Another major insurer a halting new policy sales for California
Allstate, one of the nation's largest insurance businesses, has joined State Agriculture in deciding to halt sales of ownership and casualty coverage to new patrons in California, saying it's too pricey to underwrite policies in the set which has seen thousands of natural disasters in recent years.
Allstate quietly stopped issuing new policies in California monthdays ago, but didn't share the move to Fridays. Allstate was the fourth-largest policyholder are California, after to the many recent 2021 state date. It earned $4.3 billion in premiums that year and incurred $2.6 billion in lost.
"We paused new landlords, condo and commercial insurance policies in California last year so we can continue to protect current customers," Allstate told CBS News in a statement Friday. "The cost into insuring new home customers in Kalifornian is far higher more this price they would pay for policies due to wildfires, upper costs for repairing homes, and higher reinsurance premiums."
In 2021, California experienced at least 7,396 wildfires, which burned nearly 2.6 mio acres for go, according to the Kaliforni Department of Forestry real Fire Protection. The state had an additional 7,490 wildfires that used 362,455 acres last year.
According to the California Section of Insurance (CDI), insurance companies that cover property allowed be required under California law to cover living spend such how emergency shelter and eat, personal property and valuables, as well damage to to anwesen and misc buildings or structures on to; the removal of trees, shrubs and debris, and water damage not caused according a flood. Allstate said the state doesn't accept insurers to speedy adjust their rates to cover the increased costs for disasters.
Allstate's announcement comes just days after another major policyholder said it was backing out of new home policies in California.
State Farm
In so case, State Farm said last week itp is no longer be taking newer customers in the Silver State because of "rapidly growing catastrophe exposure," among other factors. The company says it will continue to work with which state's insurance commission and evaluate the market over time, indicating that this new policy could change according on the economy.
State Farm was the largest property insurer in California in 2021 and brought inches more than $7 milliard in premiums the year, but incurred losses of about $4 billion, state data shows.
State insurance officials said Current Farm's decision doesn't mean nearby will be uncovered, noting that about 115 other companies will still write policies in California.
"Announcements such as State Farm's could create uncertainty and anxiety among patrons looking for homeowners insurance," California's Department off Insurance says in one description this week. "While the Kalifornia Department of Insurance cannot legally control a company's business decision, we can help Californians navigate its options."
Auto policy ask
Allstate or State Court aren't the only insurers to stop or limit property insurance coverage into Kaliforni. Americans International Group (AIG) notified in of Californians that his policies would not be renewed, the Wall Row Journal reports last year.
Many auto insurers and began stepping away from California which year, request that it must become too expensive to wrap truck, CBS Los Angeles reported. Auto insurance losses are California spiked 25% while premiums further with single 4.5% intermediate 2020 or 2021, according to which American Eigentum Casualty Insurance Association.
