Hartford Stops Writing New Homeowner Policies In California Effective February 1st

[hatrack]

The Hartford issued the following statement following a request for comment for this article: “The homeowners’ insurance environment in California has unique challenges that have required us to reconsider the viability of writing new homeowners’ business in the state. Based on these challenges and our analysis of the trends, we have decided to stop offering new homeowners policies starting Feb. 1, 2024. We do not enter into this decision lightly, and we appreciate and support efforts like Commissioner Lara’s Sustainability Insurance Strategy to help bring stability to the market.”

The Hartford said it will be watching those efforts, and it continue to write all its other existing products in California, such as business insurance and personal auto, and will continue to renew existing homeowners’ business consistent with its underwriting guidelines.

State Farm General Insurance Co. announced at the end of May that it had stopped accepting new policy applications for property/casualty insurance in California for reasons including increased risks from wildfires and inflation. The decision followed a similar move by Allstate Corp. last year.

Other large carriers that have announced a reduced appetite for writing California homeowners insurance include American International Group (AIG) and Chubb.

EDIT

https://thinc.blog/2024/01/26/another-insurer-bolts-from-california/

[SouthernDem4ever]

1. Sounds like it's time for a non-profit social insurance policy system for high risk states

so they will have more money for claims without paying for huge bonuses and salaries of execs or worrying about their quarterly reports to shareholders which discourages them from treating their insured fairly.

[wolfie001]

2. Great point!

California usually leads on issues like this! Go Dems!!!

[Random Boomer]

3. "Fairly" is a moving target these days

The underlying issue -- increased climate volatility -- can't be solved with a non-profit insurance agency for high-risk regions. Insurance companies rely on a very large pool of customers to help cover payouts. They've reached the point where that pool simply isn't deep enough to cover the costs associated with specific areas.

A pool of nothing but high-risk customers who can't get commercial insurance will need to charge exorbitant premium prices to cover its payouts. The savings from executive bonuses is miniscule compared to the debt racked up by forest fires, mud slides and floods.

[SouthernDem4ever]

4. Oh I don't know

A few executive bonuses could probably rebuild 100 decent homes. For profit insurance is completely counter-productive whether you are talking about property or health.