Like a good neighbor, State Farm Is There. Except in California

[Jim Bow]

State Farm Halts Home-Insurance Sales in California


Insurers have faced higher costs and wildfire risks

https://www.wsj.com/articles/state-farm-halts-home-insurance-sales-in-california-5748c771

[LeeG]

Re: Like a good neighbor, State Farm Is There. Except in California

Nothing like a 50 mph hot wind to discover how flammable human habitation is.

[LOKI]

Re: Like a good neighbor, State Farm Is There. Except in California

State Farm is nothing but legalized theft. These bastids are only taking your money, IMO Since when was it guaranteed that the risk that they were covering would make sure that they would make a killing . In total openess I must admit that I have been ripped off by these pricks many years ago.. An insurance company is betting on not having to pay out. When they do have to pay out nobody should feel sorry for them..

[Garth Jones]

Re: Like a good neighbor, State Farm Is There. Except in California

I'm not lover of the insurance industry but some years ago we had a house disaster that was $15-20K claim and State Farm was great about it. Then a few years later our house was broken in to and it was about a $5K loss. Again, State Farm came through. That being said, I wouldn't blindly trust them not to try to rip me off tomorrow.

[JayInOz]

Re: Like a good neighbor, State Farm Is There. Except in California

I've been trying to remember the show which had the ad for State Farm at the beginning of every episode. Pretty sure it was The Woodwrights Shop, with Roy Underhill, which has been running for thirty eight years! Must be doing something right JayInOz

[Henning 4148]

Re: Like a good neighbor, State Farm Is There. Except in California

Overall, they can only survive if they pay out less than they have income. To withdraw from a market segment can make sense under this principle (although I would question the wisdom as it is very hard to build up a market again). So it might be, that the reason for withdrawing is, that they can not calculate the risk reliably any more and thus can not reliably calculate premiums any more. Otherwise, they could offer adapted premiums, but not to offer contracts might indicate that the risk is uncalculatable (or is no longer a risk but a very high probability or certainty).

Anyway - insurances normally know their maths, it does not bode well if they do not want to insure for those seeking insurance.

[David W Pratt]

Re: Like a good neighbor, State Farm Is There. Except in California

When the market is doing well, insurance companies can actually (pun avoided) pay out more than they collect in premiums because of the return on their investments.
Does California have any building codes for fire resistance in fire zones?

[Anthony Zucker]

Re: Like a good neighbor, State Farm Is There. Except in California

We switched to State Farm many years ago because they were the only company we could find which would insure our home made 30' Bolger knock off ketch. They didn't ask for surveys back then and we knew the boat couldn't pass a survey. They were excellent covering a hail storm damage.

Insurers cant be told that they must underwrite everything. California is keeping up with Florida as a bad risk. As major carriers are frightened away, surplus lines carriers including Lloyds will move in and charge higher premiums and write very tight contracts. And even they will avid the worst risks.

The best/worst example of this was a lady crying on a news broadcast from Los Angeles a few years ago. She bought a house up on a hillside and a storm washed it down the hill and she was complaining that no insurance company would underwrite it and no bank would give her a mortgage on it so she had to pay cash of over one million dollars for it. And now the lot was deemed unbuildable. The insurance companies and the banks were telling her something that she didn't want to hear or understand.

After 25 years the boat had to be put down and we switched all our insurance to USAA. They are the best. If you served in the US military you should look at their system. We found their rates were lower than State Farm and, more importantly, when we had a major house claim(asbestos in the lower floor caused a hazmat situation, tens of thousands of dollars to cleanup and rebuild) they picked the contractors, paid for everything, and left us with a new downstairs. And they reminded us that if there was anything their contractors did that was not satisfactory to us just let USAA know and they will make the contractors make it right. Tell me about another insurer who will do that.

[MushCreek]

Re: Like a good neighbor, State Farm Is There. Except in California

Having lived in coastal FL for 30 years, we've had our share of dealing with homeowner's insurance. When I built our house here in SC, State Farm was the ONLY insurer I could find that would insure the property while under construction. After construction, we got a quote form The Lizard, and they were way higher than SF. In fact, we dropped Geico for auto insurance, as SF gave us a much better price on that, too. That being said, I'm not a fan of the entire insurance industry. Why do I pay nearly as much insurance on a second car as the first? I can only drive one at a time.

