Of the top 12 insurance companies in CA, only five are still writing new policies.
Wildfires have burned more than 1 million acres in California so far this year. That’s bigger than the entire state of Rhode Island.
Natural disasters like that have insurance companies leaving other areas entirely, not only in California, but also in states including Texas, Florida, Oregon and Colorado.
“Our premiums doubled, but our coverage was cut in half. So, this was a perfect storm of evil,” said Steve Archer, president of the HOA in his community in La Cañada Flintridge, California.
Community of La Cañada Flintridge, California. (Sunny Tsai/Fox News)
Archer says people in his community have tried to protect the area from disaster.
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“We’ve got new roofs on all our buildings here. We’ve done a lot of tree cutting. We’ve checked all the furnaces … to put in spark registers. We’ve put in seismic shut-off valves that were knocked down by the earthquake. To stop the gas flow,” Archer said.
A seismic shut-off valve intended to stop the flow of gas in the event of an earthquake. (Sunny Tsai/Fox News)
Farmers Insurance has served the community for twenty years. But in July, the company shut us down. That left the community devastated.
“After an intensive search, we ended up with the California Fair Plan, which is a last resort for people who can’t get insurance anywhere else…So our premiums went from 70,000 to 170,000. Our coverage was $45 million — liability coverage. and insurance of the wildfires of our homeowners association, common area and our buildings and…
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This means less investment of extra money.
“We’ve seen some people’s insurance from $2,000 to $6,000 a year for a homeowner’s policy, others up to eight. And these are not large houses. These are the average type,” said Rick Dinger, president of Crescenta Valley Insurance.
HOME INSURANCE RATES ARE UP ALMOST 40% SINCE 2019 – BUT THEY ARE RISING FAST IN THIS COUNTRY.
Of the 12 leading insurance companies in the state, only five are still writing new policies. Another local insurance company is questioning California’s laws.
The mountains as seen from the community of La Cañada Flintridge (Sunny Tsai/Fox News)
“Right now there are a lot of laws that control the insurance company. If they want to raise the rates, they move the rates. The Department of Insurance, it can take three years. Well, those rates are nothing. But, you know, they’re really out of date and not where they need to be. And many times, the insurance commissioner would come back and not give them the amount they needed.
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Looking ahead, the National Interagency Fire Center projects parts of Southern California and Texas to be at above-normal risk in November.
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