TAHOE 22/23 -THE YEAR OF THE (t)RAM

[TahoeJ]

I've had two home policies on my Truckee house cancelled over the past 8 years, and usually a broker can find someone else to pick it up. Highly recommend Heffernan Insurance Brokers, formerly Sierra Insurance Associates before they were acquired.

This is also about a lot more than fires - the insurance industry is at war with the state of California and many companies are refusing to draft any new policies in the entire state. It's a long complicated story and goes into politics and policies. I have industry friends who broker some of the largest policies in the entire state (municipalities, universities, etc.) so I've heard plenty about it, but I won't bore you guys.

[bodywhomper]

The CA FAIR plans hits home hard for those with fixed income, others that are economically disadvantaged (like many renters), and those who’s homes and properties are well hardened.

[Blaster]

Apologies for being a downer. Some March 2023 stoke to tide us over until the snow flies again, hopefully soon.


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[old goat]

Moonshine ink just did a pretty good article on the fire insurance issue. It’s not surprising people forget that fire insurance rates in CA have been kept too low for the risk they are covering for many years and are grumpy when they have to pay closer to what it actually costs to insure their home. https://www.moonshineink.com/tahoe-n...of-collapsing/

Some analyses think even the fair plan isn’t expensive enough to cover its exposure. Sure it sucks to pay an arm and a leg for insurance but the fair plan is essentially a state subsidy for homeowners.

all true of course. We should remember though that the areas most impacted by fire are not the expensive second home areas but the small communities in the woods, away from Tahoe, ski areas, etc. The last sort of affordable housing in the state and those folks don't have a lot of money.

[bodywhomper]

Speaking of homeowners insurance in CA: https://www.kqed.org/news/11962092/c...ce-marketplace

[LightRanger]

Speaking of homeowners insurance in CA: https://www.kqed.org/news/11962092/c...ce-marketplace

Wara is a smart dude. I'd like to have a beer or three with him sometime.

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[lepistoir]

RIP Robb. I hope it's steep and deep wherever you are.
https://www.instagram.com/p/Cxifh_jr...ZjMTM2ODFkZg==

[old goat]

And RIP Paul Gugliuzza--long time Olympic Valley patroller and heli guide. We skied (and mostly hung out in the lodge) with him for a week at Points North. Nice nice guy.
https://www.sierrasun.com/news/obitu...aul-gugliuzzq/

[mcski]

Sure seems like a lot of the big C at the lake these days. Fuckcancer

[TahoeBC]

I’ll miss seeing Rob in the backcountry, such a nice guy every time I met him, I’ll have to see if I can dig up some Ice skating video I shot 2 years ago of him and Noah jumping from ice island to island over gaps of open water.

Celebrated the first day of fall by making turns on water, snow and dirt

[TahoeJ]

Speaking of homeowners insurance in CA: https://www.kqed.org/news/11962092/c...ce-marketplace

One thing not covered here is that the insurance companies are also killing it right now - record revenues at a solid margin rate. A lot of the fire and catastrophe stuff is being exaggerated because when it gets really bad, who steps in to fill the replacement $$ gap or uninsured specifics? FEMA. And who pays for that? Well, we all do. This country is a scam. (a childhood friend was the insurance commissioner for a state here in the west and she said as much)

[bodywhomper]

Maybe you should rejoin Twitter and discuss with Wara there (though I bet he’s a lurker here).

Things to note, apparently, insurance premiums are low in CA because of an old proposition that capped premium increases (discussed in that interview).

I’ve been present when reinsurance agents have specifically discussed the risk problem and the position they were putting insurance companies in - this was at a small wildfire-focused event in 2020 for the roll-out of FEMA’s BRIC program (sponsored by FEMA).

FEMA does not swoop into every disaster to provide aid and stop gap for under insured (see the Angora Fire or the EQ in Eureka earlier this year), though that’s definitely the plan for the predicted large EQs in the western US.

FEMA is also coming to terms about drastically increasing insurance rates. There was a WSJ article this week about the federal flood insurance program renewal, and the congressional debate to allow federal flood insurance premiums to better reflect risk. The example of highest predicted premium increase was an island at the mouth of the Mississippi, avg premium would change from ~$800 to ~$5000.

[PB]

I'm all in favor of adjusting rates based on risk, assuming there's an un-biased third party evaluating risk. This should ONLY be applied to policies going forward, however. Jamming up long term owners with sudden increases in the 100 folds, in an attempt to paper over decades of below risk premiums (as established by the insurers themselves) is unacceptable - insurance companies need to honor their historical customers and own up to their greedy short-sightedness. They gambled and lost - suffer the penalty of your incompetence.

[heckacali]

The "penalty" for their incompetence is insolvency, and their clients left out to dry without insurance, or without payment of claims when a catastrophe happens

[PB]

Since that sounds almost the same as what the insurance companies are currently doing, pulling up stakes and abandoning their policy owners, minus the insolvency, I stand by my opinion.

