In recent years, the number of home insurance policies written by California's surplus line carriers has fluctuated from a high of nearly 60,000 in 2018 to a low of fewer than 20,000 in 2021. In 2022, the number of homes covered by the surplus lines sector hovered around 39,000. Credit: Mario Cobian/Adobe Stock
California's home insurance market witnessed seismic changes in recent years as major insurance carriers pulled back or completely exited a state. In addition to its long-standing wildfire risks, the state is battling a myriad of impactful factors, such as inflation and rising construction costs, that are rocking home insurance markets nationwide.
All of these movements have left agents and property owners scrambling to place coverages in an exceedingly difficult environment. After finding rejections in the admitted market, many agents immediately turn to California FAIR Plan Property Insurance, the state's insurer of last resort. However, those policies might be better suited if placed with a surplus lines, or non-admitted, insurance company.
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Steve Hallo
Steve Hallo is managing editor of PropertyCasualty360.com. He can be reached at [email protected]
