Hyundai Palisade's Evolution; The U.S. Rare Earth Magnet Revolution; Gridlock in Utility Investment; Climate Change's Insurance Nightmare

Rev up your engines and fasten your seat belts; we're heading into an exhilarating journey through the automotive and energy landscapes that shape our world. Our latest episode peels back the layers of the 2024 Hyundai Palisade SUV, revealing Hyundai's leap from the forgettable Excel to a powerhouse capable of challenging industry titans. But it's not just about horsepower and heated seats; we're also steering the conversation towards the environmental crossroads we face with the advent of a new rare earth magnet facility in the U.S., set to drive the electric vehicle industry forward while curbing our reliance on foreign materials.

The energy grid is the backbone of our modern society, yet it's under the microscope as we grapple with the need for upgrades without putting the squeeze on consumers. We're dissecting ComEd's recent grid plan setback in Illinois, exposing the tug-of-war between infrastructure investment and customer affordability. The stakes are high, as the right moves could mean a smoother road for EV adoption and renewable energy, while missteps may leave low-income and environmental-justice communities in the dust. As someone who's had front-row seats to the utility industry's evolving landscape, I'm here to share insights that may just spark a lightbulb moment for you.

Lastly, we can't ignore the dark clouds gathering over homeowners as climate change reshapes the insurance industry. Listen in as we share Beth Pratt's personal tale of fireproofing her home, only to grapple with the harsh reality of insurance cancellations and soaring rates. It's a storm warning for the American dream of homeownership, as climate change isn't just a threat to our environment – it's now knocking on the front doors of policyholders nationwide, demanding immediate action and innovative solutions. Join us for a candid discussion on how these turbulent times are reshaping the way we live, insure, and secure our futures.

Transcript

Speaker 1: 0:15

It's time for the Tech Mobility Show with Ken Chester. Ken is a veteran journalist who doesn't always color between the lines, so here he is, the host with the electrified personality Ken Chester.

Speaker 2: 0:28

Real facts, real opinions, real talk. I'm Ken Chester and this is the Tech Mobility Show, your program for news, information and perspective at the intersection of mobility and technology. As usual, you and I have a lot to cover during this visit, so let's get started. Topics up for discussion my impressions of the 2024 Hyundai Palisade SUV affordable power for all and when climate change makes you vulnerable. To join the conversation, whether to ask a question, suggest a topic for a future discussion or to share an opinion. A topic for a future discussion or to share an opinion, you can text or call the TechMobility hotline, that number, 872-222-9793, or you can email me directly. Talk at techmobilityshow. And that is talk at techmobilityshow. Before I go any further, I want to give a shout out to Jeff Stein. He is the news director and I guess I could call him political hack up at KXEL Radio in Waterloo, iowa. Jeff is good. People had enjoyed my visit with him a few weeks back, where those of you that listen to our programming on KXEL may have heard me live with Jeff a few Fridays ago. Always a good visit, always enjoy answering questions from you, the listeners, directly, and it was fun and I hope to do that again sometime real soon. So, jeff, thank you so much for the invitation and those of you all that heard me on the air that morning and sent in your questions. Thank you for listening From the Tech Mobility News Desk. I have a bone to pick. I have a bone to pick.

Speaker 2: 2:16

I get a lot of static about EVs when it comes to the use of rare earth materials, primarily cobalt, manganese, some others that is used in the manufacturing, processing and creation of electric batteries, electric motors. Even those ores that are mined that are not under Chinese control are required to be sent to the Far East, where the processing plants are, in order to turn them into usable materials to be included in the manufacture of EV batteries, of EV motors and associated parts and components. I say all that because I want to point something out, and it starts with this is from the EV report, and it said US rare earth magnet facility funded. Let me read that to you again US yeah, that's the United States. Rare earth magnet facility funded, magnet facility funded, even if you are able to secure the rare earth minerals from somewhere else than China. And there are other countries. The list is a short one, but there are other countries that China does not control where rare earth materials are mined, you still got to send them to the Far East to be processed.

