Something people that bitch about the high cost of California vs Florida won't mention is how high auto and home owners insurance is in Florida. Florida is a high risk state with a lot of fraud.

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GenerWork 4 hours ago | parent | next [-]

The reforms that were passed a few years ago are actually working somewhat OK. I'm 3 miles from the beach on the coast and pay under $2k for private home owners insurance.

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deepsun 5 hours ago | parent | prev | next [-]

Yet at the same time federal government allowed home insurance to be non-actuarial (aka insolvent) for natural disasters like hurricanes. So essentially the rest of the country subsidise residents in disaster-prone areas. So Californians pay to make home insurance lower for Floridians.

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nrr 4 hours ago | parent | next [-]

Uh, what's the transmission mechanism for this?

It's true that the National Flood Insurance Program does this, but that's only for flooding (which, admittedly, is a big part of hurricane damage...). Flood coverage is however not a standard rider on homeowner's insurance policy products, and I'm also unsure whether it can ever be. I've only ever seen it offered as an additional policy product.

The concern over pricing below the actuarially fair value is well-placed[0], but I'd urge being precise.

0: https://home.treasury.gov/news/press-releases/hp548

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cucumber3732842 5 hours ago | parent | prev [-]

>So Californians pay to make home insurance lower for Floridians.

More like some the people in Ohio or Maine or Wisconsin pays for both. CA and FL are both natural disaster dense compared to the colder states.

	▲	deepsun 3 hours ago \| parent [-]
		Yes even better. Parent just compared insurance cost in CA vs FL, so I brought CA here. PS: California, not cyanoacrylate.

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MattGaiser 5 hours ago | parent | prev [-]

A lot of this was self inflicted by Florida. Between their roofing coverage laws and their attorney fee laws, suing for new roofs was basically free, so everyone and their dog did it.

	▲	treetalker 5 hours ago \| parent \| next [-]
		“Free” if you won, meaning the insurer should have covered but refused and forced the insured to litigate, and part of the remedy was reimbursement of reasonable attorney fees. So, in other words, insurer at fault. That fostered a lively market of attorneys willing to take cases on contingency. Of course, all that is in the past with the GOP legislature’s big changes to the statutes and DeSantis’s appointment of pro-insurer judges throughout the state. Now, when Hurricane Paco does tear your roof off; soaks and destroys all your homelab Hoppers; and your insurer denies what should be a no-brainer claim because … well, just because it can, you often have to come out of pocket to pay a lawyer for the lengthy litigation — at precisely the time that you are probably even more cash-strapped than usual.
	▲	quickthrowman 5 hours ago \| parent \| prev [-]
		“Nub City” is a nickname for Vernon, Florida where the residents ended up filing far more dismemberment insurance claims for amputated limbs than was statistically likely, the town of 500-800 people was the source of 2/3rds of the claims against the policies at one point. Insurance companies stopped writing dismemberment insurance policies in the area. > Vernon gained infamy in the late 1950s and early 1960s due to the improbably high percentage of residents who made insurance claims for lost limbs, leading to an investigation of whether residents of the city were intentionally dismembering themselves for the insurance money. These insurance claims from Vernon, with a population of 500 to 800, accounted for as many as 2/3 of claims nationally, but there was no way of proving that any particular amputation was deliberate.[9] This led to Vernon being referred to as "nub city" during this period. In 1980, Errol Morris attempted to make a documentary about this phenomenon, but after being threatened by city residents and physically attacked by one, he changed the focus of the film, resulting in the 1981 documentary film Vernon, Florida. https://en.wikipedia.org/wiki/Vernon,_Florida https://en.wikipedia.org/wiki/Vernon,_Florida_(film)