Realtors in California are facing challenges due to high homeowners insurance costs and limited availability, resulting in nearly double the number of failed deals compared to the previous year, according to the California Association of Realtors. In 2023, 7 percent of realtors experienced deal failures due to insurance issues, compared to 13 percent in the current year. The association’s senior vice president, Jordan Levine, noted that the problem is impacting both urban and rural areas in the state. Despite expectations of increased access to insurance in the future, costs are likely to remain high. Insurance carriers have requested significant premium increases, raising concerns among residents and industry experts. The situation has prompted state officials to propose reforms to address the insurance crisis and ensure market stability. “It will provide assistance to homeowners facing increased wildfire risks by ensuring they have the necessary coverage, while also alleviating the strain on the state’s FAIR Plan.
Supervisors in several counties, including Placer, San Bernardino, San Mateo, and Shasta, have passed resolutions urging a state of emergency declaration in response to the ongoing insurance challenges.
San Mateo County Supervisor Ray Mueller emphasized the severity of the situation, stating that California is currently experiencing an insurance crisis in terms of both affordability and availability.”
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