Speaker 2: 3:44

Part of evolving the supply chain in EVs is getting the processing plants here. Mp Materials received a $58.5 million award to construct America's inaugural fully integrated rare earth magnet manufacturing facility, marking a significant advancement in domestic production capability. Fully integrated rare earth magnet manufacturing facility marking a significant advancement in domestic production capabilities. This facility aims to bolster the United States position in the critical rare earth magnet market, currently dominated by overseas production, mainly in China. I'm not even going to pronounce the fancy name Neodymium, iron, boron, that's what it's called. Magnets essential for various high-tech and defense applications will be produced. The facility will utilize resources from the United States' sole scaled rare earth mine in Mountain Pass, california. I want that to sink in. I ask a lot of things to sink in, but this one. I want you to think about this for a minute. We have the rare earth mine in the United States. We have the plant to process rare earth mined from that location in the United States, from that location in the United States.

Speaker 2: 5:09

Granted, automakers are working feverishly to get rid of or otherwise minimize the use of rare earth materials in the construction of EV vehicles. So maybe at best this is transitionary, transitionary 10 to 15 years maybe and maybe there will always be a need for this for some applications Because, just like with internal combustion engines, whether you're diesel, whether you are a four-cylinder, whether you're running on natural gas, one size don't fit all, one application don't fit all. Same thing here. Addressing the US dependence of foreign rare earth magnets has been identified as a national security risk. They also are establishing a comprehensive rare earth magnet production line in Fort Worth, texas, and it signifies a strategic move to mitigate the United States reliance on imported neodymium, iron, boron magnets. Yeah, it's a word that just kind of throws me in my eyes, don't like trying to read it. These magnets are pivotal for a wide array of modern technologies, not limited to electric vehicles, people, renewable energy solutions and defense systems. Demand for these magnets are forecasted to triple by 2035, so it's important and in case you think they just started this, this plan has been under construction since april 2022 two years ago and they expect commercial production of mag per cursor, magnetic percursor materials and finished magnets to start coming off the line in production by late 2025.

Speaker 2: 6:51

This stuff takes time and I think that's the big thing. We get all up in arms about being vulnerable and being exposed, but you don't realize that it takes time to make these changes and it's not something you could do in three weeks, three months, six months a year. In the case of this plant, by the time it comes online, it will have been under construction and under development for over three years, not counting originally building the plant itself. And that's just one plant. We've got a bunch of battery plants under construction around the United States. We have, more importantly, ev battery material plants under construction designed to reclaim and repurpose and reuse and remanufacture tired, worn out EV batteries, as that number is expected to increase. We've got a whole recycling infrastructure being built in real time.

Speaker 2: 7:52

Even as we're ramping up the EV industry, we're also ramping up the EV recycling industry. They're going hand in hand, because anybody in the know realizes that, no matter what you were able to do tomorrow in procuring virgin sources of the ores you need, it still won't be enough to meet demand. So, as a result, recycling is a major part of the equation, whether you want to accept it or not. So that should answer the question that many of you have had when it comes to well, what about worn out EV batteries? Are they just going to fill up in landfills or be dangerous? You can't just do certain things with them, right? True, but even as Ford builds Blue Oval City in Western Tennessee, they're also Redwood Industries is building a recycling plant next to it. It's happening in Kansas. It's happening in Kansas, it's happening in Nevada, it's happening in California.

Speaker 2: 8:46

Right now these plants are being built so as the number of spent, worn out and no longer applicable batteries for EV use become available. And that doesn't even include reusing these batteries, which still have quite a life to them yet, as stationary energy storage facilities. That could add another 10 or 15 years to the life of these things before they even see a recycling plant. And these recycling plants are not just recycling EV batteries. The batteries in your phone, the batteries in your laptop, any sort of lithium iron battery used, any kind of way, will be going through these plants to be recycled. So a lot of that stuff won't go to a landfill and, in fact, will be going to these plants to be reused, repurposed and recycled. This is real. So to you that have concerns, the industries are addressing your concerns in real time. This is happening. It shouldn't be a surprise.

