San Bernardino County supervisors are asking state officials to declare a statewide state of emergency as insurance companies continue to limit business in the Golden State.
The Board of Supervisors unanimously voted on June 25 to adopt a resolution asking California Insurance Commissioner Ricardo Lara, Gov. Gavin Newsom and the State Legislature to declare a state of emergency and take action to strengthen and stabilize the state’s insurance marketplace, the San Bernardino Sun reported.
The state of emergency, if declared, would bar insurance providers from dropping current homeowners policies.
The resolution comes as major insurers, including State Farm and Allstate, have decided to limit business in California. Last year, State Farm announced it would stop accepting new insurance applications for all business and personal property in California.
Most recently, the company’s California subsidiary, State Farm General, recently submitted a request to the California Department of Insurance to raise insurance rates for homeowners, condo owners and renters in the Golden State.
Other insurance companies, including Allstate and Farmers Insurance, have announced plans to limit business in the Golden State.
The rapid decrease in insurance companies offering services to California residents has resulted in many new and existing homeowners turning to California’s FAIR plan for coverage. The plan covers basic hazards but is described as a “temporary safety net” since it was never meant to replace insurance coverage companies can offer.
