In May, State Farm stopped the sale of new home-insurance policies in California.
Trevor Chapman, a spokesperson for Farmer’s Insurance, stated that the
catastrophe costs were at such high levels that the California home insurance marketplace continues to be challenging for insurers, requiring companies to take
actions to reduce risk exposure.
You need to start planning now for the growing possibility that our home or
vacation home insurance provider won’t renew coverage. If you suspect you are
going to be dropped or already have, act quickly. Check with neighbors and friends
for references and contact those companies right away.
Beware of ghost brokers who post as insurance agents accepting money for fake
insurance policies. Before giving your private information to a company or broker
you are unsure of, ask for their National Association of Insurance Commissioners, or
NAIC, number. You can search for an insurance company’s reported complaint
history in NAIC by inputting the company’s name or NAIC number in its consumer
insurance tool.
If you can’t get private insurance, you may need to turn to the state. The California Fair Plan used to be known as the insurance of last resort but may be the best (or only) option for many property owners in the state and is worth learning more about.
Below is the link to their website to you can look into the coverages available:
No matter what, home insurance isn’t something you should live without.
