California Home Insurance Concerns

Wildfires have burned nearly 10 million acres of forest and destroyed 39,000 homes in California over the last five years, providing a glimpse at just how dire the state’s climate crisis has become.

Yet at a time when it’s more vital than ever for homeowners to have adequate insurance coverage, many carriers have decided to no longer insure homes in certain parts of the state, while others have left the home insurance market altogether. As a result, many California residents are left with little to no options for homeowners insurance — particularly those with homes in areas most at risk of wildfire damage.

2017 and 2018 were two of the most destructive fire seasons with a combined claims payout of almost $300 billion.

For more information and a source for some of the information in this post visit: JVMLending

Here are some of the Insurance Companies no longer offering Home Insurance in California

State Farm
Allstate
USAA
Progressive
Nationwide
National General
Pacific Specialty
Stillwater
Berkshire Hathaway Guard
American Modern
Travelers (some restrictions)
Safeco (some restrictions)
The Costco Insurance Agency
Lemonade

Insurance Companies still writing Home Insurance Policies in California source: JVM Blog

Bamboo
Hippo
CSE
Travelers
Safeco
Farmers
Mercury
Aegis
Universal North America

What’s the Impact on Homeowners?

Current Homeowners should expect rates to go up.
Homebuyers will have fewer options when looking for Insurance
More customers will have to get insurance from the CA FAIR PLAN, a State run program that tend to be more expensive.
Homebuyers should begin shopping for Insurance as early as possible to avoid delays and to be able to close on time in conjunction with their contract.