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

3 years 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.

Oakland Post

Posts by Oakland Post

Up Next

PRESS ROOM: Senators Carper and Cassidy and Representatives Ruiz and Wenstrup Take Action to Combat the Obesity Epidemic

Don't Miss

OPINION: Councilmember Ramachandran Statement on Proposed Mayor’s Salary Increase

Oakland Post

Click to comment

Activism

Oakland Post: Week of February 25 – March 3, 2026

The printed Weekly Edition of the Oakland Post: Week of – February 25 – March 3, 2026

Published

3 days ago

March 1, 2026

Oakland Post

To enlarge your view of this issue, use the slider, magnifying glass icon or full page icon in the lower right corner of the browser window.

Oakland Post

Posts by Oakland Post

Activism

Chase Oakland Community Center Hosts Alley-Oop Accelerator Building Community and Opportunity for Bay Area Entrepreneurs

Over the past three years, the Alley-Oop Accelerator has helped more than 20 Bay Area businesses grow, connect, and gain meaningful exposure. The program combines hands-on training, mentorship, and community-building to help participants navigate the legal, financial, and marketing challenges of small business ownership.

Published

2 weeks ago

February 21, 2026

Oakland Post

Bay Area entrepreneurs attend the Alley-Oop Accelerator, a small business incubation program at Chase Oakland Community Center. Photo by Carla Thomas.

By Carla Thomas

The Golden State Warriors and Chase bank hosted the third annual Alley-Oop Accelerator this month, an empowering eight-week program designed to help Bay Area entrepreneurs bring their visions for business to life.

The initiative kicked off on Feb. 12 at Chase’s Oakland Community Center on Broadway Street, welcoming 15 small business owners who joined a growing network of local innovators working to strengthen the region’s entrepreneurial ecosystem.

At its core, the accelerator is designed to create an ecosystem of collaboration, where local entrepreneurs can learn from one another while accessing the resources of a global financial institution.

“This is our third year in a row working with the Golden State Warriors on the Alley-Oop Accelerator,” said Jaime Garcia, executive director of Chase’s Coaching for Impact team for the West Division. “We’ve already had 20-plus businesses graduate from the program, and we have 15 enrolled this year. The biggest thing about the program is really the community that’s built amongst the business owners — plus the exposure they’re able to get through Chase and the Golden State Warriors.”

According to Garcia, several graduates have gone on to receive vendor contracts with the Warriors and have gained broader recognition through collaborations with JPMorgan Chase.

“A lot of what Chase is trying to do,” Garcia added, “is bring businesses together because what they’ve asked for is an ecosystem, a network where they can connect, grow, and thrive organically.”

This year’s Alley-Oop Accelerator reflects that vision through its comprehensive curriculum and emphasis on practical learning. Participants explore the full spectrum of business essentials including financial management, marketing strategy, and legal compliance, while also preparing for real-world experiences such as pop-up market events.

Each entrepreneur benefits from one-on-one mentoring sessions through Chase’s Coaching for Impact program, which provides complimentary, personalized business consulting.

Garcia described the impact this hands-on approach has had on local small business owners. He recalled one candlemaker, who, after participating in the program, was invited to provide candles as gifts at Chase events.

“We were able to help give that business exposure,” he explained. “But then our team also worked with them on how to access capital to buy inventory and manage operations once those orders started coming in. It’s about preparation. When a hiccup happens, are you ready to handle it?”

The Coaching for Impact initiative, which launched in 2020 in just four cities, has since expanded to 46 nationwide.

“Every business is different,” Garcia said. “That’s why personal coaching matters so much. It’s life-changing.”

Participants in the 2026 program will each receive a $2,500 stipend, funding that Garcia said can make an outsized difference. “It’s amazing what some people can do with just $2,500,” he noted. “It sounds small, but it goes a long way when you have a plan for how to use it.”

For Chase and the Warriors, the Alley-Oop Accelerator represents more than an educational initiative, it’s a pathway to empowerment and economic inclusion. The program continues to foster lasting relationships among the entrepreneurs who, as Garcia put it, “build each other up” through shared growth and opportunity.

“Starting a business is never easy, but with the right support, it becomes possible, and even exhilarating,” said Oscar Lopez, the senior business consultant for Chase in Oakland.