Why California’s Plan to Harden Homes Against Wildfires is Broken
ICLE’s work on California’s Prop 103 was mentioned in this San Francisco Chronicle piece. Read full story here.
Research from the International Center for Law & Economics found that California is the worst in the nation for both home and auto insurance rate suppression. Even though California is an expensive and disaster-prone state the average cost of homeowners insurance, $1,250 per year, is well below the national average of $1,915. While this sounds like a boon to consumers, in practice, insurance companies operating in California are overexposed to risk. They respond by charging homeowners who undertake fire-risk mitigation efforts more than they should to make up the difference. So-called “premium revenue” from armored homes is precious to insurers in California.