Ramifications of the homeowners and fire insurance crisis in California include that 13.4% of real estate agents have lost a sale in 2024 because the buyer reportedly was unable to get affordable insurance coverage.
Realtors report that while the biggest concern home buyers used to have was obtaining a home loan, that concern has now been replaced by can they get homeowners insurance and can they afford it?
The problem is so bad that the California Association of Realtors has added a contingency period to the contract so that buyers can drop out of escrow if they cannot get insurance coverage.
Too many California buyers are told that they can only get insurance from the California Fair Plan. That’s just not accurate. The reality is that that 90% of home buyers can obtain other homeowners insurance policies.
Another myth is that the California insurance program is beyond repair, cannot be fixed. We’re told that’s why a number of companies are exiting doing business in California, or that’s why they are significantly raising rates.
It’s true that some insurance companies are losing money in the California market. It’s due to their over saturation in one area. Thus they resort to inflating the rates their customers are paying.
Having been an insurance professional for 25 years, specializing in placing insurance in fire zones, I’ve been on the frontline and seen this happen as the situation got worse and worse.
It’s time for things to change. Homeowners insurance needs to be reengineered. Change is not only possible but also essential. That is the solution to this serious issue. That’s why I co-founded WOWS Insurance Services with Joel Silver and Drew Engler.
Perhaps WOWS Insurance Services should be called WOWS Insurance Solutions. It’s the blueprint for changing the industry.
Learn more about WOWS Insurance Services at https://wowsinsurance.com/.
