The Hartford’s Decision to Stop New Home Coverage in California – Forbes Advisor – Earn Charter

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Californians looking for homeowners insurance are about to have even fewer options. Beginning February 1, The Hartford Financial Services Group will cease issuing new homeowners policies in that state.

The Hartford’s announcement comes just months after Allstate Corp. and State Farm said they would no longer offer homeowners insurance in California. Farmers Insurance began limiting its sales of homeowners policies in California in July, blaming “record-breaking inflation, severe weather events, and reconstruction costs continuing to climb.”

The Hartford cited “unique challenges” in California’s homeowners insurance environment as the reason for ceasing to issue new homeowners insurance policies.

California faces heightened wildfire concerns, with 13 of the state’s 20 most destructive fires occurring since 2017, according to a report by the Philadelphia Federal Reserve.

The Hartford is a relatively small insurer in the Golden State. With a market share of less than 1%, it ranked as California’s 17th-largest provider of homeowners insurance in 2022, according to BestLink.

Current Customers of The Hartford Not Affected

Existing homeowners insurance policies will not be affected and those that meet the company’s underwriting guidelines will still be eligible for renewal. Existing policyholders should contact their insurance agent to verify that their circumstances still fall within policy guidelines.

The Hartford will continue to issue other types of insurance products in California, including business insurance and personal auto.

What Can Homeowners Do Amid Soaring Insurance Rates?

Homeowners should anticipate rising insurance rates this year, particularly in disaster-prone states like California.

In 2023, of the top home insurers in the U.S., Farmers Insurance Group and USAA imposed the highest premium increases. Farmers raised rates by 14.8% as of September 1, slightly exceeding USAA’s 14.7%, according to S&P Global Market Intelligence’s RateWatch.

To get the most competitive price, shop around. Compare quotes to be sure you’re not overpaying.

Find the Best Homeowners Insurance Companies Of 2024

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