California Insurance Market Seeks Solutions Amid Homeowner Policy Crisis

California insurance market health

California’s insurance landscape is poised for a substantial rewrite as authorities deal with the implications of devastating wildfires and market instability. With a pivotal public hearing on the horizon, Insurance Commissioner Ricardo Lara spearheads the effort to address the frustrations of both homeowners and insurers. The Plight of California Homeowners and Insurers Amid the ashes of devastating wildfires, Californian homeowners have faced soaring insurance premiums and widespread policy cancellations, driving the need for regulatory reform. A proposed overhaul by Commissioner Lara aims to streamline rate increase approvals and clarify regulations…

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California examines new home insurance pricing strategy for wildfire crisis

Home insurance - Price Strategy

The state plans to allow insurers to take climate change into consideration when setting their rates. California intends to let home insurance companies factor climate change into the way they calculate their rates, according to the chief regulator for the state. The goal is to help prevent the loss of insurers from the state due to the rising risk of wildfires. Wildfires, mudslides and other natural disasters associated with climate change have become increasingly commonplace and severe in the state. This has wreaked havoc on the coverage industry, which is…

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Climate change is sending California into an insurance crisis

Climate change - Crisis Ahead California Flag

Increasingly frequent and damaging wildfires are making coverage extremely expensive, when it’s available. Climate change has been blamed for the worsening wildfires that have plagued California over the last few years, and this problem has been affecting the insurance industry to an increasing degree, as coverage becomes more difficult to obtain, and challenging to afford when it is available. Major insurers State Farm and Allstate have stopped selling new home and business policies in California. As is the case with natural disasters in other parts of the country, such as…

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Allstate is no longer selling new California home insurance policies

California home insurance - homeowners insurance policy - X

Immediately after State Farm’s exit from selling in the market, its top competitor has done the same. Allstate has announced that it is no longer selling new California home insurance policies, removing it from the pool of available coverage for homeowners following State Farm’s exit from sales only days before. That said, despite the fact that the announcement was only just made, the insurer’s statement said it stopped accepting new policies as of last year. This means that two of the largest insurers in the country are no longer selling…

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California homeowners overcharged for wildfire insurance to be refunded

Wildfire insurance - person holding money that's on fire

State Commissioner Ricardo Lara has announced that there will be about $1.5 million in refunds. California Commissioner Ricardo Lara has announced that Kemper Independent Insurance Company overcharged its policyholders for their wildfire insurance coverage. As a result, that insurer has issued $1.5 million in refunds to thousands of homeowners. The Department of Insurance determined that the insurer had been overcharging for that risk. Both Kemper and Unitrin Auto and Home Insurance Company, its affiliate insurer, have also agreed to pay $617,200 to the General Fund as a combined penalty and…

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