An unprecedented number of wildfires in California, and losses of billions of dollars, has caused some big insurance companies to stop writing homeowners policies for nearly 2 million of its residents. The California Insurance Department said Thursday that it had received more than 50,000 applications from people who wanted to buy coverage through the state's new online marketplace, Covered California. Instead, they are turning to much more ﻿expensive specialty polices that provide unusual risk insurance for areas like major construction projects or rare art collections. These companies include Nationwide Mutal Insurance, Lexington and Lloyds of London. "In the past two years it's really taken off, and most of that is really driven by the fires" says Andy Fletcher of one such specialty insurance firm, Scottish American, who adds that now around 80% of the policies he writes are in high fire areas.
An unprecedented number of wildfires in California, and losses of billions of dollars, has caused some big insurance companies to stop writing homeowners policies for nearly 2 million of its residents. Though they can purchase limited fire coverage from a state-established consortium of insurance companies, data shows they are chosing not to. Instead, they are turning to much more ﻿expensive specialty polices that provide unusual risk insurance for areas like major construction projects or rare art collections. These companies include Nationwide Mutal Insurance, Lexington and Lloyds of London. "In the past two years it's really taken off, and most of that is really driven by the fires" says Andy Fletcher of one such specialty insurance firm, Scottish American, who adds that now around 80% of the policies he writes are in high fire areas.