Speaker 2: 9:49

The auto industry had to grow up that way. Salvage yards didn't start right away. That evolved over time and now pretty efficient because in most industries the automobile has industry has the highest reclamation rate when it comes to steel, aluminum, manganese and some other materials and a 20-year cycle life, typically From the time the car leaves the end of an assembly line to the time the car meets the shredder is about 20 years on average, with the average age of a vehicle now on the road between 11 and 12 years old. Just thought you should know and I wanted to bring you up to date with this because it's important you realize these things are changing Up. Next, my impressions of the 2024 Hyundai Palisade SUV. You are listening to Tech Mobility Show.

Speaker 3: 10:41

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Speaker 2: 11:12

Social media is the main place to be these days, and we are no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Facebook videos, from my latest vehicle reviews to timely commentary of a variety of mobility and technology related topics. These short features are designed to inform and delight. You Be sure to watch, like and follow us on Facebook. You can find us by typing the Tech Mobility Show in the search bar. Be sure to subscribe to our Facebook page. Social media is the place to be these days, and we're no exception. I'm ken chester, the tech mobility show. If you enjoy my program, then you will also enjoy my weekly instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology related topics. These short features are designed to inform and delight. You be sure to watch, like and follow us on instagram. You can find us by typing the Tech Mobility Show in the search bar.

Speaker 2: 12:08

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show, from Apple Podcasts to iHeartRadio and many podcast platforms in between. We got you covered. Just enter Tech Mobility Topics in the search bar, wherever you listen to podcasts.

Speaker 5: 12:41

Before you buy a Civic, saturn, sl or Corolla, better check out the 94 Hyundai Elantra first. Elantra's got more passenger room and power, more standard features too, including a driver's airbag, along with two years of scheduled service at no charge, and after rebate, elantra costs over $3,000 less than Corolla Plus. Make no down payment and no payments for 90 days, all of which makes Elantra the way to go. So go on in and get more car for less at your nearest Hyundai dealer today.

Speaker 2: 13:12

Nobody remembers the Hyundai XL from the late 1980s. It was their first entry into the marketplace before the Elantra. It was inexpensive you could own a new one for less than four grand. They were cheap. Goodness they were cheap. Did I mention they were cheap? What Hyundai did is probably one of the greatest corporate turnarounds ever. When they developed the Elantra, that's the first thing they did and, as you heard in the commercial, they hit all the things. And, as you heard in the commercial, they hit all the things price, quality, standard features, safety features. And then Hyundai came out with a warranty that they still use, which is still better than just about any luxury manufacturer 100,000 mile powertrain, five-year warranty, five-year roadside assistance. They basically removed any reason why you would not own the car and then, on top of that, made them better and kept making them better, so that by 2004, within 10 years after this Elantra commercial, the Hyundai Sonata, which is the next size up, was beating the Honda Accord in overall quality out of their brand new American assembly plant. Just thought you should know that.

Speaker 2: 14:26

Fast forward another 20 years and we have the Hyundai Palisade, which is a mid-sized crossover manufactured in Korea by the Hyundai Motor Company. It's been in production since 2018 and was introduced into the American market for the 2020 model year. It's currently the automaker's largest passenger vehicle to date, boasting three-row seating with accommodation for up to eight passengers. The Palisade replaces the Santa Fe XL in the lineup and is the flagship vehicle in North America for the brand. Marketed as the flagship premium three-row SUV, the Palisade received a facelift for the 2023 model year. This included a revised front end and an enhanced infotainment system with a 12-inch navigation screen. Containment system with a 12-inch navigation screen, offered in six trim levels. Power for the Hyundai flagship is generated by a Lambda II 3.8-liter Atkinson Cycle gasoline V6 engine that makes 291 horsepower and 262 foot-pounds of torque, and it's bolted to an eight-speed automatic transmission. The company's H-Trac all-wheel drive system is standard on a calligraphy 9th edition and optional for the rest of the Palisade model line.

