Some California Homeowners Lose Coverage
Some California homeowners face policy cancellation or significantly higher rates after the 2017 wildfire season as insurers reassess their risks in areas where urban development and wildlands meet. Without traditional insurance coverage, many of these homeowners can still obtain coverage from the state’s insurer of last resort, known as the FAIR Plan.
“We’re looking at a future where there will be increasing challenges of insurance availability for some homeowners in some areas of California,” said California Insurance Commissioner Dave Jones. “These fires consumed areas that were thought to be at lower risk. Now it’s clear they’re not.” Industry leaders say the market is functioning exactly as it should and that companies need to accurately balance their risk exposure while maintaining solvency and profitability.