A further upshot of this: as a result of this disaster, more insurance companies will pull out of California, as you point out. Most (or all?) home mortgages require the mortgagee to carry insurance. FAIR insurance costs more, for less coverage, than current commercial insurance policies. How many people won't be able to afford the incre…
A further upshot of this: as a result of this disaster, more insurance companies will pull out of California, as you point out. Most (or all?) home mortgages require the mortgagee to carry insurance. FAIR insurance costs more, for less coverage, than current commercial insurance policies. How many people won't be able to afford the increase, and will either default on their mortgages or be forced to sell their homes? If enough have to sell at once, how much will that depress home values, and how many sellers will be underwater when they do sell as a result? There could be one hell of a mortgage/property value crisis coming to California as a result of an insurance crisis.
A further upshot of this: as a result of this disaster, more insurance companies will pull out of California, as you point out. Most (or all?) home mortgages require the mortgagee to carry insurance. FAIR insurance costs more, for less coverage, than current commercial insurance policies. How many people won't be able to afford the increase, and will either default on their mortgages or be forced to sell their homes? If enough have to sell at once, how much will that depress home values, and how many sellers will be underwater when they do sell as a result? There could be one hell of a mortgage/property value crisis coming to California as a result of an insurance crisis.