Senator urges insurance commissioner to act on skyrocketing property premiums, coverage drops
State Senator Scott Wilk delivered a letter to California Insurance Commissioner Ricardo Lara calling on him to act immediately on the issue of rising property insurance costs and coverage drops.
“As if life in California wasn’t expensive enough, homeowners are understandably shocked to see their insurance premiums skyrocket or see their policies dropped altogether,” said Wilk. “Because of this, residents find themselves at risk of losing their homes or being unable to sell them. It is a dire situation to say the least.”
On March 1 the Senate Committee on Insurance held a hearing on the matter, listening to experts from the insurance industry, homeowners associations and stakeholders. While California’s troubled insurance market has been a growing problem for years, the issue is now affecting groups such as homeowner’s associations. In some cases, HOAs have seen their premiums increase as much as 1,000 percent.
Homeowners who have had their coverage dropped can use the California Fair Plan as a last resort, however the Fair Plan can be costly and currently does not offer policies large enough to cover HOAs.
“With wildfire season on the horizon, I strongly urge the commissioner to find solutions now to protect millions of California homeowners and prevent a complete failure of the insurance market,” concluded Wilk.