“Needing to find additional coverage, they often then turn to the surplus lines market, the CDI said.” ———–Just in May, Calif. Fair Plan sent out a memo that they’re the last resort It stated that “only properties cannot be placed in the standard market after a diligent search may be placed with FAIR Plan. The California Insurance Code define standard market as admitted insurers and licensed surplus line brokers”
Left there almost 6 years ago and am glad I left. Don’t tell people we used to live there unless forced to.
Used to be the best state in the Union. Simply gotten crazy-high taxes, Corrupt politicians who enrich themselves at the taxpayers expense, deteriorating quality of life, new whacked laws that make no sense and the bozos ignore the real problems. Feels like a 2nd or 3rd world country.
So Sad!
Tim, increasing premiums is not a valid reason to try to get coverage in the FAIR plan and hopefully the people running it realize that. Everybody that gets a premium increase thinks the same thing, but there is a pretty clear difference between “unavailable” and “premium increased”. And FAIR will not work (not that anything state run in CA does work) if they allow those with increased premiums to enter the program. Frankly, FAIR should be priced HIGHER than the standard market to help deter that kind of migration.
The state of Florida has a state owned insurer that was supposed to be an ‘insurer of last resort’ , but turned into “I don’t want to pay the increased renewal premium” and they put the plan in jeopardy of going bankrupt. For the last few years Florida has been de-populating the plan to make it what it was truly supposed to be.
we are in the same boat..and looking at the previous comments i see a lot of unhelpful responses such as
move, don’t move here…as if its that easy to just pick up and leave. and don’t worry Texas your safe you keep your floods all to yourselves.
I hope you found a plan that will cover your your home
This does nothing for manufactured homeowners. Manufactured homeowner replacement coverage is excluded. A substantial financial loss should the home burn down. Actual cash value is all that is available under the CA Fair plan policy of insurance of last resort. Manufactured homeowners should be allowed to purchase replacement cost. This should have been addressed by the commissioner!
The downside of this order is that now all homeowners will subsidize wealthy homeowners in Malibu, Montecito and other wealthy enclaves through their higher insurance premiums. The question is whether people who choose to live in areas of high fire danger should be encouraged through to continue living there because some one else is paying the bill.
Remember that all admitted insurance companies share this pool and their reinsurance premiums will increase as a result.
A better alternative would be for the commissioner to allow companies more pricing flexibility with quicker approval of their filing. The market will eventually come up with a price which reflects the risk and others do not have to pay for it.
Responding to your comment about admitted carriers “share the pool and their reinsurance premiums will increase as a result.” I’ve been managing our California book the last five years. We have not been assessed by the CA FAIR Plan during that time and our reinsurance cost is not impacted by the possible exposure to FAIR plan assessments. Our reinsurance cost is impacted by the mix of our own book of business. “Share the pool” is a misleading statement since assessments rarely occur.
I worked with Personal Lines and Commercial Lines for 20+ years. Personal Lines carriers will be assessed. The Fair Plan has a lag in their reporting. If the Cal Fair Plan book grows significantly, reinsurers will note this exposure and price it. The 250 year PML of the primary carriers will be impacted by a growing Cal Fair Plan number especially when the new fire models are released.
I was notified today that my CA Fair plan insurance was increasing 60% to $9400. Plus I have water/theft/liability with Farmers which is an obscene cost of $5100.
Does anyone have any ideas how to challenge the rate increase as excessive? Is their any state legislation that provides oversight?
There are no fire hydrants within 1000 feet of my home. Has anyone successfully achieved a rate reduction by having a swimming pool and or large water tank as a source for the fire department in the event of fire?
Appreciate any input and or ideas.
Regards,
“Needing to find additional coverage, they often then turn to the surplus lines market, the CDI said.” ———–Just in May, Calif. Fair Plan sent out a memo that they’re the last resort It stated that “only properties cannot be placed in the standard market after a diligent search may be placed with FAIR Plan. The California Insurance Code define standard market as admitted insurers and licensed surplus line brokers”
My insurance carrier just notified me my yearly premium was going up from $1700.00 to $4000.00. Ill be checking Calif. Fair Plan.
Why not check other admitted markets first? Or move to a place less likely to burn?
Please don’t come to Texas. We have enough Californians trying to make Texas into the over taxed, high priced state they’re leaving!
Left there almost 6 years ago and am glad I left. Don’t tell people we used to live there unless forced to.
Used to be the best state in the Union. Simply gotten crazy-high taxes, Corrupt politicians who enrich themselves at the taxpayers expense, deteriorating quality of life, new whacked laws that make no sense and the bozos ignore the real problems. Feels like a 2nd or 3rd world country.
So Sad!
Did you know that Texas is advertising in California, suggesting we come there and enjoy cheap housing and low taxes?
Tim, increasing premiums is not a valid reason to try to get coverage in the FAIR plan and hopefully the people running it realize that. Everybody that gets a premium increase thinks the same thing, but there is a pretty clear difference between “unavailable” and “premium increased”. And FAIR will not work (not that anything state run in CA does work) if they allow those with increased premiums to enter the program. Frankly, FAIR should be priced HIGHER than the standard market to help deter that kind of migration.
The state of Florida has a state owned insurer that was supposed to be an ‘insurer of last resort’ , but turned into “I don’t want to pay the increased renewal premium” and they put the plan in jeopardy of going bankrupt. For the last few years Florida has been de-populating the plan to make it what it was truly supposed to be.
we are in the same boat..and looking at the previous comments i see a lot of unhelpful responses such as
move, don’t move here…as if its that easy to just pick up and leave. and don’t worry Texas your safe you keep your floods all to yourselves.
I hope you found a plan that will cover your your home
This does nothing for manufactured homeowners. Manufactured homeowner replacement coverage is excluded. A substantial financial loss should the home burn down. Actual cash value is all that is available under the CA Fair plan policy of insurance of last resort. Manufactured homeowners should be allowed to purchase replacement cost. This should have been addressed by the commissioner!
The downside of this order is that now all homeowners will subsidize wealthy homeowners in Malibu, Montecito and other wealthy enclaves through their higher insurance premiums. The question is whether people who choose to live in areas of high fire danger should be encouraged through to continue living there because some one else is paying the bill.
Remember that all admitted insurance companies share this pool and their reinsurance premiums will increase as a result.
A better alternative would be for the commissioner to allow companies more pricing flexibility with quicker approval of their filing. The market will eventually come up with a price which reflects the risk and others do not have to pay for it.
Responding to your comment about admitted carriers “share the pool and their reinsurance premiums will increase as a result.” I’ve been managing our California book the last five years. We have not been assessed by the CA FAIR Plan during that time and our reinsurance cost is not impacted by the possible exposure to FAIR plan assessments. Our reinsurance cost is impacted by the mix of our own book of business. “Share the pool” is a misleading statement since assessments rarely occur.
I worked with Personal Lines and Commercial Lines for 20+ years. Personal Lines carriers will be assessed. The Fair Plan has a lag in their reporting. If the Cal Fair Plan book grows significantly, reinsurers will note this exposure and price it. The 250 year PML of the primary carriers will be impacted by a growing Cal Fair Plan number especially when the new fire models are released.
I was notified today that my CA Fair plan insurance was increasing 60% to $9400. Plus I have water/theft/liability with Farmers which is an obscene cost of $5100.
Does anyone have any ideas how to challenge the rate increase as excessive? Is their any state legislation that provides oversight?
There are no fire hydrants within 1000 feet of my home. Has anyone successfully achieved a rate reduction by having a swimming pool and or large water tank as a source for the fire department in the event of fire?
Appreciate any input and or ideas.
Regards,
cass