The downside of this order is that some of the small to medium size regional carriers may be facing solvency issues and the reinsurance market is deterred from writing in the state. The order allows some insureds to make money of an insured event given that many people don’t have contents that are valued as high as 75% of the limits. The commissioner receives positive publicity, but is not accountable for dealing with the shortage of capacity of the property market once he leaves office.
Hi Mr. Smith, how much in contents did you have in your home? O, about 100k or so. Your policy says your covered up to 300k. Uh, yeah, that is what I meant. Sure, lets give them the full amount of coverage on the dec for personal property. And after all, everyone wants to buy a new boat.
The commissioner forgot one major issue-IRS- and tax issues, possibly state taxes also, as this goes beyond replacement cost value and could be considered a capital gain.
I could be way off because as we all know California law is a different country but aren’t Insurance Proceeds their own category in tax law even if you’re getting a net benefit?
Merced Property & Casualty was taken over by the CA Dept of Insurance for insolvency due to the Camp & Carr fires. Claims are now in the hands of the California Insurance Guarantee Association.
I never understood the reason insurance companies decided to provide 70% to 75% for coverage C on homeowner’s policies. Did they not see this coming eventually?
The downside of this order is that some of the small to medium size regional carriers may be facing solvency issues and the reinsurance market is deterred from writing in the state. The order allows some insureds to make money of an insured event given that many people don’t have contents that are valued as high as 75% of the limits. The commissioner receives positive publicity, but is not accountable for dealing with the shortage of capacity of the property market once he leaves office.
Hi Mr. Smith, how much in contents did you have in your home? O, about 100k or so. Your policy says your covered up to 300k. Uh, yeah, that is what I meant. Sure, lets give them the full amount of coverage on the dec for personal property. And after all, everyone wants to buy a new boat.
The commissioner forgot one major issue-IRS- and tax issues, possibly state taxes also, as this goes beyond replacement cost value and could be considered a capital gain.
I could be way off because as we all know California law is a different country but aren’t Insurance Proceeds their own category in tax law even if you’re getting a net benefit?
Merced Property & Casualty was taken over by the CA Dept of Insurance for insolvency due to the Camp & Carr fires. Claims are now in the hands of the California Insurance Guarantee Association.
I never understood the reason insurance companies decided to provide 70% to 75% for coverage C on homeowner’s policies. Did they not see this coming eventually?