California’s Home Insurance Crisis Explained 

I'm so happy I made productive decisions about my finances that changed forever. I'm a single mother living in Vancouver Canada, bought my first house in October and hoping to retire soon if things keep going smoothly for me.

Moved outa California because of Covid back in 2020. Maybe a blessing in disguise 🙌🏼

Honestly home owners insurance is a scam. Premiums go up whether you make a claim or not. If the government wants to help people out, remove the requirement for home insurance if you get a mortgage(based on credit score). Let the individual decide whether or not they want insurance. The only entity that is at risk for uninsured homes are the banks which get bailed out by the tax payers anyways.

Farmers canceled my dad’s insurance on his cabin in the Sierras cause this 8x6 deck he had outside the master bedroom didn’t have a guard rail. It was 16 inches off the ground lol

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you . prevent inflation

I live in Southern California. I started having issues with my insurance provider last year and they ended up not renewing my policy. It was stressful trying to find a new provider. Luckily, AAA insures just about every one. Most companies won't issue new policies if your roof is over 20 years old and/or your furnace is over 25 years old. And if you're in a fire zone, forget about it. It will get to the point where you try to sell your house but the potential new buyer can't get insurance. Eventually, your house will become unsellable as a result. Unfortunately, I have elderly parents nearby, so I can't move out of state yet.

I love this guy! So much added value for me. I lived in CA my whole life and have my family here and will be buying a property soon since my family is here but I’m really considering moving out away from this shit hole since it’s too much to take on. Why stay in a state that is full of the worst type of people and government corruption is rampant. No one in the government even cares about these issues. Instead they decide to give money to all of the illegals and give them all kinds of advantages. What a backwards ass system. And the lefties are loving it. It blows my mind. I want answers to why they are doing this. It just doesn’t make any sense even if you are a stupid mechanic like me.

Insurance is a competitive marketplace, if price controls are such that no one can make money, then there will be no supply. Same as putting price controls on food. Supply will dry up.

An effective way to drive property into the hands of Blackrock who provide mortgage and insurance combined...because they're so nice.

I’m your average , who actually struggled to make it through bitcoin and I retired when I was 55, here’s how I did it. Find a trader like Catherine to handle your trade Became an investor , so you make twice as much as you trade. You’re going to work your ass off. Buy everything for cash. Put the max in your 401K, so you’re not paying any taxes on that money. Pay as much as you can on your house payment. Drive a basic car, when I was working I had a Honda Civic and rode my bicycle to work. Draw the money from your 401K so you pay no or as little possible in taxes. I’m 65 now, live in CA and my life is awesome

Fantastic video🔥🔥! I have incurred so much losses trading on my own....I trade well on demo but I think the real market is manipulated.... Can anyone help me out or at least tell me what I'm doing wrong??

Home and Car insurance is up 50-60% in Texas. Flooding has become so normal after a storm it’s absolutely ridiculous. Infrastructure in Texas is awful. In 2024 alone we have had over 15 days of no power for multiple days straight all due to Texas being in its own electrical grid.

One little piece missing.. We don't have more fires but we have about 3 million more people living in areas that are prone to fire than 20 years ago. Very large part of the problem is the regulations have not allowed the industry to factor this in. We all must be equal and "fair".

I work for an insurance company and we have pulled nearly ALL our business from CA, it is not even possible to stay afloat in that market

Moved out of Cali in 2021. Best decision ever.

Its a good thing CA doesn't use mail in ballots where a random person can sign on it saying as a "witness" that you voted, and also makes sure everybody is a registered US Citizen voter with ID.

This is by design, they want to move to state owned insurance. The best racket to raise more funds, again when I sent you a message almost 2 years ago.

In California insurance companies are sending notices to homeowners and asking them to take pictures of their home. After they do this to take the matter if they have cleared garage or treat away from the home, they get notice that they will need to buy supplemental fire insurance for an extra 2000 a year

I left CA about 20 years ago mainly due to the high cost of living, congestion, and difficulty of trying to run a business (fees, regulations, bureaucracy, constant headaches). I followed Pat's good advice and got out. These are not issues that couldn't be solved with better governance but it's a one-party state and I don't see that changing. If anything, CA is even more regulated and costly now then it was then.

Farmers sent me a non-renewal letter for homeowners insurance so I got a plan with triple AAA. More expensive of course and it doesn't cover earthquake insurance which scares me in California. State Farm increased our car insurance so I cancelled it and got a bundle savings with triple AAA. Get a bundle savings with your carrier, its the only way now!

Good video. Now can you make one for Florida. How insurance company is screwing it up.

I love you brother! You’re inspiring ❤I live in this failed state and I’m almost 60 and I’m in a crossroads thinking what to do

You should run for California governor!!

