Only five of California’s top 12 insurance companies are still writing new policies.
Wildfires have burned more than 1 million acres in California so far this year. This is larger than the entire state of Rhode Island.
Such natural disasters have led insurance companies to completely abandon California, as well as some areas such as Texas, Florida, Oregon, and Colorado.
“Our premiums have more than doubled, but our coverage has been cut in half, so this was a perfect storm,” said Steve Archer, HOA president of the community in La Cañada Flintridge, California. ” he said.
The community of La Cañada Flintridge, California. (Sunny Tsai/FOX News)
Archer said people in the community are trying to protect the area from disaster.
Hurricane Milton, Florida homeowners and insurance market brace for impact
“We’ve put new roofs on all the buildings here. We’ve done a lot of major tree removal. We’ve inspected all the fireplaces… We’ve installed spark registers. Earthquake-activated seismic isolation valves. to stop the flow of gas,” Archer said.
This is an earthquake-resistant shutoff valve that stops the flow of gas in the event of an earthquake. (Sunny Tsai/FOX News)
Farmers Insurance has been covering communities for 20 years. However, in July, the company announced its withdrawal. This left communities vying for coverage.
“After intensive research, we came up with the California Fair Plan, which is kind of a last resort for people who can’t get insurance elsewhere…so the premium goes from 70,000 to 170,000. We had $45 million in liability coverage, as well as wildfire insurance for the homeowners association, common areas, and buildings. And…the fair plan comes with up to 20 million in coverage,” Archer said.
The average down payment on a typical home in the United States reaches $127.750: ZILLOW
This means less coverage for a larger amount.
“For some people, their homeowner’s insurance premiums go from $2,000 a year to $6,000 a year, and for some they go up to eight homes. And it’s not a big house. This is it,” said Crescenta Valley Insurance President Rick Dinger. It’s a normal thing,” he says.
Home insurance premiums have skyrocketed nearly 40% since 2019, with these states seeing the fastest increases
Only five of the top 12 insurance companies in the state are still writing new policies. One local insurance company blames California’s regulations.
Mountains seen from the community of La Cañada Flintridge (Sunny Tsai/FOX News)
“There are a lot of regulations for insurance companies now. If you want to raise your premiums, you submit your premiums, the Department of Insurance, and that can take three years. Well, those premiums are not worth it. But you know, they’re not really where they need to be, and a lot of times the insurance commissioners don’t give them the rates they need,” Dinger said.
CLICK HERE TO GET FOX BUSINESS ON THE GO
Looking ahead, the National Interagency Fire Center predicts that November will be above normal for parts of Southern California and Texas.
