In a surprise announcement, California’s second-largest insurance provider, Farmers Insurance, says it is going to add more policies for property owners.
Starting Saturday, Farmers will start taking applications for new policies, including for condominium, renters, umbrella, landlord, vacant and manufactured home policies.
Farmers insurance stopped writing policies for California renters and condo owners last year, in part because of the huge losses and heightened risk from wildfires across the state. State Farm and Allstate also stopped writing policies in the state, with thousands of homeowners having to go elsewhere for coverage.
Farmers says it is adding new customers because the marketplace has improved. The company credits recent changes the state Department of Insurance is trying to make. California's insurance commissioner said in a statement he believes this is a positive step forward.
Consumer advocates agree.
"Today’s announcement is a little bit of hope on the horizon, and that’s what I think a lot of us needed, something, some sign that insurers are going to come back, to reward all of the concessions that have been made to address what they say they need," said Amy Bach, executive director of United Policyholders.
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NBC Bay Area consumer investigator Chris Chmura says the state is focused on making more policies available. But, with these new offerings, there's no indication these new policies will be more affordable to consumers.
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