FOX Business Sherrill Cassone joins Fox & Friends First to discuss California's insurance crisis as wildfires ravage Los Angeles and broader concerns about the industry moving forward.
D Wildfires in Southern California The state's ongoing insurance crisis is expected to add more fuel, as residents' options for property coverage dwindle or even disappear.
quite a few Insurance companies Citing business risks between rising replacement costs and an inability to adequately raise premiums, businesses have either fled California, stopped writing new policies or otherwise reduced their exposure to The Golden State.
Homes burn as strong winds drive the Eaton Fire on January 7, 2025 in Pasadena, California. (David McNew/Getty Images/Getty Images)
Here is a list of some of the insurance companies that have moved back or left California in recent years:
Allstate
Insurance giant Allstate has stopped selling its new home insurance policies in 2022 due to California wildfires and the high cost of doing business in the state.
California wildfires could cost insurers $20 billion, the highest in state history
American National
Texas-based American National announced last year that it would stop offering homeowners insurance in the California market.
AmGUARD
AmGUARD, an auxiliary Owned by Berkshire Hathaway Guard Insurance Company will stop writing homeowners policies in California in 2023.
chub
Insurance company Chubb began reducing its exposure to California three years ago. (Photo illustration via Budrul Chukrut/Sopa Images/Getty Images via Light Rocket/Getty Images)
Chubb Chairman and CEO Evan Greenberg announced in a 2021 earnings call that the company will significantly reduce coverage for homeowners in California, according to S&P, pointing to wildfire risks and the state's insurance regulations.
Falls Lake Insurance
False Lake told the California Department of Insurance in 2023 that it would pull out of the state entirely because the company couldn't get reinsurance, Property Casualty 360 reported that year.
California fires: Insurance companies dropping coverage and fleeing state over 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
A sign is posted in front of a State Farm insurance office on January 03, 2024 in Berkeley, California. State Farm announced last year that it would drop 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 It will no longer accept applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation.”
California wildfires backlash: State Farm, other insurers slammed for dropping coverage
Then the company said that it will do it in March last year 72,000 home and apartment policy deductions start in summer.
Hartford
Hartford Financial Services Group will stop writing new homeowners insurance policies in California as early as 2024.
Malibu resident Safia Hall gives a first-hand account of the devastating California wildfires in 'Making Money'.
Tokyo Marine Insurance Co., Trans Pacific Insurance Co.
Tokyo Marine America Insurance Co. and Trans Pacific Insurance Co., both owned by Japanese firm Tokyo Marine Holdings Inc., filed notices with the California Department of Insurance in April 2024 that the companies would Stop paying homeowners insurance and umbrella policy in the state.
Get Fox Business on the go by clicking here
the traveler
The San Francisco Chronicle reports that Travelers Insurance has announced it will not renew homeowners policies for thousands of California properties through 2022 and 2023 due to the risk of wildfires.