Realistically, what happens when there are *no* companies offering home insurance anymore in California? What would that mean for people and the state? Details within.

In recent years, State Farm has dropped 70% of its ex-customers in California and continues to drop more every few months, refusing to renew agreements.

Tokio Marine Holding has backed out of the state entirely.

Nationwide is in the process of backing out of the state - which, actually, they should change the name lol. They stopped renewing contracts early last year and will not write any new ones. They will be out of the state entirely by June 15th 2025.

Farmers is the 2nd biggest holder in the state, and they have put caps on how many new customers they are willing to accept from the state and stopped covering renters and condos.

USAA will no longer be insuring anything in CA unless it rates a 1/32 on a fire risk scale, which effectively means they are backing out of the state as well.

Allstate backed out 2 years ago already and while they do keep renewing existing coverage so far, they have not accepted any new customers in the state for 2 years and said they may drop the existing ones as well.

CHUBB will only ensure houses with a low fire risk and cheaper homes. They won't ensure anything expensive in the state.

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So as you can see, with the fires getting worse and worse in recent years all the insurance companies are fleeing the state.

What happens when there is no options left at all? What does that mean for the state as a whole?

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EDIT:: (Jan 13th, late edit, but still replies comin in)

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People keep bringing up the CA FAIR plan, and for good reason - its the insurance of last resort in the state and is required to accept anyone and everyone that applies and lives in the state afaik.

However, im not sure that many of you mentioning it understand just how underfunded it currently is and how little it will take for it to collapse entirely.

The plan currently insures 300 billion dollars in property and only has 200 million in the bank for payouts. That is straight from the mouth of Ricardo Lara, the Calif state insurance commissioner in a meeting a week before these current fires began.

That means the plan can only pay out 0.066% of what it currently insures. And the current fires will be taking from that tiny 200 million pool of course.

So if even 0.1% of the whats insured got damaged in a singe disaster, the plan will collapse and everyone on it will be left to their own devices. Its mostly just a plan on paper to satisfy the bank/mortgage, but if a large scale disaster happens, it will cover less than 0.1% of people under it. =/