Insurance costs are soaring and companies are canceling policies and upping rates. Don’t blame climate change. I address the real reasons for this mess.
I had been working on this insurance idea for a few days. The tweet below by Adam drives the message, but only for fire insurance. I added hurricane and river flooding.
How many of you are seeing extreme escalation in your home insurance premiums, or having your coverage dropped by your carrier?
I live in California, and State Farm dropped my renters insurance policy like a hot potato when they pulled out of the state last year https://t.co/jaEPhnIFZK
— Adam Taggart (@menlobear) January 12, 2024
There are other flood zones along any major river or low areas. Hurricanes also cause flooding. People need wind and flood insurance in some zones. Judging from the map, some places in Florida are at risk for several reasons.
The link in the above Tweet is paywalled.
Buying Home and Auto Insurance Is Becoming Impossible
The Wall Street Journal reports Buying Home and Auto Insurance Is Becoming Impossible
After Allstate suffered billions of dollars in losses and failed to get the rate increases it wanted, it resorted to the nuclear option.
The insurance giant threatened last fall to stop renewing auto insurance for customers in three states that hadn’t given in to its demands, which would have left those policyholders scrambling for coverage. The states blinked.
In December, New Jersey approved auto rate increases for Allstate averaging 17%, and New York, a 15% hike. Regulators in California are allowing Allstate to boost auto rates by 30%, but still haven’t decided on its request for a 40% increase in home-insurance rates after the insurer refused to write new policies.
Farmers Insurance Group increased home-insurance rates by more than 23% last year for tens of thousands of policyholders in both Illinois and Texas, according to S&P Global Market Intelligence. Nationwide Mutual said it won’t renew 10,525 home-insurance policies in hurricane-prone areas of North Carolina.
State Farm racked up $13 billion in property-casualty underwriting losses in 2022, its worst ever. Last year, it stopped writing new home-insurance policies in California. The state’s regulators last month approved a 20% home-insurance rate increase.