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Thousands of Los Angeles homeowners were dropped by their insurers before the Palisades Fire
(www.cbsnews.com)
Perhaps the most interesting part of the article:
this post was submitted on 11 Jan 2025
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That's not how it works at all. You're thinking of health insurance. This thread is about insurers declining to renew contracts, not denying claims.
So hanging around to extract insurance premiums for as long as possible, then fucking off before they have to start making any of that money flow in the other direction?
FFS, no. Do you even know what insurance is? They are always on the hook to make payouts for any policies that are active, and it happens regularly. Most of the money they take in goes toward paying claims. Most of the rest of the money goes toward overhead, which includes paying actuaries to evaluate how much risk they're taking on and how much future payouts are going to cost. They determined that providing homeowners' insurance in CA would soon cost them more in payouts than the state allows them to charge in premiums, so they decided to stop doing business in CA. Nobody was scammed. Their customers all got what they paid for while they were paying for it.
This reads like apologia for the insurance industry. Note the glaring absence of you mentioning their fiduciary responsibility to maximize shareholder value. I can almost see the vein on your forehead throbbing as you try to explain what insurance is to me. I understand how insurance works, but am resisting the almost overwhelming urge to reply KenM style.
Yoinking an insurance policy for my Fabrige egg collection, because I won't stop juggling them? Cool.
Yoinking coverage for my my home, which I'm basically anchored to (proximity to work, schools etc.), while you slink off with your profits? Not so cool.
What does "uninsurable home" do to property values? The insurance companies will do fine, while I'm left to sort this out (lose everything).
I understand why they pulled out. Do you grasp the notion that home owners can't instantly pull up stakes and teleport to more insurable locations? Do you understand how the non-insurability aggressively power-fucks those stranded home owners ability to salvage any equity in their homes?
The guillotines will be adorned with the Surprised Pikachu face.
A lot of insurance companies, including big ones like State Farm and Liberty Mutual, are owned by their policy holders. So yeah, I made the mistake of not mentioning their fiduciary duty to maximize value for their customers.
What do you expect insurance companies to do about it? Keep offering policies and collecting premiums while knowing they won't be able to pay all the claims they get? That's called fraud.
You say they're "slinking off" as if they've stolen something, but what have they stolen? You say they're leaving with their profits, but what profits are you referring to? Do you really think they'd be leaving if they were making money?