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insurance debacle. “The latest example is the state’s insurance debacle. State Farm, the largest insurer in California, said this week that it will stop issuing new home and business policies, partly due to the risk of wildfires and the cost of construction. (Allstate quietly followed soon after.)”
“While the left might blame climate change, the real reason is state policy.”
I wrote in 2023 for @BreitbartNews warning of fire insurance debacle in CA. Commissioner @RicardoLara4CA @ICRicardoLara (D) pushed "Medicare for All" and a bill to let illegal aliens hold office. But hey: first LGBTQ+ elected statewide.https://t.co/gFwct1aFa6 via @BreitbartNews
— Joel Pollak (@joelpollak) January 8, 2025
“California Insurance Commissioner Ricardo Lara — who authored the state’s own “Medicare for All” proposal — won’t let insurance companies charge higher premiums for the growing risks that climate change activists say are on the way (and that skeptics blame on poor forestry).”
“The Wall Street Journal notes that California is the only state that requires insurance companies to set premium prices based on past risks, not on future ones.”
“The intention — to give Lara the benefit of the doubt — is a noble one. Homes are already absurdly expensive in California, as is the cost of doing business. Keeping insurance premiums down is a nice idea.”
“But when prices are so low that they make insurance unprofitable, companies leave or collapse. That means Californians may struggle to find insurance — and, ironically, may be forced to pay more for it, as the supply of policies shrinks.”
“That is basically how California functions: our government creates laws and regulations that theoretically aim at some inspiring social goal, but which, in practice, make that goal impossible to achieve.”
Major Insurers Canceled Californians' Fire Insurance Policies Months Before Palisades Wildfires
State Farm, one of California's biggest insurers, just months ago canceled hundreds of homeowners' policies Pacific Palisades, an area now being ravaged by devastating wildfires.… pic.twitter.com/s4TblwlHrF
— Kyle Becker (@kylenabecker) January 8, 2025
California’s state insurance commissioner, Ricardo Lara, a Democrat, announced new regulations last month to force insurance companies to expand coverage in fire-prone areas and to account for future risk in pricing. “Solving our wildfire crisis requires bold action to protect our communities,” Lara said in a statement. “Insurance rates now must account for the billions spent on wildfire mitigation, including community efforts and home hardening. This all-hands effort by my Department has achieved decades-overdue reforms in just one year, ensuring consumers benefit from more accurate rates and better risk assessment.”
The regulation was effective in mid-December, which would not have allowed most homeowners to find insurance in time for the Palisades fire.
In addition to proposing “Medicare for All,” Lara was previously notorious for proposing a bill that would have allowed illegal aliens to hold state office.
