The LA wildfires have exposed the US's broken insurance industry, leaving many homeowners struggling to recover from devastating losses. For Jessica and Matt Conkle, a midcentury ranch home lost in the flames, the ordeal began with State Farm sending emergency response teams and filing a claim within days. However, the process soon became mired in delays, lowball estimates, and outright denials.
The couple's experience is not unique, as Department of Angels reports suggest that almost eight out of 10 surveyed homeowners have faced similar obstacles when seeking to collect on their insurance policies. The complaints include multiple adjusters, lowball offers, fights over property lists, and poor communication.
State Farm has maintained that its claims process is transparent, but critics argue that the company's emphasis on fluctuations in income based on underwriting losses rather than actual claims is a smokescreen for profit-driven decisions. Industry experts point out that insurance companies make most of their revenue through investments, not from underwriting losses.
The issue highlights the growing complexity of natural disasters and the industry's inability to adapt. With record profits last year and expected again in 2025, State Farm has profited handsomely despite the disasters. The industry's lobbying efforts have led to steep premium increases, squeezing out low-income homeowners who cannot afford insurance or are forced into under-insured policies.
A growing movement is demanding an end to the industry's influence on state regulators and lawmakers, advocating for more equitable solutions that spread the risks associated with climate change. Consumer advocates argue that regulators should prioritize consumers' needs over industry profits, particularly in light of California's department of insurance being seen as "captured" by corporate interests.
The crisis is not inevitable, says Joy Chen, leader of the Eaton Fire Network. She notes that consumers can fight back by cataloging their experiences and putting pressure on the industry. A Los Angeles county investigation into State Farm's handling of fire-related claims has led to payouts for hundreds of thousands of dollars, but critics say this is only a Band-Aid solution.
The future holds much higher prices and scaled-back coverage in high-risk areas, with some experts proposing state subsidies for home insurance to support lower-income families. Chen sees this as an opportunity for the industry to do better, saying "We're not against the industry... We are simply against illegal conduct."
The couple's experience is not unique, as Department of Angels reports suggest that almost eight out of 10 surveyed homeowners have faced similar obstacles when seeking to collect on their insurance policies. The complaints include multiple adjusters, lowball offers, fights over property lists, and poor communication.
State Farm has maintained that its claims process is transparent, but critics argue that the company's emphasis on fluctuations in income based on underwriting losses rather than actual claims is a smokescreen for profit-driven decisions. Industry experts point out that insurance companies make most of their revenue through investments, not from underwriting losses.
The issue highlights the growing complexity of natural disasters and the industry's inability to adapt. With record profits last year and expected again in 2025, State Farm has profited handsomely despite the disasters. The industry's lobbying efforts have led to steep premium increases, squeezing out low-income homeowners who cannot afford insurance or are forced into under-insured policies.
A growing movement is demanding an end to the industry's influence on state regulators and lawmakers, advocating for more equitable solutions that spread the risks associated with climate change. Consumer advocates argue that regulators should prioritize consumers' needs over industry profits, particularly in light of California's department of insurance being seen as "captured" by corporate interests.
The crisis is not inevitable, says Joy Chen, leader of the Eaton Fire Network. She notes that consumers can fight back by cataloging their experiences and putting pressure on the industry. A Los Angeles county investigation into State Farm's handling of fire-related claims has led to payouts for hundreds of thousands of dollars, but critics say this is only a Band-Aid solution.
The future holds much higher prices and scaled-back coverage in high-risk areas, with some experts proposing state subsidies for home insurance to support lower-income families. Chen sees this as an opportunity for the industry to do better, saying "We're not against the industry... We are simply against illegal conduct."
It just seems like a convenient way to shift blame and hide behind corporate profits. The fact that low-income homeowners are being squeezed out by steep premium increases is unacceptable. We need more transparency in the industry and regulators who prioritize consumers' needs over profit-driven decisions.
If we can find ways to make insurance more accessible and affordable, it could go a long way in mitigating the impact of natural disasters.
. Like, record profits and all that... it just doesn't feel right when you think about it. And the whole "fluctuations in income" thing is just a nice way of saying they're prioritizing their own bottom line over actual claims 
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It's all about the money, man... and it's not fair to the people who are getting hurt. We need some real change here, like consumer advocates are saying 
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. It's like, we gotta do better than that. I'm all for a bit of industry reform, but not at the expense of people's lives and livelihoods 
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The choice is ours.
I'm so done with State Farm's shady business practices. It's like they're more worried about lining their pockets than helping people in need after a disaster strikes. The fact that they make most of their revenue through investments, not underwriting losses, is just plain misleading. And don't even get me started on the premium increases and under-insured policies that are pricing out low-income homeowners. It's like they're profiting off people's misfortune 
. Can we please do better? 
i mean if u think about it the whole system's flawed, industry experts say they make most of their revenue from investments not underwriting losses that's some shady stuff. and don't even get me started on the fact that record profits last yr & next year is expected while ppl are still dealin with the aftermath 
. The fact that almost 80% of surveyed homeowners are going through this nightmare is insane 
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. And don't even get me started on the whole income-based underwriting thing - it's just a fancy way of saying "we're going to take advantage of these homeowners when they need us most" 
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. I mean, we can't just blame the whole industry for a few bad apples 
... and btw, record profits last year doesn't necessarily mean they're not doing their job 
. It's like when your favorite sports team wins – it don't mean the refs were unfair 
. Maybe instead of all this complaining, we should try to find ways 2 make the industry better 
my heart goes out to all those homeowners who lost their homes and are struggling to recover. insurance companies need to step up their game and put people over profits