re: Insurance rates in the Palisades was cheaper than 97% of all US zip codes.

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For homeowners insurance???

That’s outrageously cheap.

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Cheap is relative.

It's cheap for someone living in a high risk (brush, flood, etc) area.

It's expensive for someone that isn't at risk for these perils. I'm in Los Angeles, nowhere near a brush area, and I'm paying about $2200/year, which has just about doubled since I bought my house in 2015.

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Ya’ll keep bringing up flood, but most homeowners insurance don’t cover floor. Flood is separate.

It’s also not really hurricane, it’s wind.

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Semantics. At the end of the day, it's the risks associated with living in a coastal area prone to hurricanes.

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Unlike most states, California heavily regulates its property insurance market

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But is this a relatively new concept in CA?

In other words, it seems like there has always been a risk of fires earthquakes etc. so why is in only within last year or so insurers are pulling out? Especially if the government meddling has been happening forever?

CA having overbearing regulation and control is not new…

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These people complaining about being dropped are ridiculous. They likely had tons of other options

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Each state has an insurance department... they can dictate what rate increases are allowed or not allowed.

So imagine an insurance department that says you can't raise rates in our state to cover your losses. Then this insurance department also says, that we don't care if you lose money because you make money in other states.

What if this same state refuses to take measures to reduce the wildfire risks that they won't let you increase insurance premiums on and just expect you to lose money.

A lot of companies have left California... some companies have reduced exposure in the highest risk areas due to policy in the state.

This is not to say "poor insurance companies"... they do what they do... they state does what they do. Both have consequences.

So much more that goes on than we know or read about in the main stream media.

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They pulled out due to the risk and rebuild costs, not the property values.

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The risk of total or partial loss was high, the rebuild costs are high due to government red tape/local wages/permitting etc., and the state has to approve how much you can charge the insured for premiums to cover their 75 year old million dollar 3 bedroom craftsman style house. If I were an insurance company I'd be out of there too.

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Under the provisions of Proposition 103 (enacted by the voters in 1988) the Department of Insurance is required to review and approve rates for most property and casualty lines of insurance before they can be used.

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Well when you live on a "coastal property" that is 60 miles from the Gulf of America and pay double for a house 1/2 the size, Yes.

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It was from a company giving me a quote. My current insurance company has me at $500 per sq ft.

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Damn. You'll need to burn your house down twice at those rates.

Edit: Kidding!

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Insurance rates in the Palisades was cheaper

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Stopped right there

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Kind of a flawed way of analyzing it when so much of the value of the property is from the land value.

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You are exactly right. Pick up my 400K Baton Rouge home and transplant it on a 2M lot in Cali. and the residence is a 2.4M property.

Fire comes in a destroys the home. Insurance replaces the 400K home - not a 2.4M home.

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That’s crazy. My home insurance is so cheap in Arkansas that I honestly forget how much it even is.

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$3-$4k per 1k sq ft is common these days in Louisiana. Of course that is just premium, not deductible. Then there is flood insurance. Many people are increasing deductible to keep it affordable each month. Those who own there home are dropping wind coverage and just throwing money into savings instead of making insurance companies rich.