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Is the world becoming uninsurable?

(charleshughsmith.substack.com)
478 points spking | 1 comments | 17 Jan 25 00:32 UTC | HN request time: 0.21s | source
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bluedevil2k ◴[17 Jan 25 01:50 UTC] No.42733208[source]▶
Like we see in California, when the government sets a price ceiling, insurance companies just leave. Same in Florida. If the free market truly was allowed run normally, the insurance rates in Pacific Palisades or on the Florida coast would be so high that no one could afford to live there. Is that a bad thing? If someone was living in a house near where they tested missiles, we'd call them crazy. At what point can we say the same about people building and rebuilding over and over in these disaster areas.
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zeroonetwothree ◴[17 Jan 25 02:17 UTC] No.42733367[source]▶
Clearly it’s not true that “no one” could afford to live there. And if demand was low then the housing would become more affordable
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sadeshmukh ◴[17 Jan 25 02:33 UTC] No.42733482[source]▶
No one can truly afford to live there, if you price in the cost of insurance. The only reason people live there is because they haven't hit the 1/100 chance yet.
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oefrha ◴[17 Jan 25 04:36 UTC] No.42734131[source]▶
There are plenty of very rich people living there who can afford the house burning down every single year. So false.
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1. sadeshmukh ◴[17 Jan 25 05:34 UTC] No.42734415[source]▶
Afford doesn't mean you can technically throw money out the window. At some point, you are going to give up if the risk is high enough to have >2 events in your lifetime - time is also a cost to factor in, as well as loss of possessions. It's not quite that simple.