PARADISE, Calif. — Two insurance industry giants have pulled back from California’s home insurance marketplace, saying that increasing wildfire risk and soaring construction costs have prompted them to stop writing new policies in the nation’s most populous state.
State Farm announced last week it would stop accepting applications for all business and personal lines of property and casualty insurance.
Allstate paused all property insurance in November, specifically citing inflation and wildfire risk.
Homeowners on the ridge in Paradise were outraged Tuesday about the news, expressing just another challenge the community has to endure.
“We’ve already been killed by the fire, and now we are being killed again by prices being just so sky high. We are priced out of being able to get affordable insurance,” said Tom Adams.
Adams, who was born and raised in Paradise, and has lived in the town consistently since 1997, said he’s having difficulty trying to build a new home on the ridge.
Others said locals in Paradise and Magalia are having a tough time getting insurance regardless of insurance agency.
Some residents have been the victims of home construction scams while rebuilding.
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Alice J. Roden started working for Trending Insurance News at the end of 2021. Alice grew up in Salt Lake City, UT. A writer with a vast insurance industry background Alice has help with several of the biggest insurance companies. Before joining Trending Insurance News, Alice briefly worked as a freelance journalist for several radio stations. She covers home, renters and other property insurance stories.