The list of dead canaries being brought out of the collapsing coal mine that is California is so extensive we are almost reluctant to add another. Still, when 88,000 condominium and renters stand to lose their insurance policies, that’s news.
KTLA reports, "Another major insurer is pulling back on its offerings in California, forcing tens of thousands of customers to find other options. SafeCo, a subsidiary of California’s fourth-largest home insurer, Liberty Mutual, has announced that it will stop offering policies for new rental and condo customers on January 1, 2025.
"Existing customers will be able to keep their current policies until 2026."
Who Emu?
And that’s not all the bad news.
KTVU found, "And, starting in 2026, the company says it will not sell or renew any rentals, condos, motorcycles, motor homes, travel trailers, antique autos and classic car policies. Anyone with a less-than-good driver rating will be dropped."
Liberty Mutual gives the usual corporate argle-bargle when asked about the change.
"We are simplifying and focusing our product investments, targeting core lines of business while reducing our menu of product offerings."
And 88,000 of you are no longer on the menu.
This gives current customers one year to find insurance in a limited and costly market. SafeCo joins other major insurers in California in paring back its coverage.
"Last year, State Farm General Insurance Company stopped offering property insurance policies in California, including all business and personal property coverage, citing 'historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.'
"Allstate made a similar decision last year, and now, with the latest news from Liberty Mutual, insurance options for California residents are becoming increasingly thin."
Abandoned customers can thank their friends in the "green" community for much of this coverage denial.
For decades an unholy combination of government inertia and environmental fanatics have prevented sane forest management in California.
Instead of thinning vegetation and using wise forest management practices, California has instead held that every leaf is sacred, and the result is out of control wildfires that have devastated the state in recent years.
SafeCo has decided to stop rolling the dice.
The other problem, high construction costs, results from a combination of inflation and the California building code.
The situation has become so dire that even California big government bureaucrats are starting to act.
KTLA again, "California Insurance Commissioner Ricardo Lara has introduced a strategy to stabilize the market, including efforts to encourage insurers to stay by addressing climate risks and promoting sustainable practices.
"A proposal would permit insurers to use computer models to predict future risks when setting premiums while mandating that they provide coverage in high-risk areas proportional to their market share."
This is a trade-off.
Insurance companies have been asking for the ability to set rates based on loss predictions, instead of historic loses.
The commissioner is granting that.
In return, the companies must agree to write policies in high–risk areas that is proportional to the company’s overall market share.
In Liberty Mutual’s case that would be equal to their fourth–place market share.
Our only problem with the change is the word "sustainable."
That’s usually enviro-speak for expensive, impractical, ideologically-driven requirements.
We'll see.
There are no winners in this situation. California is an expensive place to live and an equally expensive place to do business.
Living there is rapidly becoming a luxury item.
It could well be the next canary to leave will be the middle class.
Michael Reagan, the eldest son of President Ronald Reagan, is a Newsmax TV analyst. A syndicated columnist and author, he chairs The Reagan Legacy Foundation. Mr. Reagan is an in-demand speaker with Premiere Speaker's Bureau. Read Michael Reagan's Reports — More Here.
Michael R. Shannon is a commentator, researcher for the League of American Voters, and an award-winning political and advertising consultant with nationwide and international experience. He is author of "Conservative Christian's Guidebook for Living in Secular Times (Now With Added Humor!)" Read Michael Shannon's Reports — More Here.