Speaker 2: 15:43

Drivers have the benefit of six drive modes Comfort, eco, sport, smart, snow and Tow. To address almost any kind of road conditions and or driver preference. All-wheel drive models add all-wheel drive lock and that lock increases the ability to give you more traction transfer as needed. Normally, without the lock engaged, you will get a transfer of anywhere from 100% front-wheel drive to 50-50, 50% front-wheel drive, 50% rear-wheel drive. With the lock engage you can increase it to as much as 80% front, 20% rear, as conditions warrant. So it gives you more flexibility, depending again on condition. Epa fuel economy is 19 city 26 highway for front-wheel drive, 19 city 24 highway for all-wheel drive. Cargo capacity is 86.4 cubic feet with the second and third row seats folded. Towing capacity is 5,000 pounds when the trailer is equipped with trailer brakes.

Speaker 2: 16:52

Here's what I liked about the vehicle. Let me start by saying right here that the Hyundai Palisade is worthy of its top-of-the-heap status in the company's lineup. The SUV is strong and smooth at speed. Push-button gear selection and available head-up display adds to driver confidence. The driver enjoys an elevated outward view of the road for added control when underway Displays. Controls and switchgear are very user-friendly.

Speaker 2: 17:21

Interior accommodations are above average for every passenger and every row, with second-row captain's chairs equipped with four aft adjustments to optimize third-row legroom. Thank you, hyundai. Hvac controls and USB ports are available for every seating position. Molded-in drink holders can be found throughout the cabin. The second row enjoys heated and cooled seats. In some Palisade models, large door openings and this power second row seat release facilitates access to the third row split bench seat In the large cargo area. There are power fold down buttons for both the second and third row seats, and it's a welcome, welcome thing. In fact, with the third row seat, you also have the ability to power up to unfold them as needed from the rear of the vehicle, which is really nice when you're trying to load it.

Speaker 2: 18:18

Here's what I didn't like about the vehicle there were no hand grips in the A or B pillars to further facilitate entry and exit. The second row of seating had no center console and, despite the number of cup holders throughout the cabin and there were many there was a lack of nooks and crannies to store other stuff that a family might carry when traveling. While the Palisade is a strong performer at speed, I found that it needed a bit more and tried to get it underway, needed a nudge from rest to get it going and, to be honest, I was expecting a lot more from the sport driving mode than the SUV delivered. Was expecting a lot more from the sport driving mode than the SUV delivered.

Speaker 2: 19:01

The spare tire pet peeve here, folks is mounted underside of the rear of the vehicle I mean really Underside where you may not use it for years. It's subject to all the salt, the mud, the cold, the rain, the wet, rusted when you need the thing and you're going to fight to lose it. And as a full-size tire it's going to be heavy, so it's not particularly conducive to getting it used. And honestly, it's not just a Hyundai thing. I have taken all automakers to task for this pet peeve of mine. Some get the message, some don't, but I do mention it. And finally, I thought the EPA fuel economy could be better.

Speaker 2: 19:37

Ask question is your hybrid in the works? A nice to have, however, would be the addition of fog lights. I'm not nicking them for it, I just thought it would be a nice extra benefit for low light situations in the dark. So here's the bottom line. Overall, the Hyundai Palisade SUV is an amazing vehicle in the traditional sense. However, nothing in the auto industry is static, and that even applies to Hyundai's own lineup. With the evolution of the all-new Santa Fe SUV, which is bigger guess what has a hybrid variant. I wonder if it might cannibalize Palisade sales, and I did ask them. They couldn't give me an answer. Time will tell.

