Farmers Insurance, California’s second-largest insurer, announced earlier this week that it would reopen some closed policies to new California customers and write more homeowners insurance.
Starting Saturday, the insurance company will resume offering several insurance products to new customers across the state, including renters, condo and landlord insurance. The company said many of these services had not been available to new customers for more than a year.
The reintroduction of these policies will be done using a phased approach.
The company’s expansion plans include:
Farmers Condo Insurance (both owner-occupied and rented to others) will reopen for new customers on December 14, 2024. Farmers Renters Insurance will reopen to new customers on December 14, 2024. Farmers Personal Umbrella Insurance will reopen to new customers on December 14, 2024. December 24, 2024 Foremost Manufated Home Landlord Insurance will reopen for new customers starting March 1, 2025 Foremost Dwelling Fire Landlord and Dwelling Fire Vacant insurance will reopen for new customers starting March 15, 2025 will be
Farmers Insurance has also committed to accepting 9,500 new homeowners insurance policies per month from new customers, up from its previous commitment of 7,000 per month.
“Farmers Insurance recognizes that California’s insurance market has indeed improved, and we are committed to increasing the benefits available to California consumers,” Behram Dinshaw, president of Farmers Insurance’s personal insurance division, said in a statement. “We have decided to take these steps to increase compensation.” “Additionally, with the impending implementation of Secretary Ricardo Lara’s Sustainable Insurance Strategy next year, we want to be well-positioned to offer even more coverage options to residents across the state. ”
The Sustainable Insurance Strategy is a new set of regulations that will enable insurers to use forward-looking modeling that incorporates the effects of climate change when setting rates.
Previously, companies typically had to use historical data, which did not include climate change data.
In return, companies would be required to develop comprehensive policies in “wildfire-affected areas” that take into account mitigation measures taken by homeowners, businesses and communities.
Farmers Insurance is one of many companies that has decided to limit its operations in California, citing inflation, severe weather and rebuilding costs.
Other companies, including Allstate and State Farm, also stopped accepting claims for business and personal property in California last year for similar reasons.
After Farmers Insurance’s announcement, experts say other insurance companies may start offering more coverage again in California.
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