Last year I wrote a couple posts about the decline of the California insurance market. Major insurers like State Farm and Allstate announced they would continue doing business with existing customers but wouldn’t write any new policies. Farmers Insurance said they would cap the number of new policies they would write per month. Those are three of the top four insurers in the state. Several of the smaller ones simply announced they were leaving California.
All of this matters because unless you were able to pay case for your home, and lets face it very few people can do that, the bank holding your mortgage requires you to have insurance for their protection. If you can’t get a policy you can’t buy a house.
Why is all of this happening? The newspapers love to blame it on climate change and there’s definitely truth to the fact that California went through years of drought…
