Article originally appeared on www.washingtonexaminer.com.
Two new home insurers have abruptly announced plans to exit the California insurance market , further reducing options for residents in the state to protect their properties when risks of wildfires and other extreme weather events are on the rise.
AmGUARD Insurance, a subsidiary of Berkshire Hathaway-owned GUARD Insurance Companies, said it would withdraw its homeowners insurance policy and its personal umbrella policy program in California, while Falls Lake Insurance also announced plans to end its homeowners insurance program in the state.
The insurers’ plans, made public late last month, make them the latest in a growing list of California home insurers who have either scaled back or pulled out operations altogether in the state amid growing exposure to wildfires and a challenging reinsurance market.
State Farm, which is currently the largest home insurance provider in California, made headlines earlier this summer after it announced it would stop insuring new homes in the state, citing historic increases in construction costs, “rapidly growing” catastrophe risks, and reinsurance market challenges as the reasons behind its decision.
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