California Overtakes Florida as the Riskiest Property Insurance Market

California is now the riskiest insurance market in the country, according to recent statistics. This is largely due to the threat of wildfires, which is now seen as more of a threat than Florida’s infamously severe storms. What does this mean for the average Florida homeowner? Will insurance rates decrease as a result of this new development? These are questions you might want to explore with a property insurance lawyer in Fort Lauderdale, especially after a denied claim.

It Is More Difficult to Get Home Insurance in California Than in Florida

According to new reports, Californians are now finding it even more difficult to find home insurance compared to their counterparts in the Sunshine State. While Florida is in the middle of a resurgence, California’s home insurance market is declining at a rapid pace. Recent statistics show that a record number of Californians cannot find home insurance.

This change has largely been attributed to wildfire risks. These risks have not deteriorated since the last wildfire season, which proved extremely destructive. Insurers are still trying to pay out wildfire claims from months ago, and they are withdrawing from areas with wildfire risks.

The California insurers that remain are “cherry-picking” the least risky homes to reduce their exposure. Everyone else is being forced to go to the insurer of last resort. This is a familiar story for many Florida residents, as cherry-picking is also extremely common in the Sunshine State.

However, if there is one positive thing to say about Florida’s insurance market, it’s the fact that its insurer of last resort (Citizens) is dropping policies rather than picking them up. This is the exact opposite of what is happening in California.

Some critics say that California should adopt more “business-friendly” policies, like the ones Florida has implemented to help insurance companies. However, these policies often come at the cost of the average homeowner – and this is something that Floridians know only too well.

Could Wildfires Happen in Florida?

The obvious factor behind this whole situation is the increased wildfire risk in California. However, one should remember that this risk is also present in Florida. The Sunshine State can become hot and dry, and this represents ideal conditions for wildfires. Although most people focus on hurricanes and floods in the context of property damage, wildfires could also pose a serious risk in Florida.

Florida is no stranger to wildfires, and they occur in the Sunshine State every year. In 1998, the state saw one of the most shocking firestorms of recent memory. These incidents can happen, and Florida residents should be prepared for them. Consider reviewing your home insurance policy to ensure proper wildfire coverage.

Contact Our Fort Lauderdale Property Insurance Lawyers Today

At Fuxa & Tyler, our legal team is made up of a diverse combination of attorneys who are well-positioned to protect the legal rights and financial interests of policyholders. If your property insurance claim was denied, we can help. For a free consultation, please call us today at (954) 990-5251. With an office in Sunrise, we represent policyholders in Broward County and throughout the state of Florida.

Sources: 

yahoo.com/news/california-fires-could-happen-florida-171301606.html

eenews.net/articles/california-leapfrogs-florida-in-us-insurance-risk/