San Diego County realtor, property owner reacts to providers halting … – ABC 10 News San Diego KGTV

SAN DIEGO — Roughly one week after State Farm’s similar announcement, Allstate confirms to ABC 10 News it paused new homeowners, condo, and commercial insurance policies in California last year.
A spokesperson for Allstate said the move is “so we can continue to protect current customers.”
The statement provided read in part:
Sean Zanganeh, a San Diego-based real estate agent called the repetitive move by insurance providers “frustrating.”
In an interview with ABC 10News, Zanganeh says “It does limit customers and clients of where they can go get insurance for their properties.”
Fewer insurance providers means “Prices are just gonna go up,” says Dan McCormick, who owns a property in North County.
McCormick is not even searching for a new property but describes a chaotic experience with property insurance regardless.
He moved to Ramon roughly six years ago and says within those six years he has had four different insurance providers, even switching back and forth between some of them.
McCormick says the lack of stability in his insurance is due to providers constantly canceling.
“My agent’s telling me the only thing that we have going now is California FAIR Plan, that all other companies are not insuring anybody, especially in Ramona, because most of Ramona is considered a high fire risk area.”
However, McCormick says theCalifornia FAIR Plan, which helps cover fire insurance for people who cannot find it elsewhere, is much more expensive than any other option.
McCormick as considered leaving California as a result of the cost, but has family in the area and wants to “tough it out” as long as possible.
Zanganeh constantly notices the impact of fewer insurance providers, especially for young, first-time homebuyers who are interested in more affordable homes where fire danger might be higher.
“Where we have to kind of backtrack and educate is making sure they understand… You might be going to an area where the home might seem less expensive, but what you have to take into consideration is actually what that’s doing to your total payment,” says Zanganeh.
Read the full statement from State Farm regarding the decision here.


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