Perhaps the most interesting part of the article:
Absolutely sucks, but these are also some of the wealthiest homeowners in the US. Cut your losses and move to less vulnerable areas. Nobody should be building homes in flood plains, lake beds or fire prone areas, particularly the ultra-wealthy. Save FAIR for normal folks and low income families.
The insurance companies had an obligation to maximize shareholder value. That is the sole purpose of insurance companies.
The insurance companies had an obligation to maximize shareholder value. That is the sole purpose of insurance companies.
Look, I get that this is an easy go-to answer for many things, but please add this to expand your understanding a bit more so you have a more complete picture.
Not all insurance companies are public companies with shareholders to satisfy. Mutual Insurance companies are owned by their policy holders. Specifically with California, both State Farm and Liberty Mutual have both exited too. These are both large insurance companies that are NOT driven by "shareholder value". Profits these companies make are issues as dividends to the policy holders, not shareholders.
So the issue of insuring property in California is more than just the standard "greedy shareholders" argument.
The map below shows rates of home insurance nonrenewals in recent years. You can explore your state and areas with the highest rates in the country, including California and Western states facing wildfires and Eastern Seaboard states like Florida and the Carolinas with elevated hurricane risk.
The insurance companies gotta keep their shareholders happy. That is the number 1 priority and fuck the customer.
I completely get the eat the rich mentality. At the same time, it really doesn't make sense to rebuild some of these places. We're all paying for it one way or another.
/a rub living in a flyover state that's very boring from a climate change perspective, at least so far.
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