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by hedora
791 days ago
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Fire insurance in California is moving towards control by a government-mandated cartel. All the insurance companies have to take partial ownership of the California FAIR plan company, and they share in its profits. For what it's worth, they refer to themselves as a "syndicate". CalFAIR charges 2-3x market rate premiums (for similar houses in the same area insured by the companies that own CalFAIR -- this is on top of charging more due to risk), and then refuses to pay out when your house is damaged, engages in lowballing, etc, etc. Since all the insurance companies that are "competing" against them own stakes in it, the moral hazard should be obvious. Predictably, CalFAIR's market share has been rapidly increasing in recent years. They're supposed to be temporary insurance of last resort, but they've climbed to over 3% market share. https://sfstandard.com/2023/10/19/california-insurance-crisi... https://www.cfpnet.com/about-fair-plan/ |
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