Off-Topic: Southern California Fires
- Thread starter BigJCy
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Reporter on Fox news just stated that property values will go to zero and good luck getting any kind fire insurance.
For comparison sake, does anyone know what they bring in for revenue in a state like California? I’d assume that’s also a big number? In the end, is $10B a year’s worth of revenue, 2 years, a decade?
Did you miss the Fox News portion of that post? There’s no source, it’s the reporters opinion. And they were probably gleeful in reporting that.
Scary what is happening with insurance. Everyone going to have to be self insured at some point.
Yeah, I can see having problems getting insurance and the property values dropping a little, but going to zero? I really don’t see that happening.
Check out the FEMA National Risk Index page for some info too.
Kind of interesting. The risk index for Polk County is Relatively Moderate. Same rating for expected annual loss.
LA county is about as high as it goes for risk and cost.
Hazards.fema.gov/nri/map
Kind of interesting. The risk index for Polk County is Relatively Moderate. Same rating for expected annual loss.
LA county is about as high as it goes for risk and cost.
Hazards.fema.gov/nri/map
$10-$12 billion looks pretty significant
i dont know anything about lloyd's of london but i do know about werewolves of london AHH-OOOOOOO
I think a lot of the palisades are insured by FAIR
www.kqed.org
LA Fires Threaten California Insurance Market Stability, Housing Costs | KQED
The fires are on track to become one of the most costly disasters in California history. How will they affect the price of owning a home in years to come?
Values will not go to zero, but insurence problems will have a dampening effect on values.
First reason is that the HOI costs are part of your monthly obligation. This depresses what consumers are willing/able to spend and what they are willing to qualify for in terms of a mortgage.
Second reason (that I’ve spoken to on prior pages) is that you may not be able to qualify for conventional or government financing at all. This suppresses demand which can lower values.
For example, if you’re in a condo project that Fannie, Freddie and FHA won’t accept because of insurance problems (and most other lenders follow those guidelines) you’re basically left with cash buyers or non traditional sources of financing.
It’s not a good cycle.
Has anyone heard from @HFCS. Have not seen him post in a while and I know he lives in the area. Hope everything is okay with him
I think many have already left due to regulation of prices and how much extra fire insurance costs....just tough all the way around.
Changes to allow more rate increases for providing coverage were due to come online soon, however the timing of these fires may kill any benefit.
I was just thinking the same thing yesterday. IIRC, he lived in the pasadena/altadena area but closer to the Rose Bowl (hopefully).
If it’s a burnt area I could see the clean up being more than it’s worth in some spots and then if you can’t get insurance, you would not be able to get a loan. It would make it a tough sell
Significant sure. But am I reading that right that they had around $35B difference between premiums and losses? So, a $10-$20B will certainly hurt the stock price. But I hardly feel like it would be the end of insurance in California.
Could be overreacting on my part but this may be 'rebuild or redesign practically an entire one of the largest cities in the world' levels of results.
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