State Farm canceling policies. US Housing Market on verge of insurance meltdown.

[@ReventureConsulting]

Warning to homebuyers: get multiple quotes from your insurance brokers and make sure to understand the full extent of your coverage and how much you're paying for it. There's a lot of people in California (and Florida) who did not have adequate coverage, and now they're paying the price. Ultimately - it's also important to consider if it's worth owning real estate in disaster-prone areas, as these homes are going to become increasingly more expensive to insure. We're already starting to see home price trends indicate negative performance in areas with highest insurance costs/disaster risk. Access the data for your market at www.reventure.app.

[@OldJackWolf]

Re: your comments on the Long Island's insurance issues - it sticks out into the ocean like a big thumb, so its no wonder bigger climate impacts are expected by the insurance industry. I knew not to return after college graduation and I stayed well back from the coast as well. That was back in the late 80s and I'm glad I listened to the professors. People have no idea what's here and ahead.

[@VenturaIT]

Housing will crash along with the economy now due to the closed border, no more shopping tourists.

[@mattdecker6791]

@@ReventureConsulting Most of CA's natural disasters are due to mismanagement, aside from the very occasional major earthquake. Wildfire risks for insurance companies would drop dramatically with common sense fire breaks, self-defense pool pumps, and buried power lines.

[@katieweeks610]

Most people in my area in Placer county can’t get multiple quotes. The only thing they can get is the plan from Cal-Fire or go without. This is effecting even people in neighborhoods not just those in rural areas.

[@TheBirdmon17]

dont forget that our own government can use DEW to ruin your house & stocks within one day btw :)

[@mdheinze57]

I've got 20 years working both in claims and sales for a major insurer. I saw your heading and came on here to school you, thinking you were one of the many uninformed content creators trying to get views. I was pleasantly surprised by your well articulated and balanced explanation of the insurance problem in California. Nicely done and correct on all points! Thank you for spreading accurate and helpful information.

[@cheerdadcheervideos]

Just got my homeowners' insurance renewal in Salt Lake City, Utah, and it went up 102%. Working quotes but looks like going to be at least 85%. We have had no disasters, and I have never filed a claim in 22 years, and the home is 9 years old.

[@PeaceIsJesusChrist]

My gosh! That’s crazy!! Sorry to hear it. What’s going on in Salt Lake to make the prices rise like that?

[@cheerdadcheervideos]

@PeaceIsJesusChrist Our independent agent said it to help cover other large disaster's. The other quotes have been more along the lines of "that's just what it costs these days"

[@PeaceIsJesusChrist]

@@cheerdadcheervideos Man… so sorry. We are living in crazy times. This worldwide inflation is unprecedented. May God provide for you and your family. 🙏🏻❤️

[@sailingaeolus]

Yeah, I left Utah a few years ago but my car insurance doubled in a couple of years. Not sure what's causing this...maybe Utah's high home valuations?

[@dan-qe1tb]

Tell them to piss off. Call up Amica in Massachusetts they'll take care of you.

[@karenstrain1152]

Nick, I was in Melbourne, AU in January, and I was shocked to hear local news report that the California fires are driving increasing home insurance rates THERE in Australia.

[@guytieman8368]

It’s climate change although I sure you don’t want to hear that 😂

[@mr.anderson4755]

StateFarm denied my claim for an accident while on my way home after having been discharged from the ARMY. What was supposed to be an eventful trip home, turned into an absolute nightmare. Thanks Statefarm, good to know you abandon your Vets too. Now I make it a mission to warn everyone, who needs enemies if they have you.

[@PeaceIsJesusChrist]

I’m so sorry! :( Why are you not with USAA?

[@rosebuddloved]

State Farm has been evil for a long time. They were horrible to me after a car accident in the 80s and I never bought insurance from them again.

[@mr.anderson4755]

@@PeaceIsJesusChrist Brings me comfort to hear that. I am now. Hard lesson learned but I've been with them ever since.

[@PeaceIsJesusChrist]

@@mr.anderson4755 I’m glad! USAA has been fabulous for us over the years with home insurance! With car insurance though, make sure your health care provider is doing all the necessary paperwork if you get injured, because sadly, USAA uses a 3rd party to pay out benefits, and they’ll try to get out of paying you. I learned that the hard way. I sadly had to threaten to expose them in order to get them to pay up. :/ They’re come through time and time and time again though for home issues, and they did give me top dollar for my car when it was totaled.

[@Horatio1886build]

I’m a contractor we service homes that are damaged. Several insiders informed me State Farm was in financial trouble even several years ago. Not a good pick unbeknownst to many consumers unfortunately. I’ve had better luck with Allstate. But if you live in high risk areas look out no matter who you pick price has to be high or they will leave. It’s a business not a charity.

[@Valenzuela_Moses]

Worst case scenario, insurance is non existent, people will have to pay cash for houses and self insure. Prices would likely drop depending on the type of buyer available to purchase with cash. The ones who have a mortgage the lenders call the loan and foreclosures would rise. Florida is a non judicial state so it would take 2 years for those houses to hit the auction. But those who buy new construction will still be able to afford their premium if the builder has insurance available internally.

[@karentanner3054]

Just so you know, the California Fair Plan only covers FIRE damage. You have to get a separate policy for contents or earthquake or riders. And the Fair Plan costs as much as the other insurance companies used to charge, but for less coverage. Then you have to try to find another company that will insure the rest, at an additional cost.

