Top Insurance Giants are Leaving California

Two insurance industry giants have pulled back from California’s home insurance marketplace, saying that increasing wildfire risk, flooding, and soaring construction costs have prompted them to stop writing new policies in the nation’s most populous state.

State Farm announced that it would stop accepting applications for all business and personal lines of property and casualty insurance, citing inflation, a challenging reinsurance market and “rapidly growing catastrophe exposure.” The decision did not impact personal auto insurance.

Allstate, another insurance powerhouse, announced  it too would pause new homeowners, condo and commercial insurance policies in California to protect current customers.

California’s unsettled market aligns with trends across the country in which companies are boosting rates, limiting coverage or pulling out completely from regions susceptible to wildfires, flooding, and other natural disasters in the era of climate change.

More carriers are expecting to follow this path as well.

I hope this was helpful. Feel free to reply with any questions you may have or call me at 949-209-9494 or visit GenuineManaged.com to learn more about us.

With best regards,
Marcel Ford
Genuine Property Management

* We are not attorneys, financial advisors, nor tax experts and the information above we deem to be accurate but is not guaranteed.