If you have your finger on the pulse of the insurance marketplace in California it would be flat lining. On Friday the industry received another heavy blow sending it into cardiac arrest.
Effective May 27, 2023, State Farm General Insurance Company®, the provider of homeowners insurance in California, announced that it will no longer accept new applications for property and casualty insurance. This will have an impact on a significant number of pending and future real estate transactions.
This decision was driven by a multitude of factors, including skyrocketing construction costs and inflation, growing catastrophic exposure, and a challenging regulatory and reinsurance market.
However, there is a glimmer of hope and a solution to help individuals and real estate professionals navigate this challenging market. A great way to prevent any difficulty finding your client’s insurance for their real estate purchase is to partner with an independent agency.
The Importance of Taking Action
The sudden halt in State Farm’s offerings requires immediate action for any real estate professional. To avoid any potential complications, it is crucial to take proactive steps. Here are a few essential tips to keep in mind:
- Contact Buyers in Escrow: Reach out to all buyers currently in escrow and ensure that they have selected their hazard or homeowners insurance. It’s important to confirm that they are aware of the changes and ready to explore alternative insurance options.
- Seek Alternative Coverage: If any buyer intended to use State Farm for their hazard or homeowners coverage, they will now need to select another insurance company promptly. Time is of the essence, and ensuring seamless insurance coverage is vital to keep the real estate purchase on track.
- Act Swiftly on Insurance Contingency: If the insurance contingency has been lifted, the sudden absence of State Farm as an option can significantly impact the closing process. Moving quickly to secure replacement coverage is crucial. However, be aware that it may take longer and cost more than anticipated, so acting promptly is essential.
Amidst the current disruptions in the insurance marketplace, there is a reliable partner that can help both individuals and real estate professionals overcome these challenges. Alta Vista Insurance is dedicated to assisting clients in finding the proper protection for their real estate purchases. Unlike direct insurance providers, Alta Vista Insurance has access to a wide range of insurance carriers currently offering property insurance throughout California. This breadth of options ensures that clients can obtain coverage tailored to their specific needs, even in the wake of State Farm’s withdrawal.
If you’re currently facing the dilemma of finding alternative insurance coverage due to State Farm’s exit from the California market, it’s time to take action. Reach out to Alta Vista Insurance and let their experienced professionals guide you through this insurance market. By partnering with Alta Vista Insurance, you can mitigate the disruption caused by State Farm’s departure, ensuring smooth and timely closings for your real estate transactions.
Contact one of our agents at 888-724-2124 or email quotes@aviains.com
The insurance marketplace in California is undergoing significant changes, and State Farm’s recent decision to cease accepting new applications has sent shockwaves throughout the industry. However, by staying proactive and seeking reliable alternatives, such as working with Alta Vista Insurance, you can successfully navigate these challenging circumstances. Don’t let disruptions hinder your real estate transactions. Take action today and secure the proper protection you need with the help of Alta Vista Insurance.
