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after the California Department of Insurance wouldn't allow the rates to rise like they should from a free market
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perspective they had to set up their own insurance program called the fair plan for homeowners they have about 6 billion
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of exposure in Pacific Palisades alone they don't have enough Capital to actually fill the Gap because the reason
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the rates want to go up is cuz the thing costs more than the state is willing to
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admit they're driving real estate value up because they're not allowing the cost
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of insurance of that real estate to naturally float and so by driving real estate values up the economy looks good
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they make property taxes income comes in but at the end of the day the bill is going to come due and at some point
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taxpayers are going to look at the fact that they're paying some percentage of their income to support someone else's
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home value and they're going to say enough is enough and enough of these sorts of events start to happen and then
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the legislative change I think will happen that says this it doesn't make sense we have to make a change and I
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think we're getting pretty close after the series of events