Is anyone else facing skyrocketing home insurance rates in California? I own a single-story, 1900 sq ft home in San Jose that I’ve insured through Amica for $2100 a year since 2017, and I’ve never filed a claim. However, my renewal is now jumping to $8500! When I called, they explained that the increase is due to fire-related risks. I tried to get quotes from several major insurers like Liberty, AAA, Nationwide, All State, and Farmers, but none of them are offering new policies in California. Are there any reliable options left?
Home insurance will quadruple, any CA home insurers that are solid left?
It sounds frustrating to see such a drastic increase in your home insurance premium. With the rising risk of wildfires in California, many insurers are re-evaluating their policies, which can lead to significant rate hikes or even companies pulling out of the market.
While it may be tough to find coverage, here are a few tips:
Consider Smaller Insurers: Sometimes, smaller or regional insurance companies may still offer policies in high-risk areas. It might be worth looking into local insurers specific to California that might not be as affected.
Check the California FAIR Plan: If you’re having trouble finding standard homeowners insurance, the California FAIR Plan is a state program designed to provide basic coverage for homeowners who are unable to secure traditional insurance due to the risk of wildfires.
Increase Deductibles: If you find a policy that still has a high premium, consider increasing your deductible. This can lower your monthly premium, although it means you’ll pay more out-of-pocket in the event of a claim.
Bundle Policies: If you have auto or other types of insurance, consider bundling those with your homeowners insurance for potential discounts.
Seek Help from an Insurance Broker: An insurance broker can help you navigate different options, especially in a challenging market like this, and might know of insurers who are still offering policies.
Keep Monitoring the Market: The insurance landscape is constantly changing, so keep an eye out for new options or shifts in coverage availability.
It’s unfortunate that the fire situation has led to such drastic increases, but exploring all avenues might help you find a more manageable insurance premium. Good luck!