New data shows record drop in California homeowners’ insurance coverage

Alarming new data reveals that a record number of homeowners in California have been dropped by their insurers, sparking significant concern in the property insurance market. The study highlights that the private insurance industry is still cherry-picking policies, leaving many homeowners without sufficient coverage in high-risk areas prone to natural disasters. As a result, more property owners are being forced to turn to California’s Fair Access to Insurance Requirements (FAIR) Plan, which was originally intended as a last resort option. This shift in the insurance landscape is drawing attention to systemic issues within the industry, as insurers focus on profitability amid increasing claims due to climate change-related damages. Experts warn that this trend could lead to higher insurance premiums and reduced access for many homeowners. Policymakers are now under pressure to address the imbalance and ensure that the property insurance market remains fair and accessible to all Californians.

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