Anthropogenic Global Warming ... how hot is it ?

Hawaiʻi hasn’t taken a direct hit from a major hurricane since Iniki devastated Kauaʻi and damaged homes along Oʻahu’s Leeward Coast 31 years ago. Nonetheless, mortgage lenders require Hawaiʻi homeowners to carry hurricane insurance that can cost two to three times the annual premiums for a conventional homeowner policy.

A condominium building or complex carries a master hurricane policy that covers 100% of the cost to replace the property – millions of dollars in many cases. Now premiums for those policies have risen so high that hundreds of owner associations are reducing coverage to less than 100%.

www.hawaiibusiness.com

Soaring Hurricane Insurance Rates Leave Hundreds of Hawai‘i Condo Buildings Under-Insured - Hawaii Business Magazine

One local insurance agent estimates that the owners associations for as many as 390 buildings have renewed their policies with less than 100% replacement coverage.
www.hawaiibusiness.com www.hawaiibusiness.com
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What many people don't realize is that most insurance policies will only pay a percentage of claims in that case - insure the building for 75% of its value and the policy will only pay 75% of any claim.
 
Shiftless2 said:
" insure the building for 75% of its value and the policy will only pay 75% of any claim." S2 #81
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By my math that's a little over half, or 56.x %
Barely qualifies as "insurance" imo.

#82
note:
I've got "issues".
My reflexive response is: so move to Albuquerque.

I understand that's not the most constructive contribution. BUT !!
What then?
Establish a self-insurance pool? I doubt that changes the final numbers much, even if it shifts the policies from retail to wholesale (cutting out the middleman).
 
No - it's 75%. If the building is worth $10 million and is insured for $7.5 then when there's a million dollars of damage the policy will pay $750K
 
Shiftless2 said:
"No - it's 75%. If the building is worth $10 million and is insured for $7.5 then when there's a million dollars of damage the policy will pay $750K" #84
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Oh.
OK
So what's to be done about it. They don't have to re-invent the term "under-insured".

I used to live in a company town were the cost of living was $high, because residents there were well paid.
I retired at age 43, moved to the forest inside the Adirondack Park, New York State's ~Northern tier, where the cost of living is dirt cheap.
I lived on $savings & investments until Social Security & pension.
sear said:
"Albuquerque" s #83
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I was joking about this specific city.
I was not in the least joking about finding an $affordable place to live. If they can't afford to live there, it's time to go. That's precisely what I did. For them it may mean Montana. Life sucks. Then you die.
Got a better idea?
 

Canada to announce all new cars must be zero emissions by 2035​

(Reuters) -Canada expects to announce this week that all new cars will have to be zero emissions by 2035, a senior government source said, as Ottawa is set to unveil new regulations in the latest example of countries around the world pushing for electrification.
The new rules, known as the Electric Vehicle Availability Standard, would help ensure supply is available to the Canadian market and shorten wait times to get an electric vehicle, the source told Reuters, confirming earlier media reports.
The Canadian provinces of British Columbia and Quebec already have the same regulated sales targets.

Zero-emission vehicles - which include battery electric, plug-in and hydrogen models - must represent 20% of all new car sales in 2026, 60% in 2030 and 100% in 2035, the source said on condition of anonymity.
Officials at Canada's environment ministry declined comment.
Global EV sales now make up about 13% of all vehicle sales and are likely to rise to between 40%-45% of the market by the end of the decade, according to the Paris-based International Energy Agency (IEA).
In the United States, the Republican-led House of Representatives voted earlier this month to bar the Biden administration from moving forward with stringent vehicle emissions regulations that would result in 67% of new vehicles being electric by 2032. The vote drew a veto threat from the White House.
Market leader Tesla sold 325,291 vehicles in the United States during the first half of 2023. General Motors’ Chevrolet brand was a distant second at 34,943, trailed by Ford, Hyundai and Rivian.

news.yahoo.com

Canada to announce all new cars must be zero emissions by 2035

The new rules, known as the Electric Vehicle Availability Standard, would help ensure supply is available to the Canadian market and shorten wait times to get an electric vehicle, the source told Reuters, confirming earlier media reports. The Canadian provinces of British Columbia and Quebec...
news.yahoo.com news.yahoo.com

Limiting Earth's global change by atmospheric CO2 content, or degrees C are arbitrary targets.
Some nations are responding more constructively than others. For example, coal, one of the worst fuels for CO2 emissions, coal as consumed by coal-fired commercial power plants remains in use in India and China. And consumption there is reportedly increasing.

