The state’s coverage crisis appears to be getting worse as two more insurers have stepped away. Two more home insurance companies have announced that they have ceased selling home insurance to new applicants in California. According to the insurers, the reason for its decision is that wildfire risk and construction costs have risen too high. The insurers are small but are part of a growing trend Trans Pacific Insurance Co. and Tokio Marine America Insurance Co. have both announced that they will not accept new applicants for home insurance in…
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CSE becomes sixth insurance company to stop selling in California
Officials in the state have said that this particular phase-out has been planned for a long time. CSE Insurance Group has announced that it stopped writing home policies in California as of October 9, becoming the sixth insurance company in the state to make this move. The insurer simultaneously announced that it intended to cease auto policy renewals in California. This has added yet another insurance company to a growing list of insurers that have decided that they either want to stop doing business in the state or have chosen…
Read MoreCalifornia examines new home insurance pricing strategy for wildfire crisis
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…
Read MoreFarmers sets California home insurance limits, further restricting the state
This step was taken on the heels of State Farm’s and Allstate’s exit from selling there. Farmers Insurance has made a filing revealing that it is implementing restrictions on home insurance in California, further limiting the choices residents of the state have to protect their properties. Insurers have been blaming increasing wildfire risk and rising costs of repairs and replacements. Farmers is only the latest to change the way they do business in the Californian home insurance market. Allstate and State Farm both announced earlier this year that they will…
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