Kamala’s Dangerous Statement About Insurance Companies
11th January 2025
Harris implies that the companies have canceled insurance because of the fire or during the fire, even though she doesn’t explicitly say it. What she leaves out is the fact that the policies were canceled some time ago and it had nothing to do with this fire and everything to do with California’s insurance rules that make it a loss to cover people in high-risk fire areas. This is a description of what has actually happened:
Even before this week’s wildfires hit, California was in the midst of an insurance crisis, with many residents unable to obtain homeowners insurance due to several carriers limiting their exposure in the state or pulling out completely in recent years because of heavy losses and the inability to adequately raise premiums or assess risk due to California’s regulations.
Insurance companies are businesses. If the risk is high they must raise rates. If the state forbids them to raise rates enough to cover losses, the companies won’t be doing business there.