In recent years, California has seen some of the most destructive and costly wildfires in its history.
#California fire insurance how to
How to get home insurance in high risk fire areas of California If you have home insurance with either company, you should still be able to renew your policy. While both State Farm and Allstate have halted writing new home insurance policies, both companies stated they will continue to insure current customers. Allstate spokesperson Brittany Nash echoed State Farm’s sentiments in a statement on June 2 saying, “The cost to insure new home customers in California is far higher than the price they would pay for policies due to wildfires, higher costs for repairing homes, and higher reinsurance premiums.” In other words, State Farm can’t raise its rates high enough to cover the increased risk and cost of catastrophic damage caused by wildfires.Īllstate also quietly announced in its 2022 third quarter earnings report in November that it would no longer write new homeowners and condominium policies in California. State Farm announced it is no longer accepting new applications for home insurance in California, citing record high construction costs that are outpacing inflation, an increase in catastrophe exposure - such as wildfire risk - and a challenging reinsurance market in California.
Why did State Farm and Allstate stop selling home insurance in California? If you are looking for homeowners insurance to make sure your house is covered, here’s everything you need to know to be properly insured for California wildfire season.
Southern California peak fire season typically starts in May or June and runs through October, while Northern California peak fire season usually begins in June or July and runs through October or November, according to the Western Fire Chiefs Association. State Farm and Allstate have announced they are no longer selling new home insurance policies in California, just as the state prepares for peak wildfire season.
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