CA Insurance Companies Increasingly Refuse Polices In Areas Prone To Wildfire

CA Insurance Companies Increasingly Refuse Polices In Areas Prone To Wildfire

According to California’s top insurance regulator, Insurance companies are increasingly refusing to offer homeowner’s policies in areas prone to wildfire.  Late last week Insurance Commissioner Dave Jones reported that in 2016 insurers refused to renew more than 10,000 policies in the 24 counties, including Amador and Calaveras, most susceptible to blazes, a figure that has jumped 15 percent from last year.   While some consumers can still get coverage from traditional insurance companies, the state has seen an increase in people forced to turn to last-resort fire insurance program that can cost more and give less coverage.   Jones sees the problem only getting worse as insurers deem more houses as wildfire risks following last year’s deadly and destructive wildfires that destroyed thousands of homes.   Jones says, “Californians are facing more severe, more unpredictable and more frequent wildfires, and add to that equation, increasing development in areas more vulnerable to fire and you can see why wildfires are now an everyday threat to life and property for Californians.”   In his report, Jones points out that the state Legislature has given insurers broad latitude to decide whether and where to write fire insurance, therefore he is recommending new laws to improve fire insurance availability.   Jones directed his department to conduct its own in-depth analysis of the scope of the availability and affordability insurance issue facing the state and to develop possible solutions.

 

Written by KVGC Staff

 

 

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