California E&S Insurance

CMV: Home Insurance Companies leaving states like California and Florida, and cancelling existing policies, aren't doing anything wrong by doing so. Maybe this is just what I am seeing in my online bubble, but plenty of people seem to be arguing that Home Insurance Companies are doing something wrong in cases of not renewing existing policies in California and in other States. [Here's an article for reference](https://www.foxbusiness.com/lifestyle/ca-wildfire-backlash-state-farm-other-insurers-slammed-dropping-coverage). It's editorialized to say "slammed" but even still I wouldn't argue that it's an aberration here in describing there being a backlash. But I don't see what they're doing wrong. These companies have insurance contracts which specify coverage for given periods of time for certain amounts of money as regulated by their state. When those contracts are set to renew, the companies aren't offering renewal, they're dropping future coverage. This is all legal, and in practice how home insurance works. They don't think renewing the contracts, at the rates they're legally allowed to offer, are worth it. So, what should they be doing otherwise? What are people expecting to happen instead? How is the backlash justified? Caveats: 1. I am well aware that every insurance company is in the practice of fighting claims which they believe they can get out of. That's illegal in at least some cases, or at least unethical in all cases, when those claims are valid. When they're not, that is what insurance companies are supposed to do. I am referring instead to dropping coverage rather than fighting claims. 2. There probably are some cases where policy terms are being fought/ignored by the insurance company in dropping coverage. That of course is unethical and against the law. I am instead referring to the overall practice, which is not illegal or unethical (I guess, in my view that is) rather than cases where the contract and/or law was broken.

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  "score": 0,
  "title": "CMV:  Home Insurance Companies leaving states like California and Florida, and cancelling existing policies, aren't doing anything wrong by doing so.",
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