Most Californians are well aware of the wildfires that have ravaged the state. They watched the news with a sense of hopelessness as 20,000 homes burned in the last two years. However, most Californians are not aware of the dramatic increase in homeowners insurance that is just around the corner.
Insurance companies often view an entire state as a marketplace. When part of the marketplace is affected by a natural disaster, the entire marketplace suffers.
California is no different. Even if you do not live in areas directly affected by the wildfires, your marketplace is still affected.
At Mesa Properties, we have been watching the insurance market closely. So far, the most dramatic increase seen in our territory is from $400 to $1700 per year for homeowners insurance.
You read that right, an increase of 325%
This is a direct result of the more than $11,800,000,000 ($11.8 billion) that insurance companies are currently paying out.