[@martinrudolph5142]

Was another slush fund for state like SSI is for feds

[@pwu8194]

Austin, Texas, home prices have tripled in 5 years (2019-2024). Naturally, the premiums must go up, because your $300,000 home is now valued at $900,000. If they charge you 0.5% of your home value for premiums, your rate naturally will triple. That's the problem of inflation. Homeowners are losers because they need a home to live in. They can sell and cash out with lots of profit, but where are they going to sleep at night? Under the bridge? Selling house for profit still requires you to buy another house, which could have tripled their old price too.

[@walterwojton]

Chutes and ladders.

[@geocam2]

Americans are victims of their own success.

[@jordans5792]

Homeowners insurance is based on the rebuild value, not the market value

[@geocam2]

@@jordans5792 And more specifically, on the loss itself. If you have an ugly, old house without much updates, you get less payout.

[@rantsrus8203]

It's because of all the storm claims. Nothing to do with value of home. Map clearly shows tornado alley and hurricane prone areas.

[@breannemartin4764]

Insurance is a huge reason a lot of people are leaving CA right now

[@curly__3]

You know who can afford to go without insurance? Blackrock. None of this is accidental.

[@shanerogers9386]

Are black rock homes all fire proof ? Someone should check. Then check the home Larry rat finks family live in

[@bitemoi]

@curly__3 Exactly - by design.

[@richardgadoury8452]

They probably self insure..

[@readalittle764]

Exactly. What a devilish way to seize numerous homes. Oh well. The rich want to get richer.

[@shanerogers9386]

@@richardgadoury8452 how much can they rent a pile of ashes for?

[@christophersonkellyann]

My outlook on money changed when I realized that is better to invest on or before retirement, some people are just putting £15k or £20k With the current market movement at the end of the year they are making millions.

[@Kelvin5541-o2i]

Yes I agree with you on that. I was once a holder with about 3BTC, 7ETH and $8000 worth of lite coin but now after investing have about 17BTC and 21 ETH.

[@Scott32185]

Investment is currently the most lucrative business in the world. Both real estate, Stock, and Cryptocurrencies are positively changing people's lives.

[@ArchieHwan]

My advice to everyone is that saving is great but investment is the key to be successful imagine investing $15,000 and received $472,700.

[@FredRed-n6o]

wow this awesome I have been looking for ways to be successful, please how??

[@CashTerry-g2m]

Getting advice from an expert when building an investment portfolio is a wise choice , as the process can be quite complex

[@thejoker9602]

Replace car insurance with bonds, all interests accumulated on those goes to pay for the claims

[@SailingDacia-2019]

When my cardboard box gets destroyed, I can easily find another one. I like being self-insured.

[@RasiRobi]

😂😂😂

[@PeaceIsJesusChrist]

😂😂

[@bitemoi]

@SailingDacia-2019 My complaint is all the good spots under the bridges are already taken.

[@memovaillantcoeur9614]

My question, if you're living in your van, does one need homeowners insurance, auto insurance or both?

[@brianmatthews4149]

Thats thinking out of the box.

[@kirkwoodbharris5110]

7:28 thank you for making this point. I've been seeing/hearing/reading a lot of shade being thrown at insurers without any wider perspective

[@samiryahiaoui]

Property insurance in CA and the south will skyrocket. With every new wildfire and storm, insurance companies increase their premiums even further.

[@OldJackWolf]

Past periods of climate change brought big increases in geophysical activity. And that makes sense, considering the redistribution of mass on the earth's surface from ice sheet melt and sea level rise. So don't forget that one in the future too.

[@Ziegfried82]

People are going to need to stop building in stupid locations, or build structures that can better withstand disasters.

[@Michael-sb8jf]

@@Ziegfried82 its not that the houses get destroyed its mostly hail damage. We had baseball sized hail last april. EVERY HOUSE in whole zip codes needed new roofs and it was legitimate damage. Average cost of a roof 8k here. a few thousand houses not to mention all the hail damage to cars. Ads up quickly

[@Dreamsandgreens]

Very good content! First accurate account for insurance in California.

[@johnbennett757]

We can do a much better job of protecting communities from wildfires, floods, and hurricanes, just not cheaply. It will cost a lot of money to harden our communities from natural disasters. But if we do not take these costly steps to protect our properties, we will end paying more when disaster strikes. A lot of money now or a lot more money later.

[@norawheeler2555]

My house is north of Sacramento in the foothills of the Sierras and in June last year my insurance more than doubled it went up by about 110%. When I asked State Farm about it they said they were paying out $1.60 in claims for every $1 they were bringing in in premiums and that accounted for the increase. I was the only person in my neighborhood that still had private insurance and all my neighbors have to have California Fair plan. State Farm sent out of notice last year saying they were no longer accepting new policies for homeowners insurance in the state of California which costs way more than State Farm

[@MrDCMiami]

If homes are uninsurable, owning one is essentially pointless if you're in a high-risk zone.

[@edit8826]

All homes in California have access to wildfire and earthquake insurance through the state. People in YT chat just don’t know what the f*** they’re taking about.

[@iiio12]

Prime location cleared out from peasants is pointless? 😂

[@Ziegfried82]

@@iiio12 only if you cannot afford to self insure. I think you're misunderstanding his point.

