Property insurance is so broken. 1) homeowners are getting nonrenewed even without a claim history because insurance co’s want to divest from certain regions 2) Homeowners are held hostage by their policies. You need one, but you’re highly disincentivized to actually file a claim because if you do, you’ll likely just get non-renewed the following year. 3) The claims process is slow, subjective, frustrating, and adversarial. Is there any company trying to unfuck this systematically? The most novel thing I’ve seen is parametric insurance, which is interesting but limited to insuring natural disasters only (wildfire, earthquake, flood, etc)
@kayvz I think property insurance is becoming an unscalable biz. There’s no tech or disruption (imo) that makes an affordable premiums for (ex) a CA house in a fire zone, or a Florida house that’s gunna flood. It’s actuary > greed Farmers had net loss of $4.7BB in policy payments
I’m not surprised that the math doesn’t work out for these firms, but it just makes me think the fundamental model (comprehensive all or nothing indemnity policies) is broken. perhaps the future is more fragmented (e.g. different policy structures for different types of risk). The current model basically only makes sense for insuring against a total loss scenario
@kayvz More practically (because presumably you’re going through this now, or just did), I also had to renew in CA this year. My premium increased like 80%. Sifting through fine print of my proposed policy, I elected to make the following changes which *drastically* reduced my premium:
@kayvz - increased total loss deductible - reduced personal property value (which default was a 75% function of my home price, which is laughable) - reduced extended replacement Your mileage may vary but the defaults were a joke.