Wildfires are insane. The state owned land is extremely poorly managed causing multipke wildfires in my area per week in the summer/fall. Ca fair plain is $5000/yr IN ADDITION to homeowners. I live very close to Yosemite, hardly ever fires on federally owned land cause their forest management is pretty good. Ca, again, forcing the middle class to subsidize the states poor management, on top of allowing pge to raise rates instead of holding them accountable for their lack of maintenance and modernization causing some of these fires. "Rake the forest" which has been highly scrutinized statement by trump. Issue is people who say it was a stupid statment have zero clue how a forest is managed. They literally use huge "rakes" on bulldozers to cut through the roots, creating fire lines making it harder for fires to spread. The issue is, a lot of people CANT move, we're hostages in this state!

Im an insurance agent in California and everything that was said is true. My agency is loosing clients left and right due to high costs and non- renewals and in top of that the company decided to lower our commission. For a lot of agents is getting to the point of thinking if closing the agency and do something else would be a better decision.

WE LOVE YOU PBD ❤

They canceled me and I was forced to go to CA Fair plan plus additional policy 3x times what I used to pay

It seems to me that limiting, ins companies to a single state breaks the whole point of insurance. The point is to spread risk. So let the ins companies spread the risk. If the risk is inherently too great, then the only possibility of insurance is the state. Finally, as a protection to consumers, if the number of insurance companies drops too low, then it should be illegal to require insurance. It doesn't seem reasonable to require something that is impossible to get.

As an insurance agent in CALI, it’s hectic. I am writing record number of APPLICATIONS, while being off for two months. 2023 was my best year yet.

One of the few people left not afraid to inform and educate the public of real facts

"You'll own nothing and you'll be happy."

We had a really good Insurance Commissioner in Steve Poisner. He served from 2007 - 2011. Look him up. He is an amazing human being who has accomplished a lot in his life. Everything to do with insurance in California has declined since Poizner’s absence.

Easily Pat’s best content style is expressed is in this format!🎉 Thank you!

California is also promoting ADU's that are only a matter of inches away from their next door neighbor. No one has considered how these ADUs setting inches away from their neighbor will help to spread fires by jumping from one rooftop to another rooftop. You must consider that they are putting two homes on a small lot. In my opinion it is a recipe for a disaster. On my block there are four ADU's and the lot sizes are from 6,500 to 5,400 square feet. There is little if any green space.

Just like the state of Florida! Most homeowners have dropped their coverage. It's called "going bare".

David, and about Florida man?

Similar situation in Florida. Last we checked, there’s only one carrier in my zip code for older houses. Even with my new HIP roof!

They always know what is best for you and love to make it a law.

Buy land and start small carry what insurance you want, if any at all. Stop buying homes and being stuck with issues like these. The home is a product of the bank. Land is a product of your hard work and dedication

Texas is very expensive now for insurance too 🙏🏼

I sold a house earlier this year that I thought would definitely drop out of escrow, but the buyer elected to continue despite his new homeowner's policy being $1000.00 per month-10x what my grandfathered policy was. I was beyond lucky to sell that house.

You need to compare the number of insured structures lost year over year not the acerage. Some of the largest fires in CA history burned few structures down while some of the largest loss of structures were small fires in terms of acerage burnt. The Tunnel fore in the Oakland hills, 1991 burned only 1600 acres but lost 2900 structures and is the 3rd most destructive fire in CA history. The rest of what you are saying is spot on

You are looking at the wrong statistics in my opinion. Acres don’t make insurance go up, destroyed homes do. Last year over 3,000 single family homes were destroyed plus another 1200 structures. The year before was 770.

They should make the banks pay for the insurance on the loans that they making money on . After all DONT they own the house if we can’t make the payments . They keep the house and all the money they made from Amortize interest .

Don’t forget auto insurance companies that have left as well. I used to have Esurance until just recently. They canceled my policy and that is a lot of other people and dumped me on some other company. My rates went up $60 a month.

Insurance fraud is hurting everyone, and HAS BEEN for decades. I had damage to a floor at one point. We had Wal to wall carpet in the house. But when they ripped up he old carpet, they found maple hardwood floor under it. They had to completely redo the maple hardwood floor, then install wall to wall carpet OVERTOP OF IT, effectively destroying the hardwood they just installed. It was THOUSANDS of dollars extra work... because the insurance company was paying.

I have been in the business of wildfire suppression and behavior analysis for twenty years. I recently have tried to reach out to insurance company’s to give them a more educated approach on risk assessments based off historical data , modeling programs and current conditions. None of them seemed interested due to the reason’s stated in your video. It’s a shame I know there are a lot of homes marked uninsurable that really should be in the state of California.

