April 2024 Newsletter


Living in California and struggling to find insurance has become an unsettling reality for many of us. With State Farm General Insurance announcing its decision not to renew policies for tens of thousands of property owners, including homeowners and commercial property owners, the options are fewer by the day.

The reasons behind insurance companies scaling back are understandable but offer little comfort to those of us grappling with the consequences:

  • Inflationary pressures have driven up costs, making insurance less
    affordable or even unaffordable altogether.
  • The heightened risks of wildfires, earthquakes, and other disasters mean insurers are treading cautiously, which translates to fewer options for us.
  • Rising reinsurance costs further strain the insurance industry’s financial capabilities, leading to cutbacks in policies offered.
  • Outdated govt regulations add another layer of complexity

As a last resort, more people are turning to the CA FAIR Plan but the surge in
enrollments is straining its finances. The FAIR Plan is facing a potential loss of $311 billion, with a current surplus of $200 million. Jeremy Porter, head of climate implications research at First Street Foundation has said that the trend is likely to continue and – due to the difficulty of finding insurance in high fire risk areas – “the moment that an individual gets a non-renewal letter from the private insurance market, they essentially lose 12% of their property value.” Let that sink in…

If you’re not being renewed here are a few resources to help with your search:

AAA – Joe Lehr
Joe has access to supplemental carriers outside of AAA’s standard policies

Farmers – Gabe Jenkins
Farmers often offers better coverage then most other carriers for less then CFP

EIX – Cody Beach
Our go-to for CFP and great to work with (many of you may already have your policy with him)