• xantoxis@lemmy.world
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    7 days ago

    “And since there’s still not the ability for people to shop around for other options, what are they going to do but pay that higher rate? But I think that it’s probably going to show pretty quickly that it’s necessary to keep State Farm from literally going insolvent.”

    Seems like you conveniently forgot another option here? Seize the fucking company. It belongs to California now.

    • curiousaur@reddthat.com
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      7 days ago

      California already has a state run home insurance company. They are allowed to charge whatever they need to charge to always offer a plan to any homeowner even in high risk areas. Guess what? It’s twice as expensive as State farm.

      If I had the option of paying State farm 50% more or paying double to go back to CA fair plan, guess which I’d choose.

      • Tronn4@lemmy.world
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        6 days ago

        I have FAIR plan and a homeowners insurance jsut for 1 house. Both together are less than state farm would charge for 1 homeowner policy not needing the fair plan.

            • curiousaur@reddthat.com
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              4 days ago

              I’m in the forest. My state farm went down this year surprisingly. Was paying about double for fair plan.

              • Tronn4@lemmy.world
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                3 days ago

                I wonder if it varies by area kinda like car insurance. Down here in San bernardino national forest state farm will not issue new policies for homes since middle of last year if I remember. But they’ll keep current and up to date policy holders stay with them. The fair plan as you know is for any fire outside the home (the forest). My fair plan has gone up $10 in the 4 years I’ve had it. And I’ve had zero increase on my state farm. Couldn’t tell you the exact numbers at the moment as they’re in my mortgage payment. I’ll check now that we’re on the subject

                • curiousaur@reddthat.com
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                  2 days ago

                  It does vary now! I got something in the mail from state farm saying they are switching from an area type model, where all “forested areas” are the same, to a more specific gps based risk assessment model. That’s when my state farm went down actually. Gave me some peace of mind since others in “forested areas” are getting huge increases or just dropped. I’m in the Mendocino coastal redwoods, so very low fire risk compared to most of California, which is pines and oaks. With the beetles killing the pines, and the sudden oak death, it’s not an if, but a when all those forests completely burn. Makes perfect sense state farm wants out of there.

    • partial_accumen@lemmy.world
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      5 days ago

      Seems like you conveniently forgot another option here? Seize the fucking company. It belongs to California now.

      Assuming the financial report about State Farm’s insolvency in California is true, how do you think this will help?

      Lets play out your scenario:

      1. California state gov seizes State Farm California (they can’t seize it in other states).
      2. SF is already broke.
      3. Current premiums don’t cover the cost of near future claims.
      4. What little money the current premiums come in goes to pay some claims
      5. Employees stop getting paychecks.
      6. Lots of homeowner claims go unpaid without more money from somewhere.
      7. Employees quit because they aren’t getting paychecks without more money from somewhere.

      What are you advocating for differently than the scenario above? Where is the needed money going to come from to:

      1. keep premiums the same level they are now
      2. pay out future claims that exceed the revenue from premiums
      3. pay employees to continue to process claims

      Where is that money?

      • EleventhHour@lemmy.world
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        7 days ago

        Finding solutions that don’t involve screwing literally everybody over just to save an irresponsible corporation?

        And your complaint is?

        • GBU_28@lemm.ee
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          7 days ago

          That you don’t understand the fundamentals of the industry (as described in the other detailed comment), and jumped to knee jerk fixes that are anything but.

          • EleventhHour@lemmy.world
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            7 days ago

            I’m not having trouble understanding anything. And lashing out at me because your comment was rejected is just projection.

            Grow up and learn how to handle your negative emotions like an adult.

            • GBU_28@lemm.ee
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              7 days ago

              Rejected?

              You’re the one throwing a tantrum lol

              Edit contextually: as described in the other comment, state farm is not a traditional corp as you seem to imagine it, and if the state owned it it would be experiencing the exact same financial issues.

                • GBU_28@lemm.ee
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                  7 days ago

                  It’s fine, you didn’t understand the details. Learning is tough.

                  Edit go read lemmyfixdat4u 's comment again, your lack of understanding, and kneejerk response is highlighted in the information there.

    • lemmefixdat4u@lemmy.world
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      7 days ago

      Well, you’re going to piss off the policyholders then. State Farm is a mutual insurance company. It’s owned by the policyholders. It’s essentially a non-profit, since profits go to reduce premiums or pay dividends to the policyholders.

      The thing is, the company isn’t turning a profit. When what fills the cup doesn’t match the hole in the bottom, at some point the cup will be empty. California has mismanaged the wilderness areas and allowed development without concern for potential fire danger. Climate change, high fuel loads after decades of suppressing natural fires, improperly maintained electrical infrastructure, and a lack of “Fire Wise” education are all contributing to huge wildfires and high property loss rates.

      If California were to seize every insurance company in the state, they would quickly be in the same predicament - needing to raise premiums to cover the losses.

      The only real solution is to reduce the risk. That’s why the NFPA came up with local Fire Safe Councils. We educate the homeowners about how to make our homes resistant to wildfire damage. Using grant money, we reduce the fire danger by clearing hazardous undergrowth. We provide resources for homeowners, like chipping programs, matching funds for tree removal, and other assistance in maintaining defensible space. We have successfully lobbied for insurance discounts when homeowners complete risk reduction measures.

    • Brkdncr@lemmy.worldOP
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      7 days ago

      Idk. I feel like government is bad a running one company but is good at scaling up.

      I’d rather see ca offer a good baseline insurance plan. That or offer fire protection like they do for flood and earthquake.

    • FuglyDuck@lemmy.world
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      7 days ago

      Seems like you conveniently forgot another option here? Seize the fucking company. It belongs to California now.

      privatize the gains, socialize the losses! -rich fucks, usually.

  • Avid Amoeba@lemmy.ca
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    7 days ago

    Have they invested in the fossil fuel industry by any chance? Perhaps they could use those profits to cover their losses.

    • Brkdncr@lemmy.worldOP
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      7 days ago

      Sounds like they paid out for recent claims and don’t want to play anymore.

  • Zier@fedia.io
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    7 days ago

    Sing along with me kids, “Like a good neighbor… State Farm is broke!”