More than 4,400 fire owners in Los Angeles have submitted insurance claims to the California Fair Plan insurance company, the last resort of the state.
This alone kicks the nervous finances of the plan in crisis mode, increasing the possibility of insurance costs, regardless of whether the state -of -the -art housing owners live in the firefighting zone.
Fair provides insurance compensation to housing owners who cannot find insurance companies that provide insurance contracts due to excessive fire risk. Fair also offers low costs, but for those who can’t afford to pay interest rates, we provide a much more restrictive policy.
However, FAIR is operated at a base with a weak asset, and has only hundreds of millions of financial resources. Fairly submitted claims seem to be the top $ 900 million. This is a worthy value that the fair must rely on to re -insurance to cover the cost.
Rest insurance is fundamentally insurance. We provide cash when the insurance company is overloaded by more claims than the plan. Fairly re -insurance taps for $ 2.6 billion.
As of January 28, the Fair Plan received more than 3,200 claims for the Parisade Fire, and was over 1,200 for Euton Fire damage. Claims depend on the coverage, the type and amount of loss.
The final cost of La-AREA’s fire is unknown, but CoreLogic, a asset value analysis company, is estimated between $ 35 billion and $ 45 billion.
Pacific Parisseed has one of the most focused the most fair planned insurance policyholders in the state, and the insurance company estimates exposed to $ 5.89 billion.
If it is found that re -insurance is not enough to cover the debt of the fair, the regulation of the state requires the insurance company to make the difference. These companies are permitted to raise the money of the whole state of housing owners under the same regulations.
The bill that passes through the state council may reduce the need to increase the tax rate of housing owners by selling bonds, and to provide fair funds by selling bonds. You can transfer at least some expenses from housing owners to taxpayers throughout the state.
Companies, such as State Farm and Allstate, have stopped selling new housing owner insurance contracts in California, but other companies have restricted their cover or both prices. According to the Institute for Infinus, California insurance companies have paid $ 1.08 for claims and claims to all dollars collected on insurance premiums between 2013 and 2022.
As the insurance company retreats, the fair plan has increased insurance contracts to more than 450,000 people after slightly exceeding 200,000 in September 2020 as of September last year. As a result, at the same time, the total loss exposure of the whole state increased by about $ 458 billion.
Fair’s Cash on Dand is a total of hundreds of millions of dollars, and the total re -insurance compensation is only $ 2.6 billion.
For decades, California insurance companies have been forbidden to use the so -called “catastrophe model” in the setting of the rate. Recent policies from the California Insurance Insurance are currently allowed to use these models.
Instead of greatly dependent on past claim data, computer programs try to improve the risks of insurance companies, taking into account a large number of variables that affect the possibility of loss.
With another major policy change, the insurance company has the cost of re -insurance purchased from other insurance companies in order to restrict the losses during huge catastrophe such as wildfires and floods. You can claim. This cost shift to insurance policyholders is common in other places, but it is a major change for California and procure premium.
Source link
