SACRAMENTO – What do the state’s insurance and housing crises have in common? Obviously, homeowner policies have an impact on housing costs, but I’m referring to something different, namely the concept of open-ended risk. Insurers arebecause state policies limit their ability to price policies to reflect the risk of a major wildfire season. They rather pull out of California than risk the destruction of their assets.that subject landlords to an incalculable level of risk.
Many owners are afraid if they let strangers rent their units they’ll never be able to reclaim them. They rather forego $3,300 a month inthan take that potentially devastating risk. That’s because the risk is not calculable. Investors can navigate their way around costs they understand but will exit if the risks are too high.
The number of incidents has soared, so much so that one entrepreneur has started a business helping landlords retake their own properties. In a sane society, no one should have to worry about this. Other states have laws to expedite the removal of these home invaders, but California requires an overly drawn-out process, leaving owners at the mercy of progressive judges.