A recent state farm request for an emergency rate hike highlights California’s struggling home insurance market. An analysis by 7 on Your Side Investigates found that nearly 2% of California policyholders had non-renewed policies in 2023, affecting tens of thousands of homeowners and renters. Experts warn that rates will continue to rise.
Southern California communities outside of fire zones saw the highest non-renewal rates, with Topanga’s 90290 zip code having a rate of 20.7% in 2023. Altadena’s 91001 zip code had a rate of 7.5%, while Pacific Palisades’ 90272 had an even higher rate of 8.3%.
Homeowners like Will Chandler, who was dropped by his insurance company due to rising premiums, face the risk of losing their homes without insurance. When the Eaton Fire hit Altadena in January, Chandler tried to fight the flames himself, fearing for his home’s safety.
Experts predict that insurance rates will continue to rise, with companies posing more conditions for policyholders. “You can expect insurance companies to be posing more conditions,” said Amy Bach of United Policyholders. “So telling people you have to put a new roof on, if you want to stay our customer.”
The high non-renewal rate in Topanga is a concern for renters like Uve Karbenk, who had to piecemeal insurance coverage from out-of-state companies, increasing his premium by nearly $28,000. Karbenk says he must pass on the extra cost to new renters.
The situation is expected to worsen, affecting not just homeowners but also business owners in California.
Source: https://abc7.com/post/dropped-home-insurance-southern-california-zip-codes-have-highest-renewal-rates/15874380