Allstate halting home insurance policies in California due to wildfire risk

ABC 7 ^ | 06/04/2023 | Michael Finney

[SeekAndFind]

ABC7 previously reported how State Farm Insurance stopped selling new homeowner policies in California last Saturday -- now a second major carrier, Allstate Insurance, confirmed today it ended new home policies in the state last year. On top of that, sources tell ABC7 a third carrier, Farmers Insurance, is limiting policies for new customers. The exodus comes as wildfire season looms ahead.

It's hard not to worry. But all three companies say they are still serving existing customers, and there are more than 100 other insurance companies still issuing new homeowner policies. However, after relentless wildfires of the past several years, homeowners in those hot spots will have an even tougher time getting coverage.

The threat of wildfires has grown every year, ripping through forests, scarring hillsides and destroying whole communities.

And amid the devastation, thousands of homeowners in disaster zones lost their coverage over the years.

Then last week, State Farm Insurance, California's largest carrier, stopped issuing all new homeowner policies in the state -- at least temporarily. The company cited a growing threat of natural disasters, as well as rising construction costs and inflation.

And Allstate Insurance, the fourth largest carrier in California, just confirmed it stopped issuing new homeowner policies last year. Allstate also blamed wildfires and higher costs, saying, "The cost to insure new home customers in California is far higher than the price they would pay for policies."

[Spktyr]

That’s true, but the redwood burn was not normal. Not the annual mass fires that sweep increasing areas of SoCal.

[ProtectOurFreedom]

That is true. Lots more grassland, shrubs, pinyon etc there