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

  • Odusei@lemmy.worldOP
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    1 year ago

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

    • dhorse@lemmy.world
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      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.