May 30 – The insurance giant State Farm will no longer accept homeowners insurance applications in California because of high claim rates as well as increased construction costs when homes need to be rebuilt.
The organization has explained they are in the risk assessment business and can no longer justify providing homeowners insurance in the state.
Attorney Clint Barkdoll said, “I hope this isn’t a trend. When you have a big underwriter like that leaving a market, that’s going to put pressure on every consumer, every homeowner in that market. I’m sure all of these big insurance companies are studying claim rates and the cost of construction in every state they do business.”
Michele Jansen of NewsTalk 103.7M asked, “When are the policy makers going to wake up? California leads the way in woke policy, in restorative justice, in getting rid of standards for everything and going overboard on some of the most extreme versions of this. People can’t live there anymore. They were focusing on a guy who was trying to build homes. They’re coming and stealing from the work sites and then nothing happens. So you talk about construction costs. How much is that adding to it? Not to mention businesses that are broken into over and over and over. We’re going to have Gavin Newsom as a possible presidential candidate because he’s done so great? When you’re having State Farm and companies saying we can’t even insure people here anymore? Something is wrong with these policies. They don’t result in good things for society and yet they just keep ignoring it, despite the fact that all these things are being put right in front of them.”
Barkdoll said, “This is a huge problem in California and I hope it doesn’t create a contagion effect. State Farm is one of if not the largest insurance companies in the country.”
Construction requirements in California include charging stations being built into the garage for electric vehicles in the home.
Barkdoll said, “All of these green initiatives for how energy and water flow and here’s State Farm from a business standpoint saying there is no way we can keep underwriting these properties when you look at the costs to replace them. So they pull out of that market. The other players that are left there will undoubtedly have to raise their prices and if you are stuck with a State Farm policy in California, you’re probably now waking up this morning looking at a significant increase in your home owners coverage to now go to another company.”
Pat Ryan of NewsTalk 103.7FM pointed out, “Here we are, though, you have it right in front of you time and time again in California. Now you are where you are and you’re going well how did we get here? You didn’t engage. That’s how we got here.”
There’s apparently an app to find charging stations in the country to keep your electric vehicle on the road.
Ryan said, “You’re going to be held hostage by these pieces of junk.”
Jansen noted, “When you put charging stations everywhere, that’s not going to solve the problem because the grid can’t handle the electricity that’s going to be needed to charge all these cars.”
Ryan said, “So your grandma and grandpa who are trying to keep their house cool and trying to stay alive will face brown outs and you can’t visit grandma and grandpa because you don’t get a charge enough to get to grandma and grandpa. We are where we are because of a small group of loud mouths.”