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California Insurance Crisis Deepens

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  • On: 01/27/2024 15:47:04
  • In: News
Another insurer announces its decision to stop offering new policies to residents.
California homeowners are increasingly running out of options to insure their homes with a private company, as yet another insurer announces its decision to stop offering new policies to residents.
 
The Hartford Financial Services Group Inc. announced on Wednesday that it will no longer offer new personal property insurance coverage to homeowners in the Golden State starting in February. Homeowners with existing policies will continue to be renewed, the company told the San Francisco Chronicle.
 
The Hartford followed the steps taken by several other private insurers in the past couple of years, including State Farm and Allstate, which both announced they would have stopped writing new policies in the state in November 2022. The two insurers said they were cutting back their coverage in California due to wildfire risks.
 
Studies have shown that the climate crisis has increased both the frequency and severity of extreme weather events like wildfires, hurricanes and tornadoes, especially in vulnerable states like California and Florida, which are both experiencing an ongoing insurance crisis.
 
(For the full story see https://www.newsweek.com/california-insurance-crisis-providers-pull-out-state-1863846)

Newsweek, Jan. 25, 2024

In related news …
 
Foremost, an insurance subsidiary of Farmer's, will no longer insure condos in California starting in April. The Foremost Insurance Co. will end its California Condominium Homeowners program in April, becoming the latest insurer to pull back from a troubled market.

San Francisco Chronicle, Jan. 26, 2024

 

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