California wildfires

[NY independent]

As I sit here and type this, I can't process the devastation, and the distress, people are going through. I can only imagine what the impact will be, nationwide, on the already distressed property insurance marketplace. When E&S pulls out, and the FAIR plans go belly up, there's nothing left but a Fed bailout or another NFIP (for property ins). You know what will happen to the real estate market without insurance. Do any insurance professionals care to make a prediction?

 

[DonP]

My friend leaves there and he was sending me videos he took . I know the statefarms and allstates pullout out 1-2 yrs ago. But don't they still have 10's of 1000's of homes insured ?There was no chance against this with the 90 mile an hr winds . I can't even wrap my head around how much property ins will be in 1 yr . If you have a P@C agency i can't imagine any carrier paying 1 dime of commission for a new policy as no one wants it

 

[Al3x Lee]

@marindependent @Markthebroker Is it safe to assume California FAIR Plan policies are ACV? I'm too lazy to look it up, but I know that's how most States are

 

[T Sparks]

My friend leaves there

I would too!

 

[LeeV]

@marindependent @Markthebroker Is it safe to assume California FAIR Plan policies are ACV? I'm too lazy to look it up, but I know that's how most States are

It is the insurer of last resort, a consortium of insurance carriers who fund the accounts. I believe that no state money is used.

 

[AZDave]

Do any insurance professionals care to make a prediction?

Big expansion of the FAIR Plan. However, since FAIR plan is funded soley by the carriers that write business in the state, drastic legislation will be needed to fix this and CA will surely mess it up.

 

[rab57]

@marindependent @Markthebroker Is it safe to assume California FAIR Plan policies are ACV? I'm too lazy to look it up, but I know that's how most States are

California FAIR Plan standard policies are ACV but RC can be added if the roof is less than 30 years old.

 

[rab57]

The California FAIR Plan gave a warning last year about solvency.

"The FAIR Plan continues to grow in size as consumers find themselves without coverage. As a result, we have doubled in size in the last three years," said FAIR Plan President Victoria Roach. "As those numbers climb, our financial stability comes more into question."

California FAIR Plan warns major disaster could wipe out insurer of last resort

With more and more insurers pulling out of the state's fire insurance market, homeowners are being pushed into a program called the California FAIR Plan—an insurer of last resort for those in high-risk areas.

www.cbsnews.com

 

[Al3x Lee]

California FAIR Plan standard policies are ACV but RC can be added if the roof is less than 30 years old.

Well there's your problem. How many times do I need to say it? Abolish RC coverage!

Also welcome to the forums @rab57

 

[rab57]

Thank you sir