They are forced to provide coverage, but can pass through their reinsurance costs. If you cannot afford it, you will either sell the property (if you have a mortgage, as your lender will require insurance) or pay off the mortgage and go without insurance.

> In exchange for increasing coverage, the state will let insurance companies pass on the costs of reinsurance to California consumers. Insurance companies typically buy reinsurance to avoid huge payouts in case of natural disasters or catastrophic loss. California is the only state that doesn’t already allow the cost of reinsurance to be borne by policy holders, according to Lara’s office.

> Opponents of the rule say that could hike premiums by 40% and doesn’t require new policies to be written at a fast enough pace. The state did not provide a cost analysis for potential impact on consumers.

Opponents of the rule want subsidies for poor risk decisions. Consumers want what they cannot afford.

The cost of insuring the risk is snapping towards reality. It is unfortunate, for sure.

https://www.bloomberg.com/graphics/2024-home-insurance-risky... | https://archive.today/U8qmg

https://www.bloomberg.com/features/2024-home-insurance-real-... | https://archive.today/uIxnJ

https://www.bloomberg.com/news/articles/2023-07-27/homebuyer... | https://archive.today/dJa6f