[@iiio12]

​@ That's was literally my point - owning a property in "high-risk-peasants-arent-allowed" zone will be a privilege

[@scuddyleblanc8637]

To make an honest comparison, the cost per $1,000 of coverage is not the best indicator for the cost of homeowners insurance because of the wildly variable home prices. A better indicator would be the home insurance cost per home. For example, California home prices are much higher than the cost of a home in Louisiana where home prices are much more affordable.

[@not_nostradamus683]

There are two major components to home insurance: land value and structural coverage. In Los Angeles, up to 95% of the purchase price of a house can be land value. Land was not destroyed by the wild fires, structures were. In the Pacific Palisades neighborhood of the city of Los Angeles, the average home destroyed is listed at $3.5 million but $3 million of that is land value. The land is still there, it did not "disappear" or fall into the ocean. The land was not destroyed by the wild fires. The structures that were destroyed are in the $100k to $500k range on parcels that have an average price of $3.5 million.

[@oscarrodriguez1068]

💯. That’s why a lot of people decided to go without insurance. All their value is in the land.

[@banger881]

In LA if you build with permits added garage to the house let say one or two bedroom it will cost you anywhere in between $35k up to $65k depending on the materials roofing square feet and floor concrete work and the door itself cost $5k up to $8k for fully electric one so you are wrong the house cost and build was back in 1970s to 1980s some are new because they got remodeled in early 2000s and they cost a lot even back in 2000s the house cost was $250k up to $800k for the areas it was burned because of square feet was big those properties cost a lot of money because how big they were

[@InvestingWithAdamK]

How many square feet do you think you’re going to be getting in California for 500k? They’re going to build 800 sq ft homes?

[@AnnieOsumane]

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[@Mehmet88720]

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[@AnnieOsumane]

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[@AnnieOsumane]

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[@Harperwillow-m5i]

Wow 😱Wow 😱 here too, Miss Victoria Ruth Ross is a remarkable individual whom has brought immense positivity and inspiration into my life.

[@GuntherEike]

Would love to reach out to her.

[@karentanner3054]

Excellent video on a subject most people don't concern themselves with. What do people who have mortgages do when they need to drop their policy due to high cost when their bank requires them to have insurance for their mortgage? You are right! This is a disaster in the making as it will ultimately affect rental prices as well.

[@Sandybanker33]

Banks will place a forced insurance policy in this scenario and make the homeowner pay for it.

[@rford1971]

Why is Jacksonville and Deltona Fl up so high compared to the rest of the state of Florida, when those two areas aren’t as high risk for hurricane?

[@joeybiden7755]

That’s where all the poor people live in Florida 😂

[@TM-nu5vd]

They want extra money from those areas to help pay for the other areas.

[@viviancarolgioao]

People will have to accept reality that we won't ever return to 3%. If sellers must sell, home prices will have to decline, and lower evaluations will follow. I now look towards the stock market to fuel my millionaire goal. Sure I'm not alone in my chain of thoughts.

[@DonaldStokes-p]

U.S. stocks have historically been the best investment. Home prices will need to fall at least 40% before the market normalizes.

[@PASCALDAB]

I like both. But in my experience, most of the millionaires I know have gained their wealth through diversified investments and they all had a sort of financial advisor helping out with informed decisions.

[@SeanTalkoff]

Straight up! advisors are the ideal reps for investing jobs, and at first hand experience, I’ve maintained a balanced growth portfolio for 5 years now, resulting to a 7 figure account after 100s of thousands invested so far. nothing beats expertise.

[@mikey43221]

Accurate asset allocation is crucial with an Experts guidance. I have 850k in equity, 75 cash earning 5.25 interest, 685k in roth ira, 120k in 401k, Gold and silver bars. age is 48. My advisr helped me realign my portfolio to my risk tolerance and it boomed shortly.

[@Tonyrobs2]

@@mikey43221 I'm worried about my retirement portfolio and could use some guidance. How can I get in touch with your advisor?

[@rnskfamily7672]

Insurance companies will do it again- pass california loss and price it in to renewing policies from Alaska to Florida in all 50 other states.

[@rubyannr6898]

Florida pulls in a lot of aid. So does Texas and Louisiana. The rest of us are tired of subsidizing all of them.

[@Wesley-rn7oc]

@@tribe5569 California? uninhabitable? I don't think you've ever been to California. Or you don't know what uninhabitable means. Edit: the idiotic comment has been properly rescinded.

[@TM-ic1eb]

@@Wesley-rn7octhis dummy doesn’t know what uninhabitable means. Also, climate change is a word used by politicians to deflect responsibility. The climate hasn’t changed. All of these things have happened before and will happen again. The Bel Aire fire of 1961 is almost identical to this palisades fire. What has changed is the population, land management and access to water.

[@pirate9154]

Insurance and Taxes going through the roof while house prices collapse! The perfect storm! Keep your powder dry and scoop up deals in the next few years.

[@diesel104]

Thisnis what I'm hoping for. I was looking at Montana last night. Housing prices are just as bad up there if not the worst in the nation. 2nd 1 bath trailer for $500k. What a joke.

[@dan-qe1tb]

No doubt, soon you will be able to buy my house for a dollar, as me and massive numbers of my neighbors, won't be able to afford insurance and taxes anymore. Make no assumptions about what people can afford. House prices aren't collapsing. My property taxes and insurance costs were both down this year. But, that was a fluke, and probably the best deal I'm going to get. The cost of insurance and property taxes will always go up. Insurance companies and cities face inflation just like consumers do, you see.

[@sickpuppy575]

​@@dan-qe1tbThey are making everything expensive to force you to sell.

