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Wildfires Impact California Insurance & Other Western States

Posted By Administration, Tuesday, September 29, 2015

This year and in the last decade wildfire home and business losses have stretched from millions of dollars to billions. In California larger insurance companies have stopped writing homeowners policies on people whose homes and businesses are in high risk areas.

 

It will no doubt soon be a trend seen in other now fire prone states like Oregon, Washington, Idaho and Montana.

 

In California Allstate stopped writing homeowners policies completely in 2007. Farmers and State Farm in the last few years have also become much more discriminating about what theyll write.

 

The impact has been huge for the two-million households considered high risk. But to counter, the state has put together a consortium of companies to provide coverage. Its very expensive and doesnt cover as much as the traditional policy.

 

Homeowners unable to get homeowners insurance have soundly ignored the program. Instead theyre picking up less-traditional policies from companies known for insuring unusual risks like kidnapping or rare art collections.

 

Its expensive but more comprehensive than what is offered by the state.

 

These companies are: Nationwide Mutuals Scottsdale Insurance Company, Foremost one of Farmers Exchanges firms, Lloyds of London, Lexington and others. They wrote 23,120 policies in the Golden State alone in 2014. Thats a 91% increase over previous years said the Surplus Lines Association of California.

 

Source link: Insurance Business America

Tags:  Weekly Industry News  wildfires  Wildfires Impact California Insurance & Other West  Wildfires: Some Help? 

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