[The Godfather]

It started happening in Florida in 2003, and it keeps strangling the homeowners here, new and old.

I know there are many MacNN Californians here. Are you feeling the crunch? Anyone being dropped by their insurance?

[natnabour]

I honestly don't think people are worried too much about insurance right now - they're just worried about getting the hell out of danger's way.

[MacosNerd]

Yeah human nature is funny like that.

Gee a giant wall of fire is heading my way, but should I call my insurance agent to see if next years rates will go up

When ever there is a natural disaster, insurance jacks up the rates, no need to wonder about that.

As for florida, since that state has been getting hit hard by hurricanes these last few years, the risk of damage has increased so much so that insurance companies are pulling our and the ones that remain have been increasing the rates in line with the risk.

[olePigeon]

I live in an apartment owned by one of the largest apartment companies, with renter's insurance. Not too worried about fires as my insurance is a fixed price deal through the apartment company.

[nonhuman]

Fire insurance is already really high in California. This isn't the first time this has happened, and it won't be the last.

[The Godfather]

The last two hurricane seasons were severely lacking of hurricanes, yet the insurance companies have been raping Florida like there's no tomorrow.

I don't hear the same occurring to Californians, even if fires destroying communities are a safe bet every year. Is there's something, policy-wise, that CA is doing right and FL wrong?

[Patrick]

I bought a renter's policy last month, so I won't see another bill until next fall. Not too worried about premiums at the moment. Besides, this is all so recent I'm guessing that many affected people haven't yet made their claims.

This morning I got a call from someone at the agency (kinda far from where I live), reminding me that they were there if anything happened. I pointed out that I wasn't currently living close enough to the fires to be in immediate danger, but thanked her anyway.

[andi*pandi]

^that's service though. gotta give them points for that.

[macroy]

Would this ONLY affect Californians though? I mean yea, I can see their premiums going up big time after this... but if you're with a national company, wouldn't everyone also get to foot some of the bill? Either by a slight increase in premiums or even the absence of a dividend return....?

[iranfromthezoo]

Macroy...I'm not too familiar with all of the insurance stuff so please forgive me if this isn't 100% accurate.

Fire Depts in the US (except legal fire depts) all are paid by the insurance to maintain a certain "rating" 10 being the worst Fire Dept in your state and 1 being the best in the state. Very few depts are 1's. Each state and insurance commission have different requirements for ISO Ratings. My dept is a 4. We will easily be a 2 but we do not have an on site training facility.

So legally (from experience in Mississippi and South Carolina) Insurance companies cannot pass the brunt of fire damage and insurance policies to other districts that maintain a lower rating or comparable rating to the area affected but they can raise the rates on areas with much higher ratings.

Areas of San Diego are a 5 and 9. So technically if you are a 6-10 you can receive higher premiums. But if you live in LA (ISO class 1) they cannot raise your premiums because you have the best rating in the state/country.

[ort888]

So a billion dollars worth of California homes have been destroyed? Wow.

What is that, like three or four 2-bedroom houses?