FOX Business’ Cheryl Cassone joins FOX & Friends First to discuss California’s insurance crisis and broader concerns for the industry as wildfires devastate Los Angeles.
The wildfires sweeping through Southern California are expected to add further fuel to the state’s ongoing insurance crisis, as residents’ property coverage options continue to dwindle or even disappear.
Several insurance companies have fled California, stopped writing new policies or closed their doors to the Golden State, citing business risks from rising replacement costs and an inability to properly raise premiums. We are reducing our exposure.
The Eaton Fire broke out in Pasadena, California, on Tuesday, burning homes due to strong winds. (David McNew/Getty Images/Getty Images)
Below is a list of insurance companies that have downsized or exited California in recent years.
allstate
Insurance giant Allstate has suspended the sale of new home insurance policies in California in 2022, citing wildfires and rising costs of doing business in the state.
California wildfires could cost insurance companies $20 billion, the highest in state history
american citizen
Texas-based American National announced last year that it would stop offering homeowners insurance in the California market.
amgard
AmGUARD, a subsidiary of Berkshire Hathaway-owned GUARD Insurance Company, will stop writing homeowners insurance in California in 2023.
Chub
Insurance company Chubb began cutting claims in California more than three years ago. (Budrul Chukrut/SOPA Images/LightRocket via Getty Images / Getty Images)
According to S&P, Chubb Chairman and CEO Evan Greenberg pointed to wildfire risks and state insurance regulations during a 2021 earnings call, citing California homeowner coverage. announced a significant reduction.
falls lake insurance
PropertyCasualty360 reported in the same year that Falls Lake notified the California Department of Insurance that it would withdraw from the state completely in 2023 due to lack of reinsurance.
California fires: Insurance companies cut off coverage and flee state due to decades-old law
Farmers Insurance Group
Farmers Insurance Group began limiting coverage in California in 2023, and one of its subsidiaries, Farmers Direct General Insurance Company, completely exited the state later that year.
Nationwide
Last year, Nationwide Private Clients, a subsidiary of Nationwide, notified the state of California that it would stop renewing all homeowners insurance policies in the state by June 2025, according to the San Francisco Chronicle.
state farm
Last year, State Farm announced it would terminate 72,000 policies in the Golden State. (Justin Sullivan/Getty Images/Getty Images)
State Farm, California’s largest home insurer, announced in 2023 that it will no longer accept applications for property and casualty insurance or other insurance in California, citing “historic” increases in construction costs and inflation. .
California wildfire backlash: State Farm and other insurance companies accused of cutting coverage
And last March, the company announced it would cut 72,000 home and apartment insurance policies starting this summer.
hartford
Hartford Financial Services Group will stop writing new homeowners insurance policies in California in early 2024.
Malibu resident Safia Hall shares first-hand accounts of California’s devastating wildfires on “Making Money.”
Tokio Marine Insurance Co., Ltd., Transpacific Insurance Co., Ltd.
Tokio Marine America Insurance Company and Transpacific Insurance Company, both owned by Japan’s Tokio Marine Holdings, notified the California Department of Insurance in April 2024 that they would no longer offer homeowners and umbrella insurance in the state. Submitted.
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traveler
Travelers Insurance has announced it will not renew homeowners insurance policies for thousands of California homes starting in 2022 and 2023 due to wildfire risk, the San Francisco Chronicle reported.