[Garret]

Re: Like a good neighbor, State Farm Is There. Except in California

Having lived in coastal FL for 30 years, we've had our share of dealing with homeowner's insurance. When I built our house here in SC, State Farm was the ONLY insurer I could find that would insure the property while under construction. After construction, we got a quote form The Lizard, and they were way higher than SF. In fact, we dropped Geico for auto insurance, as SF gave us a much better price on that, too. That being said, I'm not a fan of the entire insurance industry. Why do I pay nearly as much insurance on a second car as the first? I can only drive one at a time.

Because you can loan it to someone.

I too just went from Geico to SF for auto - saved over 50%. Liberty Mutual to SF for the home & saved almost 40% for better coverage. I also had a claim with SF many years ago & they were great. Had one with a tree falling on our car with Geico & they too were great.

Insurance is an extremely simple concept - they need to take in more in premiums that they pay out. However, the devil is in the details. Our home insurance is 1/4 of what the kids pay in Florida - as they get hurricanes & floods & we don't. I'm sure folks in fire-prone areas pay higher as well. 60 minutes did a piece on wild fires (California?) a few years ago & while the devastation was awful, much was preventable, as they showed people who had cleared a zone around the house often came through OK, but those who had woods right up to the house did not.

Yes, insurance companies make good money & can seem capricious, but compared to may hospitals, they're saints. Also note that SF has stopped sales - not existing coverage.

[Nicholas Scheuer]

Re: Like a good neighbor, State Farm Is There. Except in California

State Farm insured my Dovekie so easily that I later switched to Boat US simply because I suspected that SF didn't know much about boats. BUS has paid a couple of claims on our boats over the years.

[John Smith]

Re: Like a good neighbor, State Farm Is There. Except in California

I've had no problems with State Farm over many years. They were quite fast and generous when a storm knocked down a tree that destroyed our pool and did some damage to the home.

Only car accident I was in was one where we were hit from behind, the insurance company who insured the guy who hit us was not so good. Wife got seizures and had to give up he license for what turned out to be four years. Rather than offer a settlement, they made us get a lawyer and go to court. We ended up in arbitration. Arbitrator suggested $75K, which we accepted. Going to court under NJ's insurance system would be a crap shoot.

What pissed me off is that we would have gladly taken $75k had it been offered sooner, and without getting an attorney, who got 1/3 of that money.

I don't know, but I suspect, a single incident is more likely to get a quick/fair settlement than an incident where many homes are involved. I imagine there are those who will claim stuff that wasn't truly lost in a storm or a fire. I know my church gong friends, when their car was stolen, claimed stuff in it that wasn't in it.

I'm sure there are many who submit false claims, or add stuff to real claims, and insurers likely want to investigate before paying.

Some ruin stuff for everyone.

[LeeG]

Re: Like a good neighbor, State Farm Is There. Except in California

When the market is doing well, insurance companies can actually (pun avoided) pay out more than they collect in premiums because of the return on their investments.
Does California have any building codes for fire resistance in fire zones?

Pretty sure there’s a range of changes in construction for fire as there has been for earthquakes but hills and hot winds can render a cinderblock house into an oven. When the San Marcos Pass fire went down into parts of northern Santa Barbara houses were set aflame with no flammable vegetation connecting the houses. In the Oakland Hills fire a friend’s mom had a totally fire proof house regarding nonflammable construction and exterior with wide perimeter clearing but being at the top of the oakland hills it was acre sized furnace.

[Mrleft88]

Re: Like a good neighbor, State Farm Is There. Except in California

I've heard nothing but horror stories from State Farm, and Allstate insurance customers. I've had AMICA since I was 18 for my vehicles, and 27 for home owner's. Never a problem..... Until I moved to FL. Then because I'd not had insurance with them for over a year, I had to get insured by another co. for a yer with no claims before they took me back. I questioned this. It was because of the Fl. laws, and they generally did not take "new customers" in Fl. Once that year was up, they welcomed me back, and have been great as usual ever since.

[ron ll]

Re: Like a good neighbor, State Farm Is There. Except in California

Not a big fan of the insurance industry, but I have to admit State Farm has always treated me pretty well, even writing a $2 million liability policy on my old wooden boat for $75/year. But the real horror story was when my standing still pickup was crashed into by a Geico customer. Getting them to write a check was a long drawn out nightmare. And BTW, BoatUS insurance is Geico.