Florida's insurance market, which has been unstable since the 90s, has grown even more volatile in recent years.
DeSantis has was NOT FL Gov in the 90s .... you torpedo your very argument
How about Cali-FU you disingenuous Bint
State Farm announced last week it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.” The decision did not impact personal auto insurance.
“We take seriously our responsibility to manage risk," State Farm said. “It’s necessary to take these actions now to improve the company’s financial strength.”
Allstate, another insurance powerhouse, announced in November it would pause new homeowners, condo and commercial insurance policies in California to protect current customers.
“The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums,” Allstate said in a statement.
California's unsettled market aligns with trends across the country in which companies are boosting rates, limiting coverage or pulling out completely from regions susceptible to wildfires and other natural disasters in the era of climate change.
Florida and Louisiana have struggled to keep healthy insurance markets following extensive damage from hurricanes. Premiums are rising in Colorado amid wildfire threats, and an Oregon effort to map wildfire risk was rejected last year because of fears it would cause premiums to skyrocket.
UPDATE: State Farm & Allstate stop selling home insurance in California
At the end of May 2023, State Farm announced it would stop selling home insurance policies in California due to "historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market." And Allstate followed suit shortly after due to worsening climate conditions that have made doing business there difficult.
“The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes and higher reinsurance premiums," according to a statement made by Allstate.
However, Policygenius now has several additional home insurance options in California, including the CA FAIR Plan, Universal Property, and Bamboo Insurance to provide homeowners insurance to our existing California customers. You can learn more about each coverage option and what to expect by reading our
guide to the California FAIR Plan and our
Bamboo homeowners insurance review.
California’s insurance regulator has blamed the decision of two insurance titans to no longer offer home insurance policies in the state on the effects of climate change, but insurance experts say high building costs and strict regulations that force insurers to keep rates low are the more likely culprit.
Both Allstate and State Farm announced their decision to leave the state within the last month, attributing the reason for the departure to the state’s wildfire coverage costs, reinsurance premiums and high inflation. While the California Department of Insurance, as well as a handful of media
outlets, are citing climate change as a main reason for the companies’ departure,
experts say the bigger issue lies in regulations and costs.
“The problem is, when you have inflation that’s high and other added costs – such as maybe an increase in wildfire risk – insurance companies can’t get the rate they need for a profitable business,” said Andrew Siffert, senior vice president of the BMS Group, a global insurance broker, to the Daily Caller News Foundation.
Extreme Wildfires a DIRECT result of Newsom's Forest Management Programs ...