Get your quote NOW
(559) 549-0410
Ship From:

Ship To:

Get a FREE Quote

Price Hikes For Insurance Terrifies Many Californians

You are currently viewing Price Hikes For Insurance Terrifies Many Californians
  • Post category:News

When the annual insurance documents arrive, it’s a moment that often strikes fear in many individuals. Abruptly, they confront significant rate hikes or, even worse, the abrupt termination of coverage.

“It’s undeniably a crisis,” remarked Susan Bookheimer, a homeowner in Calabasas. “Each passing year seems to bring escalating challenges because insurance terms are changing. With every renewal, people are hit with these exorbitant bills.”

How can California alleviate the burden of soaring insurance premiums? Experts assert that the key lies in mitigating risk.

Former California Insurance Commissioner Dave Jones highlighted several measures already underway in the state. Notably, efforts are being made to enhance forest management, particularly in regions close to residential areas.

“One thing we’re certain of is that better forest management, through practices like thinning and controlled burns, significantly reduces the risk of catastrophic wildfires,” Jones affirmed.

Following this, Jones emphasized the necessity for insurance companies to adjust their risk assessment models.

“Current models fail to account for forest treatments. Despite billions being spent on forest management, properties adjacent to treated areas see no insurance benefit. This needs to change,” Jones emphasized.

Critics argue that insurance companies guard these models closely, developing proprietary formulas and disclosing limited information to consumers regarding qualification and cost.

“There’s a lack of transparency,” noted Carmen Balber of Consumer Watchdog, a California-based organization dedicated to consumer rights. “We urge the state to develop a public model to assess climate risk, incorporating local efforts in fire prevention. This should be reflected in insurance rates.”

Jill Epstein, CEO of the Independent Insurance Agents and Brokers of California, portrayed insurance companies as highly adept at risk assessment, emphasizing the need for rate adjustments to align with risk factors.

“They need rates that correspond to risk. There’s been a disconnect in recent years,” Epstein observed.

Los Angeles County Supervisor Kathryn Barger introduced a motion urging California Insurance Commissioner Ricardo Lara to scrutinize the compliance requirements imposed by insurance companies on homeowners to maintain coverage.

“We’re urging collaboration between the Department of Insurance and the insurance industry to ensure homeowners aren’t further burdened by escalating costs,” Barger

Leave a Reply