for home and business insurance in California due to wildfire risks and the cost of rebuilding.
Unlike other states, California does not let insurance companies consider current or future risks when deciding how much to charge for an insurance policy. Instead, they can only consider what’s happened on a property in the past to set the price. As climate panic is based on flawed modelling, it seems appropriate that the mathematical voodoo of new rates will be based onNow, Lara said, he plans to go ahead and allow insurers to use catastrophe modeling that takes into account the projected impacts of climate change and other shifting factors when asking to raise rates. He also said that insurers will be allowed to include reinsurance costs for California coverage into rate filings, though the announcement did not go into specifics.
Before, it was capped at $7.2 million to $8.4 million for different types of commercial properties, which include condo associations, homeowners associations, affordable housing developments, and businesses such as wineries that are often located in areas with high fire risk. Now, that cap has been raised to $20 million for all types of commercial properties.