California E&S Insurance

>The problem is more that insurance is viewed by many people as being a necessity rather than as a "nice to have" thing, so insurers pulling out of an area means people living there can no longer get something they view as a necessity. In some cases it actually is a necessity, too, such as when a mortgage on a house requires the owner to have it insured. I am aware that mortgages almost universally (It might actually be universal IDK) require home insurance. And that's because, if your home has a loss, that insurance covers them. A home that can't get insurance is not something a mortgage company wants you to buy, because that puts them at a huge risk of loss. >Even if it makes business sense for an insurance company to pull out of an area, unless as a society we want everyone to just fully evacuate any disaster-prone area people deserve to be able to get insurance. I mean, in practice? Either that, or we change the laws and regulations to have insurance prices be able to move with the risk more dynamically. That will mean much higher prices in these areas, but they can get it. Part of the problem is that states like Florida and California aren't letting them, and are keeping prices artificially low. >It may not be fully on the insurance companies to solve this - it may require some form of government intervention (possibly including better disaster planning, them providing some form of last resort insurance themselves, etc.). And for the record, California already has this. It's called 'CalFAIR' and it's a last resort public insurer for uninsurable properties. Problems? 1. It's hella expensive, the exact same problem that's trying to be avoided in regulating prices. 2. Even still, it's running out of funds. [It's at the risk of bankruptcy with this recent spat of wildfires](https://abc7news.com/post/what-happens-if-california-fair-plan-goes-bankrupt/15803207/So). That will likely mean the public has to pay for it, meaning taxes or some other revenue, so everyone ends up bailing out these uninsurable homes that aren't paying for their risk, as evidenced by the funds running out.

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