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Comment by beej71 | Hacker News Reader

> They'll happily insure high risk stuff, for an appropriate premium.

From what I've seen, this isn't always the case. My parents' insurer stopped offering fire coverage in their area with no option to buy at a higher price.

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FWIW and depending on where you are this could be down to local regulations. A lot of (most?) polities do not allow insurance companies to simply set prices based on their assessment of risks and the market, but rather place extremely heavy restrictions on the process (which further inevitably get politicized). They may also have regulations around minimum numbers of people to offer coverage to in an area and endless other related issues. So an insurance company that does the math and thinks it has to raise premiums 200% or whatever to make it work, unless somebody meets specific XYZ criteria around fire resistance (which are expensive), it may find that it simply is not allowed to at all, or not without long delays and a burdensome legal/PR battles. They always have the right to leave though.

This is likely because the state they live in does not allow insurance companies to price their coverage according to risk, and applies political pressure when they try to do so. Insurance companies are demonized and characterized as heartless, rapacious and greedy, despite the fact that they’re probably losing money at current prices. So, many companies decide to exit the market rather than be forced to sell a service that they expect to lose money on.

My parents were with State Farm for decades. SF withdrew from the commercial market since last year, forcing owners to find new policies, naturally for quite a lot more. And it seems like they aren't writing new policies for private residences in California at all now.

Several major insurers have stopped writing policies in California due to the fire risk.

https://www.foxbusiness.com/lifestyle/california-insurance-c...

Presumably they could try and find a different insurance firm or a boutique.

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