After several consecutive years of destructive wildfires reaking havoc in California, insurance companies are abandoning many parts of the state, leaving homeowners without coverage options. According to a data from the California Department of Insurance, several major insurance carriers including State Farm and Allstate, declined to renew nearly 350,000 policies in areas at high risk for wildfires since 2015.
With some many property owners running out of options for coverage or seeing their premiums skyrocket, California lawmakers decided to intervene. Earlier this year the state legislature passed a law giving the Department of Insurance emergency powers to keep active policies in effect. A one-year moratorium on non-renewals has also been enacted.
The wildfires of 2017 and 2018 caused a combined total of $25.3 billion in damages, substantially higher than in previous years.
Today, conforming no-point 30-year fixed mortgage rates are averaging 3.75 percent and 15-year rates are near 3.25 percent.
Do you have a question for Real Estate & Mortgage Analyst Mehran Aram? Submit your queries about a home purchase, refinance, or reverse mortgage via Aramco.Biz, social media (#AramcoReport), or over the phone at (866) 381-8888 and your questions may be featured in an upcoming article.