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Started By
Message
Insurance rates in the Palisades was cheaper than 97% of all US zip codes.
Posted on 1/10/25 at 7:40 am
Posted on 1/10/25 at 7:40 am
LINK
Cliffs notes: (Read the last bullet point)
The Pacific Palisades area ravaged by wildfires in Los Angeles is one of the most expensive neighborhoods in the U.S.
And ahead of this week's disaster, its insurance costs were among the most affordable in the country,
Measured against home values, insurance costs are cheaper in the Palisades than in 97% of U.S. postal code
Compared to home values, the average statewide premium in 2023 was the lowest among all 50 states,
on an absolute dollar basis residents the average annual premium of $2,200 was less than residents paid in 30 other U.S. states.
It's also less than residents paid in New Orleans' Lower Ninth Ward, the poor and historically Black neighborhood submerged by floods waters during Hurricane Katrina in 2005 - even though the typical Ninth Ward home is worth less than 1/20th of the typical home in Pacific Palisades,
Cliffs notes: (Read the last bullet point)
The Pacific Palisades area ravaged by wildfires in Los Angeles is one of the most expensive neighborhoods in the U.S.
And ahead of this week's disaster, its insurance costs were among the most affordable in the country,
Measured against home values, insurance costs are cheaper in the Palisades than in 97% of U.S. postal code
Compared to home values, the average statewide premium in 2023 was the lowest among all 50 states,
on an absolute dollar basis residents the average annual premium of $2,200 was less than residents paid in 30 other U.S. states.
It's also less than residents paid in New Orleans' Lower Ninth Ward, the poor and historically Black neighborhood submerged by floods waters during Hurricane Katrina in 2005 - even though the typical Ninth Ward home is worth less than 1/20th of the typical home in Pacific Palisades,
18
Posted on 1/10/25 at 7:43 am to sidewalkside
Kind of a flawed way of analyzing it when so much of the value of the property is from the land value.
Posted on 1/10/25 at 7:46 am to LNCHBOX
Your brain is flawed and there is no value in there
Posted on 1/10/25 at 7:49 am to sidewalkside
quote:
Homeowners in Pacific Palisades paid a median insurance premium in 2023 of $5,450
5450 is cheap?
Posted on 1/10/25 at 7:49 am to LNCHBOX
quote:
Kind of a flawed way of analyzing it when so much of the value of the property is from the land value.
Not wrong, but that’s true of many places including the gulf coast
Posted on 1/10/25 at 7:50 am to LNCHBOX
quote:
Kind of a flawed way of analyzing it when so much of the value of the property is from the land value.
I am sure when analyzing the replacement cost, the insurance companies took into account the permitting expenses that come with that and that's why they tried to raise the rates there only to be blocked by CA so they opted to pull out instead.
Sure the land value is a huge part of it, but rebuilding cost there is 100 times more expensive per sq ft than in NOLA since OP mentioned NOLA.
Permitting to rebuild is going to 3+ years per house and as Adam Corolla said the other day chances are the coastal commission blocks people from rebuilding on the coastal side of PCH.
Adam Corolla mentioned that Carson Daily had to put in a double-hulled pool at a cost of an extra $500K because they were worried about groundwater seepage. Regulations like that will make some people realize they can't justify rebuilding there.
This post was edited on 1/10/25 at 7:55 am
Posted on 1/10/25 at 7:50 am to sidewalkside
quote:
It's also less than residents paid in New Orleans' Lower Ninth Ward, the poor and historically Black neighborhood submerged by floods waters during Hurricane Katrina in 2005 - even though the typical Ninth Ward home is worth less than 1/20th of the typical home in Pacific Palisades,
The average resident of the Palisades area probably doesn’t sue after every fender bender or make a roof claim at the very first sign of potential damage either. Lots of fraud in south Louisiana compared to the fire areas.
Posted on 1/10/25 at 7:50 am to SDVTiger
quote:
5450 is cheap?
What’s the median home price? Probably $2 mil?
Posted on 1/10/25 at 7:50 am to sidewalkside
He's right. The insurance premiums are largely based on rebuild costs.
A significant portion of the home value is the land, which is worth a shite-ton irregardless of a structure in place, and doesn't really play into the insurance premium.
A significant portion of the home value is the land, which is worth a shite-ton irregardless of a structure in place, and doesn't really play into the insurance premium.
Posted on 1/10/25 at 7:52 am to sidewalkside
quote:
Your brain is flawed and there is no value in there
Unsurprising melt is unsurprising,
Posted on 1/10/25 at 7:53 am to sidewalkside
Yeah when you measure against property values. The values of the structures are not much compared to the values of the land. One might have a 300 million dollar property in Malibu, but to rebuild the house there itd only be 10 million dollars.
Many of the values of these properties....went up after the fire. This is especially true if LA laxes on the permitting process. The process to tear down an outdated home there and rebuild may have been all but impossible, but now these people can rebuild modern homes to their exact liking...in a place with the best weather on planet earth.
Many of the values of these properties....went up after the fire. This is especially true if LA laxes on the permitting process. The process to tear down an outdated home there and rebuild may have been all but impossible, but now these people can rebuild modern homes to their exact liking...in a place with the best weather on planet earth.
This post was edited on 1/10/25 at 7:57 am
Posted on 1/10/25 at 7:53 am to SDVTiger
quote:
5450 is cheap?
I am paying double that
Posted on 1/10/25 at 7:53 am to SDVTiger
quote:
5450 is cheap?
I know people paying way more than that in south LA, so I'd say so
Posted on 1/10/25 at 7:54 am to baldona
quote:
What’s the median home price? Probably $2 mil?
The average price in the 3? biggest hoods hit ranges from $3m to $12m (or thereabouts.)
Posted on 1/10/25 at 7:55 am to SDVTiger
It is when you consider cost to rebuild. I talked to an insurance company last year and they said the rebuild cost for my home was between $800-$1,000 per sq ft. I said I would burn my house down just to rebuild it if that’s the budget you are going to give me.
Posted on 1/10/25 at 7:56 am to LemmyLives
If it’s $5450 avg for homes in the $3 mil that’s incredibly low, lol bottom 3% I suppose.
These people complaining about being dropped are ridiculous. They likely had tons of other options
These people complaining about being dropped are ridiculous. They likely had tons of other options
Posted on 1/10/25 at 7:56 am to SDVTiger
quote:
5450 is cheap?
I’d take it in a heartbeat lol and my home isn’t worth what those are.
This post was edited on 1/10/25 at 7:57 am
Posted on 1/10/25 at 7:57 am to MSTiger33
quote:
I said I would burn my house down just to rebuild it if that’s the budget you are going to give me.
Yea I could rebuild my house at a huge profit based on what they said the replacement cost is.
Its a bullshite number they come up with to charge higher premiums
This post was edited on 1/10/25 at 7:58 am
Posted on 1/10/25 at 7:57 am to MSTiger33
quote:
It is when you consider cost to rebuild. I talked to an insurance company last year and they said the rebuild cost for my home was between $800-$1,000 per sq ft. I said I would burn my house down just to rebuild it if that’s the budget you are going to give me.
You told them that?
Good luck if you ever actually do have a fire claim.
Posted on 1/10/25 at 8:00 am to LNCHBOX
quote:
I am paying double that
Thats insane
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