More insurance companies are fleeing the state because of the growing threat from natural disasters.

More insurance companies are fleeing the state because of the growing threat from natural disasters.

  • Odusei@lemmy.worldOP
    72·
    1 year ago

    I’d say Arizona and Texas are at higher risk than California, unless earthquakes get way more frequent and bad.

    • Puzzle_Sluts_4Ever@lemmy.world
      71·
      1 year ago

      Texas is always at a high risk of someone plugging their phone charger into the wrong outlet and taking out the grid for the entire state. They are a special kind of stupid

      Arizona is interesting. They definitely have massive drought issues. But wildfire wise, they tend to be pretty okay. I assume because there isn’t enough moisture to actually grow trees to burn but I am sure it is more complex than that.

      Still, compare these

      https://en.wikipedia.org/wiki/2022_Arizona_wildfires versus https://en.wikipedia.org/wiki/2022_California_wildfires

      And, for fun, New Mexico: Like Arizona but with fewer people, worse roads, and a little bit more water. https://en.wikipedia.org/wiki/2022_New_Mexico_wildfires

        • Puzzle_Sluts_4Ever@lemmy.world
          7·
          1 year ago

          Which isn’t something insurance covers and thus not applicable here.

          You can’t (easily) file a claim because “it is hot as balls outside”. You can (generally) file a claim for “my house burned down”.

          The planet becoming more and more inhospitable is one side of this hell. But the issue with insurance companies pulling out is that it leaves the owners holding the bag. The bag, in this case, being a massive mortgage on a condemned plot of land.

          • 【J】【u】【s】【t】【Z】@lemmy.world
            41·
            1 year ago

            “Hot as balls” raises workers’ comp. and health insurance payouts, people getting heat exhaustion and heat stroke, even heart and respiratory diseases can be brought on or worsened by heat.

    • dhorse@lemmy.world
      4·
      1 year ago

      The risk in CA is that they have built so many communities in areas that are prone to wild fires (and in some cases are even part of the natural eco system) that is inevitable that if they rebuild that it will burn down again. They also have high material costs, higher labor costs, and more stringent building codes (rebuilding to code can get really expensive). Lastly CA has a more highly regulated insurance market which protects consumers, but makes it less profitable for insurance companies. While IMO this is a good thing it has ripple effects on whether or not the private market wants to participate.