[El Chupacabra]

The "penalty" for their incompetence is insolvency, and their clients left out to dry without insurance, or without payment of claims when a catastrophe happens

States have insurance guarantee funds, that all admitted insurers in that state have to support if one goes under. Insureds likely will not see full coverage payment in that event, but they will not be left with zero payment on claims.

It's not a good position to be in as an insured though.

[TahoeJ]

The "penalty" for their incompetence is insolvency, and their clients left out to dry without insurance, or without payment of claims when a catastrophe happens

If / when there's a major event that could do so, the State or Fed steps in and foots a huge portion of the bill. The insurance companies are just fine, they're maximizing profits. Yeah, some real shit goes down they could have a bad year but it's in the aftermath of several record profit years.

[meter-man]

Lots of love flowing for the fallen Dr. Robb this week. What a legend. RIP/SIP

Support his fam if you can: https://www.gofundme.com/f/rally-for...d-kate-gaffney

Some classics with the good Doctor -

Walls of Freedom:



G.N.A.R. the Movie (go to 49:25 for the smoothest Keyhole double you'll ever see). Damn.

[hercule33]

If / when there's a major event that could do so, the State or Fed steps in and foots a huge portion of the bill. The insurance companies are just fine, they're maximizing profits. Yeah, some real shit goes down they could have a bad year but it's in the aftermath of several record profit years.

Both things can be true at once. Insurance companies are making record profits but they also have to deal with higher risk. Look at what is happening in Florida where insurance companies are refusing to insure houses. This is code insurance companies use for the fact that charging the real cost of insuring the property would do so much to the reputation of the insurance company that they would rather just leave. Reputation is something insurance companies spend a lot of time protecting and if you don’t believe me just look at their commercials. And yes when insurance companies leave the tax payers get stuck paying the bill but in capitalism how do you force a business to insure something that is unprofitable?

My solution is to screw the insurance companies and pull together that money to secure/harden your neighborhood against wildfires. You will be better off IMO.

[bodywhomper]

Banks own parts or all of most homes in neighborhoods. Many (most?) people have home insurance for wildfire because it’s a requirement from their lender.

[PB]

Therein lies the issue: mandatory insurance.
So now it's Death, Taxes and Insurance Premiums.

[neufox47]

I'm all in favor of adjusting rates based on risk, assuming there's an un-biased third party evaluating risk. This should ONLY be applied to policies going forward, however. Jamming up long term owners with sudden increases in the 100 folds, in an attempt to paper over decades of below risk premiums (as established by the insurers themselves) is unacceptable - insurance companies need to honor their historical customers and own up to their greedy short-sightedness. They gambled and lost - suffer the penalty of your incompetence.

Lol. So much to unpack here. Who said anything about increases “in the 100 folds”?

You’re going to force insurers to not raise premiums on existing customers (which have been historically held down by regulation), so you punish the new shoppers of insurance who will not only pay their market rate but make up for the old monied interests? You will still have insurers pulling out of the state. It is the most Californian of comments to want anyone with existing property to get major breaks over anyone else though.

You realize that the ONLY reason there were “decades of under risk premiums” is that the government refused to let insurers raise those premiums. Somehow that makes the insurance companies greedy for staying in the market? You must like it when insurers pull out of the market? There doesn’t seem to be any other option for them in your mind, they stayed in the worst market in the country, therefore they were greedy and shortsighted.

As someone who pays $7k a year to the Fair plan and a wrap policy, I’d love nothing more than a less regulated market so maybe I could get a single normal policy. Currently, the most an admitted carrier could charge me for an admitted policy is around $2,500 per my agent. Yet the Fair plan gets to charge $7,000. I’d much much rather have a single insurer charging me $6k for an All Risk policy.

[davjr96]

Updates: https://www.palisadestahoe.com/mount...arking-program

It is imperative that you cancel your reservation at parkpalisadestahoe.com to make your space available to another guest. If you do not cancel by 8am PST on the day of your reservation, initial violations are $100. If not paid within 10 days, it will increase to $200. Subsequent violations are subject to increasing penalties including season pass suspension. Additional information on penalties and resolution are available at parkpalisadestahoe.com

[Gman]

Just got an email about the new parking set up for alpine meadows/palisades: https://www.palisadestahoe.com/mount...arking-program

I'll be curious to see how many people pay for reservations in advanced vs gamble on reserving a spot for free the Tuesday before.

[old goat]

My solution is to screw the insurance companies and pull together that money to secure/harden your neighborhood against wildfires. You will be better off IMO.

While defensible space helps with lower intensity fires, what we are being told by the FD is that most houses are not burned by an advancing fire front but by long distance spotting. Fireproofing means building a house with nothing flammable on the outside and no way for embers to get in. Houses would have to be built like bunkers. Most houses are made from dead trees. It has been striking to me to see pictures of some of the big fires where the houses burned but a lot of trees survived.

Certainly we should be doing defensible space--like getting rid of the piles of needles, branches, and sawdust left by the company that took down my "neighbor's" 5 beetle killed trees--but that alone won't mitigate the risk enough to impact rates.