Quote:
Originally Posted by Tobra
It is not supposed to rain that hard.
Mostly, the decision not to rebuild will not be up to them
Did you read that article?
If it is thousands of cancelled policies, and 10,000 structures were burned, how is that a very small percentage?
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Because the policies were non-renewed during mid 2024, and most of those people got replacement coverage from the FAIR plan or other carriers. FAIR’s number of insured properties in Palisades shot up during 2024, by a lot. At the time of the fire, FAIR insured 22% of homes in the Palisades fire perimeter (and 12% in the Altadena fire perimeter).
Some of those people ended up underinsured, like the bozo with the $27MM house and FAIR insurance, but I think most people with $10MM+ houses probably were smart enough to get appropriate coverage. The average house in Palisades was not a mansion, but a normal - okay, very nice - house of reasonable size on a small lot. $3MM FAIR coverage limit would have been enough.
You know something kinda impressive? At the start of 2024, State Farm insured something like 2,300 houses in Palisades, which is about a quarter of the houses in the fire perimeter. In July 2024, State Farm declined to renew 1,600 of those policies, which got its risk down to about 8% of the houses there. It is still going to get slammed - maybe $2BN? - but someone at State Farm did a very smart thing (for the company) and should be getting a serious bonus.