Business

Residential Insurance Prices Increase as Insurers Slow Business in California

Joseph Thomas was surprised to receive a notice from his homeowner’s association (HOA) this spring letting him know that there would be an increase in insurance premiums for him and other condominium owners at The Met in Los Angeles’ San Fernando Valley. The letter stated the increase was due to instability in California’s property insurance market. This left Thomas feeling perplexed.

Published

1 year ago

July 20, 2023

Oakland Post

California Insurance Commissioner Ricardo Lara. Official portrait.

By McKenzie Jackson
California Black Media

The letter stated the increase was due to instability in California’s property insurance market. This left Thomas feeling perplexed.

“They said the premium was going up because it was hard to get insurance in California now, and a lot of companies are leaving,” he recalled. “I started Googling because I didn’t believe it. I thought they were robbing us of our money, but I Googled it. It is a thing.”

The withdrawal of large insurance carriers like Allstate and State Farm from California’s insurance market will have a significant impact on claims, at least one claims services provider has told insurance businesses, said Maurice Arnold of Robert Arnold and Company in Oakland.

Remaining carriers must shoulder huge catastrophic risks in the state, which often sees enormous claims from wildfire damage. We can expect insurance carriers to respond by tightening their underwriting and raising premiums. When lots of companies pull out of the market, it puts pressure on exiting companies to try to offset risk with tighter underwriting and increase premiums, Arnold said.

Giant insurance companies are refusing to offer or renew coverage for homes and residential complexes across the state due to the looming threat of wildfires, natural disasters, inflation, and other factors and, as they claim, their ability to get adequate rates to pay for these increased costs.

Since 2020, the state has experienced eight disaster events resulting in overall claims ranging from $20 billion to $50 billion. This has caused an increase in pressure from insurance companies to tighten California’s consumer-friendly policies that have held down rates for years.

California Rental Housing Association (CalRHA) Executive Director Russell Lowery said insurance premium costs have jumped up millions of dollars for property owners in his group.

“With insurers leaving the market that means our members don’t get as competitive of a quote,” he noted.

Lowery said rising insurance prices hit renters’ pockets also.

“Extraordinary increases,” he noted. “The pressure on property owners to pay that cost in the form of higher rent is very real.”

California Insurance Commissioner Ricardo Lara has taken steps to make insurance more affordable for Californians. The steps include expanding FAIR Plan coverage options and requiring insurance companies to acknowledge and reward wildfire safety and mitigation efforts made by property owners. The commissioner is also in ongoing discussions with insurers to address their rate increase requests.

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Oakland Post: Week of December 18 – 24, 2024

The printed Weekly Edition of the Oakland Post: Week of December 18 – 24, 2024

Published

1 day ago

December 20, 2024

Oakland Post

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BWOPA Honors Black Leadership and Legacy at 2024 Ella Hill Hutch Awards Dinner

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills. At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

Published

4 days ago

December 18, 2024

Oakland Post

L-R: BWOPA State Executive Director LaNiece Jones; State Asm. Mia Bonta; BWOPA 2024 Man of The Year/Urban League SFBA CEO Ken Maxey; BWOPA State President Hon. Dezie Woods-Jones; State Senator Lola Smallwood-Cuevas; Rowena Brown, Oakland Councilmember At-Large, Elect; BWOPA State Regional Director Vashone Huff. Courtesy photo.

By Oakland Post Staff

Black Women Organized for Political Action (BWOPA) is a statewide non-profit advocacy and membership organization committed to solving problems affecting Black Californians.

On Dec. 5, BWOPA held its Annual Ella Hill Hutch Awards Ceremony, at the Fairmont Claremont Hotel in the Oakland/Berkeley Hills.

At the event, the group comprised of Black women from various professional backgrounds, honored distinguished local and state leaders whose contributions have shaped civic engagement and advanced critical social issues impacting Black communities.

The evening was hosted by Dr. Shawna Charles, founder of The Charles Communications Group (CCG) headquartered in Los Angeles. Charles served as mistress of ceremonies.

With a track record of elevating voices and empowering communities, Charles’ leadership and insight brought a certain dynamism to the celebration.

“Each year, this event not only celebrates the enduring legacy of our beloved BWOPA founding member, Ella Hill Hutch, but also reaffirms and amplifies our unwavering commitment to building and sustaining Black political power across California,” said Dezie Woods-Jones, BWOPA founding member and State president.

“Ella Hill Hutch’s trailblazing leadership continues to inspire us as we forge ahead, empowering Black women to lead, advocate, and shape a more equitable future for all,” added Woods-Jones.

This year’s event introduced the DWJ Rising Star Award, honoring young leaders like Solano County Board Supervisors-elect Cassandra James, Danielle Motley-Lewis, Naomi Waters and newly elected State Assemblymember elect Rhodesia Ransom (D-Stockton).

According to organizers, the awardees all exemplify “the next generation of changemakers.”

Other awardees included:

Lifetime Achievement Awardees: Congresswoman Barbara Lee (D-CA-12) and Alameda County Supervisor Keith Carson
Man of the Year: Kenneth Maxey, CEO of the Greater SF Bay Area Urban League
President’s Corporate Award: Yvette Radford, Kaiser Permanente
In the Spirit of Ella State and Chapter Awards: Dr. Carolyn Greene, Dr. Marcella K. Smith, Dr. Carolyn Drake, Tinisch Hollins, Jackie Jones, Gloria Burgess Johnson, Tamika L’Ecluse, Ellen Nash, Betty Reid Soskin, and Ay’Anna Moody.

BWOPA also celebrated local champions across its chapters, including leaders in voter education, healthcare, criminal justice reform, and community advocacy.

In a statement, BWOPA said, “Honoring Ella Hill Hutch’s legacy, BWOPA recognizes her pioneering efforts as the first Black woman elected to the San Francisco Board of Supervisors. Her tireless work amplifying underrepresented voices continues to inspire BWOPA’s mission to build Black political power across California.”

“We extend our heartfelt thanks to our members, partners and allies who believe in BWOPA’s vision to invest in building power for Black women’s leadership,” said LaNiece Jones, BWOPA State executive director. “Your support ensures that Black women have a voice at decision-making tables locally, regionally, statewide, and nationally, advancing diversity and equity in leadership spaces.”