MASSIVE Housing & Car Market Crash Coming! The Crack In The Dam: Insurance DISASTER!
#housingmarket #cars #realestate
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MASSIVE House & Car Market Crash Coming! The Crack In The Dam: Insurance DISASTER!
“California’s insurance woes are only beginning
Last month, California’s insurance market was rocked by announcements from State Farm, Allstate, Farmers, and AIG, saying they would stop sales of new policies, citing headwinds brought on by catastrophic weather events, inflation, and economic conditions.”
State Farm specifically “announced it would not accept any new applications for home insurance policy as of May 27 “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market,””
Reutuers reported that in addition to the four big insurance companies, “Liberty Mutual to stop offering business owner's policy in California as costs bite
Property and casualty insurer Liberty Mutual will stop offering its business owner's policy (BOP) product in wildfire-prone state California from Oct. 1, in a sign that cost inflation and higher catastrophe losses are pounding insurers' profits. A spokesperson for Liberty Mutual also told Reuters in an emailed statement that the company "will not renew its current book of this line of business beginning in December."
“The continued retreat of larger insurance carriers from the California residential property insurance market, signals ongoing regulatory constraints, rising cost inflation and higher catastrophe losses, credit rating agency Fitch said in a note earlier this year.”
Yes, Fitch. The same Fitch that just downgraded the United States' credit rating and said they lost confidence in the government's "fiscal management."
Fitch basically just called the US fiscally irresponsible.
Now there’s one other thing we need to mention. Let's say you are lucky enough to find an insurance company who will take you on, well if you purchase a car or truck in the state of California you will need to wait anywhere from 10 to 15 days before your policy is active. So basically when the dealership wants you to drive your car off the lot you will have to do so uninsured. Does that make sense to you? no course not it doesn't make sense to anyone. And that doesn't just apply to brand new vehicles either it applies to used vehicles as well.
So we are witnessing the insurance companies fleeing the state of California which means those who want to purchase a home or a car, they are in for some headaches. Not only will it become much more challenging to purchase but there will be many more hoops to jump through to qualify for coverage along with higher premiums. Add to that the shock many homeowners are in for come renewal time and you’ve now got a recipe for disaster.
The creepy part is now insurance companies are spying on homeowners by flying drones over their properties. Take a look.
Imagine finally buying the car you’ve been wanting or having your offer accepted on your dream home only you find out you’re unable to obtain insurance. Just terrible. So what can you do if you’re a homeowner and need coverage? Well, besides contacting the insurance providers who are still offering coverage and seeing if you qualify, if you’re in California you may have to fall back on the FAIR Plan.
“The California FAIR Plan Association was established to meet the needs of California homeowners unable to find insurance in the traditional marketplace, according to its website.
For those in California who need auto insurance your best bet is to plan ahead if you're purchasing a vehicle so that you have at least two weeks lead time before taking delivery of your new vehicle.
For both homeowners and vehicle owners if you have renewals coming up on your policy anytime soon start getting on the phone to make sure you're not gonna have any issues and if so plan accordingly.