Here's why insurance companies want to raise rates in California

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Climate change and inflation are fueling problems for the California home insurance industry.

California is at a crossroads when it comes to home insurance, as climate change and inflation fuel high insurance costs. In some cases, homeowners struggle to get any coverage at all. KTVU's Joey Horta reports."The insurance companies are pulling out, pulling policies," Garamendi said. "They’re raising rates in many cases without justification."

"That would be a long-term disaster and a short-term problem for every consumer in California," Garamendi told KTVU.United Policy Holders is a consumer protection group, and Amy Bach is the executive director. Bach explained that insurers want two things: climate prediction models and the ability to pass their rising costs on to consumers.

Lawmakers are calling for transparency through public hearings and public comments before approving any rate increases. They also want to protect consumers before protecting corporations.

 

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