| Posted: 14 January 2025 at 10:26pm | IP Logged | 7
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Mortgage lenders in the US require home buyers to have homeowner's insurance. That impacts the decision of whether to build in areas where insurance is prohibitively expensive or unobtainable.
However, in recent years insurance companies have stopped renewing existing policies and/or stopped issuing new policies in certain areas. So you may have had a policy at some point, but been informed that your carrier is dropping you at the end of your current coverage period (or hitting you with a HUGE rate increase), and you are unable to find a new carrier who will take you on, or charge a premium you can afford.
This is a huge problem in CA. I can't imagine how it will be impacted by the fires that are happening right now.
Unfortunately, I don't see a private market solution but CA has implemented a public program that is at least providing some coverage to homeowners in these areas:
https://www.msn.com/en-gb/money/real-estate/thousands-of-cal ifornians-uninsured-what-happens-when-wildfires-destroy-thei r-homes/ar-BB1rnKK1?ocid=BingNewsSerp
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