Welcome to San Diego Blog | August 29, 2023

Exodus of Insurance Carriers in San Diego, CA

The exodus of home insurers from California and Florida appears to be accelerating, raising concerns. In a recent development, State Farm, the largest property insurer in California, declared its suspension of new applications for property and casualty insurance across the state.

The decision was motivated by unprecedented surges in construction costs surpassing inflation, heightened vulnerability to catastrophic events, and complexities in the reinsurance market. Following suit, Farmers Insurance also imposed limitations on policy issuance in the state. Moreover, in the previous year, Allstate communicated its discontinuation of writing new homeowner policies in California.

We are finding that homes located on canyon rims, in wildfire zones, in 50 and 100 year flood planes are getting harder and harder to insure.  Many companies don’t want to insure them and the ones that do are charging hefty premiums unlike anythig we’ve ever seen before. 

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Written by: chad

Categories: Real Estate Tips for Buyers, San Diego Real Estate

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