Farmers subsidiary Foremost has announced that it will no longer sell this type of coverage in the state.
Farmers subsidiary Foremost Insurance Co. has announced that as of April 2024, it will stop selling condo insurance in California.
The California Condominium Homeowners program will be coming to an end at that time.
This makes Foremost only the latest among many insurers that have decided to withdraw from selling coverage in the Californian market. Homeowners’ and condo insurance have been increasingly difficult for many residents to find, and those who do obtain coverage are typically paying skyrocketing prices for the privilege.
Most insurers that have stepped out of the California property coverage market have cited a combination of inflation sending repair and replacement costs through the roof, and the rising risk of natural disasters such as wildfires in many parts of the state. In this particular case, Foremost’s filing with the California Department of Insurance showed that its intention to stop selling coverage is part of a broader strategy it is implementing across the United States to cease condominium coverage.
Foremost had already stopped writing new condo insurance policies back in May 2022.
The insurer adopted a similar strategy to that of many other companies in the state, deciding that this year it would no longer renew its remaining policies in California. In April, its policies will start non-renewing until they have all run their terms.
This announcement will not impact the other types of home coverage sold by Foremost but is exclusive to condominium policies, said a statement released by the insurer.
Foremost is a subsidiary of California’s second largest property insurance company, Farmers Insurance. Another Farmers subsidiary, Farmers Direct, has already ceased writing new policies in the state and began its non-renewals for existing customers in December, as it stepped out of the state entirely, including its home, renters, and auto policies.
Policyholders covered by Farmers condo insurance will not be affected by Foremost’s decision to withdraw from California, said a statement released by a Farmers spokesperson. Condominium coverage is often compared to renters’ policies as it provides coverage for the contents of the unit as opposed to the building itself.