From 2013 to 2022, California’s homeowners insurers paid out more than $1.13 in claims for every dollar they collected in premiums on average. This shows the aftermath of a 2018 blaze that destroyed the town of Paradise, 90 miles north of Sacramento. Bay Area News GroupFreeley is the CEO of the California Association of Community Managers.
In one instance, annual premiums are now more than eight times higher than the year before, soaring from $30,000 to more than $247,000. In another example, over the past four years we have seen monthly association dues increase from $238 per month to $728 per month. This is unsustainable.of the state’s top 15 insurance companies have restricted access to new policies or exited the California market. Worse, this troubling trend is accelerating.
That’s because California’s 35-year-old insurance system is too slow, cumbersome and no longer equipped to handle today’s realities like climate-driven extreme weather, wildfires and record inflation.