Two more insurers are pulling out of California’s troubled homeowners insurance market, straining a marketplace that already has seen the pullback of several other companies that have cited increase costs related to wildfire risks.

Tokio Marine America Insurance Co. and Trans Pacific Insurance Co. submitted filings to the California Department of Insurance stating they will not renew 12,556 homeowners policies with a premium value of $11.3 million starting July 1. Also not being renewed are 1,624 dwelling fire and liability policies with a premium value of $1.7 million typically sold to owners of rental properties, as well as personal umbrella coverage.

The companies, subsidiaries of Tokyo-based Tokio Marine Holdings, are completely exiting the homeowners marketplace. Several major insurers, meanwhile, including State Farm, Farmers and Allstate, have limited their exposure in California by cutting back on the number of new policies they issue or tightening underwriting standards. State Farm, for example, announced in March it would not renew 72,000 policies.

  • A_Random_Idiot@lemmy.world
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    7 months ago

    Shit like this and healthcare should just be in your taxes.

    Would be a lot cheaper for you, no risk of your insurance shutting down to avoid claims after a disaster, more money in the pool to get everyone paid out faster, and no golden parachutes and other executive bloat sucking up 98% of the money and making service irredeemably worse.

    • Crashumbc@lemmy.world
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      7 months ago

      Meh I agree with healthcare.

      Wildfire insurance I put in the same category as flood insurance. Most of the time, people are living places they SHOULD NOT BE LIVING. Turn those areas into state/national parks.