Feb 21, 2024

Over the last few years, Californians have witnessed pullbacks from some of the largest home insurance companies in the country. Due to the extreme weather, California has been the victim of major wildfires, which have caused some of these companies to stop writing new policies in the state.

Many of these insurers had been slowly increasing their rates because of the growing risk of fires. Some, however, decided to leave California altogether. State Farm said the move is part of their strategy to protect their current customers since insuring new properties would not make sense financially, as it would mean a far larger cost, due to the high probability of natural disasters.

As a result, California FAIR Plan Association, the state’s insurance plan, has become one of the few affordable options. It provides basic coverage to high-risk homeowners through a shared market where licensed insurance companies agree to share the risk of people who don’t qualify for voluntary coverage. 

If you want to find a home insurance solution, don’t hesitate to contact us!

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