[@dan-qe1tb]

@diesel104 Who's the joke on, here? To me, it's assetless renters who continue to get walked on by rich self employed people. I know lots of people who can afford what was described and can pay cash for it. The location the trailer is on (which you hadn't mentioned), is more important than what the dwelling consists of. I have lots of photos of MT in my collection. It's one of the most scenic places I've ever been.

[@tlanthony827]

This is another reason to believe that purchasing a home in 2025 will probably not be a wise decision.

[@wallye8713]

Insurance is a business. They are beholden to shareholders. If I was investor in state farm I would tell them to get out of anything high risk… imho this insurance “adjustment” crisis people will become smarter where u choose to live. If not you should pay NOT ME!

[@itsBDoub]

If it's not high risk then why would people need the insurance?

[@geocam2]

You can insure anything ... so long as the premium is high enough. The State of California won't let the insurance companies charge what they need to be solvent so they leave.

[@rockerjim8045]

@@geocam2that might not be true. what California has done ban the companies from adding the reinsurance costs to the mortgage premiums ie the customer instead making the company pay out of their profits.. Obviously this in the long run reduces the total profit. Therefore this pullout is driven by a lowering profit factor not one based on risk. They have comfortably sold policies for decades aware of Eathquakes.

[@Ziegfried82]

This is why I don't think health insurance should be run by the private sector. Chasing profit does not coincide very well with providing people healthcare. It's a clear conflict of interest. Deny people's health insurance claims and make more profit. While the same can be said for every type of private insurance at least with the other stuff it's not life and death..merely replacing a house, a car, or whatnot. Objects, not people.

[@derekanderson1882]

Fact is that some places are less viable to live and it probably should cost more to ensure because of those risks. I don't think anyone thinks it would be fair for someone in Iowa to pay for a home that gets destroyed every 10 years because it's in high risk areas for wild fires, hurricanes, flooding, etc... this is the reason for the risk pooling in insurance. Unfortunately, this then becomes a social-economic issue where those with the means can manage their risk differently, paying higher premiums or even self-insure. So the question becomes how do you manage this? Those who live in less risky areas should pay less so things need to be managed in risk pools which are kind of how things are done today. The problem is not everybody's in the risk pool so prices go up. It kind of feels like if you're in a risk zone, you have to be part of a mandatory pool that spans across insurance companies. Having this kind of mandatory opt-in to insurance based on the value and construction of your property would reduce the rates greatly. This also goes against the freedoms we believe we have in the USA. So the reckoning here, is if we don't mandatory insurance pools, the price of homes in risky areas needs to drop for affordability. This then slowly causes gentrification and the divide of social economic status, those who have the means to manage the risk, those who do not and those who do not. But the prices will never remain the same and those affordable properties will be bought up by those with means.

[@LauraElenaKD]

Trading success isn’t just about technical analysis skills. It’s also about discipline and emotional maturity. Remember, it’s not about being in the market at the right time, but rather about being in the market for the right time. Thanks to Sophia Haney’s wisdom, daily trade signals, and my commitment to learning, I’ve been seeing steady increases in my daily earnings to more than 16BTC. Keep up the great work!

[@JackRehand]

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Diversify your income streams to boost your earnings. This year, I’ve successfully done this by investing while I work. I invested through Sophia Haney, the CNBC anchor who often mentioned her. She invested my startup capital in less than three months after getting certified.

[@JudithRadonlds]

I have been quite cautious to get involved in this specific industry, but I believe that this is the perfect time to do so. I went to a seminar where the speaker discussed how lnvesting in cryptocurrencies may result in gains in the near future of well over $4.5 million. I have to know which coin to buy with.

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I invested across major markets and follow Sophia’s rules, a great financial advisor. My portfolio has grown by 20-30% monthly while my IRA stagnates. Her exceptional diversification skills have not limited my portfolio to my choices; they reflect her placements. She provided me with financial independence.

[@WaltRsDave-cs4zc]

That’s great! Your investment advisor must be excellent. I’ve read about people who improved their financial stability with investment advisors. Can you tell me who your broker is? I have $500,000 set aside for the stock market to boost my income.

[@TheCdrbaby]

Here in Louisville i bought a 23k house and all insurance companies wanted to force me in to 150k plan's all i wanted was a 23k plan! Because that's all my home was worth

[@MX-CO]

I would take the $150 and be very reckless with fire safety

[@historyminute]

I have a hard time feeling bad for insurance companies.

[@Ziegfried82]

They are in the same club as the big banks. Even when they lose, they win. Because they already made a killing off the premiums during the good times when disasters were few.

[@joeybiden7755]

I’ve been with State farm since I was a teenager. For my business and for all my personal every single one of my policies went up this year, my homeowners insurance policy went up $700 this year alone, they said it was an across the board rate hike… funny thing is I shopped around for homeowners and every single one of the 10 different quotes I got was higher than State farm. I just decided to stick it out with them.

[@geocam2]

Inflation means making you whole after a disaster is a lot more expensive now.

[@imzjustplayin]

You should contact your agent and ask them if they're going to renew your policy 1 year from now. They've been quietly non-renewing policy holders and have known about this a full year in advance.

[@joeybiden7755]

@@imzjustplayin good idea. I wonder if they are obligated to tell me the truth?

[@imzjustplayin]

@joeybiden7755 there isn't an incentive to lie and it's your agent that would divulge this anyway.

