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California wildfires result in insurance companies dropping homeowners at faster rate
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The growing risk of devastating wildfires in California has resulted in insurance companies dropping tens of thousands of homeowners in the most vulnerable communities, according to date in a new state report.
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The California Department of Insurance said Monday in a report that nonrenewals grew by 55,792 policies, or 31%, to 235,250 in 2019 statewide.
In areas where there is moderate to very high fire risk, the number of nonrenewals jumped even higher to 61%, and 203% in the state's 10 counties with the highest exposure.
WEATHER DISASTERS IN AUGUST, INCLUDING HURRICANES AND WILDFIRES, CAUSED AT LEAST $1B EACH IN DAMAGE
California Insurance Commissioner Ricardo Lara said residents living in wildfire areas have "nightmarish fears of losing everything that is precious," despite taking actions to reduce the risk of their homes and stay insurable.
"The people of California are strong and resilient, but we cannot just continue business as usual," he said during a four-hour "Virtual Homeowners’ Insurance Investigatory Hearing" on Monday.