Connecticut-based insurer The Hartford announced it will no longer sell new home insurance policies in California, citing the “unique challenges” of the state’s home insurance market.
The insurer, in business since 1810, said it will continue to renew existing homeowners policies and to write new business and personal auto policies in California.
Shrinking home insurance market
Multiple insurers either exited or limited their business in California’s personal property insurance market in 2023, including State Farm, Farmer’s, Allstate, Kemper Independence, and three Kemper-owned insurers, Unitrin Direct Property & Casualty, Merastar Insurance, and Unitrin Auto and Home Insurance.
Costs associated with inflation, climate change, wildfires, and state legislation have made some insurers unwilling to underwrite home insurance policies in the Golden State. Shrinking insurer availability has contributed to rising home insurance costs in California. In 2021, home insurance policies with a $200,000 dwelling coverage limit averaged $972 per year, according to Insurify data. By the end of 2023, that average had risen to $1,056.
What’s next?
The Hartford says it will renew home insurance policies for current customers who continue to meet the insurer’s underwriting standards.
Homeowners looking for new policies or who currently have policies with insurers limiting or ending their business in the state can use the California Home Insurance Finder to look for a new agent or insurer.
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