The criminally mismanaged state of California was forced to create “last-resort” insurance coverage called the California Fair Access to Insurance Requirements Plan (FAIR), and now that plan is on the brink of disaster—a “ticking time bomb.”
Here is what happened to California and what happens to any state where voters put Democrats in charge without any political opposition…
For two decades now, to appease the superstitious lunatics in the environmental movement, California refused to do what’s necessary to manage its forests. Instead of building fire access roads, clearing out dead trees, doing controlled burns to remove debris, and cutting back far enough to avoid fires from fallen power lines, Mother Nature has been left in charge, and Mother Nature has only one way to manage her forests, and that’s with massive, crippling, devastating, deadly, and COSTLY fires.
Democrats see a silver lining in these devastating fires because they can blame them on Climate Change. Democrats see these fires and all the death and destruction (including environmental destruction) that comes with them as a broken egg in their propaganda omelet.
The big problem for Democrats is what is always the Big Problem — a little something I call Reality.
If you sit back and watch your state burn, the people paying for it will eventually stop paying for it — namely, the insurance companies. These companies are in business to make a profit. Still, the failure of the lunatics in California to manage the forests has resulted in 14 of the state’s 20 worst wildfires occurring over the last ten years.
The result?
See ya! said State Farm.
See ya! said Allstate.
California created FAIR in the 1960s to help businesses that could not be insured after all the race rioting. Today, it also offers homeowners in these high-risk fire zones (which wouldn’t be high-risk if Democrats weren’t in charge) “bare-bones coverage—just fire and smoke damage—[which is paid for] from policy premiums that can be much more expensive than regular insurance because the risk pool is much higher.”
Believe it or not, taxpayers don’t cover this, but in addition to forest mismanagement, interference from state government regulators has brought about FAIR’s likely insolvency…
“Our rates are never actuarially sound because not all of our expenses are included in that ratemaking,” FAIR Plan President Victoria Roach told local lawmakers. The 2021 rate increase should’ve been 70 percent, she said. FAIR asked for 48.8 percent, but the “insurance department approved only a 15.7% increase[.]”
In 2019, only 154,000 homes were forced on the FAIR plan. Today, due to the exodus of insurance companies, 375,000 homes are on the plan. But FAIR is not collecting enough money from the premiums to cover the next disaster. Roach said that “one bad wildfire or even a series of smaller fires could overwhelm the plan’s resources[.]”
With billions of dollars in exposure, FAIR only has about $700 million on hand. A likely result is this…
Kim Stone, representing Consumer Watchdog, whose founder authored Proposition 103, warned that “a complete loss for FAIR Plan policies in Lake Arrowhead could amount to a $975 surcharge on every other insurance policy.” Should all the top five FAIR Plan cities suffer a catastrophic wildfire at the same time, the bill would be $3,700.
Looks to me like a whole lot of Democrats are getting exactly what they voted for.
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