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California Fire Insurance Market Could Change

The “new normal” of California’s fire season, with year-round threats to homes statewide, could alter the market for fire insurance, according to California Insurance Commissioner Dave Jones...
December 20, 2017

The “new normal” of California’s fire season, with year-round threats to homes statewide, could alter the market for fire insurance, according to California Insurance Commissioner Dave Jones. With multiple major wildfires in Southern California following on the heels of fires in Northern California that resulted in a record $9 billion in insurance claims, Jones said insurers could become more selective about where they issue policies.

“It’s possible in the wake of these disasters
, that we’ll see some insurance companies, in some homes, begin to decide that they don’t want to write new policies,” he said. “Even if a homeowner has fortified their home with fire prevention methods, cleared brush, the insurer may still decide that because of the location of the home, the topography, the wind direction, its proximity to large forests, that the particular home is one they don’t want to write.” Jones added, “They have the right under the California statutes to decide where they’re going to write and how much.”


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