re: Hurricane vs wildfire insurance about to be nonexistent

I know you are, just pointing out that they won’t understand is all

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Here's a thought, stop funding the Biden's Ukraine war and use it for taxpayers

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How about neither?

I'd rather have lower taxes. Subsidizing people living in high risk areas because they like the view should not be a burden upon me.

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I’m just stating factual information from being in the industry for 12 years.

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Maybe you can answer this question I have had for a while.

Major insurers have tons of subs which are state by state which allows for bracketing risk and premium by state. Totally understand that.

But for management and overhead purposes, at least in the eyes of consumers, it is all at the corporate parent level. We see State Farm, we don't see State Farm LA subsidiary, etc.

So, I am assuming that the state subs basically pay a fee back to the parent company for management, overhead, marketing, claim service, etc. Is that correct?

If that is correct... how is this amount determined? It is a flat fee per policy? Percentage of premium? Some other method?

I could easily see a situation in which more of these costs are pushed out to subs in states with insurance issues, which essentially means those bad states are subsidizing those good states.

The reverse could also be true... perhaps the bad states aren't paying their fair share of corporate costs, so the good state ratepayers are subsidizing tbe bad state ratepayers.

I've done enough cost absorption work over the years to know that companies can use this to manipulate things.

So I'm confused, what would insurance actually cover?

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The government is the reason for the current state of the market in CA

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I read that until recently (like 2 weeks ago) insurance companies in CA were not allowed to account for reinsurance increases in their premium increases. This is crazy.

Rebuilding and maybe if you got coverage of items like jewelry etc?

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Plenty of major carriers are not stock companies

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Gotcha.

So where did we fail here? Is it because we have had too many disasters? Or has inflation pushed costs up so quickly there's not enough time between disasters to have the liquidity to cover all the damages timely?

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Does California have fire storm construction standards such as non combustible roofing, siding. From the looks of the total loss, must not!

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I did see one broad being interviewed say that they were required to have a tile roof. May have been a local ordinance for newer construction. Older homes would be grandfathered.

I'm in my mid 30s and own 4 houses. I'm sick of all this insurance non sense and I think we need to teach people how to take care of themselves and their property.

Bro what do you want them to do when a cat 5 hits?