Not encouraging.
 
Looking at population data over 20 years across individual census blocks, scientists found that neighborhoods with higher frequency of flooding were growing between 2% and 7% slower than other areas. That resulted in a nationwide population loss of 3.2 million for more flood-prone neighborhoods over two decades.

3.2 Million Americans Have Become “Climate Migrants,” Finds Study​

countercurrents.org

3.2 Million Americans Have Become "Climate Migrants," Finds Study| Countercurrents

About 3.2 million Americans have moved due to the mounting risk of flooding, the First Street Foundation (FSF), a nonprofit research group, said in
countercurrents.org countercurrents.org
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Why Home and Auto Insurance Rates Are Rising and What You Can Do About It​

Climate change is bringing more to the United States than turbulent storms and record-breaking temperatures. The striking shifts in our weather are also having a dramatic impact on personal lines of property and casualty (P&C) insurance such as Home and Auto — especially for certain states.

In California, for instance, the increasing frequency of forest fires, earthquakes, and other extreme weather has led some carriers to stop writing business, while others have dropped out of the state altogether. We’re seeing similar trends in Texas and Florida, which have also been hit hard by climate change.

Indeed, at least five large U.S. property insurers — including Allstate, American Family, Nationwide, Erie Insurance Group and Berkshire Hathaway — have told regulators that the effects of climate change “have led them to stop writing coverages in some regions, exclude protections from various weather events and raise monthly premiums and deductibles,” according to the Washington Post.

Other events in the news, such as ....

CONTINUED
 
I didn't know Berkshire Hathaway was also an insurer.
I gather the "targets" set a one "climate conference" or another will not be met. Good news for the swimsuit industry?
 
Shiftless2 said:
"Among other things, Berkshire owns Geico" #90
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That's fine.
But then I'd expect the flag flown to read "Geico", not "Berkshire Hathaway".

Buffet, the Oracle of Omaha.
At my last check (decades ago) Buffet's car was a 12 year old Oldsmobile, and his daughter lived in a trailer.

Also many years ago (not sure about now), Bill Gates’ online pseud is Chalengr. Warren Buffet’s was T-Bone.
 
More troubles in California tho the actions of Motors is not due to climate.

Another home insurer withdraws — thousands of Californians will need to seek new coverage​

By Clare Fonstein

An insurance company that covers more than 2,000 policyholders in the state is discontinuing its homeowners business, adding another name to the list of insurers that have left California.

Motors Insurance Corp. is withdrawing from its homeowners business nationwide, though it is still authorized to provide other types of insurance, including auto and liability, according to the California Department of Insurance. Policyholders will receive non-renewal notices on a rolling basis throughout 2024 as their policies near expiration, according to a December filing with the California Department of Insurance.

As of October, Motors Insurance Corp. reported 2,217 California policies in force.

The California policyholders will be notified of the non-renewal at least 75 days before their policies expire.

Motors Insurance Corp. homeowners insurance business is only 2 years old — it began in partnership with Hippo Analytics Inc. and Hippo Insurance Services Inc., where Hippo was the general agent interfacing with consumers and administered the homeowners insurance policies.

Motors Insurance Corp. said it was leaving the homeowners insurance business because Hippo “unexpectedly” notified the company in September that it wished to terminate their agreement and would stop writing new policies, according to the filing. Motors Insurance Corp. reported it lacks the infrastructure to continue the homeowners program on its own, but plans to pursue another partnership eventually to reenter the market.

Hippo did not immediately respond to a request for comment.

Other insurers have already pulled out of the state — some citing wildfire risks. Notably, major companies ....

www.sfchronicle.com

Another home insurer withdraws — thousands of Californians will need to seek new coverage

An insurance company plans to withdraw from its homeowners business – impacting more than 2,000 California policyholders.
www.sfchronicle.com www.sfchronicle.com
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California's homeowners insurance crisis is growing and spreading to car insurance​

By Kitty Alvarado

Ken May owns an insurance agency in Carlsbad. He laughs as he says he used to be mostly ignored at the monthly mixers for local real estate agents and industry leaders. Now, he says, he’s like Tony Robbins, but for insurance. Everyone wants to hear him speak and has questions.

