California Politicians Double Down on Encouraging People To Live in Wildfire-Prone Areas
Limited in their ability to raise rates, insurance companies have responded by issuing fewer new policies, and renewing fewer old ones in the riskiest areas of the state. That’s created the availability problems so many homeowners are facing now, says R.J. Lehman of the R Street Institute.
A.B. 2367, he cautions, could actually make things worse by encouraging some carriers to stop offering property insurance in California altogether.
“Homeowners insurance is risky. The returns are variable, and there’s companies that can just decide we don’t want to sell that product in that state anymore,” Lehman says, adding that they could content themselves with selling more profitable auto insurance instead.
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