Sep 14, 2009
Big insurance companies such as State Farm, Farmers, Hartford, as well as a number of smaller companies, have requested that the California Insurance Commissioner approve new premium increases.
The state had already allowed increases of 4 to 7% in the last year. So what’s the excuse of the insurance companies this time?
The California wildfires, of course! Never mind that the number of houses destroyed by the fires – a few hundred, or even if it’s a few thousand – is still less than one% in a state with 15 million homes!
At the same time, these insurance companies have been reducing coverage. So, as a consumer advocate put it, “People are going to be paying more for less.”
It sounds like these companies have used the fires as an excuse to increase their premiums and profits.