We own 23 single-family homes in the area. All of the homes are located in working-class neighborhoods and we are fortunate to always have them filled at 100% occupancy. We have owned most of the homes since 2009 / 2010 timeframe, with a few being acquired since that time. I use an insurance broker to handle the insurance policies on these homes. Each home is covered by a general liability policy, and then I also have a large umbrella policy over all of the homes.

Last November we received notice that the insurance company was no longer going to work in the California market and that we would need to find another company to cover our homes. Our broker found another company and we signed the policy and bound coverage. I recently received notice from the new company that they were inspecting our homes. Following these inspections, the insurance company has notified me of numerous requests including: tenant needs to remove excess items from driveway and yard, too much trash and debris in the yard, have an electrical contractor verify the electrical system is up to code, have an HVAC contractor inspect the HVAC unit, and at one house they said the tenant was running a carpet business and this violates the policy so they immediately cut-off coverage (requiring me to go and buy a high-risk policy!).

My question is - are other owners on this forum seeing this big change? I have NEVER filed a single claim - and that's after having 250+ house years of ownership. I am guessing it's a combination of fire losses in California, and also tenant-favorable legislature in the state - but I have never seen anything like it. It makes me wonder if it's time to leave the business of owning these fantastic properties.

PS: I know a friend who also owns 15 similar houses and he has had the same issue with his homes.

Insurance in California - Much More Difficult Process This Year

Most Popular Reply

Contact Us