this post was submitted on 15 Feb 2025
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Is is a band-aid that is only going to allow the underlying issues to further fester.
Insurance companies profit by charging more in premiums than they pay out in claims. This is just going to accelerate them either pulling out of the state altogether, or if barred from doing so (and good luck with that in court); they will hike the premiums so high that no one would pay.
“No one will pay” — people with mortgages are required to pay or they lose their house
To clarify, I meant more that no one will be able to pay; especially if their insurance premiums end up costing more than their monthly mortgage!
In a situation where the risk is assessed to be that there is another fire in the Palisades region within the next 10 years - and that there is a >50% chance of critical structural damage, then in order to cover all of the associated costs and operational expenses, your home premium would be ~10% of your home’s value!