[@megatron8038]

California has a lot of expensive valuables, millions of dollars worth per acre vs. Kentucky, it could burn 100s of acres for thousands of dollars.

[@scottsnyder2726]

Paying $2.60 per $1000K for home insurance outside Philly. I was surprised by the high cost in OK, where neither hurricanes or wildfires are common. Knew it was part of tornado alley. It appears flash flooding caused by intense thunderstorms is not uncommon.

[@cusz87]

Another question is, why are houses in disaster prone areas even selling for the sane "Market" rate. Shouldn't houses in those areas be sold for significantly less? If they were sold for lower value the insurer responsibility would be lower. That should lead to lower prices and insureres coming back

[@mrchad97z49]

What they ought to do is audit the insurance companies just to see how much of what they charge is fluff and how much of it is actually used to pay claims... I mean if the government mandates people to carry insurance for cars and And lenders force people to buy home insurance , then why not audit them?

[@geocam2]

Almost every nickel that comes in as premiums is payed out for losses. Property insurance isn't very profitable.

[@edwardzastawny8932]

Each state has a Department of Insurance that recommends insurance laws to law makers and regulates insurance companies. The DOI reviews insurance companies, receives insurance complains and fights for consumers, they require minimum coverage limits, they set mandatory coverages that must be offered, require insurance companies to submit financial information to request rate increases and the DOI is the state organization that approves or denies rate increases. Insurance companies are audited and regulated by the state the problem is that everyone wants to live in the same areas (good climate, beachfront views ect) causing increased density of exposures, and local governments want/require "smart growth" new construction which forces increased density of building and when the insurance companies need to protect themselves from large catastrophic events because of this concentration of risk the state regulators won't let them change their pricing/terms/coverages. So the companies reduce coverages or leave a market before a large loss event bankrupts the insurance company.

[@HarryPotterFan1307]

@@geocam2so the millions they spend on commercials comes from where? The millions their C Suite takes home comes from where? The billions in profits must be fake?

[@smokinace926]

@@HarryPotterFan1307 1. A for profit company needs to spend on marketing to attract customers. That’s not a conspiracy. It’s logic… 2. Yes. I’m not sure what “news” source you’re getting your information from but most insurance companies are publicly traded and you and I can easily pull up their financial reports and see that there was in fact no “billions in profit” that you speak of.

[@NOLA-vv3sz]

Most insurers are public. You can look all of this up. On average, insurance margins are miniscule. They pay out close to 93% (if I remember correctly) in claims. The profit margin is close to grocery store level.

[@timballenger1416]

I'm predicting a housing market crash sometime in the future.

[@mossfloss]

Some areas are fundamentally uninsurable at current prices. Big swaths of Florida.

[@shanerogers9386]

Fraud compounding on top of fraud

[@Benzene75]

My brother lives in St Petersburg, FL. He said he has no insurance for his home..

[@Ziegfried82]

Hopefully he is investing the difference from not paying those premiums so he can afford to rebuild/repair it himself. Otherwise he's gonna end up a renter at some point.

[@mikesullivan5219]

As of right now I pay about $4.50 per $1000 or about $1350 per year on 1410 sq ft home valued at $300K.....I live in Maricopa Arizona Pinal county.

[@sabbymatters4780]

Banks should be responsible for covering disaster insurance while they own the note and charging exorbitant compound interest.

[@dan-qe1tb]

"Banks charging exorbitant compound interest"? It's simple interest. Why do people think they don't have to pay? When we can't pay cash for things, we have to pay for the privilege of having someone lend us money. Do you know what compound interest is? They had taught me about that in grade 11. That's what I would get, if I bought more CDs after the current ones mature, and reinvested the interest that was paid to me. Talk to my Dad about what's exorbitant: he was paying 23% on his mortgage in late 1982.

[@pgrut8880]

Then the banks will have to charge higher interest and fees to cover that. Nothing is free. Gotta be paid for.

[@ThomasGLee]

They say, ‘You will own nothing and be happy.’ This feels like yet another example of that mantra being forced upon us in real time.

[@skidmarkzuckerberg]

Home insurance in states like Florida or California, will eventually need to be provided by the state - which would be backed by federal government funding. What’s going to happen when not even the landlords can afford home owners insurance?

[@geocam2]

The government will have to charge what the risk is and what the cost to rebuild is, which means very high prices for insurance will keep increasing.

[@steven4315]

The federal government needs to stay out of the insurance business. If you can't afford California or Florida, move.

[@crg7127]

You mean "tax payer funded."

[@brianmatthews4149]

Thats why rents are high.

[@Ziegfried82]

If the State is broke, and it's taxes are already too high that ain't happening. CA isn't gonna be able to help, and the Federal government is what? 32 trillion in debt?

[@kingglizzer]

Always fun when the regulators can increase taxes whenever they want, but then don't allow the industries they regulate to do the same. Not sure about the mean cost to insure per square foot. All my insurance increased 100% this year, and I'm in the low cost area.

[@jimg8296]

Time to build homes to survive the environment.

[@doublecrossedswine112]

Can you build them up to code? Otherwise they will just get torn down

[@christopherscott5706]

Insurers will pay out claims? or just charge more in California?

[@ristainoj]

This is NOT just California where insurance companies are leaving ...it is other states that do NOT regulate reinsurance . Look at the insurance companies that have left Florida in last few years.

