California’s insurance crisis: Here are the carriers that have fled or reduced coverage in the state
FOX Business’ Cheryl Casone joined ‘FOX & Friends First’ to discuss the insurance crisis in California as wildfires ravage Los Angeles and broader concerns about the industry moving forward.
The wildfires ravaging southern California It is expected to add further fuel to the nation’s ongoing insurance crisis, as residents’ options for property coverage continue to dwindle or even disappear.
Several insurance companies have fled California, stopped writing new policies or otherwise reduced their exposure in the Golden State, citing business risks amid rising replacement costs and an inability to adequately raise premiums.
Homes burn as high winds fuel the Eaton Fire in Pasadena, California, on Tuesday. (David McNew/Getty Images/Getty Images)
Here is a list of some of the insurance companies that have either downsized or left California in recent years:
Allstate
Insurance giant AllState has 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 FIRES COULD COST INSURERS $20 BILLION, THE HIGHEST IN THE STATE’S HISTORY
American National
Texas-based American National announced last year that it would stop offering homeowners insurance in the California market.
AmGUARD
AmGUARD, a subsidiary of the company Owned by Berkshire Hathaway GUARD Insurance Companies to Stop Writing California Property Policies in 2023
Chubb
Insurance company Chubb began reducing its California exposure more than three years ago. (Budrul Chukrut/SOPA Images/LightRocket via Getty Images/Getty Images)
Chubb Chairman and CEO Evan Greenberg announced in a 2021 earnings call that the company will significantly reduce coverage for households in California, citing fire risks and state insurance regulations, according to S&P.
Falls Lake Insurance
Falls Lake notified the California Department of Insurance in 2023 that it would pull out of the state entirely because the company was unable to obtain reinsurance, PropertyCasualty360 reported that year.
CALIFORNIA FIRES: INSURANCE COMPANIES DROP COVERAGE AND FLEE THE STATE BECAUSE OF 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, pulled out of the state entirely.
Nationwide
Nationwide Private Client, a subsidiary of Nationwide, notified California last year that it would stop renewing all of its homeowners insurance policies in the state by June 2025, according to the San Francisco Chronicle.
State farm
State Farm announced last year that it would cancel 72,000 insurance policies in the Golden State. (Justin Sullivan/Getty Images/Getty Images)
State Farm, California’s largest home insurance provider, announced in 2023 that it will no longer accept applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation.”
CALIFORNIA FIRE RESPONSE: STATE FARM, SECOND INSURER FILED FOR DROPPING COVERAGE
Then in March of last year, the company said it would reduce 72,000 policies of houses and apartments starting in the summer.
Hartford
Hartford Financial Services Group has stopped writing new California homeowners insurance policies beginning in 2024.
Malibu resident Saphia Hall gives a first-hand account of the catastrophic wildfires in California on ‘Making Money’.
Tokio Marine Insurance Co., Trans Pacific Insurance Co.
Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both owned by Japan’s Tokio Marine Holdings Inc., filed notices with the California Department of Insurance in April 2024 saying the companies would stop offering home insurance and umbrella policies in the state.
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Passengers
The San Francisco Chronicle reported that Travelers Insurance has announced it will not renew title policies for thousands of properties in California starting in 2022 and 2023 due to the risk of wildfires.
