the big corporations come in like red dawn, buy the homes, and charge exorbitant prices for rent. Essentially, you will own nothing and like it.

There is not such thing as invulnerable locations, insurance companies is a scam at this point.

Your logic dictates the ability to have over 300 million people live in low risk areas. The real world should tell you some people are going to be forced to live there because 300 million people can't saturate only a few areas. Your logic is flawed. Unintelligent people don't think things through.

If an insurance company covers you and takes your money, they should honor their coverage when you need it. But the rich have no honor.

@@KB-nt7eg Total population doesn’t give you the full picture because the US also has an extremely large land mass. It’s residence per capita is nowhere near being overcrowded and is many times less than most European nations. No one who lives in the areas like in the video has to because of population.

@@hermionegardener3796 Who has honor? The poor?