[@YoureaJakass]

HOME INSURANCE IS A SCAM.... YOU NEVER GET YOUR MONEY BACK, THE MONEY YOU PAID FOR INSURANCE THROUGH OUT THE YEARS, YOU COULD HAVE SAVED IT FOR THE SAME PURPOSE....

[@Michael-sb8jf]

good luck getting a mortgage without insurance if you have the money to buy out right then you have the money to self insure

[@barbaraperna5536]

A lot of have been forced to no insurance

[@Ryan-re3jf]

In Ohio and my insurance has doubled since 2021! It had been stable since 2010 to that point, when I bought my house…

[@dannycalley7777]

Nick ..........soon we will be all living in a .........VAN ..........DOWN BY THE RIVER !!!!!

[@PeaceIsJesusChrist]

LOL, no kidding!!! That option is sounding better and better! 😂

[@MX-CO]

I'm already there

[@PeaceIsJesusChrist]

Oklahoma has high insurance I think because of the super tornadoes 🌪️ that come through. Oklahoma City and Moore have had two in the past 15 years I think it is. I’d be so scared to live there! :(

[@EV50400]

Anyone who lives in the Orlando area of FL (as I do) pays about $5k per year. In addition to the $10k in property tax most of us pay.

[@robertnunn3015]

If you can’t afford the coverage you may want to consider moving elsewhere ! I Left Florida two years and after spending 25 years as a restoration contractor if you go without coverage don’t blame anyone but Yourself !

[@Recon_Racing]

Costs are going up, wages?... not so much.

[@murphthesurf3409]

And no bank will lend without insurance. People won’t buy if too much. This really throws sand in the gears of commerce.

[@MrDrewowens76]

Fire insurance is different from home owners insurance. Like flood insurance is different from home owners insurance.

[@msKita43]

If you have state farm cancel their ass. I did! They're trash!

[@TheAmphicyon]

Yeah. Used to have them over 30 years as my car insurance, plus their rude.

[@eze289]

Mahomes and Coach Reid are getting paid😮😅😊

[@sailingaeolus]

Here in Nevada State Farm is a great insurance company. They typically cancel high risk individuals that I don't want to pay for.

[@EdwardM-t8p]

Eventually the federal government will have to assume insurance responsibility for all properties against any and all natural disasters

[@diesel104]

Insurance companies need to be sued. They have been wasting their money. That money was to replace those who have been damaged. Not for the CEOs yachts.

[@scuddyleblanc8637]

If California made the changes recommended by insurance companies, fire risks would be much lower, and homeowners' insurance would be available/cheaper. Insurance companies are best at calculating the risks so the best way to reduce homeowner insurance cost is for California government(s) to make the changes needed for lower fire risks in California.

[@mithicash1444]

The problem is the people with enough resources to sue them do not care because they are not relying on those insurances as much, just need them for legal reasons while the people who really need the insurances need them because they don't have the resources

[@smokinace926]

I don’t think you understand how money works. If you care to read actual financial reports, insurance companies have taken billions in losses this decade. Meaning no profit. Meaning no yachts that you speak of. Instead of being mad at P&C insurance companies, start by looking at the price of the things that are being insured. You can’t expect your insurance to stay the same if the cost to replace has doubled…

[@Ziegfried82]

@@smokinace926 I've read different reports from you I guess? Many insurance companies are making record profits. They take all those premiums, invest them, and make insane profits. Even if they have to make good on big claims like in FL and CA they are still making insane amounts of money. These companies are publicly traded and profit oriented..and they are making plenty. But the goal is never to reduce profit, it's always to increase it when possible. And when a place like FL has too many disasters obviously a for profit insurance company isn't gonna stick around!

[@QRCodes4U]

How will home buyers get a home loan if the home cannot be insured?

[@alinajoy87]

Yeah, homeowners insurance is a problem for Oklahoma, you can get insurance for $5,000 a year and it doesn’t cover, floods and earthquakes which we get….. that’s and extra $2,500. Oh and fire insurance is getting dropped and it’s just nuts…..

[@JessMakeSense]

I’d rather put 7000/year in my savings, then give it to an insurance company who will do their best to deny my claim

[@bhupesh0111]

I bought 2750 sq ft home in TX in 2015 for $230,000 and my first insurance payment was $1200. Now 2025 same house insurance is $3528. Tripled in 10 years!

[@PeaceIsJesusChrist]

You were lucky and bought just before the extreme home inflation happened in Texas. Sorry about the insurance though. It’s based on the current price of your home, which is probably closer to 600-700K now, right?

[@mirtikaschultz3282]

Our home we sold when hubby got disabled and we needed cash to olive on was worth 450K and we paid 8,000 insurance on it in Miami. And it had a significant deductible and a 250K limit, so wouldn't fully rebuild. I figure it will get much worse or insurance compnaies will say, nope, and the state will have to run all property/hurricane/flood insurance.

[@bhupesh0111]

@PeaceIsJesusChrist no Texas has abundant inventory and in Houston builders keep building newer homes and you see new construction in Houston 50 miles away from downtown.Its only around $375,000ish

[@Ziegfried82]

If you're on a 30 year mortgage yep you're screwed. All you can do is sell the house if things get too expensive. If you refinanced in the meanwhile and got a sub 3% interest rate at least there's that?

[@bhupesh0111]

@@Ziegfried82 i have paid it off in 5 years done in 2020

[@derkong7114]

You also dont know if your insurance company will honor your policy and pay to fix your home. They could simply say your are not covered. In the event you just lost your home do you have 25K in cash to hire an attorney to force them to do as they promised they would do?

