Are California Insurance Tax Hikes Good for Uninsurable Homes?

LOS ANGELES - Oct. 8, 2024 - PRLog -- California is inhabited by 40 million people, more than half of whom own a home.(1) Since 2023, prospective homeowners have hit a roadblock in taking out a mortgage because insurers wouldn't take the risk of insuring their homes and Prop 103 prevented them from raising rates.

The main risks that make many California homes uninsurable are wildfires, other types of severe weather patterns, the inflationary costs of rebuilding and higher reinsurance premiums for insurers. Homeowners in wildfire-prone areas have been forced to turn to the California FAIR Plan, a state-run insurance policy offering very little coverage.

However, in late summer 2024, the California Department of Insurance finally allowed insurance companies to raise rates. The move will pinch consumers' wallets but is expected to stabilize an unwieldy insurance market in the state. Here's what you can expect if you're a home and car owner.

How To Lower Home Insurance: California Homeowners Want To Know

Always check the discounts the insurer offers and see which ones fit. You can easily save 25% or more on discounts alone. Here are some other ways to lower your monthly bill.

Shop Around for Better Deals

You can save money on homeowners insurance by comparing rates (https://smartfinancial.com/). Or see full article https://smartfinancial.com/home-and-car-insurance-increas...