This browser does not support the Video element.
California insurance crisis: LA wildfires
California's insurance crisis is expected to get even worse after the devastating wildfires raging in the state, and experts say a decades-old law plays a significant role in why insurance companies have fled the state in recent years. LiveNOW's Mike Pache spoke about the insurance issues with property insurance attorney Chip Merlin, from Merlin Law Group.
The wildfires ravaging Southern California are expected to add further fuel to the state's ongoing insurance crisis, as residents' options for property coverage continue to dwindle or even disappear.
Several insurance companies have either fled California, stopped writing new policies or otherwise reduced their exposure in the Golden State, citing business risks amid rising replacement costs and the inability to adequately raise premiums.
Here is a list of some of the insurance companies that either scaled back or left California in recent years:
Allstate
Insurance giant AllState paused its sales of new home insurance policies in California in 2022 due to wildfires and higher costs of doing business in the state.
CALIFORNIA WILDFIRES COULD COST INSURERS $20B, HIGHEST IN STATE'S HISTORY
American National
Texas-based American National announced last year it would stop offering homeowners insurance in the California market.
This browser does not support the Video element.
SKYFOX flies over clear Palisades skies
A sign of progress today as SkyFOX flies over the Palisades. You can see clear skies and no signs of flames or smoke. Tomorrow morning however, flames are expected to spark back up due to dangerous winds.
AmGUARD
AmGUARD, a subsidiary of Berkshire Hathaway-owned GUARD Insurance Companies, stopped writing homeowners policies in California in 2023.
Chubb
Chubb Chairman and CEO Evan Greenberg announced in a 2021 earnings call that the company would significantly reduce homeowners coverage in California, pointing to wildfire risks and the state's insurance regulations, according to S&P.
Falls Lake Insurance
Falls Lake informed California's Department of Insurance in 2023 it would be pulling out of the state completely because the company could not obtain reinsurance, PropertyCasualty360 reported that year.
CALIFORNIA FIRES: INSURANCE COMPANIES DROPPING COVERAGE AND FLEEING THE STATE DUE TO DECADES-OLD LAW
Farmers Insurance Group
Farmers Insurance Group began limiting coverage in California in 2023, and later that year, one of its subsidiaries, Farmers Direct Property and Casualty Insurance Company, withdrew from the state entirely.
Nationwide
Nationwide Private Client, a subsidiary of Nationwide, informed California last year that it would stop renewing all its homeowners insurance policies in the state by June 2025, according to the San Francisco Chronicle.
This browser does not support the Video element.
"I'm emotional": Photojournalist describes CA fires
Photojournalist Alekz Londos joined LiveNOW from FOX's Josh Breslow to describe the 'chaos and destruction' he has seen firsthand. Londos witnessed an entire Palisades neighborhood engulfed in flames.
State Farm
State Farm, California's largest home insurance provider, announced in 2023 that it would no longer accept applications for property insurance and other policies in California, citing "historic" increases in construction costs and inflation."
CALIFORNIA WILDFIRE BACKLASH: STATE FARM, OTHER INSURERS SLAMMED FOR DROPPING COVERAGE
Then in March of last year, the company said that it would cut 72,000 home and apartment policies starting in the summer.
The Hartford
The Hartford Financial Services Group stopped writing new homeowners insurance policies in California in early 2024.
Tokio Marine Insurance Co., Trans Pacific Insurance Co.
Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both owned by Japanese firm Tokio Marine Holdings Inc., filed notices to California's Department of Insurance in April 2024 saying the companies would cease offering homeowners insurance and umbrella policies in the state.
GET FOX BUSINESS ON THE GO BY CLICKING HERE
Travelers
The San Francisco Chronicle reported Travelers Insurance announced it would not renew homeowners policies for thousands of California properties from 2022 and 2023 due to wildfire risk.
Read more of this story from FOX Business.