[@brianponcelet3529]

This “crisis” is old news and turning into a dumpster fire. Reinsurance companies back the insurance companies…rates are low so investment returns were poor. Now claims are high in states like Florida don’t understand how risks work and essentially chased out insurance companies out because they have to make money. So the alternative is to have Florida and California become the insurance companies backed by taxpayers. The insurance costs will ultimately crash the Realestate market.

[@JamesMartin2014]

everyone else got their piece, now the insurance companies want their piece too.

[@michaellalanae7228]

Pay off your house and then cancel your insurance like I did .

[@geocam2]

That's incredibly unwise. Also, what if you go to sell your house. A home that has gone uninsured becomes almost impossible to reinsure later, so nobody but cash buyers will be able to buy your home.

[@PeaceIsJesusChrist]

@@michaellalanae7228 I’ve gotta side with geo am on this one. Don’t invest in something that you can lose. Imagine the heartache if that happened. All that hard earned money gone. 💔

[@bea8860]

I don't understand. If something happens to the house, how will you rebuild without payout from the insurance company?

[@steven4315]

@@michaellalanae7228 So if your house burns down you will be living in a really nice truck?

[@Ziegfried82]

@@geocam2 if there was a shortage of cash buyers maybe that would be an issue. Do you know the odds of your house burning down? Let me look up the stat for ya: oh right it's 1 in 1500 on average. Less than 0.01% chance. Most house fires are from cooking by the way, if you have an extinguisher and use your stove responsibly that eliminates 50% of the fire risk. Now maybe if you live in a tornado, earthquake, or hurricane zone going without insurance is a bad idea. At that point you need to compare the price of your insurance premium, the cost of the deductible etc. with how much it costs to replace your house yourself and weigh it out.

[@Dohair879]

When homes go up in value it costs more to insure them. I did get a quote for new construction in Florida 20 miles from the beach and my quote is much less than I expected. I was told it’s because it’s new construction, with impact windows and doors plus a new roof is a real factor.

[@stevespeier]

Ef State Farm, they dropped my cousin last year after 50y, and his house burned down in Malibu

[@PeaceIsJesusChrist]

That’s disgusting!! I’m so sorry to hear that!! How in the world did your cousin recover from that? I guess they have to start all over? It’s devastating. 😢

[@stargazer5073]

Insurance has been canceling Insurance in California for over 2 years.

[@rockerjim8045]

true but why for the last few decades have the companies covered Earthquakes without fear of having to pay out?

[@lilshaz8378]

@@rockerjim8045I agree. I would get notices to add earthquake insurance as a rider to my policy. 20% deductible though so it’s not really feasible to buy if you have to shell out 100k on a 500k house.

[@edit8826]

@@rockerjim8045 No companies haven’t been” canceling insurance contracts in California”. That’s illegal. They simply have been deciding no to renew them at the usual yearly end date. Totally legal and valid. And everyone in California still has access to Cali’s ‘coverage of last resort’ for those who feel them just have to life is a designated wildfire or liquefaction zone. If they covered everyone, they’ed go bankrupt and payout to no one when something like this current disaster happens. As it is they’re already still paying out to many of these clients who contracts where still active.

[@summaryjudgment]

Shhhhhhh!!!! We are still supposed to pretend that nobody could see this coming!

[@pgrut8880]

In northern illinois I am paying $4 per thousand insured. Think i will stay in the upper midwest and put up with the snow and cold.

[@SamSung-ww3rp]

Isn't having HOI a requirement for a bank loan?

[@JO86288]

What if, just what if homeowners insurance is a big ass scam? People didn’t need it 100yrs ago 🤷‍♀️

[@RobertPowellRN]

CONDO INSURANCE THE BIGGEST REASON CONDOS ARE GOING TO BE LEFT BARREN THEN BULLDOZED AND NEW CONDOS GO UP WHERE THE SUPER RICH WILL BUY

[@joaquincortada1483]

Banks won't finance without insurance.

[@justfedup]

In Canada it’s life and house insurance

[@rockerjim8045]

that isn’t technically true. banks can insure their loans against default in the market wether the homeowner does or not. It’s not compulsory in the UK to take out Insurance whilst the loan is still live. Obviously a very risky move but not compulsory. If your house burned down your bank is always covered.

[@justfedup]

@@rockerjim8045 can or do?

[@mirtikaschultz3282]

Banks should have to insure trhe property, since it's really THEIRS until it's paid off. Or do they never foreclose/repossess? If it's the bank's then let the bank insure. Makes sense? :)

[@joaquincortada1483]

@rockerjim8045 Agreed. But lender placed insurance is like double the average rate

[@sunnienie239]

all insurance companies canceled the home building insurance it really hit hard on the home owners in San Diego so hard to get insurance if the any insurance accepted the premiums ten times high in the normal rate

[@curtisparry3146]

How is the state of California and the California Fair Plan able to hold insurance prices down in the state & will the Fair Plan be able to pay off all their claims?

[@KarenAllen-f5b]

Thanks for sharing such valuable information! Just a quick off-topic question: I have a SafePal wallet with USDT, and I have the seed phrase. (mistake turkey blossom warfare blade until bachelor fall squeeze today flee guitar). What's the best way to send them to Binance?