Scary but true for someone who can’t leave California because of having and running a business here in Los Angeles! Very informative Pat. Thanks

Amazing video, you work for 40yrs to have $1M in your retirement, mean while some people are putting just $10K into trading from just few months ago and now they are multimillionaires

Also besides home owners insurance. If you have a boat it's even harder now to get insurance. If you read this look into Triple A. I had a 1970 Sailboat and no big nation insurance brand would take me on. Also with no full boat insurance, the Marinas won't even let you in the dock.

Greetings from Trinidad and Tobago in the Caribbean. ... The policies being initiated are so Blackrock and others can come in and capitalize on the "prime real-estate" and push things in a particular direction, for their benefit. 'Nuff said.

Our economy struggling with uncertainties, housing issues, foreclosures, global fluctuations, and pandemic aftermath, causing instability. Rising inflation, sluggish growth, and trade disruptions need urgent attention from all sectors to restore stability and stimulate growth.

Flordia has a home owners insurance crisis BUT these guys only talk about california haha

Many of my neighbors here in California have received notice of non-renewal from their insurance company.

My property insurance went from 2500 to 8600. State farm did not renew our policy

As someone in the insurance industry I can tell you it’s not just CA & FL, changes are coming everywhere.

State farm sent me a letter, indicating that my home insurance would be canceled due to overhanging limbs unles I cut them. When I called to indicate that I had hired and harborist to help handle the trees, my agent told me he would need to visit the property and do a room by room walk through. I do not have anything to hide and if I were the insurance provider, I'd want to see the inside. But the request seems intrusive. Most people I know with no claims have never had a visit by a home insurance agent.

legalrightsguru AI fixes this. California's home insurance crisis explained.

Fire department charges fees, does multiple inspections per year and fines residents instead of shutting down the main problem... the homeless living in encampments throughout the forest!

Can't afford it don't buy it. That's capitalism. 😂

What about Florida Pat And Texas with the Central Appraisal District Fraud

I live in a state with multiple wildfires annually but the two states next to me have worse wildfires than us and the air is so bad it hurts to breathe. You can't go outside or open your window and if you have asthma or any type of breathing problems, they are severely aggravated by the smoke. For about three months each year, the air is horrific and there is nothing you can do because the smoke from the other states becomes stagnant in my state.

I don’t recall CA having all these wildfire issues back in the days when logging was allowed to help clear the forests. If you let your big yard grass grow and turn brown and brittle and a spark or lightning strike or power pole goes down l, yes the whole place is going to go up like a tinder box which is happening in CA. CA needs to bring back logging and calm down the environmental wackos.

State Farm total revenue last year was $104.2 billion. State Farm said in a release that its unfavorable operating results came from "continued elevated claims severity and significant catastrophe activity 1.4-6$B profit No more bureaucracy🇺🇸🤠🇺🇸

Insurance companies don’t do business anywhere not because they are losing money! It is because they don’t make the supper multi million dollar profit to please their share holders. They are for the BIG profit, not the mediocre profit.

They understand. It’s by design.

With all due respect insurance companies are scum that continually shit on people that need actual help and never want to pay out fairly. If insurance companies are running from California then CA might be doing something right Patrick. State Farm is a shit company, All State is a shit company, Farmers is a shit company therefore making most if not all other insurance companies equally as shitty because of the STATUS QUO.

I can't imagine how people can continue to vote Democrat based on these terrible policies. Even when they try to 'help' people, they still wind up hurting them.

Whats the solution here?

My mom was forced to sell her property in Paradise, CA after the 2018 because the insurance was dropping her. She didn't have a choice but sell. Realtors are screwing property owners. After the realtor took her "set fee", she ended up with $5K for a $15K piece of property. Glad she doesn't live in Commifornia.

So here's what homeowners can do. If escrow requires insurance, and the insurance company has to have a policy in place, for the home sale to be completed; all the insurance companies have to do is, place the minimum required policy coverage (you know like car insurance does, so car owners can drive their vehicles legally). After whatever the minimum coverage period ends, the homeowner can choose not to have homeowner insurance, and pay into a savings account exclusively for home repair and or replacement. Why pay an insurance company?.. Pay yourself (in other words the homeowners are,, responsible for protecting their own homes.. a novel idea). Many Florida residents are doing this, since many insurance companies are opting out of the state, because hurricanes and tropical storms are becoming more severe. Insurance companies also spend, a great deal of time, trying to weasel out of paying claims. If homeowners pay themselves, into a personal home savings account, it's doubtful, the homeowners will try weasel out of repairing or replacing their own home. Ask the California homeowners, with homes formerly near a cliff, that are now at the bottom of a cliff, how their insurance company treated them. If someones home got burned down in a California wild fire, good luck with the insurance claim. State Farm is not like a good neighbor, and they are not there. Homes are very expensive to repair or replace. When insurance companies have to cover nationwide disaster claims, with thousands of homes and businesses, instead of a few hundred, well, you understand real quickly how badly insurance companies are operated. They have no real contingency plan for multitudinous disasters. The insurance company fallback position is, find any loophole in a policy and deny the claims, until a court orders them to pay out. Then insurance companies cry foul, and beg the federal government to bail them out, because they lost too much money fighting loser law suits, and paying claims... that's it.. that's the insurance company game plan. California, and every state, would be better off setting up state run insurance, and throw the insurance companies out of the state. The states end up footing the bill, for home and business repairs and replacements, after disasters most of the time anyway (since the insurance companies love rejecting claims). Of course that doesn't sit well, with capitalism. Well, insurance companies aren't capitalist, they're profiteers. Put the insurance industry out of business. That's how capitalism is supposed to work: a company offers a product or service, if the product or service is junk, the business can't turn a profit selling junk no one wants, so the business goes out of business. In the United States, we've allowed companies selling junk products and services, to become industries TOO BIG TO FAIL!!! I digress.

