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Wisconsin | State farm "non renewed" policies especially in Palisades, partly because of the high risk, but also partly because of the state of CA political environment. CA, like some other states, has an insurer of last resort, the Fair plan I think it's called. The Fair plan has 5.8billion of exposure in Palisades, 250million in reserves, some small billions in reinsurance, after that it can assess the private insurers for one billion total, presumably spread around based on the percentage of CA policies that they represent. After that, the Fair plan can assess EVERY private insurance policy in the STATE to make up the shortfall, presumably State Farm would be put in the position to have to collect that assessment. So yes, it was an extremely good decision for State Farm or any other insurer to pull back on CA policies. Not even getting into the risk pricing restrictions CA has.
And everyone's insurance will go up, but CA especially, as it should be.
Edited by junk fun 1/12/2025 09:45
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Anyone watch the 20/20 LA Burning?
