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I LOVE State Farm

Summary:
My home in coastal California is insured with State Farm, both for regular coverage and for earthquake coverage. Yesterday I received a post card in the mail from State Farm. The whole thing (almost) is worth quoting: When and where will wildfire protection services begin? Beginning April 1, 2021 [DRH note: this means it has already begun], Wildfire Defense Systems (WDS), under an agreement with State Farm, will provide wildfire protection services to customers with Homeowners and Farm policies in California, Arizona, Washington, Colorado and Oregon. [In light of the service, I’ll forgive the absence of the Oxford comma after “Colorado.”] What will the service cost? There is no additional charge to you for this service. [DRH note: Of course that doesn’t answer the

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I LOVE State Farm

My home in coastal California is insured with State Farm, both for regular coverage and for earthquake coverage.

Yesterday I received a post card in the mail from State Farm. The whole thing (almost) is worth quoting:

When and where will wildfire protection services begin?

Beginning April 1, 2021 [DRH note: this means it has already begun], Wildfire Defense Systems (WDS), under an agreement with State Farm, will provide wildfire protection services to customers with Homeowners and Farm policies in California, Arizona, Washington, Colorado and Oregon. [In light of the service, I’ll forgive the absence of the Oxford comma after “Colorado.”]

What will the service cost?

There is no additional charge to you for this service. [DRH note: Of course that doesn’t answer the question but it does answer what most customers would mean if they asked the question.]

How will this service protect your home?

If your home is located in an area with an active wildfire, WDS may visit your property to assess the threat and may take proactive measures. They’ll determine appropriate mitigation methods based on their professional judgment which may include: removing pine needles from your roof, closing up exposed vents so embers do not enter your home, clearing combustibles away from your home, setting up sprinkler systems, extinguishing active fire or smoldering embers on your property, and in some cases, applying fire-resistant gel to your home. If mitigation services are provided, the WDS crew may revisit your home once the fire risk passes to remove their equipment, return previously moved materials back to their original location, and clean the gel from your home if applied.

I’ve left off the rest of the postcard because it’s less interesting.

I’m not surprised that my insurance rate is not going up. If State Farm can spend, say, $1,000 to reduce the probability of a $300,000 loss by 1 in 200, then it’s worth it for State Farm. And of course I gain too.

David Henderson
David R. Henderson (born November 21, 1950) is a Canadian-born American economist and author who moved to the United States in 1972 and became a U.S. citizen in 1986, serving on President Ronald Reagan's Council of Economic Advisers from 1982 to 1984.[1] A research fellow at Stanford University's Hoover Institution[2] since 1990, he took a teaching position with the Naval Postgraduate School in Monterey, California in 1984, and is now a full professor of economics.[3]

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