State Farm and Allstate have filed plans that could reopen limited new homeowners insurance business in California after years of pullbacks. Neither company is broadly accepting new homeowners applications yet; the filings remain subject to state review, and State Farm's approach ties eligibility to wildfire-resilience standards.
According to a Weekly Real Estate (WREnews.com) article today, "two of the biggest names associated with California’s retreat from homeowners insurance are moving—cautiously—in the opposite direction.
State Farm General and Allstate have filed plans that could allow them to resume writing some new homeowners policies in California after years of restrictions, according to the California Department of Insurance and company filings reported this week.
The development is potentially significant for homeowners, buyers, lenders and real estate professionals in a state where obtaining property insurance has become part of the transaction risk. But the word potentially matters: neither insurer has broadly reopened for new homeowners business, and the filings remain subject to regulatory review."
This could be very good news for our local real estate market as home owners in high fire zones have felt the financial pressure of huge increases when being forced to go to the California Fair Plan for fire insurance. Fingers crossed this plays out in a positive way.
