Here is a thought? US Gov creates a program to help these “areas of concern” in the USA, so the rest of us paying insurance premium are not getting crushed due to Fire in the west, Rain in the South, Wind in the Mid West…
A better solution is to allow the free market to price and underwrite the risks. The challenge with a government solution is that we will all end up subsidizing people who choose to live in risk prone areas.
This insurance shortage is artificially created by poor regulation.
California’s Fair Plan : Regarding Commercial property they apply a massive surcharge
called Brush / wildfire area surcharge = 100 – 200 % over basic peril
totally unaffordable . This applied to areas not prone to fires and that included buildings
with installed water sprinkler systems and fire hydrant within 50 ft. ( PC 8/9 )
I feel like the CA DOI doesn’t make it any easier on insurers with the amount of time it takes the DOI to approve new products or rate revisions submitted by carriers. It puts carriers in a position where they need to make a decision between writing unprofitable business or issuing moratoriums because the DOI is exceedingly inefficient. If carriers cannot charge the appropriate premium for a given risk then it makes sense when they pull out.
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You had me at US Gov… They run most programs into the ground. High cost and inefficiency. Maybe FEMA and the postal service can take it over…..
Hi Bob:
A better solution is to allow the free market to price and underwrite the risks. The challenge with a government solution is that we will all end up subsidizing people who choose to live in risk prone areas.
This insurance shortage is artificially created by poor regulation.
California’s Fair Plan : Regarding Commercial property they apply a massive surcharge
called Brush / wildfire area surcharge = 100 – 200 % over basic peril
totally unaffordable . This applied to areas not prone to fires and that included buildings
with installed water sprinkler systems and fire hydrant within 50 ft. ( PC 8/9 )
I feel like the CA DOI doesn’t make it any easier on insurers with the amount of time it takes the DOI to approve new products or rate revisions submitted by carriers. It puts carriers in a position where they need to make a decision between writing unprofitable business or issuing moratoriums because the DOI is exceedingly inefficient. If carriers cannot charge the appropriate premium for a given risk then it makes sense when they pull out.