This week State Farm, the largest insurer of homes in California, announced it will no longer be writing home insurance policies in the golden state, citing the risk of wildfire and increasing costs of construction.
State Farm said in a statement published by the San Francisco Chronicle the decision is due to “historic increases in construction costs outpacing inflation, rapidly growing catastrophic exposure, and a challenging reinsurance market.”
“We recognize the Governor’s administration, legislators and the California Department of Insurance for their wildfire loss mitigation efforts,” State Farm stated. “We pledge to work constructively with the CDI and policymakers to help build market capacity in California. However, it’s necessary to take these actions now to improve the company’s financial strength.”
The move is the latest among large insurance companies to severely limit the number of policies being written in California, if at all, for homeowners.
Allstate stopped writing new policies in Northern California last August, a company rep said. Existing policy holders in Nevada County and elsewhere in the north state are undergoing new inspections and being required to complete suggested work, such as removing all wood decks from the home, in order to keep their current Allstate policy.
Home buyers do however still have available options with carriers, often through the California FAIR plan for fire insurance and wrap-around home coverage policies.
As larger carriers pull up stakes, there are options out there for homeowners. Our clients have had good experiences locally working with both Phil Irwin of Gold Insurance Solutions and Jay Adamson of Seeley Insurance. Both have been quick to respond with quotes on fire insurance options through several carriers.
If you’d like more information on insurance options in the western Nevada County area, contact us today — betsy@betsyhamilton.com — and we can help get you in touch with people who can help.