Home Insurance Debacle

[Nancy OShea]

Background: California & Florida homeowners are struggling to find & keep their homeowner's insurance.  Major insurance companies have stopped writing new policies and are not renewing existing ones. Underwriters argue that litigation costs combined with catastrophic weather events (fires, floods, climate change) have made insuring properties too risky.  Banks & mortgage lenders insist that real properties be adequately insured for the loan amount or else it's bye, bye mortgage.  

As some of you may know, we were planning on installing solar roof panels this year to reduce our carbon footprint and reliance on the electric power grid.  I've since learned however, that some insurance companies are using solar panels as an "exit excuse" from current protection policies. They claim that solar installation brackets compromise the home's structural integrity which renders it "un-insurable."

I see no way out of this mess until lawmakers step-in & take action.  So it looks like our dream of installing solar panels is on hold for the foreseeable future.  😓

[John T Smith]

I don't know about Florida, but California has been in the news several times over the past several years due to the fires that have destroyed homes and burned thousands of acres of land... as I remember, at least some of the fires were found to have been caused by lack of maintenance and/or danger tree removal by the power company... really sad for homeowners

[Nancy OShea]

Unfortunately, fire knows no boundaries.  100 million Americans are breathing unhealthy air from Canada's massive wildfires.  

https://www.reuters.com/world/us/smoke-canadian-wildfires-settles-over-us-midwest-east-2023-06-29/

[John T Smith]

According to this the state regulations are also to blame Viewpoint: California Needs Regulatory Reform and Quick Rate Review to Halt Personal Lines Meltdown ...

[Nancy OShea]

We had an earthquake early this morning.  I don't know anyone who has earthquake insurance anymore. If you can find it, it's too pricey and doesn't cover much. Flood insurance is sold only through FEMA and the premiums are very expensive.

Florida's insurance crisis has less to do with fires and more to do with hurricanes, floods & tornadoes.  Bottom line is private insurance companies no longer want to be in the risk business.

[Chuck Uebele]

Yea, insurance in CA is having issues. For all the reasons that have been previously mentioned. While living in the Los Angeles area, we had AAA for our house. When we moved to the central coast, AAA declined covering us, as our house backed against a hill. State Farm did insure us, but I heard that they are now getting out of CA all together. Glad we moved out of CA. Here's a shot, from 2020, taken from my driveway, of a fire. We had to evacuate. Luckily, we sustained no damage. 

 

[Nancy OShea]

Another one bites the dust!  Now Farmers has left California's homeowners high & dry along with AllState and State Farm.

👿

[Chuck Uebele]

Wow, that's not good. 

[Nancy OShea]

Farmers say they will continue to service current policy holders.  But no new policies will be issued which puts a bite on home buying.  I don't dare make any major improvements because I might lose the coverage I have.  Pins & needles, needles & pins.

[Nancy OShea]

AAA just added their name to this rapidly increasing list. 😝

AAA follows Farmers in limiting coverage in Florida, citing natural disaster threat (msn.com)

[John T Smith]

The article I posted on July 2nd mentioned that part of the reason was the state insurance head not allowing rate increases when the insurance companies were loosing money due to so many large claims... no company can stay in business when it loses money

[Nancy OShea]

The House needs to focus less on nonsense & more on genuine crises like this one. If they don't intervene soon, we're all in deep trouble.

[Chuck Uebele]

My wife went to visit some friends in SLO. Both have State Farm, and both have gotten letters saying they're going to reevaluate their policies. Not a good thing. I contacted a insurance broker in SLO this is what he said, when I asked about getting insurance in the Avila Beach area:

"Yes, you are correct, the insurance industry in California is a mess. The California Fair plan is the only insurance that we would have for that risk along with a companion policy (difference in condition)..."

[Abambo]

Insurance is a commercial business wanting to make money. So you make money by insuring risks you know that never happen. As soon as the risk gets too high, insurers step out, if they can. At some stage, govenment needs to step in. And government is paid by the taxpayer. 

[Chuck Uebele]

• Just an update. Here in NC we're paying about $2,900 for a 3,000+ sq ft bome. In CA for a manufactured home, in an area deemed a fire area, a quote is $4,700.

[Nancy OShea]

@Chuck Uebele,

Just a shout-out to see if you're OK in the wake of hurricane Helene. 😍

[Chuck Uebele]

Thanks, yes, we're okay. We are actually out in CA when it hit. Our daughter was watching our place. She said that there was a good amount of rain and some strong winds, but no damage.

[Chuck Uebele]

There is an Adobe employee, Joe Pearl, who lives near Ashville. It took several days for him to respond to my message about how he was doing, but he finally did. His home suffered no damage, but communication is spotty or non existent, at times. He's still trying to get utilities back. He managed to get some gas 45 miles away, for his generator. Such a horrible mess out there!

[Nancy OShea]

Glad you're safe. 

The scale of this storm was off-the-charts. Recovery will undoubtedly take time.

Hopefully, Hurricane Kirk remains in the Atlantic.

[Chuck Uebele]

Yes, it was off the charts for a hurricane to have so much power that far inland. I was hoping to go up to Chimney Rock in the fall and take photos, but doesn't look like a good idea, this year.

[Nancy OShea]

Aerial footage shows Chimney Rock was pretty much flattened. 😮

[Chuck Uebele]

Yea, Chimney Rock was devestated.

[Nancy OShea]

If you thought Hurricane Helene was bad, brace yourself for Milton. This beast is packing wind speeds over 185 mph. Not a single weather model predicted the storm would strengthen this quickly. Come to think of it, that's what they said about Helene.

NOA needs to update their rating system to include Category level 6 & 7 hurricanes.  Category 5 doesn't begin to describe the force of this monster. 

Raise your hand if you still think #ClimateChange is a hoax? 

[Chuck Uebele]

This looks horrible! Those wind speeds are insane. At least they're expecting it, unlike where Helene ended up - that's not downplaying the severity, but hopefully they can be better prepared. I've got a high school friend who lives in the path. I was going to contact him, tonight to see what he's doing, but it was late. I'll try tomorrow, morning.

[Nancy OShea]

There's good news & bad news.  Milton's eye couldn't sustain the hurricane's massive size, so it broke up to reform an outer eye. As it rebuilds, winds have downgraded to CAT 3 or 4, for now. 

Meanwhile, the coast tidal surge is predicted to be 12 feet.  Anyone who lives near the western coast of Florida has to evacuate to safety.  Hunkering-down is not an option.  😓