UHND.com - Notre Dame Football, Basketball, & Recruiting

From the article:

"California is the only state that heretofore hasn’t allowed insurers to incorporate the cost of reinsurance in premiums. Until this year, it had also prohibited insurers from adjusting premiums by using the standard industry practice of catastrophe modeling to predict a property’s future risk. Insurers could only assess premiums based on historical losses.

As a result, insurers are paying out $1.09 in expenses and claims for every $1 they collect in premiums. This is financially unsustainable, which is why many have pared coverage in areas at high fire risk with expensive homes. State Farm dropped nearly 70% of policy holders in one Pacific Palisades neighborhood where the average home price is $3.5 million.

FAIR now covers about half a million homeowners who can’t obtain private coverage. Its exposure has ballooned to $458 billion as of last September from $153 billion four years earlier, with $5.9 billion in exposure in the Palisades. Yet it has only about $700 million cash on hand to pay claims."


Link: Californification