California E&S Insurance

Missing in most of these replies are: Homes are more expensive, creating higher exposure to insurers, leading to premium increase. States are requiring "rebuild to current code" which often requires ADDITIONAL costs to meet current building codes. (Ask anyone in Boulder county CO about this one). Inflation, which over the last 5 years has averaged about 5%. Interest rates have climbed. This one doesn't appear to apply to insurance, but it does. Insurance companies enjoyed borrowing money at really low rates over the 10 year period up until 2 years ago. This borrowed money was used to invest in bonds/stocks etc by the insurance companies. The yield spread on this borrowed money supplemented the insurance business and helped keep premiums from increasing as rapidly. In the last 5 years we've had many disastrous losses across the country. Losses that exceeded insurance company reserve estimates. They now have to recoup this money, and aren't enjoying the same net interest margins of the past....so homeowners premium's have to make up the difference.

{
  "score": 0,
  "title": "",
  "subreddit": "HomeInsurance",
  "num_comments": 0,
  "scrape_method": "apify"
}