Letters to the Editor: My homeowner’s insurance policy isn’t being renewed. California is in trouble
To the editor: I recently got notice that my homeowner’s insurance is not being renewed. My next-door neighbor got a similar notice. My agent said I could insure with the state’s program, but at twice the price I’ve been paying and with very limited coverage. (“California’s home insurance crisis: What went wrong, how it can be fixed and what owners can do,” March 29)
We are not in any high-risk fire zone, so what’s going on?
I’m told that because Proposition 103, passed in 1988, allows the state insurance commissioner to approve rates, insurers can no longer be profitable in California and now want out. A good comparison from my agent is if the state agricultural commissioners set the price of eggs at 50 cents a dozen, a loaf of bread at $1 and a quart of milk at 25 cents, it wouldn’t take long for store shelves to be empty with no new shipments coming in.
It’s the same with insurance. Unless legislators and the governor can turn this situation around, California is in big trouble.
Ron Greek, San Clemente
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To the editor: Aren’t the real issues with respect to California’s insurance crisis a need for tort reform to cap damages for property similar to what is done with respect to medical claims and restrictions on carriers’ abilities to set their rates?
Wouldn’t a more informative article look to the economics surrounding the claim obligations of these carriers? Should more research be done regarding the effects of Proposition 103, which restricted insurers’ ability to more accurately calibrate rates versus liabilities?
To lay this issue on climate change seems simplistic, given that many other states deal with natural disaster challenges, including hurricanes, tornadoes, wildfires and more.
Peter Verbica, Felton, Calif.
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To the editor: After seeing the hurdles that California residents now face in insuring their homes, I have to wonder if auto insurance policies will be next.
The sheer volume of injury attorney ads airing on TV every day is over the top. In one of the “testimonials,” the alleged victim states that he “heard a bump” and called an attorney “on the spot.” Seriously?
Mostly, the testimonials speak to the ease of getting a claim handled, even just texting back and forth with the law firm, followed by money deposited in their account.
What is so worrisome to me is that I see this contact-an-attorney-first mentality spreading. So many people seem to think it’s normal to talk to a lawyer first instead of an insurance representative, even when no injury is alleged.
This unfettered ambulance chasing over the airwaves will eventually affect us all — mark my words.
Kathy W. Smith, Torrance
