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.
Below is a compilation of several insurance companies that have either reduced their operations or exited the California market in recent years:
Allstate Insurance Company
In 2022, insurance behemoth AllState halted the issuance of new home insurance policies in California as a response to increasing wildfires and rising operational expenses in the region.
United States National
Texas-based United States National announced last year it would stop offering homeowners insurance in the California market.
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 Company
In 2023, Falls Lake notified California's Department of Insurance about its decision to exit the state entirely due to its inability to secure reinsurance, as reported by PropertyCasualty360 that same year.
Farmers Insurance Group
In 2023, Farmers Insurance Group started to restrict its coverage options in California, and later in the same year, one of its subsidiaries, Farmers Direct Property and Casualty Insurance Company, completely exited the state.
Across the country
Across the country Private Client, a subsidiary of Across the country, 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.
State Farm Insurance
State Farm Insurance, 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."
Then in March of last year, the company said that it would cut 72,000 home and apartment policies starting in the summer.
Hartford
Hartford Financial Services Group stopped writing new homeowners insurance policies in California in early 2024.
Tokio Marine & Nichido Fire Insurance Co., Trans Pacific Insurance Company.
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.
Voyagers
The San Francisco Chronicle reported Voyagers Insurance announced it would not renew homeowners policies for thousands of California properties from 2022 and 2023 due to wildfire risk.