At a June meeting of the Oceanside Realtor Caravan, agents asked him about their clients who are having issues getting home insurance.

One of those agents was Adela Chocano, who has been selling properties in San Diego for 25 years. She said insurance companies are finding problems with properties ...

www.kpbs.org

California's homeowners insurance crisis is growing and spreading to car insurance

Insurance is getting more difficult to get in California, and it’s not just homeowners insurance anymore.
www.kpbs.org www.kpbs.org
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"More troubles in California tho the actions of Motors is not due to climate.

Another home insurer withdraws — thousands of Californians will need to seek new coverage" S2 #94​


It's crossed my mind before, don't recall if I've ever vented. Please don't think of it as homework.
But if you do statistics the way I do HS algebra, for practice, I'm wondering what's the minimum economically viable population that could rely on a government compliant insurance pool, so $contributing members would have their contractually agreed upon home insurance needs met.
I recognize the Sorites Paradox implications. But rounding a few orders of magnitude population is fine here.
I suspect removing the commercial motive (operational cost burden) with the not-for-profit business model might best keep their own membership dues $low. If there's a cheaper way to obtain identical coverage I'd like to know more.

car

a) - ha -
b) It won't stop there. Will it?
 
I suspect removing the commercial motive (operational cost burden) with the not-for-profit business model might best keep their own membership dues $low.
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Like it or not, most of those operational costs will still exist, they'll just get buried in other line items of the gov't budget. For example, they'll still need office space but stick them in a gov't building and it won't show up on the pool's financials.

But one of the big problems that pool would face is catastrophe exposures - normal attritional losses are one thing but when that hurricane/earthquake/wildfire happens losses can be (actually will be) far in excess of those normal losses. How is that pool going to handle that? Buying reinsurance in the commercial markets? Some sort of taxpayer backed pool? Something else?
 
"One of the pleasures of pessimism is that you're right more often than not, and when you're not you're pleased." George Will

Fatalism is easy. Let our monetized culture decide. Those that can afford to stay retain that option.
Those that can't, but over-stay their resources will pay the penalty. I've long suspected congress got involved in such matters because at constituent town halls the MOC got complaints ... "somebody should DOOO something".

However benevolently intended, government paternalism has resulted in disempowered tax payers / voters.
 
State Farm is expected to increase its average rate for homeowner insurance policies in California by 20% next year, under a proposal approved last week by the Department of Insurance, records shows.

In 2022, the most recent data available, State Farm held more than one out of every five homeowner policies in the state, according to the department. That was the largest of any company.

The newly-approved increase comes at a challenging time for the state’s insurance market. A growing number of residents have been left with fewer insurance options and higher prices as major companies have paused or restricted new business.

One of those was State Farm, which in May announced that it would stop ...

 
Shiftless2 said:
"\State Farm held more than one out of every five homeowner policies in the state" #98
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That's >20%.
Seems like they're hedging, perhaps because of the value of their market share being different in $$$ than %%% ?

This is not your first post that addresses insurance premia outpacing inflation.

So this series on skyrocketing insurance $costs is the counter to the troglodyte's anthem: global warming doesn't hurt me, my house is more than 6" above sea level ... ?

It's certainly a relevant message in a thread with this title. My suspicion is there are larger monsters than that skulking about in the global warming shrubbery.

As ocean temperatures rise it changes the ocean's chemistry, changes the pH, the Oxygen content, etc. We don't eat coral. But we eat fish that eat fish that like coral.
Sea food already comprises a significant portion of the planetary human cuisine. Collapse that source of food, and starvation, potentially famine may result.

You may be ahead of me on this S2. Perhaps such perils don't alarm an apathetic electorate.
 
"State Farm held more than one out of every five homeowner policies in the state" #98
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That's >20%.
Seems like they're hedging, perhaps because of the value of their market share being different in $$$ than %%% ?
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That's not what the 20% rate increase is - has nothing to do with market share. What it means is that if your premium is currently $1,000 for the year next year it will be $1,200 (i.e., a 20% increase). And that's an average - some premiums will increase by far more than that and some by less so the increases will average out to 20%.
 
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