Quote:
Originally Posted by LWJ
On a positive note (if anything positive about this) is that homeowners insurance covers fires (not flood damage like with Helene). Homeowners that lose their house and survive will be able to rebuild...somewhere.
Except this size of loss is going to shock and paralyze the Insurance industry. We are currently seeing a very hard market for older properties - I had a "to the studs" remodeled apartment go from $8K to $36K this month due to the hard market and one goofy claim that they probably didn't cause. Have another property we have not found any coverage yet - older and less desireable.
After the Camp Fire (poorly named!) in 2018 CIG Insurance had reserves that were so low the rating was going from an A to a B. Which is the start of a death spiral for an insurance carrier. They merged (sold) with a large national firm to avoid this.
I expect that property coverage and rates are going to become a significant issue in the US due to this fire(s).
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I would be very surprised if this all lands on insurance companies.
It's too big.
And if it did, the only insurance companies left to survive
would bail on Cali.
I predict much of the burden will fall on the
federal government (the taxpayers).
Just like they did with the banks and car companies
in 2007, bail-out time.