Bidenomics: State Farm Ending Tens Of Thousands Of Home Policies Amid Regulation, Inflation Crunch
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DB Cooper
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Posted 8:49 am, 03/23/2024
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Since this is "California-specific," only a fool would claim that it has anything to do with Biden. It looks like the real problem is the number of wildfires in California that have led to a high number of claims and financial losses for the company.
Only a fool would think unaffordable insurance is a California specific problem.
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DB Cooper
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Posted 8:30 am, 03/23/2024
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Bidenomics has destroyed the American Dream.
The biggest of several reasons is inflation. Even though wages grew faster than inflation in the past year, comparing real wages now with what they were before Biden took office shows that Bidenomics has made most people poorer.
Relatedly, Federal Reserve efforts to contain Bidenflation by jacking up interest rates have put the American dream of home ownership out of touch for many people, especially young voters who would otherwise be more likely to support Biden and the Democrats.
Despite efforts to convince people otherwise, most still want to own their home. Inflation and rising mortgage rates mean the housing market, which was already difficult, became impossible for many, especially for first-time buyers.
According to Redfin, a typical home buyers' monthly mortgage payment has almost doubled from what it was in 2020 to about $2,900. Before Bidenflation, a $2,000 monthly mortgage payment could finance a $400,000 home. Today, the same buyer could only finance $295,000.
This would be fine if house prices were falling, but they're not. The number of home sales has been falling, but not prices. And rents are rising, too. -Washington Examiner 12/23
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Jimbojolly
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Posted 8:56 pm, 03/22/2024
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CoupCoup your misleading claims are always a joke.
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hillbilly7
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Posted 6:31 pm, 03/22/2024
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Hey did they forget all the million's they spend on Singers and movie stars along with retired pro ball players they pay in their adds. let alone all the millions they make I guess they want too keep the money along with their buddies. Crap on the rest of us I guess after paying all the years most of us have. You ever notice how well they live !
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antithesis
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Posted 3:13 pm, 03/22/2024
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The actual statement from State Farm... These actions are California-specific... This decision was not made lightly and only after careful analysis of State Farm General's financial health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs, and the limitations of working within decades-old insurance regulations. State Farm General takes seriously our responsibility to maintain adequate claims-paying capacity for our customers and to comply with applicable financial solvency laws. It is necessary to take these actions now.
And this follows their statement last year, when they announced that they would stop accepting new policies in California due to "rising construction costs outpacing inflation, rapidly growing catastrophe exposure, and a difficult reinsurance market for the change."
That article also points out that Farmers Insurance did the same move, citing "the wildfire hit market in recent times."
And finally, State Farm "reported severe losses in its financials for 2023... due to high claims severity and significant catastrophe events..."
Since this is "California-specific," only a fool would claim that it has anything to do with Biden. It looks like the real problem is the number of wildfires in California that have led to a high number of claims and financial losses for the company.
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knslyr
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Posted 1:35 pm, 03/22/2024
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Just tell them to get a job at mcdonalds! Then they will be rolling in cash!
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DB Cooper
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Posted 12:55 pm, 03/22/2024
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State Farm, California's largest insurer, will not be renewing 72,000 policies in the state as factors like inflation and regulations make operations unsustainable.
Around 30,000 homeowner, rental dwelling and other property insurance policies will not be renewed starting on July 3, and around 42,000 commercial apartment policies will not be renewed starting on Aug. 20, according to an announcement from State Farm.
State Farm previously announced in May 2023 that it would not be accepting new applications for homeowners insurance in the state due to increased costs from inflation, growing exposure to catastrophes and a difficult reinsurance market.
Many homeowners are choosing to go without home insurance as prices rise and housing unaffordability continues to plague Americans due to high mortgage rates and inflation in the housing market. Allstate has similarly announced that it will not accept new applications in California for homeowners insurance.
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