When California isn’t blaming electric companies, homeless people, and illegal aliens for fires who do contribute to the problem, they are not blaming themselves and their horrendous over-regulating. They are currently blaming insurance companies for dropping customers just before the fires.
Why did the insurance companies fail the people?
In the 1980s, the state leftists passed regulations including requiring insurance companies to get permission to raise rates. They also prohibited companies from passing certain costs onto customers.
After the 2018 fires, they blocked insurance companies from canceling or not renewing policies for one year. While it sounds great, by 2023, the two largest companies, Farmers and State Farm, decided it wasn’t worth it to offer insurance at a rate that could lead to financial failure.
So, they decided to stop issuing policies in California. Newsom tried to keep them in California with an executive action that gave them a little more freedom, but it was too late.
In 2024, they decided not to renew thousands of policies in the Palisades, Brentwood, and other areas at risk of wildfire. It forced people into the expensive share plan, which doesn’t have enough money to cover losses – far from it.
They have 750,000 in the plan, and homeowners’ losses are in the billions. The fires are still ongoing.
Because the politicians haven’t learned a thing, they temporarily banned insurance companies from renewing policies.
Undoubtedly, if insurance companies are innovative, they will leave the state.
Meanwhile, the state is on the Pacific Ocean and they won’t use salt water for emergencies. It would not ruin their equipment. They mock President Trump for trying to redirect the water from the sea to the reservoirs, and they won’t stop regulating. They are sponge-for-brains ideologues.
Watch:
You can comment on the article after the ads and subscribe to the Daily Newsletter here if you would like a quick view of the articles of the day and any late news:
It’s an element of the top down collapse strategy. Cloward-Piven is a collapse strategy which Hillary endorsed.
Now government will assist in the purchase of the land since most cannot afford to rebuild. You can imagine how corrupt that operation will be. Lots of those rich people will turn on them over this. Those people prized their great properties much.
The same thing happened in Florida before Ian. Can you tell me how that went down? Florida has a “citizens insurance” which was then oversubscribed…
M. Dowling said it all about California’s Democrat politicians and regulators: “They are sponge-for-brains ideologues.”
Communists like Newsome simply are incapable of understanding market forces.
… and the citizens suffer…