I have never heard of Chubb, I'm 40 in California

Homeowners insurance is insane in Texas as well not only in California, but I don’t know what the heck is going on in Texas no idea

Isn’t it house insurance? A home is an idea. A house is a physical structure.

Where’s the Florida condo crisis video?

This sounds like corporate justification. My HO policy has nearly tripled in price in 2 years. My house is NOT in a high risk area. It was built in the 30's. They told me that if I do their risk inspection and pass, I would save $35/year! They are making money. Corporations are like greedy children throwing tantrums to get ice cream.

Florida insurance issues have already surpassed California’s problems.

WHY WHY WHY CANNOT ALL OF US BE NOTIFIED TO GET TOGETHER WHERE EVER YOU CHOOSE FOR US TO. MEET. TO TALK AND DECIDE HOW WE CAN STOP gavin newsome FROM CONTINUING TO DESTROYING US & OUR BELOVED CARED FOR STATE ❤ IT IS SO AMAZINGLY SADLY HORRIBLE HOW THIS LITTLE EVIL MAN CAN KEEP ON DOING SOOOO. MUCH DAMAGE.

The biggest issue I see is building of MORE AND MORE homes in fire and flood danger areas. Then the related risk will be spread to the average home owner.

They might be citing wildfires. But the hidden story is probably the insane housing prices. All insurance companies is an arbitrage. If houses cost far greater than what home owners are willing to pay, plus the risk of wildfires, insuring that would be suicide for any insurance company.

Love your insights! Been in California 60 years. Democrat power and destruction seems inevitable!

I’m a Californian , I’d like to see the numbers on the houses lost during the fires in those years, he doesn’t go into it but the fires have gone done yes. But the areas where the fires were burning were residential areas. So houses and property damage was very impacted. But I do agree with the rates and insurances here. Feels like a Ponzi scheme

How come you’re not pointing fingers at the DEI/inept insurance commissioner of CA? Look him up. Ricardo Lara

Talking about CA, FL has the highest home ins rates in the U.S, no?

All the policies he mentioned have been on the books for decades and the ones that have been proposed are just that, proposals. Also why would rates be going up if the amount of acres burned is the least amount in 25 years?

U.S. economic growth would likely get the biggest boost in the coming two years from the Democrats, headed by Kamala Harris, winning the White House and Congress in this November's elections, according to Goldman Sachs. Under a Republican sweep, or even with a divided government led by Donald Trump, economic output would take a hit next year, mostly from increased tariffs on imports and tighter immigration policies, Goldman said in a note late on Tuesday.

I'm in Cali and Farmers dropped me last year.

🤔...have those insurers heard of Bradley-Burns sales tax policy?!

They're just following the playbook they drew up in Florida.

I still don’t know why the people of California hasn’t removed Newsom from office. The people have the power to vote him out

Why would anyone listen to a person that made his fortune as an insurance scammer?

This video is an utter nonsense. Starts with: "People can't afford insurance". Continues with: "Laws doesn't allow to hike prices"(contradict the first statement). Ends with: "Laws force insurance of high-risk area".(argument mutated from house insurance, into forced life insurance). And this channel somehow has 6 million subscribers. I bet all those fanboys think it was a great idea to subsidize Boeing with a tax payers money.

I had to drop my house insurance over cost increase

Because prop casualty didn't price their business properly they lost money. Can't blame anyone but themselves PBD. Rents historical lyrics are the biggest killers of small business.

PBD is from Glendale California. He did an entire video about insurance without mentioning insurance fraud 😂. Glendale has the highest insurance fraud rates in the country

First ✅ Keep it up PBD !!!

This guy will never make a segment like this on Florida's and Texas HOA and insurance companies because he's bought and paid for from the right

Unless their loss ratio was over 100% these companies still made over a billion dollars on average. We need their operating expenses to see if they made a profit. However with their operating expenses, I guess 1-2 billion isn't enough to make it worth their time. FL is no better

were stuck pat. we just bought our house last year

Future Looks Bright