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Insurance impact of these CA fires
greenblood
Member Posts: 14,522
in Tug Tavern
It might just be me, but I have a feeling that the California FAIR plan might be the only option going forward for homeowners in much of SoCal.
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Private insurers are not going to be staying in CA. They were already leaving prior to this and the new CA laws.
Will be interesting to see what happens in the mid to low upper market rebuilds. In order to afford insurance, will a 5000 square foot house be rebuilt at 3000? Seems like that will be the move.
My friends are paying $19,000 a year for insurance in PP and Pasadena. That is an increase from 6K two years ago. If that extends to the Altadena crowd you can forget it. They can't afford to rebuild and even if they can, they can't afford the insurance costs after this butthole bongo the rats have unleashed on CA.
Think about that……..$19,000 in after tax dollars just for insurance on your home and property. Your first $50K in income goes to just pay for insurance on your home.
The math is gonna be tough for many to grasp. If you previously had a $5m-$10m house, a huge chunk of that is due to location. Being the first to rebuild a glamorous 5k square foot house surrounded by ashes that may never get rebuilt or gets turned into something else is gonna be a tough sell. The cost to rebuild is also gonna be ridiculous as contractors will be able to charge whatever they want.
No quaint downtown area left to walk around and have a latte and do some window shopping.
Exactly. That’s all theoretical equity that vanishes. Insurance, if they have it, pays for the building but has no obligation to the fake equity.
Too bad Cali couldn't have collected taxes on those imaginary capital gains. Missed opportunity.
Exhibit A of why taxing unrealized gains is moronic.
Also, good luck to the county assessor for the next assessment for property taxes.
It's crazy because while our rates have gone up a bit on our properties it really hasn't been significant.
The advantages of living in some of the last GOP well governed bastions in Cali.