Speaker 2: 20:23

The base manufacturer suggested retail price for the 2024 Hyundai Palisade SUV starts from $36,650 for the Palisade SE and up to $53,850 for the Palisade Calligraphy Nightshade All-Wheel Drive. Destination charges add $1,335. Msrb is tested. I drove an exceptionally well-equipped Palisade Calligraphy All-Wheel Drive with the following extra cost options, of which there was one carpeted floor mats. The total cost of the options $215. Total MSRP including options and destination charges came to $53,650. I love this thing. I think it's awesome, but I really am concerned about having seen how much more awesome the new Santa Fe is. What it will do to this. Affordable electricity for all has hit a snag in Chicago.

Speaker 2: 21:25

This is the Tech Mobility Show. Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you missed any of our weekly episodes on the radio, our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. Be sure to follow us from Apple Podcasts, iheart Radio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar. Wherever you listen to podcasts, social media, it's the place to be and we're no exception. Hi, I'm Ken Chester, host of the Tech Mobility Show. Several times a week, I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out If you're just joining us. This is the Tech Mobility Show and I'm Ken Chester.

Speaker 2: 22:39

Affordable power for all. It's a commendable goal, especially considering the world's move to decarbonization and the growth of the electric vehicle industry. When I was at the Chicago Auto Show I spent some time talking to representatives of the local power utility in Chicago and I learned some things. And then I made the mistake of reading the local trade press for the industry and found out some things that were contrary to what they said. And this is topic B. Comed is a utility in Chicago. It's owned by Exelon Corporation. They had a booth at the Chicago Auto Show. They had a brand new Chevy Silverado EV all decked out in their corporate colors parked next to it, and I won't forget the price it was $79,000. And I began to talk to them because I'm thinking okay, you're trying to go all decarbonization, what are you doing for underserved communities? How are you expanding this ability to get the benefits of electric vehicles in some of Chicago's poorest neighborhoods and they gave me a press release and I got it here. Comed announces new EV rebates for business and public sector customers. Applications to open February 15th. Bear in mind that was within a couple of days after the Chicago Auto Show.

Speaker 2: 24:11

I also happen to subscribe to T&D World, which is an electrical industry public utility magazine for the electric industry, and here's what I learned ComEd grid plan denial has leaders reevaluating investment plans. I could read all of this, but I want to get down to this one paragraph investment plans. I could read all of this, but I want to get down to this one paragraph Specifically the commission's decisions, that's, the Illinois Commerce Commission found that both utilities failed to sufficiently incorporate customer affordability into their proposals and their grid plans and did not outline how 40% of the planned benefits would be directed to low-income and environmental justice communities, among other shortcomings. The Illinois Commerce Commission said in a statement oh, by the way, and that is February. T&d World Same month.

Speaker 2: 25:12

And herein lies the challenge. I talked at length with ComEd's representatives and I understand that, like the auto industry, the utility industry is extremely capital-intensive and extremely long-term view. When they plan a substation, when they plan replacing a line. You're looking at 20, 30, 40-year life. This is their long payback line. This is what they're looking at 20, 30, 40 year life this is their long payback line. This is what they're looking at. Part of that challenge and I used to work for a telephone utility is something called rate making and rate of return, things that the average for-profit utility has to do when they are filing a rate increase with the state regulation board that regulates them.

Speaker 2: 25:59

Now into this mix is being added what are you doing for your less fortunate, underserved communities where you provide the power? Think about this for a minute. If you think that their most modern, high-tech, newest plant is going into those communities, you are sadly mistaken, because, number one, it's a matter of paying for the project, and if you're in an area that's depressed and you're not generating a lot of revenue, you are going to delay maintenance, you are going to delay investment. You are not going to be putting all your money into those poor neighborhoods. What does that mean today?

