Eli5: Why are insurance companies leaving entire states like California and Florida?
In: Economics
Fire, flood, and earthquake has officially exceeded the risk and current premium valuations.
Insurances are capped by state of California and can’t raise premiums to offset coverage.
So they are washing their hands with california.
State of California will need to step in and provide a state sponsored insurance program running at a loss each year. This will happen in 10-15 years from now.
Latest Answers