California Homeowners Face Insurance Challenges
FRESNO, Calif. — ABC30 has been investigating California’s insurance crisis for several months, revealing that numerous homeowners are struggling to secure insurance policies. About a dozen insurance companies have either stopped or limited their coverage in the state.
In 2023, approximately 1.54% of homeowners in Fresno County had their insurance policies non-renewed. Homeowners have cited various reasons for non-renewal, including allegations of overhanging trees that they claim do not exist, and insurers considering children’s toys as “debris.”
Kaily MacDougall, a Clovis homeowner, received a non-renewal notice in January, stating that she needed to remove algae from her roof. Despite the algae being present when she initially purchased the house and was insured, MacDougall spent $1000 to remove it and had her policy renewed.
“It doesn’t seem to be like any real rhyme or reason,” MacDougall said. “We’ve never had any claims, we don’t have trees near our house, and we keep our house clean and free of debris. To pay this much a year and then an extra $1000 just to comply seems crazy.”
Janet Ruiz, Director of Communications for the Western States at the Insurance Information Institute, advised homeowners to act quickly if they receive a similar notice. “At the end of 75 days, it’s going to non-renew, and it’s going to take at least a month to find another insurance policy,” she explained.
Many homeowners have expressed concerns over receiving photos with their non-renewal notices, feeling it invades their privacy. However, the Insurance Information Institute states that aerial photos are part of the policy and are less invasive than physical inspections.
The institute also explained that insurance prices reflect the costs of covering claims. The state’s department of insurance is expected to roll out a “sustainable insurance strategy” this year to encourage insurance companies to return to the market.
For questions about home or renter’s insurance, industry experts will be available until May 7th at 7 pm.