Speaker 2: 26:39

Well, in Chicago, what that means is that those citizens won't have the benefit of being able, even if they could buy an EV and have it charged, for several reasons, if the utility is not investing to make sure that the grid in that neighborhood or those neighborhoods is up to par, then it can't take the drain of chargers, of public chargers, meaning that the public charging companies taking a look at those same neighborhoods are saying we're not going to invest in those neighborhoods because the grid's not up to par and it won't support the stations we want to put there. It's a nasty form of modern day redlining. If the utility doesn't build the infrastructure, it will not attract the necessary investment for those people who may not own a home but would be willing to use public chargers. Public chargers they tell me in the industry that typically, depending on the neighborhood, the city and the utility, these grids could be 50, 60, 70 years old. Now, to be honest, they're doing what they need to do from a maintenance standpoint to make sure it's operational.

Speaker 2: 27:52

But we're getting to a point, both with bidirectional and microgrid technologies, where okay, maybe I own a multifamily home in one of these neighborhoods, I want to put up a solar array with the ability to sell power back to the utility on times when I'm producing more power than my multifamily home needs. Or if I'm fortunate enough to even own a home in one of these underserved neighborhoods to be able to sell power back to utility. However, if the utility hasn't made the investment, will not make the investment in order for smart grids, grids that will accept bidirectional functionality, meaning not only am I buying power from you, I can sell power to you and mitigate the investment of my solar panels, my battery, my stationary battery storage or however else. I am generating electricity, because more and more states are allowing private individuals to generate electricity in a surplus. The utility must buy. That is the case in Iowa and has been for years. If you generate electricity over and above what you need, not only can you sell it to the utility, the utility has to buy it.

Speaker 2: 29:06

Coming back around to ComEd, what good are these rebates that they're offering if the grid investment that they are not making won't support it? And that's the problem these rebates are worthless if the grid in that neighborhood won't support it. In fairness, though, it is a moving target for these utilities to try to figure out how many electric cars, how many electric chargers are going to be needed in certain parts of the community in order to try to determine. I've got so much dollars to invest in capital improvements and capital replacements. Where do I put the money? Some of that can be mitigated by talking to public charging companies and kind of agreeing on a growth plan, but for individuals it's a little more sketchy than that Compile. Add on top of that a grid in that part of town that hasn't been upgraded in 30, 40, 50 years. It works, it delivers power, but because it's above ground it's susceptible to weather, it's susceptible to accidents, it's susceptible to all kinds of things. As opposed to buried plant in the newer sections of town that isn't existing, that that's not a problem, because it's all upgraded or designed in such a way it could be scaled up makes it more likely that they'll attract additional investment, because all this old investment is going to require some real changes so that everybody gets the benefit of decarbonization and everybody gets the health benefits of electric vehicles and electric plant. So this is one company's story in Chicago, from what they told me versus what's really going on. I thought I'd share that with you because I found it interesting. So there's no such thing as climate change. Some folks beg to differ.

Speaker 2: 31:03

We are the Tech Mobility Show. To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings at the Tech Mobility Show by visiting techmobilityshow. That's techmobilityshow. You can also drop us a line at talk at techmobilityshow. Did you know that Tech Mobility has a YouTube channel? Hi, I'm Ken Chester, host of the TechMobility Show. Each week, I upload a few short videos of some of the hot topics that I cover during my weekly radio program. I've designed these videos to be informative and entertaining. It's another way to keep up on current mobility and technology news and information. Be sure to watch, like and subscribe to my channel. That's the Tech Mobility Show on YouTube. Check it out.

Speaker 3: 32:06

Are you tired of juggling multiple apps and platforms for meetings, webinars and staying connected? Look no further than AONMeetingscom, the all-in-one browser-based platform that does it all. With AONMeetings, you can effortlessly communicate with clients, host virtual meetings and webinars and stay in touch with family and friends all in one place and for one price. Here's the best part you can enjoy a 30-day free trial. It's time to simplify your life and boost your productivity. Aonmeetingscom, where innovation meets connection. Get started today and revolutionize the.

