A recent forum at the PSAR East County Events Center addressed California’s homeowner's insurance crisis. Experts shared insights and discussed ongoing efforts to improve the situation. Key takeaways include:
- Legislative Efforts: Legislators and state officials are actively working to solve insurance problems.
- Appeal Process: Consumers can appeal insurance cancellations through the California Department of Insurance.
- Regulatory Changes: The California Department of Insurance is considering regulations for forward-looking risk modeling to facilitate policy writing.
- Rate Hikes: State regulators may approve double-digit rate hikes as part of the Sustainable Insurance Strategy.
- HOA Challenges: Homeowners associations face significant increases in master policy prices.
- Early Shopping: Members’ clients should start shopping early for homeowners insurance due to rising costs.
- Cal Fire Resources: Cal Fire offers maps, home inspection resources, and suggestions for creating defensible space.
- Economic Realities: Factors like home age, and age of electrical, plumbing, and roofing systems contribute to higher rates. Inflation and increased home values also drive premium surges.
- Catastrophe Modeling: Allowing insurers to use future risk assessments with historical data might reduce reliance on the FAIR Plan, the insurer of last resort.
- FAIR Plan Safety Net: The FAIR Plan is crucial for many Californians amid climate-related threats.
- Legislative Insights: Insights into legislative efforts to control insurance costs were provided by Chris Jonsmyr from Assemblymember David Alvarez’s office.
The panelists included: Cal Fire Battalion Chief Alex Elward, Sharon Smith - California Department of Insurance,
Maureen Moran - PSAR Member & Insurance Agent, Bob Hillard - PSAR Member & Insurance Agent, and Chris Jonsmyr - Office of Assemblymember David Alvarez
Thank you to Kay LeMenager - PSAR Broker, Organizer of the Forum, and Chair of PSAR’s Government Affairs Committee who worked with the East San Diego County Government Affairs Sub-Committee to host this informative event.
Please see this link for an FAQ from the California Commissioner of Insurance.