Several structures are destroyed annually as wildfires continue to rage in many parts of California. Thanks to increased wildfire activities across the state, residents are finding it harder to obtain and keep home fire insurance in California. This is because a rising number of insurance companies aren’t renewing policies for consumers who reside in areas they perceive too risky to cover. The state estimates that over a million California homes are deemed high risk for wildfires.
According to a report from the State’s Department of Insurance, California homeowners’ complaints about non-renewal of their policies multiplied threefold between 2010 and 2016, and complaints about premium hikes also increased by 217% within the same period.
California homeowner complaints about being dropped from their plans increased threefold from 2010 to 2016, and complaints about premium hikes increased by 217%, reported Newberry, citing a California Department of Insurance report. The California Insurance Commission stated in the 2019 general report that there’ll be more rate increases and more policies dropped, especially in high-risk areas.