Insurance crisis in California: Here are the carriers that have fled or reduced coverage in the state

U wildfires ravaging Southern California are expected to add more fuel to the state’s ongoing insurance crisis as residents’ options for property coverage continue to dwindle or even disappear.

Many insurance companies they fled California, stopped writing new policies or otherwise reduced their exposure in the Golden State, citing business risks amid rising replacement costs and an inability to adequately raise premiums.

Homes burn as powerful winds drive the Eaton Fire on January 7, 2025 in Pasadena, California. (David McNew/Getty Images/Getty Images)

Here is a list of some of the insurance companies that have scaled back or left California in recent years:

Allstate

Insurance giant AllState has paused its sale of new home insurance policies in California in 2022 due to wildfires and higher costs of doing business in the state.

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American National

Texas-based American National announced last year that it would stop offering homeowners insurance in the California market.

AmGUARD

AmGUARD, a subsidiary of Owned by Berkshire Hathaway GUARD Insurance Company will stop writing homeowners policies in California in 2023.

Chubb

Insurance company Chubb began reducing its California exposure more than three years ago. (Photo illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images/Getty Images)

Chubb President and CEO Evan Greenberg announced in a 2021 earnings call that the company will significantly reduce homeowners coverage in California, citing fire risks and the state’s insurance regulation , according to S&P.

Falls Lake Insurance

Falls Lake notified the California Department of Insurance in 2023 that it was pulling out of the state entirely because the company couldn’t get reinsurance, PropertyCasualty360 reported that year.

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Farmers Insurance Group

Farmers Insurance Group began limiting coverage in California in 2023, and later that year, one of its subsidiaries, Farmers Direct Property and Casualty Insurance Company, withdrew from the state entirely.

All over the country

Nationwide Private Client, a subsidiary of Nationwide, informed California last year that it will stop renewing all of its home insurance policies in the state by June 2025, according to the San Francisco Chronicle.

State Farm

A sign is displayed in front of a State Farm insurance office on January 3, 2024 in Berkeley, California. State Farm announced last year that it would discontinue 72,000 insurance policies in the Golden State. (Justin Sullivan/Getty Images/Getty Images)

State Farm, California’s largest home insurer, announced in 2023 that it would no longer accept applications for property insurance and other policies in California, citing “historic” increases in construction costs and inflation.”

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So in March of last year, the company said it would be cut 72,000 home and apartment policies starting from summer.

The Hartford

The Hartford Financial Services Group has stopped writing new homeowners insurance policies in California beginning in 2024.

Tokio Marine Insurance Co., Trans Pacific Insurance Co.

Tokio Marine America Insurance Co. and Trans Pacific Insurance Co., both owned by Japanese firm Tokio Marine Holdings Inc., filed notices with the California Department of Insurance in April 2024 saying the companies would. stop offering homeowners insurance and umbrella policies in the state.

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The travelers

The San Francisco Chronicle reported that Travelers Insurance announced it would not renew homeowners policies for thousands of properties in California from 2022 and 2023 because of the risk of wildfires.