Speaker 2: 32:39

Social media is the place to be these days, and we're no exception. I'm Ken Chester of the Tech Mobility Show. If you enjoy my program, then you will also enjoy my weekly Instagram videos, from the latest vehicle reviews to timely commentary on a variety of mobility and technology-related topics. These short features are designed to inform and delight you. Be sure to watch, like and follow us on Instagram. You can find us by typing the Tech Mobility Show in the search bar.

Speaker 2: 33:09

Florida, california, louisiana, santa Fe, new Mexico. What do all these locations have in common? Climate change. You've heard me talk about the various aspects of this. Many times over the years we've been on the air and just so we're clear, climate change alone does not create extreme weather. What human-induced climate change does do is cause weather to be more extreme more often and, as a result, there's an increasing number of Americans who are being directly impacted financially due to climate change. This is topic C.

Speaker 2: 33:57

If you have a homeowner's policy in California with State Farm, you might be one of the 72,000 that got a notice from the company that said hey, even though your policy is current, even though you've done everything right, we're canceling your homeowner's insurance. Good luck, have a nice life. Seriously. Let me give you another example. The lady's name was Beth Pratt. Big wildfires had started burning more often in California, creeping closer to her house near Yosemite National Park. So Pratt did what homeowners and fire-prone heirs are supposed to do she added a metal roof, traded wood decking for a laminate, installed a water tank and a fire hose, and cleared vegetation near her house. Pratt says she emptied her savings to make her home for life fire resistant Basically everything. The insurance companies tell you that if you are in an area like that, that you should do. Did you hear the part emptied her savings? Yeah, remember that for a minute. It didn't matter. Earlier this month, I'm sorry. Last month Pratt got a letter from an insurer Allstate, her home insurer for 31 years saying her coverage was being dropped because of the threat from Wall Fire's. Hold it. Not because she didn't pay the insurance, not because she had excessive claims, not because she was just a bad client. The threat from wildfires that's. After she did all this stuff Spent thousands of dollars to fireproof her home Wasn't good enough, all straight said so sad, too bad. We're canceling you anyway. For those of you that say climate change is fake, I wish you'd explain that to Beth Pratt. Explain it to the 72,000 people in apartments and homes that State Farms insured in California. Explain that to the folks in Louisiana who are getting their coverage dropped. The folks in Florida who are getting a coverage drop.

Speaker 2: 36:05

Wildfires, floods, hurricanes, tornadoes Human-induced climate change does not cause these things. They make them worse and they make them more often. Oh, you forgot about the 40 plus inches of rain in Houston back in 2017, didn't you? 40 inches, 40. Or Katrina in 2005 in New Orleans. Some neighborhoods after all this time, 19 years, haven't recovered. We're at a crossroads where just because you want to live there don't mean you should, and even in places that were never at risk before, folks are now being told so sad, too bad.

Speaker 2: 36:54

So what do you do? Let's talk about this a minute. You bought a home 10 years ago. You've done everything right. You've kept your home up. You've paid your premiums on time. When the insurance company says hey, you might consider doing this, this and this to make your home safer and less prone to claims, you did it. You spent the money. You got a mortgage. You got a 30-year mortgage. 15 years into your mortgage, your insurance company says we're dropping you, not because of claims, not because of non-payment, but because they analyzed the area you lived in and determined that, due to what's happening around you, they couldn't afford to carry you. Here's the first problem you got the minute they canceled your insurance. You're now in default on your mortgage.

