2 More Home Insurance Companies To Leave California

Two more home insurance companies are leaving California, according to reports.

AmGUARD Insurance and Falls Lake Insurance will end their homeowners insurance programs in the state in the coming months, multiple outlets reported.

The companies announced the changes in state filings last month, according to The San Francisco Standard, which reported both insurers will drop current policyholders. AmGUARD insured more than 50,000 policies as of 2022, while Falls Lake had only about 900, the Standard reported.

AmGUARD and Falls Lake join major players Farmers, State Farm, Allstate and Liberty Mutual on the list of insurance companies to pull out of California in recent months, according to the Standard.

Over 100 companies still provide homeowners insurance in the state, the North Bay Business Journal reported.

“California’s market is robust but not immune to wildfires, extreme heat, and coastal and inland flooding,” Michael Soller, deputy commissioner for communications at the California Department of Insurance, told the Journal. “Our focus is on implementing necessary insurance market reforms to expand consumers’ choices in California, especially in high-risk areas.”

AmGUARD, a subsidiary of Berkshire Hathaway GUARD Insurance Companies, is relatively new to the market, as of 2019, and saw losses that were sometimes twice the average in recent years, Soller told the Standard.

California does offer insurance through its FAIR Plan, but it is considered an “insurer of last resort,” according to the Journal.