[@eg6nate]

My property taxes go up as the state values my house, why doesn't the state owe a percent of the insurance in the structure? Idk, maybe a dumb question but 🤷‍♂️

[@titanispi1998]

Another driver for smaller homes ... That don't seem to be built anymore. IMHO what we need is the national building code to be updated to require the elements that allowd the homes that survived be in all new and renovated homes. This would put risk back in line with loss risk.

[@danirod08]

Most banks require insurance if you have a mortgage. So, people going "bare" means their mortgage is paid off.

[@Ziegfried82]

Which means they probably have some money, and hopefully they invest the difference of what they were paying in premiums. If your insurance was $5000+ per year that can turn into a decent home repair fund of $25,000 in 5 years even without any interest or dividends.

[@danirod08]

@Ziegfried82 some i assume yes. However, you have more faith in Americans when it comes to money management. I actually think most Americans would go to a dealership and get a brand new car or some luxury good instead of investing. "Mortgage is paid off, let's buy that overpriced Mercedes with out extra cash". Hope I'm wrong tho.

[@premiertrainingFL]

Every insurance company should be a state fund, every person in the state pays in and the rates are reasonable and actionable. Private Insurance is a SCAM!

[@jeffdunnell6693]

Throw money at insurance and receive nothing,what a scam.

[@scbrennan2039]

The guy from NY example was reasonable. House insured for $350k at $1200. House now insured for $600K at $3800. Makes sense right? NO!!!!!!! Because: PRICES OF HOMES ARE RIDICULOUS so we all pay more......

[@RobertPowellRN]

INSURANCE DEPENDS ON THE STATES INSURANCE COMMISSION AND HOW THEY ARE GETTING PAID OFF BY THE INS CORPS

[@summaryjudgment]

If only the people of California had some kind of warning that insurance companies were leaving the State. I mean, how could anyone have ever guessed that a State that catches on fire every year might catch fire again?

[@ben-yi3nh]

Regulation doesn't explain the low insurance cost in California because insurance company would just leave the state if they cannot make money there. The real reason for the low cost is politically. As most Republican states suffer from huge raise in insurance cost and Democratic states gets the lowest insurance rates .... so it looks like Insurance companies overcharge Republicans state to subsidies Democratic states. It simple as that.

[@itsBDoub]

Republican states like the ones in the South that get hit by hurricanes? or the Republican states like the ones sitting in tornado alley?

[@selfprojects1953]

Yes. Red states try to stay out of the way. Blue states get in it. So companies raise the price on red states to pay for the loss the blue states get in the way of correcting. You are correct

[@HectorWhitney]

Great video! For 2025, it’s hard to nail down specific predictions for the housing market is because it’s not yet clear how quickly or how much the Federal Reserve can bring down inflation and borrowing costs without tanking buyer demand for everything from homes to cars.

[@JohnSmith060]

I suggest you offset your real estate and get into stocks, A recession as bad it can be, provides good buying opportunities in the markets if you’re careful and it can also create volatility giving great short time buy and sell opportunities too. This is not financial advise but get buying, cash isn’t king at all in this time!

[@ClarkeGriffiny7]

You are right! I’ve diversified my $450K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $830k in net profit across high dividend yield stocks, ETF and bonds.

[@Vincent-j8u]

Do you mind sharing info on the adviser who assisted you?

[@ClarkeGriffiny7]

I receive guidance from coach Lisa Grace Myer who possesses extensive financial market experience. While others may prefer different approaches, her strategy has proven successful for me, as evidenced by my results. Specifically, she offers valuable insight on entry and exit points for the securities that I concentrate on.

[@ChristianKelv]

I am grateful for your assistance. My finances have been in disarray, and I have experienced multiple losses in my 401k, IRA, and mutual funds. I hope that Lisa can provide me with the guidance needed to rectify the situation before it reaches a critical point.

[@InMyBrz]

WHO IN THEIR RIGHT MIND is interested in BUYING A HOUSE NOW ??

[@Pinball_Jurist]

We want to buy but every day I look around I want to cry due to the prices. And I’m checking all over. I don’t know how this is sustainable

[@mirtikaschultz3282]

My niece and her boyfriend. The area they are looking at has had price declines, so they can get a 3 or 4 bedroom for less than 330K. Of course, I hope they stop to consider how much insurance and taxes (first year, no exemptions) will add to it.

[@InMyBrz]

@ RENT RENT RENT

[@quandt4847]

Nebraska. My rate went up 40% in one year from $3/ $1000 of coverage to $5. (State Farm would be $8). We then had two storms in ‘24 which totaled my car, roof, and siding. Not sustainable for the insurers, affordability crisis for homeowners.

[@zacheryhalbert]

Insurance wouldn’t be so hard to get if your homes value wasn’t artificially inflated at such a ridiculous rate.

[@andre9095]

Insurance is the only major real estate player with a vested interest in popping the bubble. They can’t and don’t want to pay these kinds of prices.

[@jeffreycheng5984]

Like a bad neighbor, State Farm ain't there!

[@IamPerfectlyImperfect]

Regarding California it seems a bit confusing when you say the prices will go down where the fires were, when it seems the other issue of supply and demand will come into play here as well. Your thoughts?

[@spiceyfrenchtoast9421]

We need to see homes built with fireproof materials, not wood. Metal or ceramic roofs, fire resistant siding, concrete walls ECT. Homes can be fire hardened, which should lower insurance costs.

[@jasonbrown-ep9or]

since homes are treated more like equity's and not commodity's, wonder if SIPC type insurance structure would work

[@agnesleone3799]

State Farm spent .99 billion in adversiting in 2023.