{"id":700,"date":"2022-02-21T20:28:28","date_gmt":"2022-02-21T20:28:28","guid":{"rendered":"https:\/\/sites.sandiego.edu\/cpil-blog\/?p=700"},"modified":"2022-02-21T20:28:28","modified_gmt":"2022-02-21T20:28:28","slug":"new-report-released-by-the-department-of-insurance-shows-insurance-companies-non-renewed-fewer-homeowners-in-2020","status":"publish","type":"post","link":"https:\/\/sites.sandiego.edu\/cpil-blog\/2022\/02\/21\/new-report-released-by-the-department-of-insurance-shows-insurance-companies-non-renewed-fewer-homeowners-in-2020\/","title":{"rendered":"New Report Released by the Department of Insurance Shows Insurance Companies Non-Renewed Fewer Homeowners In 2020"},"content":{"rendered":"<h3>By Julia Zeigler<\/h3>\n<p>On December 20, 2021, the \u00a0California Department of Insurance (DOI) released a new <a href=\"https:\/\/perma.cc\/SM8F-GSLZ\">report<\/a> analyzing data it collected on the number of new, renewed, and non-renewed policies issued by insurance companies writing $5 million or more in premium in homeowners and dwelling fire lines of insurance from January 1 to December 31, 2020. The report also contains data from the FAIR Plan, California\u2019s insurer of last resort. \u00a0The report shows that the number of homeowners non-renewed by insurance companies fell by 10 percent statewide in 2020 compared to the previous year. According to Insurance Commissioner, Ricardo Lara\u2019s <a href=\"https:\/\/perma.cc\/32RF-7HJ5\">press release<\/a>, 80% of the statewide reduction was because of mandatory moratoriums by Commissioner Lara.<\/p>\n<p>The number of non-renewals by insurance companies fell from 235,597 in 2019 to 212,7287 in 2020 and the number of new and renewed homeowners\u2019 policies issued by the voluntary market increased by 82,635. Data shows that areas with the greatest risk of wildfires experienced higher rates of non-renewals. The FAIR Plan, an association made up of insurance companies that serve as California\u2019s \u201cinsurer of last resort,\u201d provides insurance to those who could not find an insurance company willing to write the coverage. This number increased by 49,049 policies in 2020.<\/p>\n<p>Areas in the state under moratoriums saw non-renewals fall by nearly 20 percent, compared to a less than three percent decrease in areas not under moratorium. According to the Commissioner, several major insurance companies, including Allstate, CSAA, and Farmers, have told the Department of Insurance that they will increase the number of new homeowner\u2019s policies written in the state and cease or limit non-renewals. In addition, recent insurance company rate filings approved by DOI have significantly expanded insurer-recognized mitigation efforts made by consumers and grown discount offerings, up to 20 percent for wildfire hardened homes.<\/p>\n<p>In 2019, Commissioner Lara <a href=\"https:\/\/perma.cc\/RKY6-3WT9\">ordered<\/a> the FAIR Plan to raise homeowners\u2019 coverage limits to keep pace with increasing home values in California. The FAIR Plan resisted the Commissioner\u2019s Order, but Los Angeles Superior Court Judge Strobel <a href=\"https:\/\/perma.cc\/2ZC3-8YA2\">ruled<\/a> in<em> California Fair Plan Association v. Lara<\/em>, Case No. 19STCP05434, in July that the Commissioner does have this authority.<\/p>\n<a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-facebook nolightbox\" data-provider=\"facebook\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Facebook\" href=\"https:\/\/www.facebook.com\/CPILUSD\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px;margin-right:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"Facebook\" title=\"Follow us on Facebook\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/facebook.png\" \/><\/a><a class=\"synved-social-button synved-social-button-follow synved-social-size-32 synved-social-resolution-single synved-social-provider-twitter nolightbox\" data-provider=\"twitter\" target=\"_blank\" rel=\"nofollow\" title=\"Follow us on Twitter\" href=\"https:\/\/twitter.com\/cpilusd\" style=\"font-size: 0px;width:32px;height:32px;margin:0;margin-bottom:5px\"><img loading=\"lazy\" decoding=\"async\" alt=\"twitter\" title=\"Follow us on Twitter\" class=\"synved-share-image synved-social-image synved-social-image-follow\" width=\"32\" height=\"32\" style=\"display: inline;width:32px;height:32px;margin: 0;padding: 0;border: none;box-shadow: none\" src=\"https:\/\/sites.sandiego.edu\/cpil-blog\/wp-content\/plugins\/social-media-feather\/synved-social\/addons\/extra-icons\/image\/social\/circle\/64x64\/twitter.png\" \/><\/a>","protected":false},"excerpt":{"rendered":"<p>By Julia Zeigler On December 20, 2021, the \u00a0California Department of Insurance (DOI) released a new report analyzing data it collected on the number of new, renewed, and non-renewed policies issued by insurance companies writing $5 million or more in <a class=\"more-link\" href=\"https:\/\/sites.sandiego.edu\/cpil-blog\/2022\/02\/21\/new-report-released-by-the-department-of-insurance-shows-insurance-companies-non-renewed-fewer-homeowners-in-2020\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>\n","protected":false},"author":1013,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[132877,137854],"tags":[132879,137819,132937,138001,134338,138002,29310],"coauthors":[132864],"class_list":["post-700","post","type-post","status-publish","format-standard","hentry","category-department-of-insurance","category-major-publications-department-of-insurance","tag-doi","tag-fair-plan","tag-insurance","tag-insurance-renewals","tag-lara","tag-moratoriums","tag-report"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.2 - 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