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76 sats \ 20 replies \ @Satosora 22 Mar 2024 \ on: When Money Dies In The 21st Century econ
I have the feel that this might already be happening.
Everyone just made it through covid, but now we are going to have to make it through this.
How many people are seriously ready for fiat currency to be completely useless?
Yesterday I received my notice for my insurance renewal. My broker was happy that it was only increasing $60K this year. To put that in perspective, the entire bill was only 85k three years ago, and he's celebrating a 60k increase. He only sees a small piece of the elephant. Does he have any idea how much rents must increase to break even?
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Insurers are leaving California then deal with the expense and regulations
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deleted by author
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It’s not the broker fault. Same thing is happening in California.
Costs increase for insurance companies. Insurance companies raise prices. Customers and regulators complain. Insurance companies leave state. Prices go up for everyone. Cycle repeats
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Im not trying to be hateful, but insurance companies are there to make money.
Its like your bitcoin, would you sell it at 19k now?
That would be a losing proposition, so you would say no.
Insurance companies are doing the same.
If you cant afford the insurance, maybe it is time to sell and live in a new place?
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Agree. California is a third world state
I don’t blame insurance companies. I blame regulation in California.
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California has its own rules.
The more difficult they make the regulations, the more people will leave.
Its not like california is that nice of a place, most of it is desert, right?
Its uninhabitable for a reason.
Agreed. Same in Florida.
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We are meeting next week and some more carriers may choose to compete, but the simple answer I get is the increase in replacement costs. Many properties have bank lenders who are now insisting on all kinds of absurd, costly coverage. That's also a factor. In this crazy market I am forced to get second, third and fourth quotes, even though I have been dealing with my main broker for 30 years.
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My mom had trouble getting insurance last year for her multi unit property. The old insurance company left the state.
I think we are hitting a perfect storm in California.
Eventually every private insurer will leave the state and the only option is the government option
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It's particularly tough if there's a loan on the property. My discussion now is in Florida, but I'll probably face the same issues in the northeast in July. Frankly, there's little chance that these buildings can be profitable at this point, which means banks are in real trouble.
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I remembered a funny story from last year.
The new insurance company appraised the property. Their appraisal was higher than the estimate my mom gave.