Speaker 2: 37:48

Most people don't realize that If a mortgage company is carrying your note a bank, credit union or mortgage entity you are required to have homeowner's insurance. What happens when you can't get it? Or what happens that if you're paying and I'm making up a number you're paying a premium, maybe right now, of, say, $1,200 a year, $100 a month, and the one insurance company that will cover you wants $4,500 on top of your mortgage, on top of your taxes, on top of maintaining the home. What do you do? That's a lot of money. That's over $3,200, $3,300 increase in your premiums to keep your home and meet the covenants of your mortgage. And those are the lucky ones. What if you're somebody who can't get it at any price? And what if this is your first home, your second home? You're making the payments, but you don't really have a lot of room. What do you do? Maybe you're three years, four years into this home. You haven't built up the equity that normally you would have after 15, 20 years. So trying to self-insure is not an option. If you have a major catastrophe, you don't have the ability to be out of pocket.

Speaker 2: 39:08

Climate change Not just for California, not just for Florida. We reported about inland flooding, if you remember the piece I did about Kentucky. This stuff is happening all over the country as insurance companies are taking a hard look at climate change for real, crunching the numbers and determining that it's not sustainable and we can't lose millions, if not billions, of dollars by carrying these policies. In the case of State Farm, they cited soaring costs, the increased risk of catastrophes like wildfires and outdated regulations as reasons it will not renew the policies. Nothing these people did, they didn't do anything wrong. They talked about the company's health, which continues to be impacted by inflation, catastrophe exposure, reinsurance costs and the limitations of working within decades-old insurance regulations, which is kind of insurance Greek, for they limit our ability to raise premiums to such a place where we can make this still worth doing. But there is a question Even if you said, okay, I will pay higher rates to keep insurance, there's still limits to what you can pay, right. So how much more and what recourse do you have? The insurance companies have already done this when it comes to flooding, which is why the federal government offers flood insurance, and you can't buy that from private folk.

Speaker 2: 40:45

Climate change I wanted to share with you climate change. This is happening. It's happening in America, it's happening right now and it's having real severe financial consequences for a number of our fellow citizens and we need to do something about it, meaning you may have to decide where you're going to live. You and I have come to the end of our regular visit. Be sure to join me again next time. You have been listening to Tech Mobility Show.

Speaker 1: 41:14

The Tech Mobility Show is a copywritten production of Tech Mobility Productions Incorporated. Any rebroadcast, retransmission or any other use is prohibited without the written consent of Tech Mobility Productions Incorporated.

Speaker 2: 41:36

For those of you that listen to podcasts, we have just the one for you. Hi, I'm Ken Chester. Tech Mobility Topics is a podcast where I upload topic-specific videos each week, shorter than a full show. These bite-sized programs are just the thing, particularly if you're interested in a particular topic covered on the weekly radio show. From Apple Podcasts to iHeartRadio and many podcast platforms in between, we got you covered. Just enter Tech Mobility Topics in the search bar. Wherever you listen to podcasts, social media, it's the place to be, and we're no exception. Hi, I'm Ken Chester, host of the Tech Mobility Show. Several times a week, I post to TikTok several of the topics that I cover on my weekly radio show. It's another way to keep up on mobility technology news and information. I've built quite a library of short videos for your viewing pleasure, so be sure to watch, like and subscribe. That's the Tech Mobility Show on TikTok. Check it out. To learn more about the Tech Mobility Show, start by visiting our website. Hi, I'm Ken Chester, host of the Tech Mobility Show. The website is a treasure trove of information about me and the show, as well as where to find it on the radio across the country. Keep up with the happenings at the Tech Mobility Show by visiting techmobilityshow. That's techmobilityshow. You can also drop us a line at talk at techmobilityshow.

Speaker 2: 43:03

Do you listen to podcasts? Seems that most people do. Hi, I'm Ken Chester, host of the Tech Mobility Show. If you've missed any of our weekly episodes on the radio, our podcast is a great way to listen. You can find the Tech Mobility Podcast just about anywhere. You can enjoy podcasts. Be sure to follow us from Apple Podcasts, iheartradio and many platforms in between. We are there. Just enter the Tech Mobility Podcast in the search bar, wherever you listen to podcasts.