Some interesting and sad data on the insurance issues in CA.
First:
www.foxbusiness.com
Second: Post by Brown Star Kachina on 01/09/2025 04:09 AM
California's insurer of last resort will go bankrupt
California's insurer of last resort (FAIR) is where people go to obtain homeowners, including some commercial, insurance policies when no other carrier will insure them.
Turns out they won't have enough money to pay out from these wildfires.
Exposure: $458-billion
Reserves: $700-million
Data source: [link to www.afr.com (secure)]
Current damage estimate: $52-billion
Data source: [link to www.desertsun.com (secure)]
Now in all fairness, not all of that $52-billion is held by FAIR policy holders.
You can see where a large portion of FAIR's book of business is held here.
Notice anything interesting?
About $5.9-billion of their exposures in in Pacific Palisades alone.
What about their reinsurance?
Maybe, maybe, enough to cover it, but the program will then pretty much be on its last leg and we're only 8-days into the new year.
Third:
Data supporting the above from the source site
www.cfpnet.com
To quote/paraphrase the great Bum Phillips "Now, you can't do that! If you do it, I'm telling you you'll have more hell over it than a little bit."
Hell has finally broken through the surface in LA.
First:
CA wildfire backlash: State Farm, other insurers slammed for dropping coverage
The outbreak of deadly wildfires in Southern California has prompted criticism of insurers who have dropped coverage in the state due to regulations that make it hard to price for risk.
Second: Post by Brown Star Kachina on 01/09/2025 04:09 AM
California's insurer of last resort will go bankrupt
California's insurer of last resort (FAIR) is where people go to obtain homeowners, including some commercial, insurance policies when no other carrier will insure them.
Turns out they won't have enough money to pay out from these wildfires.
Exposure: $458-billion
Reserves: $700-million
Data source: [link to www.afr.com (secure)]
Current damage estimate: $52-billion
Data source: [link to www.desertsun.com (secure)]
Now in all fairness, not all of that $52-billion is held by FAIR policy holders.
You can see where a large portion of FAIR's book of business is held here.
Notice anything interesting?
About $5.9-billion of their exposures in in Pacific Palisades alone.
What about their reinsurance?
Maybe, maybe, enough to cover it, but the program will then pretty much be on its last leg and we're only 8-days into the new year.
Third:
Data supporting the above from the source site
Key Statistics & Data - The California FAIR Plan
www.cfpnet.com
To quote/paraphrase the great Bum Phillips "Now, you can't do that! If you do it, I'm telling you you'll have more hell over it than a little bit."
Hell has finally broken through the surface in LA.
