California wildfires impacting homeowners insurance

Years of devastating wildfires in California are having financial impacts on the insurance market for homeowners coverage

Wildfireaking property and lives.

As i recently discovered&the fires are also unraveling the california market for homeowners' insurance - & agents say some companies are no longer writing... or renewing policies.

"well, there's always been wildfires, but they have been lightly up close and personal lately."

Bob gustafson lost his paradise home to the camp fire.

He moved to oroville, but says, finding insurance, was tough!

Now, two years later?

"it is definitely a scary and frustrating time for homeowners throughout northern california, or basically all of rural california."

Insurance agent jeft fowler says many homeowners are now paying the price of years of devastating wildfires.

"this home is right in the middle of town las gatos, and is ineligible for wildfire."

A recent california department of insurance study shows homeowners in fire impacted zip codes are seeing a 10% increase in non -rewals.

"insurance must be part of the solution."

Earlier this year, california's insurance commission introduced temporary legislation to halt companies from pulling out of the market 0r raising rates.

"insurance companies must renew their approach to protecting our fire hardened communities."

But the list of fires just keeps growing.

This year alone, more than 81-hundrd wildfires, more than 3.8 million acres burned, more than two dozen dead.

The prediction for insurance?

An even tighter market ahead.

"it's a major event that has happened over five years; these insurance companies have lost billions of dollars."

Those which are writing policies are tightening guidelines on what areas are considered high risk.

"defensible space has never been more of an issue right now for keeping your existing insurance carrier."

Cal fire also has maps which rank high risk areas throughout the state.

Areas in yellow - moderate.

Orange - high.

And where you see red&very high risk.

Many who can't find coverage, are now turning to the california fair plan, which offers high risk customers basic, and typically more expensive coverage.

"are you nervous?

Yes, i'm nervous, as an insurance agent and as a resident of northern california of how this is going to impact insurance options moving forward."

Fowler and other insurance agents i spoke with, said they don't see an easy solution - they say, shop around for coverage - and do so*earl* before your policy - is up.

Later this month, insurance commissioner lara is holding a virtual hearing on california's fire-insurance status.

You can find information to that at our website, action news now.com### an