No More New Policies In California!
I was actually just talking with a client this week about insurance problems in Santa Clarita, and then see this news flash that State Farm won't write any new homeowner policies in California due to fire issues. They say they will continue to insure people with existing policies though.
“State Farm General Insurance Company made this decision due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market”.
In Santa Clarita we've had issues with fires regularly. Always a big thing. I tell my buyers, talk to your insurance agent right away to make sure you can get a policy. Castaic & Stevenson Ranch seem to have the hardest time.
Since the start of 2023, CAL FIRE and the US Forest Service have recorded 1,205 wildfires in the state, which have burned a total of 1,233 acres. On a year-to-date basis, over the past five years, the two organizations have recorded an average of 2,015 wildfires a year in California. It's no wonder, right?
At any rate, I know from experience, any home buyer can get insurance on any property. Just matters how much you're willing to pay. Californians can still access FAIR Plan Association, which functions as the state’s insurer of last resort but it only provides fire-related coverage. Any additional coverage for theft, earthquake, flood will require wrap-around insurance.
So, keep this in mine when looking at homes. It is one of your contingencies as a buyer. But, look into your insurance needs ASAP so you're not left with a problem when it's too late.
And, always ask your lender if they have an insurance company recommendation.
They are seeing way more than me what is working, and what isn't!
No comments:
Post a Comment