California insurance crisis: Here are carriers that have fled or reduced coverage in the state

the Wildfires sweep through Southern California It’s expected to add more fuel to the state’s ongoing insurance crisis, as residents’ options for property coverage continue to dwindle or even disappear.

numerous Insurance companies They either fled California, stopped writing new policies or reduced their exposure in the Golden State, citing business risks amid high replacement costs and an inability to adequately raise premiums.

Here is a list of some insurance companies that have downsized or left California in recent years:

Allstate

Insurance giant AllState has temporarily halted sales of new home insurance policies in California in 2022 due to wildfires and higher costs of doing business in the state.

Wildfires in California could cost insurance companies $20 billion, the highest in the state’s history

American patriotism

Texas-based American National announced last year that it would stop offering homeowners insurance in the California market.

Amgard

AmGUARD, a subsidiary of Owned by Berkshire Hathaway GUARD insurers will stop writing homeowners policies in California in 2023.

Chubb

Chubb Chairman and CEO Evan Greenberg announced in a 2021 earnings call that the company will significantly reduce homeowners coverage in California, citing wildfire risks and insurance regulations in the state, according to S&P.

Falls Lake Insurance

The Falls Lake company informed the California Department of Insurance in 2023 that it would withdraw from the state entirely because the company was unable to obtain reinsurance, PropertyCasualty360 reported that year.

California fires: Insurers drop coverage and flee the state over decades-old law

Farmers Insurance Group

Farmers Insurance Group began limiting coverage in California in 2023, and later that year, one of its affiliates, FarmersDirect Property & Casualty Insurance Company, pulled out of the state entirely.

At the national level

Nationwide Private Client, a subsidiary of Nationwide, informed California last year that it would stop renewing all homeowners insurance policies in the state by June of 2025, according to the San Francisco Chronicle.

State farm

State Farm, the largest home insurance company in California, Announced in 2023 It will no longer accept applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation.

Backlash from California fires: State Farm and other insurers criticized for dropping coverage

Then in March last year, the company said it would do so Plots 72,000 house and apartment policy Starting in summer.

Hartford

The Hartford Financial Services Group will stop writing new homeowners insurance policies in California in early 2024.

Tokyo Marine Insurance Company, Trans Pacific Insurance Company.

Tokyo Marine America Insurance and Trans Pacific Insurance, owned by Japan’s Tokyo Marine Holdings, filed notices with the California Department of Insurance in April 2024 saying the companies would do so. Stop offering homeowners insurance Comprehensive policies in the state.

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Travelers

Travelers Insurance announced it will not renew homeowners policies on thousands of properties in California from 2022 and 2023 due to wildfire risks, the San Francisco Chronicle reported.