Here's a look at California's new plan to fight insurance crisis

California regulators disclosed which areas of the state insurers will have to cover if they want to take advantage of financial incentives intended to resolve the homeowners' insurance crisis.

[haha]

So what everyone rates gonna go up. That’s not a solution.

[OhArchie]

“forces insurers” is a phrase that often results in insurance companies pulling out completely. You can’t *force* them to underwrite policies.

Why is California’s solution always the sledgehammer?

[celestialtl]

$5, 431/year to cover a million dollar home in a dry forest? Seems like a great deal

[riley]

It forces foreclosures on home owners who can’t afford higher rates. Or that have a reverse mortgage. Which then allows the banks to profit off of the foreclosed houses and re-sell while the housing market prices are sky high.

[earlhammond]

If the Insurance Dept. would grant a premium increase on a timely basis to cover their losses, then companies would stay. It takes up to a year or two for the state to approve a rate increase. California is a state that requires an approval for an increase in premium rate.You can't use your new premium rate until it is approved. Other states like Arizona are a file and use state. You simply file your rate changes and start using them. The AZ dept of Insurance will review the rate filing on their timeline and if the rate filing needs changes will notify the company. Time is of the essence and not knowing the timeline for a rate change is too risky for many insurance companies. Now in California people are having to use the fair plan, because companies are non-renewing and leaving the state. All admitted companies California are required to participate in the Fair plan. if the Fair plan losses are over a certain amount, then the admitted carriers are assign losses, based on the percentage of business that they write in California. This is why the major companies are leaving in droves. They are forced to have an inadequate premium rate and then forced to pay on the Fair plan. It's lose, lose for these companies. So adios California.

[anthonyhamilton]

How many government officials have money in investments in insurance companies ?

[huckfin]

Stop insuring high risk area. Everyone else is subsidizing those home owners stupidity

[phdpursuinghigherdimensions]

Move. Cali will be under water when the poles shift and equator moves. Or an earthquake.

[SC-orek]

So their solution is to raise rate for everyone to help pay for people that choose to live in fire prone area . That is not right .? Why should everyone to pay for those people ? .

[LuckyDuckie]

how about stop building houses in these areas? if you choose to build it, you should pay for it not other Californians

[haliakhaliki]

I don’t get this we pay all this insurance and when we need them they want cancel services

[dquan]

Just change the regulation and allow insurance companies to exclude damage due to wildfire, just like flood and earthquakes. Have wildfire coverage optional.

[RobustArid]

Leave California and live in Venezuela for cheaper housing