Tag: california wildfire insurance

From 22% to 17%: The Inside Story of State Farm’s Rate Cut Pivot

Angela Linders
california insurance state farm insurance news

State Farm’s Rate Pivot in California: What the 17% Request Means for You State Farm, one of the nation’s largest insurers, has been making headlines after scaling back its California emergency rate hike request to 17%. For policyholders and industry watchers alike, this isn’t just another number shuffle; it’s a significant moment in the ongoing tug-of-war between insurers and state regulators. What prompted this shift? And more importantly, what does it mean for the people paying the bills? Read on as we dissect the moving parts of this story. From…

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From Crisis to Solution: How AB 226 Aims to Transform Wildfire Insurance

H. Cutner
Wildfire Insurance

California Moves to Reinforce FAIR Plan Stability Amid Wildfire Challenges California lawmakers are taking bold steps to protect homeowners and address the state’s wildfire-induced insurance crisis. At the center of these efforts is Assembly Bill (AB) 226, also known as the FAIR Plan Stabilization Act, designed to bolster the state’s insurer of last resort. With unanimous support in the Assembly and growing momentum in the Senate, this bill holds promise for easing the financial strain on an increasingly overburdened insurance market. FAIR Plan’s Crucial Role in High-Risk Areas The FAIR…

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Unveiling the Housing Crisis – Where Homeowners Are Losing Insurance at Alarming Rates

Logan B.
home insurance - Non-Renewals and where are the most in the US

Climate Change Sparks Surge in Dropped Home Insurance Policies The United States faces a quiet yet profound crisis as climate-related disasters reshape the home insurance market. According to a recent congressional investigation, more than 1.9 million home insurance contracts nationwide have been dropped by insurers since 2018. The practice of “nonrenewal” has surged, putting countless American homeowners in precarious positions. This shift has far-reaching consequences for mortgages, property values, and entire communities. Rising Non-renewals Expose the Insurance Housing Crisis Once considered a steady and predictable industry, the U.S. home insurance…

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California fire station project on pause because it can’t get property insurance

Julie Campbell
Property insurance - Pause Button on Fire Station

The crisis in the state is largely from wildfires, but even those battling them can’t get insured Wildfire risk is very high in many parts of California, leading to what many have called a property insurance crisis in both the residential and business markets. Many insurers have withdrawn from selling More recently, the size of the issue became particularly clear when a project to upgrade a fire station in the area stalled due to a lack of property insurance availability. Homeowners living in California’s mountains face a particularly high wildfire…

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California takes different tack than Florida to beat home insurance crisis

Marc
Home insurance - Home on fire - Option A Option B

Officials in the state are looking for options to support property insurers in wildfire prone regions. California officials are working to avoid facing a similar situation in their home insurance market to that faced by officials in Florida. Florida residents are livid with their elected officials for allowing premiums to skyrocket to current levels. Catastrophic storms have been sending home insurance rates steadily and steeply upward in Florida. California is aiming to avoid the same situation due to the regular and devastating storms blasting their way through. State officials in…

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California wildfire risk increases homeowners’ insurance challenge

G. Turner
California wildfire risk - homes near fire

Insurers are facing massive losses and have been withdrawing from areas prone to fires. The California wildfire risk has been causing problems for homeowners in the state that extend beyond the devastation left behind by the widespread uncontrolled blazes that are becoming increasingly problematic. As massive blazes become more commonplace, the cost associated with them is sending insurers away. Due to the California wildfire risk, insurers are falling out of love with the opportunity to insurer the properties there, particularly in areas most prone to the fires. “The marketplace has…

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Seek wildfire insurance reimbursement, says California’s Commissioner Lara

H. Cutner
Wildfire insurance reimbursement - fire burning

Ricardo Lara recommends homeowners and renters carefully record their expenses. California residents who have been evacuated are being encouraged to record their expenses in order to seek wildfire insurance reimbursement regardless of whether or not their properties are ultimately damaged or destroyed. The recommendation was made by Insurance Commissioner Ricardo Lara. Commissioner Lara pointed out that homeowners’ policies will often cover relocation costs, even when not seeking direct wildfire insurance reimbursement for damage or destruction of property. Earlier this month, more than 10,000 lightning strikes over a single weekend led…

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