While homeowners are experiencing great difficulties as new home insurance subscriptions are restricted and home insurance premiums are skyrocketing in California, a bill has been proposed at the federal level to prevent insurance premiums from skyrocketing and stabilize the insurance market, attracting attention. An increasing number of home insurance companies are no longer accepting new subscribers in California, claiming that their profit structure is not suitable due to climate change such as forest fires, floods, and landslides.
Even if they do accept subscribers, home insurance premiums have recently skyrocketed, making insurance subscription another headache for California residents. It is becoming. As home insurance and auto insurance premiums soar across the country, including California, becoming a social issue, U.S. Representative Adam Schiff from Burbank introduced a related bill to the Federal Assembly on the 10th to stabilize the insurance market.
This bill, called the “Insure Act,” seeks to require insurance companies to provide homeowners with coverage for all natural disasters. The main point is that the government must intervene to ensure that residents in areas affected by wildfires receive coverage from insurance companies and to stabilize skyrocketing insurance premiums. Representative Schiff said in a statement that the ‘Insure Act’ will prevent a home insurance crisis by causing insurance companies to stop accepting new home insurance subscribers in California due to frequent wildfire damage, or to significantly increase home insurance premiums for insurance companies accepting new subscribers. He pointed out that the federal bill proposed this time is to ensure that homeowners receive the insurance coverage they need at an affordable price.
In California, major insurers State Farm and Allstate have stopped accepting new insurance policies for private homes and business buildings in California. Farmers also began restricting new home insurance subscriptions. Merastar Insurance Company, Unitrin Auto & Home Insurance Company, Unitrin Direct Properties, Casualty Company, and Kemper Independence Insurance Company also restricted new insurance subscriptions.
The situation is similar not only in California, but also in Colorado, Louisiana, and Florida. In California, the state Insurance Department has introduced a “Sustainable Insurance Strategy” to encourage insurance companies to resume coverage in wildfire-affected areas, but this has not stopped insurance premiums from skyrocketing.
Rep. Schiff’s bill, which calls for the federal government to step in to prevent insurance premiums from skyrocketing and stabilize the insurance market, must be approved by the Senate and House of Representatives, and approved by the President.