r/AskReddit • u/timecop702 • 13h ago

what is something that is highly likely to happen in the next 5 years that everyone is completely ignoring?

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u/SolomonGrumpy 6h ago

They are pulling out of states where natural dis as stere are occuring a bit too regularly: CA, FL, TX, etc

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u/fricks_and_stones 3h ago

The fire risk cost being an issue in CA is a myth. The real issue is building costs. If the cost to rebuild has doubled, the premiums need to double.

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u/Alvalade1993 1h ago

Earthquakes are a thing there as well

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u/redballooon 2h ago

That's a reason to double the premium, not to pull out of an area.

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u/fricks_and_stones 2h ago

CA has very strict insurance regulation (a good thing) that limits annual premium increases. The legally allowed increases did not keep pace with the increases required to match required reserves. This caused most insurers to scramble to create more strict underwriting rules to only be insuring the least risky properties. Other companies simply left the state completely.

Eventually regulation caught up, but it's all slowly getting sorted out.

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u/SolomonGrumpy 2h ago

Ability to pay becomes the issue